Champions of change

Joining forces

mjitaru — Thu, 17 Oct 2024 09:58:57 +0000

Joining forces mjitaru Thu, 17.10.2024 - 11:58

News+Facts

Joining forces

Whether it’s efficiency, compliance or decarbonization, companies in the process industry are facing an array of challenges. Endress+Hauser and SICK have entered into a strategic partnership in process automation to provide customers with even better support.

Text: Martin Raab

Photography: SICK, Endress+Hauser

More than a year ago, German sensor specialist SICK and Endress+Hauser announced their intention to join forces in the field of process automation. In summer of this year, representatives of the two family-owned businesses concluded an agreement to this effect. Subject to approval of the transaction by antitrust authorities, the strategic partnership can come into effect at the turn of the year 2024/2025.

Essentially, the aim is to sell SICK’s process analysis and gas flow measurement technology exclusively via Endress+Hauser in the future. To that end, around 800 specialized sales and service employees in 43 countries are set to transfer from SICK to Endress+Hauser at the turn of the year. At the same time, production and development of devices will be taken over by a joint venture in which each partner intends to hold a 50 percent stake. It will employ over 730 people at several German locations.

2 Many customers in the process industry already use both SICK and Endress+Hauser products to increase their efficiency.

1 Process analyzers and gas flowmeters from SICK are to be distributed solely by Endress+Hauser from 2025.

Broader portfolio, broader expertise

The two companies’ process technology product portfolios complement and augment each other. SICK’s process analyzers and gas flowmeters are used primarily in waste incineration plants, power, steel and cement plants, in the oil & gas industry, in chemical and petrochemical plants, and in maritime operations, including applications such as measuring the flow of natural gas and hydrogen or measuring emissions from flue gas scrubbing.

The partnership’s aim is to provide customers in the process industry with even better support to improve efficiency and sustainability. They will benefit from a broader range of solutions and a faster pace of innovation. The two companies have already cooperated on an order, project and customer basis. In the future, the global Endress+Hauser sales network will enable the partnership to handle additional customers, reach more industries and develop new areas of application. To drive innovation and leverage synergies, the joint venture for production and development will be closely interlinked with Endress+Hauser’s competence centers.

Partners with much in common

As family-owned businesses, SICK and Endress+Hauser share a similar set of values, a people-focused corporate culture and a long-term strategic stance. Both companies see business opportunities in the process industry’s transition to sustainability. Together, they aim to support their customers in key areas such as energy and resource efficiency and help them decarbonize their production processes in the long term.

Both sides are currently working at high priority to prepare for a seamless transition of business. Until the deal is closed, SICK and Endress+Hauser will continue to support their process automation customers independently. SICK’s strong core business of factory and logistics automation will be unaffected by the merger with Endress+Hauser and will benefit from a stronger focus.

Smart sensor solutions

Light, combined with precise optics and smart electronics, can be used to perform a multitude of tasks. Dr Erwin Sick saw this potential early on and founded his own company in 1946. One of its first products was a safety light curtain that prevented accidents around machinery in operation. From those beginnings, SICK has developed into one of the world’s leading providers of smart sensors and solutions for industrial automation. Today’s company, based in Waldkirch in Germany, is among the technology and market leaders. It has a presence around the globe with 60 subsidiaries and holdings, plus numerous agencies. SICK employs more than 12,000 people worldwide and generated consolidated sales of 2.3 billion euros in the 2023 financial year. At the core of the business is factory and logistics automation, where SICK generates over 80 percent of its sales.

2023

OCTOBER: Memorandum of understanding is signed between SICK and Endress+Hauser on a strategic partnership in process automation.

The possibility of close cooperation is examined; a business model is designed for marketing process technology via Endress+Hauser.

2024

JULY: Following approval by their respective supervisory bodies, SICK and Endress+Hauser sign a strategic partnership agreement.

Systems and processes are readied for integration; a production and development joint venture is formed.

2025

JANUARY: The joint venture commences operations; process technology sales are handled exclusively by Endress+Hauser.

Champions of change Company

Achieving more together

smanetsch — Tue, 08 Oct 2024 06:26:24 +0000

Achieving more together smanetsch Tue, 08.10.2024 - 08:26

People+Culture

Achieving more together

Why are SICK and Endress+Hauser joining forces on process automation? What is the benefit to customers? And what is required for this partnership to be a success? Mats Gökstorp and Peter Selders take the time to answer our questions.

Questions: Martin Raab

Photos: Andreas Mader

Dr Gökstorp, what prompted you to team up with another company on process automation?

Gökstorp: Many industrial companies are seeing rapid global change. High energy costs, mandatory sustainability goals, political and societal expectations, all those are drivers of sweeping transformation processes. That's why companies want and need to restructure their production processes to make them more energy efficient. And yet, for such transformation to be a success, companies cannot afford to lose sight of their profitability. This is where we see a major market opportunity. Process automation is a relatively small part of SICK’s business. Our core fields are factory and logistic automation, which together account for more than 80 percent of our revenue. That's why we have come to the conclusion that a strategic partnership makes sense from both a technological and a sales perspective. We know that with a suitable partner, we can better support our customers and benefit more from growth opportunities.

What made Endress+Hauser stand out in your search for a partner?

Gökstorp: It was an obvious choice for at least two reasons: First, like SICK, Endress+Hauser is a technology leader in its field of activity, and our respective product portfolios match up very well. Second, there are a lot of similarities between our two companies. So, I was sure from the start that this would be a good fit in terms of technology, culture and people. And this turned out to be the case when we set about establishing our partnership.

Dr Selders, why does it make sense for Endress+Hauser to go down this path of partnership?

Selders: Quite simply, because here is a case where we are more than the sum of our parts. After looking carefully at the potential of close collaboration, we have concluded that pooling our strengths in process automation will bring great benefits to both sides. This strategic partnership opens up opportunities for growth and development. Together, we can achieve more, and faster than either company could on its own.

Endress+Hauser and SICK are no strangers to working together on orders and projects, with mutual customers. What does the partnership mean beyond that?

Selders: We at Endress+Hauser have always seen partnerships as opportunities to build something new together. That isn’t possible with ad hoc collaboration. So in this partnership we want to grow in tandem and continue our long-term development, adding value for our customers through cooperation, networking and interaction between people. Technology and products matter – they are what our business is based on. But people are crucial. They make the difference. They contribute their knowledge, skills and personality. This is what we’re looking forward to!

Gökstorp: Our common goal is to give customers the best possible support all along the value chain. Together, we want to offer first-class technologies and services that will best address our customers’ challenges. Parallel to this, we put special emphasis on our employees. My goal has always been to find good solutions for them. Only then can our partnership be successful.

“We want to grow in tandem in this partnership and further evolve over the long term, adding value for our customers through cooperation, networking and interaction between people.”

Peter Selders

CEO of the Endress+Hauser Group

Advancing with farsighted vision

Physicist Dr Peter Selders (54) took over as CEO of the Endress+Hauser Group in 2024. He previously worked for 20 years at the Group’s product center for level and pressure measurement in Maulburg, Germany, serving as managing director from 2019. Paraphrasing the mountaineer Rainer Petek, he says, “We overestimate our ability to plan for things and underestimate our ability to deal with uncertainty.” Yet as a keen hiker himself, he knows how essential good preparation is, and not just up in the mountains.

The partnership will expand Endress+Hauser’s offering to include process analysis and gas flow measurement technology from SICK. How will customers benefit?

Selders: Our customers are interested in improving their processes and increasing their efficiency. Being able to purchase more products from a single source will make their lives easier. For instance, SICK’s gas flowmeters make it possible to switch to low-emission and non-fossil energy sources; emissions can be reliably monitored with their process analyzers. These products ideally complement our own portfolio. Their products, like ours, are high quality and lead the field in their respective applications.

A joint venture will handle the production and further development of SICK process technology. What can customers expect from this partnership?

Gökstorp: Customers will experience a professional partner combining the strengths of Endress+Hauser and SICK. They will benefit from a series of new solutions in emissions monitoring and flow measurement, plus expert advice on the best one for their needs.

Selders: The joint venture will be integrated into our innovation, production and logistics networks. Medium term, we are looking to gain momentum and leverage synergies through exchange and collaboration. But the current focus is on integration into the new structures. It’s about getting to know each other, making contacts, building trust. We are embarking on a journey together.

In the future, it will be Endress+Hauser handling sales and service. What prompted you to bring the sales and service teams into the partnership?

Selders: A joint sales organization offers many opportunities. Through our global network, we can reach new customers for SICK’s process analyzers and gas flowmeters, gain access to more industries and open up new application areas. In addition, we envisage SICK process technology bringing in more opportunities for our current portfolio. This entails all of the various product specialists working very closely together, exchanging ideas, coordinating their activities. Which in turn calls for an overarching organization and a shared IT infrastructure. Wherever you look, digital platforms and seamless service feature increasingly in customer interactions. So deep integration on the sales and service side makes a lot of sense.

Gökstorp: Pooling sales and service is important and the right thing to do. Only then can we truly combine the immense expertise of both companies and provide yet more comprehensive advice and support to our customers. They in turn will reap the benefits, especially in light of all the new applications that the industry needs.

“The fact that our product portfolios are complementary was a basic premise for our partnership. But we would never have come together without a foundation of shared culture and values.”

Mats Gökstorp

Chairman of the Executive Board of SICK AG

A passion for innovation

Computer scientist and engineer Dr Mats Gökstorp (59) attended university in his native Sweden and in the USA. He began his career at a Swedish start-up that was acquired by the sensor specialist SICK in 2003. Since 2007, he has worked for the group in Germany. In 2013 he was appointed to the Executive Board of SICK AG and has been chairman since 2021. The company has retained the spirit of a start-up, he says: “We are developers. We are passionate about using technology for good.”

The contract was signed in the summer. What tasks and challenges are there still to overcome before the deal is finalized?

Gökstorp: First of all, I am very grateful to the many colleagues on both sides who got things ready for the contract signing. Now it’s a matter of taking the steps necessary for the joint venture to start operations. The present focus is shifting to very specific issues like the design of the joint venture’s IT landscape. In customers’ best interests, we are doing everything possible to ensure seamless continuation of business. And of course, we are getting ready for the transfer of our sales and service experts to Endress+Hauser. It is of personal importance to me that this changeover goes smoothly for the people involved.

Both companies are breaking new ground with this partnership. What convinced you that teaming up would be successful?

Gökstorp: As I mentioned, Endress+Hauser and SICK have been collaborators for many years. The fact that our existing product portfolios are complementary technology-wise was a basic premise for our partnership. But we would never have come together without a foundation of shared culture and values. Ultimately, it is people who shape partnerships like this one and steer them to success.

Selders: Our companies have so much in common. Not least a shared conviction that our work contributes to solving major societal challenges. SICK and Endress+Hauser both see sustainable transformation as an opportunity. What’s more, we are joining forces from a position of strength. Both companies are market successes in their own right. But we are convinced that together we can achieve more: for our customers, for our employees and for our respective companies. This has been reinforced by our consistently constructive and forward-looking work together in the lead-up to the contract signing, notwithstanding the challenges.

Assuming we meet again in five years’ time – what do you hope you will be able to say about the partnership?

Selders: I hope that we’ll look back and say that we made the right decision back then, that we acted at the right time to guide our customers effectively into a sustainable future and that together we resolved the issues that we faced in our partnership.

Gökstorp: I want to be able to say that we made a progressive, farsighted decision in the interests of our customers as well as the employees at SICK and Endress+Hauser. By making the most of the available market opportunities, we aim for customers, employees and society as a whole to reap the benefits of our strategic partnership in the long term. And I am convinced that we will achieve this together.

Champions of change Company

The bridge- builder

smanetsch — Thu, 05 Sep 2024 10:57:33 +0000

The bridge- builder smanetsch Thu, 05.09.2024 - 12:57

People+Culture

The bridge- builder

Jawad Tayyub and his team are developing AI solutions for next-generation measuring devices and advanced production technology. He is championing the opportunities offered by the new technology and is calling for a dialogue between researchers and practitioners.

As told to Jannik Jürgens

Photography: Andreas Mader

“Many people see artificial intelligence as something creepy or even threatening. They fear it could take their jobs away one day, but I don’t see that happening any time soon. AI can help humans immensely. For example, it has the potential to handle some of our tasks – especially the unpleasant and monotonous ones. What it can’t do, though, is replace our creative thinking and complex decision-making.

As an AI research scientist at the competence center for level and pressure measurement technology, I develop AI algorithms for our production and next-generation measuring technology. As part of the Group-wide AI knowledge community, I also want to raise awareness throughout Endress+Hauser of the opportunities that the technology offers us.

There’s one thing I would like people to know: AI isn’t voodoo, it’s elevated statistics. AI-based large language models such as ChatGPT can provide precise responses to questions because we humans have provided them with answers to similar questions. We have written down tons of information online, and a generative model simply utilizes it to learn the statistical patterns on which language is based. When we ask the model questions, it uses the patterns it has learned to generate responses by stringing one word after another. However, it often lacks an understanding of the meaning and the underlying rules that govern the content it produces.

One example of this is multiplication. Simple calculations like six times six are no problem for the models. But if you ask them to multiply two five-digit numbers, they get it wrong. Why? Because they haven’t been exposed to enough examples of such problems to learn how to produce the right answers.

Dr Jawad Tayyub (34) works as an AI research scientist at the Endress+Hauser competence center for level and pressure measurement technology. The computer scientist and expert in artificial intelligence previously conducted research at the University of Leeds in the UK.

That said, AI is capable of helping us in all areas of the company, taking over laborious tasks such as checking products for visual defects and analyzing large volumes of texts. To make that possible, though, we need sufficient quantities of the right data to train AI on. This is particularly true in the development domain, where everything is based on standards – some of which span hundreds of pages. By adapting a large language model, we can enable colleagues to quickly extract the desired information from said documents.

No matter what the challenge is, my team and I find the optimal algorithm for the corresponding use case. Complex production activities, in particular, require very sophisticated and highly bespoke solutions. For example, we recently developed a new neural network architecture for our colleagues in that sector. This model, inspired by neural networks used in the medical domain, detects the edge of a weld seam between two metals automatically and precisely.

AI is a new, up-and-coming technology. Every week brings new algorithms and models with it. We now have more than 200 of them. I collaborate regularly with professors from Germany and the UK, attend conferences and supervise students’ theses. It’s important that we expand this transfer of knowledge in order to be at the cutting edge and find better and better solutions.”

Digitalization Champions of change

3 questions for Benjamin Mewes

mjitaru — Mon, 22 Jul 2024 09:08:58 +0000

3 questions for Benjamin Mewes mjitaru Mon, 22.07.2024 - 11:08

People+Culture

3 questions for Benjamin Mewes

Hydrologists Dr Benjamin Mewes and Dr Henning Oppel founded Okeanos in 2019. The start-up, based in Bochum, Germany, is working on projects including AI-based solutions for flood protection, storm monitoring and optimizing water treatment plant management.

Your goal with Okeanos is to modernize water and wastewater management. What role do data and AI play in this?

A crucial one, considering that we have more environmental information and measurements today than ever before. Our purpose is to analyze them and from there find answers to the industry’s questions on future topics such as sustainability,
the shortage of skilled labor and the impact of climate change. AI is just one item in our toolbox to do that. It lets us link data together much faster to gain an overview of the situation and create hydrological models. Our overall mission is to combine water resources engineering with modern IT strategies.

You develop your solutions in partnership. Why do you focus so strongly on collaboration?

We can’t do everything on our own. Digitalization and modernization only work if you collaborate. That’s why we’re on the lookout for partners with whom we can develop a shared vision and generate synergies. Endress+Hauser is such a partner. Our areas of expertise complement each other perfectly. That’s also reflected in the speed with which we developed the flood warning system. Both sides brought the right basics to the table. All we had to do was refine from there. The result is a standout product, the likes of which we could only have created in this partnership.

Endress+Hauser is a large company with a long history. You’re a small and recently founded one. Do you feel that difference?

No, we have a partnership of equals. That’s exactly what co-innovation needs, along with the trust that comes from openness and communication. Plus, we only collaborate on ideas that both sides truly believe in.

Champions of change Digitalization

“We need knowledge and enthusiasm”

smanetsch — Thu, 02 May 2024 06:40:33 +0000

“We need knowledge and enthusiasm” smanetsch Thu, 02.05.2024 - 08:40

Customers+Markets

“We need knowledge and enthusiasm”

Artificial intelligence will fundamentally change how people work and how companies do business – in a good way. Christian Klein, CEO of SAP, is convinced of that. In a joint interview with Endress+Hauser Supervisory Board president Matthias Altendorf, he talks about the transformation required to exploit its potential.

Questions: André Boße

Photography: Matthias Schmiedel

Mr Klein, when did you last use artificial intelligence in your everyday life?

Klein: Yesterday, actually. My son came home from school and showed me a new drawing app. Kids draw something with the app and the AI technology is supposed to guess what it is.

And in your business activities?

Klein: I regularly use our own AI applications for things like travel invoice compliance checks and vendor selection. Our AI hub has various large language models like GPT4 embedded, so when preparing a speech I will check in there to see whether it can provide a boost or two.

How will AI systems change the way your customers work with SAP products?

Klein: The changes will take hold everywhere. One example is how users communicate with SAP systems. Here there are millions of transactions occurring every second, which still tend to be entered manually. That will change. Communication will shift to natural language, accompanied by a much higher degree of automation.

Mr Altendorf, what do AI applications mean for the process industry?

Altendorf: The process industry is in the midst of a digital transformation. By now, everyone knows the huge potential in data. The problem is the huge volume. In a large chemical plant with thousands of actuators and sensors supplying vast quantities of data every second, no human can keep track of it all. This is where AI technology helps by categorizing, prioritizing and then processing the data so that companies can make betterinformed decisions. The point here is that a data-driven industry would not be possible without AI technology.

Where does AI technology offer further potential?

Klein: The many CEOs and CFOs I talk with all tell me that they have a balancing act to perform. Customers want to see businesses becoming more sustainable. On the other hand, those businesses are expected to grow and increase their bottom lines. The question is how sustainability and growth fit together. Take supply chains. These generate a lot of data as well. Manually analyzing all the options is an impossible task. Here we use AI technology to help us make smart decisions, for example by intelligently linking logistics chains. Or consider business planning. There is now AI technology that can optimize warehousing based on all kinds of weather, business, consumer and economic data. In short, AI technology is a driver of growth for businesses. It all rests on data. Our corporate customers have already agreed to the use of data for over 20,000 SAP systems. We are jointly developing a data model that continues to grow.

Altendorf: Our production involves a lot of welding. Until recently, we had people visually inspecting components to ensure they are in the correct position for laser welding. This is an important step because incorrect alignment could ultimately cause harm to people and the environment. Now there is AI technology performing the task. It works faster and more reliably than humans. We save time in production, use less energy and increase quality, which in turn improves efficiency and sustainability.

When it comes to using AI technology, how do collaboration and connectivity fit in?

Klein: It’s really simple: without those, nothing works. All collaborative effort is cloud based these days. That is where data is shared, and where companies can operate as part of a network. Ten years ago, businesses were still purchasing SAP software in order to digitalize. Today, the second step is about opening up the business and collaborating with others. Staying with the subject of supply chains, AI technology can make full use of its strengths when networked beyond enterprise boundaries.

Is the industry ready to think beyond individual company boundaries?

Altendorf: From my perspective, this is crucial to moving a company forward. In tomorrow’s world, no business will be able to survive on its own. The successful ones will be those that collaborate and through doing so join a technological ecosystem. A good example here is the Open Industry 4.0 alliance launched by SAP, which Endress+Hauser joined as a founding member. This same mindset also needs establishing inside businesses. There used to be veritable silos. But internally too, collaborative styles of working are the only way to go. What the development of the steam engine once meant for muscle power, generative AI now means for brain power. We will see huge boosts in productivity and interconnectedness.

“AI technology is really strong when networked beyond enterprise boundaries.”

Christian Klein

CEO SAP

ACHIEVING GROWTH THROUGH AI AND THE CLOUD

Christian Klein (1980) is CEO and member of the board at SAP. As a young man he dreamed of a career as a professional soccer player. Things turned out differently. He began his career with SAP as a student in 1999 and was active in various positions. In October 2019 he took over as co-CEO along with Jennifer Morgan and was then named sole CEO in April 2020. Christian Klein lives with his family in his hometown of Mühlhausen, Germany, 10 minutes from SAP headquarters in Walldorf. SAP was co-founded in 1972 by Hasso Plattner and Dietmar Hopp along with three other former IBM employees. The company is the longstanding world leader in enterprise software. More than 106,000 employees in nearly 160 countries help business customers grow sustainably and profitably. A key aspect of this is the integration of AI systems into the SAP cloud with more than 280 million users worldwide.

Some developers are warning that AI technology could be too much for humans to handle. So do we need regulation before it’s too late?

Klein: I was in the US several weeks ago and had precisely this debate with representatives of the US government. I realized that the general mindset is different over there. When a new technology is developed, you first look for use cases, then you monitor them, with issues of ethics and regulation raised afterward. In Germany, and likewise at EU level, regulation tends to be considered before there is even a use case for the technology. I believe the American approach is better.

Altendorf: Of course, there must be laws and ethical standards applying to the use of AI. But a core problem in Europe is indeed a lack of entrepreneurial mindset, attempting to control through prohibition rather than incentives, such that enthusiasm gets driven into the ground. But this enthusiasm is exactly what we need. We should be viewing technical developments like AI as an opportunity, not as a risk. What develops otherwise is a widespread fear of the unknown.

Let’s glance into the crystal ball. How will AI technology have changed the business models of Endress+Hauser and SAP in a decade’s time?

Altendorf: Our offerings will expand. For our customers to really utilize the data we generate, they will need additional context – in other words, a deep understanding of this data. Here is the business model of the future: data plus context. Of course, we will continue to produce measurement technology, although it may be that a customer no longer owns the actual product and only wants the data from it.

Klein: In 10 years software developers will need to write much less code than today; that task will be shifted onto generative AI technology. The time gained can be used to think about the application or the quality of the algorithm. AI will also help us make better budget decisions. Today, if we asked 100 CFOs how the business will develop, we would receive 100 forecasts. A decade from now, AI will do a better job of this because it can factor in and join together much more data.

If your children ask whether there will still be jobs for them in the age of AI, what do you say?

Altendorf: I was born in 1967 and still remember the time when the first office computers arrived. It was claimed that hundreds of thousands of jobs would disappear. But what happened? More jobs were created and productivity increased many times over. This is how it will be again in the AI era. One thing is clear: work will change. People will be able to utilize their potential for more intelligent, creative and communicative activities.

Klein: I have no concerns about the jobs of the future either. Growth occurs wherever new business models develop – and the employees benefit. Of course, jobs will be more data-intensive. Schools and universities will need to consider this. It comes down to teaching a networking mindset and bringing IT and business together. As you pointed out so succinctly, Mr Altendorf, what we need is not only knowledge, but enthusiasm. Having both will put us on the threshold of an era where we can use our creativity to manage generative AI in our favor.

“A data-driven industry would not be possible without AI technology."

Matthias Altendorf

President of the Supervisory Board of the Endress+Hauser Group

Champions of change Digitalization Industry expertise

An acquired taste

mjitaru — Mon, 15 Apr 2024 13:16:31 +0000

An acquired taste mjitaru Mon, 15.04.2024 - 15:16

Technology+Innovation

An acquired taste

ChatGPT opened the floodgates: artificial intelligence has gone mainstream. AI holds huge potential, not least for the process industry. Yet how much of this is hype, and how much could become a reality?

Text: Armin Scheuermann

Illustration: Timo Meyer

Artificial intelligence tastes fruity, with notes of toffee, vanilla, pear and apple, and a slight hint of toasted oak casks. Such are the flavorsome hallmarks of ‘AI:01 Intelligens’, the first whisky to have AI supplement the master blender’s expertise. In 2019 Swedish distillery Mackmyra pioneered the use of AI to blend whisky from different casks so that the bottled product would appeal to the broadest possible customer tastes. AI:01 may be seen as a harbinger of what AI can accomplish for the future process industry: shorter product development times, greater production efficiency and lowered costs.

The whisky may have been somewhat of a marketing gimmick, yet it serves to highlight the possibilities of AI: rapidly evaluating myriad courses of action and process routes is essential to the fastest possible sustainability transformation of process industries like petrochemicals, life sciences and food & beverage. AI’s rising importance also ties in to the general transformation of the economy: in a future circular economy, products at the end of their life cycle will revert to being raw materials. The result will be complex systems and dependencies that classic automation approaches cannot handle. The energy transition taking place in parallel will require energy providers, industry, transportation and building management to be interconnected in order for them all to optimize harmoniously.

So do we need a completely new approach to controlling business and production processes? Is the process industry facing major AI disruption? And besides, what is artificial intelligence anyway – and how does it differ from machine learning or deep learning?

FROM FEARED ADVERSARY TO HELPFUL TOOL

There are likely as many ideas about what is meant by artificial intelligence as there are experts in the field. But there is broad consensus on the following definition: AI aims to simulate human intelligence using machines. Its effectiveness at things like data aggregation, reasoning, self-correction and creativity comes down in part to machine learning – algorithms that use historical data to predict future data. While machine learning is frequently based on human-selected parameters, deep learning models are able to automatically extract relevant parameters from the data. This makes deep learning particularly applicable to image and speech recognition, as well as natural speech processing.

Artificial intelligence has been on everyone’s lips since the public release of AI chatbot ChatGPT in November 2022. That sent a fear of missing the AI boat coursing through C-suites and boardrooms. On the political side there is the fear of artificial intelligence without checks and balances. “I believe there will be nothing more transformative to the futures of our children and grandchildren than technological advances like AI,” British prime minister Rishi Sunak said ahead of his appearance at the first international AI Safety Summit. But does that also apply to the conservative process industry, which prioritizes process reliability over innovation?

Suppliers of process automation technology are seeing mounting digitalization fatigue. That mostly comes from a lack of clearly formulated goals, unfulfilled value propositions and underestimation of the time and effort it takes to establish digital infrastructure in plants. A force for change here is NAMUR, the user association of automation technology in process industries. Its mission is to promote the benefits of digitalization, including AI. “We can’t just talk about technology and individual use cases; we must position those use cases within an overall picture,” said NAMUR vice president Michael Pelz at the annual general meeting in Neuss, Germany.

WHAT CAN ARTIFICIAL INTELLIGENCE DO?

Artificial intelligence is the simulation of human intelligence processes by computer systems. Specific applications for AI include expert systems, natural speech processing, speech recognition and machine vision.
AI’s cognitive abilities include:

Learning: recording data and generating rules on how to convert that data into usable information. The rules, otherwise known as algorithms, give computers step-by-step instructions on how to complete a given task.
Reasoning: selecting the correct algorithm to achieve a desired result.
Self-correction: continuous fine-tuning of the algorithms to keep them delivering the most accurate results possible.
Creativity: generating new images, texts, music and ideas using neural networks, rule-based systems, statistical methods and other AI techniques.

“Present-day AI is unable to control plants, and future AI probably won’t be able to either.”

Kai Dadhe,

vice president of digital process technologies at Evonik

76%

of management executives
are convinced that generative
AI can optimize production schedules and detect inefficiencies in production processes, according to a survey conducted by management consultancy KPMG.

What role might artificial intelligence play here? Not a disruptive one, that much is clear. “Present-day AI is unable to control plants, and future AI probably won’t be able to either,” says Dr Kai Dadhe, vice president of digital process technologies at Evonik. This is his summary of insights from KEEN, a three-year research project where German industrial companies and scientific institutions investigated the technical and economic potential of AI in the process industry across entire product life cycles. However, the project also showed that AI methods definitely offer added value: they are particularly effective as decision-making support for plant operators and in boosting the efficiency of engineering tasks.

“The two worlds of information technology and operations technology are merging. The vision is data-centered and software-based automation, which is where artificial intelligence can supply important information by generating new insights from an otherwise unmanageable volume of data,” says Dirk Neirinck, corporate director for business development at Endress+Hauser. Yet he thinks it unlikely that the AI revolution will come from above. That’s a view that Hans-Jürgen Huber, managing director of Endress+Hauser Digital Solutions Germany, also shares: “Much more likely is that AI will make its way into the process industry gradually, through individual applications, over time becoming another tool in the digitalization and process automation toolbox.”

Take a practical example from plant engineering: document analysis as a stage in preparing machine-readable plant topologies and smart pipeline and instrumentation plans – the basis of a real plant’s digital twin. AI can also assist in the creation of process models that in turn make process simulations more efficient. AI deployed in actual plant operations can optimize production planning, identify anomalies in production processes and derive quality parameters from sensor data. These enable further insights and findings from the process and can be used for novel approaches in process control.

Support for decision makers

By evaluating historical and current operating data, AI could also help consolidate and preserve knowledge about causal relationships in plant operations that was hitherto kept in the heads of production planners and plant operators. More broadly, decision-making support in complex systems could develop into a key discipline within artificial intelligence – not only in plant operations, but in other areas of corporate activity too. Documents such as standards, contracts and tender documents are highly amenable to analysis by language models like GPT, meaning that those models could also be put to work in sales or in engineering to home in on answers to specific questions. Consultancy firm McKinsey estimates that engineers who delegate information research to AI could increase their productivity by 10 to 20 percent.

“The revolution will not come from above. AI will make its way into the process industry gradually, through individual applications.”

Hans-Jürgen Huber,

managing director of Endress+Hauser Digital Solutions Germany

However, the development of AI applications for process automation is still in its infancy and faces many hurdles. That is because AI requires data – and in the process industry especially, this data is often unavailable, or not in the requisite quality, or is plain inaccessible. Chemical companies, for example, are already generating more data than ever before and yet that data is frequently inconsistent and lacks context – for instance about relationships within material cycles. That was another finding of the KEEN project when it considered AI’s capability to control plants: only in process states with massive data underpinning them did AI deliver reasonably useful results. Should exceptional process conditions arise, it lacks understanding of process engineering interrelationships. Hence another reason why AI applications in the process industry today are usually one-offs that neither scale readily, nor transfer from one use case to the next.

Data consistency is key

In this context, the role of process automation is changing too: its future core task will be creating conditions that produce steady and consistent data streams. Then again, there is no clarity yet about the architecture of a data- centered approach for new AI-based applications: will it be implemented in the cloud, locally in edge devices, or even embedded in the sensor electronics? Whichever scenario prevails, one thing is clear: companies seeking to tap the potential of artificial intelligence will need more than just a handful of AI specialists. As many employees as possible should be getting to grips with the basic principles, benefits and limitations of artificial intelligence. High-profile examples like ChatGPT or AI:01 could whet appetites for new possibilities in process automation.

Armin Scheuermann is a chemical engineer and trade journalist

“It is not enough to talk about technology and individual use cases; we must position those use cases within an overall picture.”

Michael Pelz,

vice president of users’ association NAMUR

Digitalization Champions of change Industry expertise

A helping hand

mjitaru — Mon, 15 Apr 2024 09:26:27 +0000

A helping hand mjitaru Mon, 15.04.2024 - 11:26

Technology+Innovation

A helping hand

There is more than one kind of artificial intelligence – and it’s nothing new. Artificial intelligence stands to improve our everyday existence like few technologies have done before. Yet we are seldom aware that it is already shaping our lives.

Text: Robert Habi, Roman Scherer

Photography and graphics: 3st kommunikation, 3st kommunikation using midjourney, Joseph Racknitz – Humboldt University Library, Shutterstock

Just what are we talking about?

Artificial intelligence is a branch of computer science. The term was coined at a 1956 conference in the US by John McCarthy, a programmer, to describe the simulation of human learning capabilities. These days a machine is considered intelligent if it can perceive information or patterns, process them according to a specification and then make a decision. AI is an umbrella term that encompasses fields such as machine learning, neural networks and deep learning.

This is an increasingly difficult question to answer – and the issue that drove British computer science pioneer Alan Turing to develop his Imitation Game in 1950. This tests whether a person chatting with two participants via computer can tell which one is human and which is a machine. Should they be indistinguishable, the machine is deemed intelligent. Although the test is controversial, Turing is considered an influential figure to this day. He gets a small homage in CAPTCHA, a spam protection measure that challenges millions of internet users daily to match a variety of images or copy characters in hard-to- recognize writing. CAPTCHA stands for ‘completely automated public Turing test to tell computers and humans apart’.

Machine learning

Anyone who has shopped online will know about personalized product recommendations. That shopping experience is based on machine learning, which underpins artificial intelligence in all of its myriad forms. AI technology is the enabler for algorithms that learn from large volumes of data and detect patterns – although for this to happen the data has to be presented in a structured form.

Artificial neural networks

Neural networks interconnect multiple data nodes in a similar way to neurons in the brain, hence the term. Machine learning processes run in parallel on many different levels. What makes neural networks special is their ability to correlate huge amounts of data representing images, text, sounds and more. The downsides are that they require enormous processing power and potentially months of training.

Deep learning

Build onto neural networks with additional algorithms and data nodes, and you have deep learning. This machine learning method recognizes patterns and autonomously links them with new context. It can make its own decisions and question them too. Deep learning can thus resolve otherwise unsolvable problems such as diagnosing illnesses through image recognition.

“Success in creating effective AI could be the biggest event in the history of our civilization, or the worst. We just don’t know. So we cannot know if we will be infinitely helped by AI, or ignored by it and sidelined, or conceivably destroyed by it.”

Stephen Hawking,

physicist, at the 2017 Web Summit in Lisbon

How green is AI?

1 percent of global electricity consumption is attributable to data center operations (according to the International Energy Agency).

0.5 percent of global electricity consumption could additionally be used for AI computing centers by 2027.

20,000 graphic cards were deployed just to process ChatGPT’s training data.

1,287 megawatt hours of electricity went into training the GPT-3 model.

10 percent of an AI model’s overall electricity usage goes into training; actual operation of the model accounts for 90 percent.

Hitting the million mark

How long it took various internet-based services to acquire a million users:

Human input remains essential

The Mechanical Turk, also known as the Automaton Chess Player, was a fraudulent game-playing machine constructed in the 18th century. The device took the form of a man in traditional Turkish costume, who rarely lost a match. But there was nothing automatic about the machine’s inner workings: in fact it was a human pulling various ropes and levers. Although the secret finally came out in 1835, the identity of the person inside the contraption remains a mystery. Fast-forward 200 years and this legend embodies the people behind today’s smart machines, albeit with a twist: many of the most successful AI models are developed using labor from hundreds of thousands of generally low-paid contract workers who search for jobs on large crowdsourcing platforms. One of the best known is tellingly called MTurk, a contraction of Mechanical Turk.

Almost routine

AI is more everyday than many might think.

7:00 am: Time to get up! As soon as you’re awake, unlock your smartphone using facial recognition. Any notifications?

7:30 am: Check AI-generated weather and stock market reports during breakfast.

8:00 am: A question for the smartphone AI-assistant: what appointments do I have today?

9:00 am: Quickly translate a customer email. AI does that better than me.

1:00 pm: Arrive for the customer meeting on time thanks to GPS and real-time traffic data.

5:00 pm: Radiology appointment: smart pattern recognition helps diagnose the image.

7:00 pm: Another unwanted email. Good thing we have spam filters.

8:00 pm: Time for a little online shopping while lounging on the sofa. It’s uncanny how the retailer’s suggestions always seem to match your tastes ...

Digitalization Champions of change

Step-by-step progress

smanetsch — Fri, 05 Apr 2024 08:07:45 +0000

Step-by-step progress smanetsch Fri, 05.04.2024 - 10:07

People+Culture

Step-by-step progress

Although Endress+Hauser is in great shape, the company must continually change to stay successful. In an interview, Supervisory Board president Matthias Altendorf and CEO Peter Selders discuss the dynamic between continuity and transformation.

Questions: Martin Raab

Photography: Andreas Mader

Mr Altendorf, 2023 was your last year as CEO. How did Endress+Hauser perform?

Altendorf: Overall we had a good year, even though we still had challenges with the supply and logistics chains and had to contend with the upheavals caused by the energy crisis. Foreign exchange rates worked against us as well. We nevertheless experienced strong organic growth, improved our result, created jobs around the world and invested like never before.

What impacted the growth of the business?

Altendorf: Some customers reduced their inventories after the situation in the procurement markets had eased somewhat. We felt this impact in various areas, such as the food industry and machine engineering. In the chemical industry we’re seeing a shift in investments from Europe to the Americas, Asia and the Middle East, as well as a relocation of production from China to Southeast Asia and India. Electromobility, renewable energy, resource efficiency and energy savings were once again the drivers of our business.

Mr Selders, you took over as CEO at the turn of the year. Will you be able to present similarly good numbers for 2024?

Selders: Incoming orders have weakened since mid-2023 to varying degrees, depending on the industry and region. We have not yet gotten past that. A lot therefore depends on a potential economic recovery in the second half of the year. But we started the year with a solid order backlog and our salespeople are doing everything they can to bring the numbers up. After years of double-digit growth, we will probably have to be satisfied with single-digit growth again.

What do you see as the challenges for the current year?

Selders: The first major issue for the Group will be to ensure growth and profitability. We are facing different challenges in different regions. In Germany we need to acquire new customers because some segments of industry are leaving the country. In the US the focus is on protecting the strong growth of recent years. And in China we need to position ourselves so that we remain successful in what is now a lower-growth environment. The second major issue is the planned strategic partnership with SICK. Assuming the negotiations are successful, this project will keep us extremely busy – integration of the sales organizations, collaborative innovation and production in a joint venture; something on this scale is new for us.

“The best solution can always be found by addressing an issue from various perspectives.”

Peter Selders

CEO of the Endress+Hauser Group

WELL PREPARED

Dr Peter Selders (54), who has a PhD in physics, took over as CEO of the Endress+Hauser Group in January 2024. Prior to that he worked at the product center for level and pressure measurement in Maulburg in southern Germany where he was appointed managing director in 2019. Inspired by mountain climber Rainer Petek, he says: “We overestimate our ability to plan things and underestimate our ability to deal with uncertainty.” A passionate hiker, he considers good preparation a must, not least when hiking in the mountains with his wife and five children.

How does the planned cooperation with SICK fit into the Endress+Hauser strategy?

Selders: I see it as a perfect fit, not only on paper but also from everything we learned during our discussions and visits. SICK and Endress+Hauser share a similar culture and many values. Both companies are people-oriented and act with a long-term mindset. In addition, we both see climate and environmental protection as an opportunity. And we have no overlap in our process industry portfolio. SICK’s products supplement our own, which allows us to support our customers even better.

Altendorf: Our customers must design their production for greater sustainability and a reduced CO₂ footprint. The planned partnership would allow us to offer them a comprehensive portfolio to address these challenges. Gas flowmeters and analyzers from SICK should help our customers to operate their plants more efficiently, make better use of resources and precisely monitor the environmental impact.

What remains to be done to make this cooperation possible?

Selders: There are still a lot of details to clarify, such as legal and business issues and how to integrate the IT platforms. Our goal is to have a seamless transition. The start of the cooperation must be completely unnoticeable to our customers. What’s crucial for us is that people are on board with the plan. We operate in a technology environment. Whether it’s innovation and production or sales and service, our success rests on our employees’ knowledge and skills. We have to inspire them and convince them to go down this path with us in order to complete the agreement. Openness and transparency is how we want to get there.

Altendorf: We must make it clear that this is not simply some acquisition. It’s about a long-term partnership between two successful family companies that can be even more successful together.

Looking ahead, Mr Selders, in what direction do you want to develop Endress+Hauser?

Selders: First things first, Endress+Hauser is in excellent shape. We have no reason to abandon the path we are on. But of course as a company we can’t afford to stand still. To stay successful in the future, we must continually develop. As a family company we are ideally situated to do this because we act with a long-term mindset and foster a culture of cooperation and solidarity. This culture will develop too, in order to preserve what defines and distinguishes us today.

What issues will keep you busy in the coming years?

Selders: Our two major issues are sustainability and digitalization: sustainability because unless we protect the climate and the environment, our planet will no longer be livable. But that can’t be solved through idealism and sacrifice alone. We must succeed in combining sustainability with economic advancement and achieving this at competitive cost. That applies to our customers just as it does to us as a company. Digitalization, the second big issue, is the key to a number of things. Those include sustainability as a means to consuming fewer resources and making smarter and more efficient use of them, and for dealing with the challenges of an aging society and the shortage of skilled labor. Digitalization is an extremely important enabler for us. It comes down to making the best possible use of all available technologies in our products, in our interaction with customers and in our internal processes, just the way we formulated it in our strategy.

How will you approach your responsibilities as CEO?

Selders: First off, I don’t consider myself a one-man show. I’m a team player and I always work together with people. I’m convinced that the best solution can always be found by addressing an issue from various perspectives. This is why I listen first to understand and work out what has to be done – and then resolutely follow through. That sometimes requires more time and energy, but it produces a more enduring result. This is why it’s important to get people on board. Every new development requires effort. Things seldom happen by themselves. It requires perseverance so that you don’t give up. And success is much easier when you trust each other.

“It’s also about supporting the generational change within the Endress family. This continuity is important for us.”

Matthias Altendorf

President of the Supervisory Board of the Endress+Hauser Group

FIRMLY ROOTED

Matthias Altendorf (56) began his Endress+Hauser career with a mechanics apprenticeship, followed by studies, stays abroad and further education. He was appointed CEO of the Group in 2014 and president of Supervisory Board in 2024. He balances his professional life by sailing, playing chess, riding his motorcycle and spending time doing forestry work. Travel, the arts and reading round out his hobbies. Matthias Altendorf is married and the father of a grown son.

Mr Altendorf, you are stepping down after 10 years as CEO. What will you remember as your biggest success and your biggest defeat?

Altendorf: Shutting down the business in Russia was very painful for me personally. I took the job with the goal of never having to let employees go for operational reasons. We had to do exactly that in Russia and part ways with many good colleagues. Although it was obviously a consequence of Russia’s invasion of Ukraine and Western sanctions, it was still my biggest defeat, if you will. We also went through two difficult crises during my time as CEO: the oil price crisis right at the beginning of my tenure and then later the coronavirus pandemic. We did an outstanding job of managing both situations together with our customers, employees and shareholders. And we were able to use them as an opportunity. Endress+Hauser emerged from both crises stronger and with momentum. I see that as our biggest success.

You will continue to have an active presence in the company as president of the Supervisory Board. How do you view your new role?

Altendorf: I will of course do everything I can to make sure Mr Selders gets off to a good start. And I will lead the Supervisory Board and maintain close contact with our shareholders. It’s also about supporting the generational change within the Endress family. This continuity is important for us as a family company. I will continue to travel, visit our entities and customers and represent Endress+Hauser. I want to remain close to the company, the people and the technology, not least so that I can understand decisions made by the Executive Board.

Endress+Hauser will no longer be taking up all your energies, though. What plans do you have for this next phase of your life?

Altendorf: Not to worry, I will continue to have a full working life just like before! Apart from my responsibilities at Endress+Hauser I teach, I’m active in associations and I also sit on other supervisory boards. Where my private life is concerned, I will have more time for my wife and hobbies.

Mr Selders, Mr Altendorf, what will be your personal challenges for 2024? What would you like to have achieved by the end of the year?

Selders: Together with my colleagues on the Executive Board and the entire Endress+Hauser team, I want to do a good job of managing a rather difficult year for business. If by the end of 2024 we can say that we have done our best under the circumstances and developed a bit further, then I will have had a good first year as CEO!

Altendorf: If we’re successful in doing that, and if we find a good common path together as CEO and president of the Supervisory Board, then we will have done everything right!

BUNDLING STRENGTHS

Endress+Hauser and German sensor specialist SICK are seeking a strategic partnership. The companies signed a joint memorandum of understanding related to SICK’s process automation business in October 2023. The goal of the partnership is to supplement the Endress+Hauser product portfolio with process analysis and gas flow measurement engineering from SICK. The sales and service teams working for SICK’s process automation business will become part of Endress+Hauser’s global sales network. A joint venture will be established for the production and further development of SICK process technology. This segment of the SICK business currently employs around 1,600 people and generates more than 350 million euros in annual sales.

Champions of change Leadership

Green transformation

llang — Tue, 17 Oct 2023 15:46:28 +0000

Green transformation llang Tue, 17.10.2023 - 17:46

Technology+Innovation

Green Transformation

What was once a minor concern is now front and center: doing business sustainably is considered crucial to a viable future on our overburdened planet. What has already changed? Where are the remaining problems? And is sustainability an issue dividing the generations?

Text: Robert Habi, Ares Abasi, Lisa Schwarz

Photography and graphics: 3st kommunikation, Shutterstock, Stocksy

1.75 Earths

is what humanity needs to meet the current demand for renewable resources. To put it another way: on 2 August 2023, humankind exhausted nature’s budget for the year. That date, known as Earth Overshoot Day, is determined annually by the Global Footprint Network. With a few exceptions, we have been using more natural resources year on year since calculations began in 1971. To amplify the point: were everyone on the planet to live the way people do in the United States, they would need the resources of 5.1 Earths. If their way of life resembled that of India’s population, 0.8 Earths would suffice.

The color of revolution

The color green has come to stand for sustainability. But not for the first time in human history has the color been thus associated. As far back as ancient Egypt, green symbolized regeneration and rebirth. Etymologically speaking, the word green stems from the Germanic ‘grho’, meaning to grow, adopted almost verbatim into the English language. The word for the green pigment found in plants that makes life possible on Earth, chlorophyll, is a portmanteau of the ancient Greek words for ‘light green’ and ‘leaf’. And although green has also been a proxy for love, poison or envy, depending on the century or region, today it once again symbolizes awareness of nature. But caution is advisable: the color green must be deserving of its name. Greenwashing, or creating a facade of seemingly green accomplishments, is widely disparaged.

Back to the roots

In 1713 Hans Carl von Carlowitz, a tax accountant and mining administrator in the German province of Saxony, formulated the foundations of sustainability. At issue was the primary raw material in the fields of construction, energy and industry at that time: wood. In his work ‘Sylvicultura oeconomica’, von Carlowitz explained: “The quantity of felled trees should be limited to that which can be re-grown through planned reforestation, seeding and planting.” This basic tenet still holds today, although the term sustainability only came into being later. Along the way, our understanding has also changed to the current meaning: meeting present needs without impairing the opportunities of future generations.

“We have to look for the behavior, for the decisions, for the way of thinking that will orient our lives in a sustainable direction. That means the complete opposite of what we are doing today. It’s a bit like steering a hot-air balloon: if you want to change your direction, you have to change your altitude.”

Professor Bertrand Piccard, psychiatrist, adventurer and solar pioneer, creator of the Solar Impulse Foundation

How green is Generation Z?

Some have brought climate change to the political stage with the Fridays for Future movement, begun by Greta Thunberg and other young activists. Others have launched eco movements, while also making their mark on the throw-away society and the fossil fuel economy. While issues between Generation Z (those born between 1997 and 2012) and baby boomers (1946 to 1964) arise time and again, the question remains: which generation really lives more sustainably? In terms of their consumption habits, a survey of 17 countries reveals a trend.

“Over the past five years I have significantly or completely changed my behavior toward sustainability.”

“I’m willing to spend more money for sustainability.”

Source: Global Sustainability Study 2021

High on the list

Climate change is viewed as the second most pressing problem for businesses, according to a survey of more than 2,000 top-level executives conducted by consulting firm Deloitte. That puts the climate ahead of other challenges such as supply chain difficulties and skilled labor shortages.

Welcome to the Anthropocene?

Are we living in the Anthropocene, a new geological epoch influenced by human activity? An international group of geologists has uncovered new evidence to support this hypothesis. In the well-preserved sediment from a lake bed in Canada, researchers found an abundance of markers left by various changes: rising atmospheric greenhouse gases, the advent of microplastics, the extinction of various species and traces of atomic bomb tests, to name a few examples of human-induced phenomena that have seen drastic increases since the 1950s. If the scientific community adopts the Anthropocene premise, the Holocene – the post-glacial period that is currently 11,700 years old – would have been replaced by a new epoch 70 years ago. A decision on the matter could be made in the summer of 2024.

Sustainability Champions of change

Generational change

smanetsch — Wed, 29 Mar 2023 06:43:59 +0000

Generational change smanetsch Wed, 29.03.2023 - 08:43

People+Culture

Generational change

Changes are taking place at the top of Endress+Hauser at the beginning of 2024. Klaus Endress will relinquish his duties as President of the Supervisory Board. He will be succeeded by CEO Matthias Altendorf. Taking over the reins of the Group will be Peter Selders, currently Managing Director of Endress+Hauser Level+Pressure.

Text: Martin Raab

Photography: Andreas Mader, Christoph Fein

Dr Klaus Endress (born 1948) has repeatedly stated his intention to give up his responsibilities as President of the Supervisory Board when he reaches the age limit of 75. While he will continue to head up the Family Council, he will no longer take an active role in the company.

Endress, the second-eldest son of the company founder, has made his mark on Endress+Hauser for nearly 45 years. Much of the company continues to bear his signature. At the same time he has spent many years preparing a generational change in the shareholder family. Considerable thought and extensive discussions went into the decisions, which were made with the mutual agreement of the shareholders, the family and the Supervisory Board. The departing President of the Supervisory Board emphasized that “we have filled all of the positions with competent people we know and trust, and who embody our culture”.

INTERNAL SUCCESSION

Effective 1 January 2024, Matthias Altendorf will move to the Supervisory Board as President. The shareholders view him as the person best suited for the job, says Klaus Endress. “He has known our company for 35 years and has led the Group with prudence and success for nearly a decade. Mr Altendorf further-more embodies our culture in an exemplary manner and stands for the values that define our company.”

IN FAMILY HANDS

Endress+Hauser was founded in 1953 by 29-year-old Swiss engineer Georg H Endress and 58-year-old Ludwig Hauser, a German banker. After his death in 1975, Hauser’s heirs expressed the desire to be bought out. Endress became the sole shareholder. While still alive, he transferred equal shares (12 percent) of the company to his eight children. The remaining four percent is held by the Georg H Endress Foundation, a non-profit organization that supports training, education and science projects.

Dr Peter Selders will take over the reins as CEO. The 53-year-old executive, who holds a PhD in physics, joined Endress+Hauser Level+Pressure in 2004 and has led the product center since 2019. “Mr Selders has demonstrated that he can lead and inspire people, that he lives and breathes our culture and is capable of successfully growing a large organization,” says Klaus Endress.

He will be supported in his new role as CEO of the Group by Matthias Altendorf, who will make his full experience and knowledge available. The new CEO will also have the backing of the Executive Board, whose composition remains unchanged. Succeeding Peter Selders will be 49-year-old Dr Dirk Mörmann, currently Director of Technology and a member of the management board at Endress+Hauser Level+Pressure.

SECOND REPRESENTATIVE OF THE FAMILY

As before, the shareholder family will be represented on the Supervisory Board by two members. As well as Sandra Genge, who became a member in 2022, Steven Endress will have a seat on the board effective 1January2024. The 44-year-old grandson of the company founder has worked at Endress+Hauser since 2012 and took over as Managing Director of Endress+Hauser UK in 2016. As of 1 May 2023, the fortunes of the United Kingdom sales center will be in the hands of 51-year-old Iain Cropper, currently Director of Operations and a member of the management board.

A family affair: departing President of the Supervisory Board Klaus Endress (left) with the two Supervisory Board members Sandra Genge (as of 2022) and Steven Endress (starting 2024).

Close relationships

Two non-members of the shareholder family will sit atop the Endress+Hauser Group in the future. The family will nevertheless remain linked to the company in diverse ways. One of the keys is the Family Charter, whose vision states: “Endress+Hauser shall remain a successful family company. The family will continue to have a formative influence on the company.” The charter creates the necessary framework. It strengthens solidarity within the family by means of clear principles and established institutions, regulates participation in the company and introduces young members of the family to the business.

The most important institution in this context is the Family Council, an advisory body that serves as the link between the family and company and makes the major decisions regarding the relationship between the shareholders and the Group. One special role is supporting young members of the family who wish to work in the company. While the company is open to having family members work at any level, including internships or apprenticeships, they must compete on equal footing with other candidates. Family members who wish to lead one of the Group companies or the Group itself must exhibit the corresponding qualifications and experience.

NUMEROUS G ATHERINGS

The more than 70 members of the family meet at larger gatherings several times a year. The Supervisory Board and the Executive Board report to the shareholders at the Annual General Meeting. The day before, the Family General Meeting deals with the development of the Group in a larger setting. Family Day, which is held at a different location each year, combines family get-togethers with insights into the business. At the Family Camp the younger generation gets to know one another and the company better. The family also celebrates Christmas together.

Champions of change Corporate culture Leadership

Champions of change

Joining forces

Joining forces

Achieving more together

Achieving more together

The bridge- builder

The bridge- builder

3 questions for Benjamin Mewes

3 questions for Benjamin Mewes

Your goal with Okeanos is to modernize water and wastewater management. What role do data and AI play in this?

You develop your solutions in partnership. Why do you focus so strongly on collaboration?

Endress+Hauser is a large company with a long history. You’re a small and recently founded one. Do you feel that difference?

“We need knowledge and enthusiasm”

“We need knowledge and enthusiasm”

An acquired taste

An acquired taste

FROM FEARED ADVERSARY TO HELPFUL TOOL

Support for decision makers

Data consistency is key

A helping hand

A helping hand

Just what are we talking about?

Machine learning

Artificial neural networks

Deep learning

How green is AI?

Hitting the million mark

Human input remains essential

Almost routine

Step-by-step progress

Step-by-step progress

Green transformation

Green Transformation

1.75 Earths

The color of revolution

Back to the roots

How green is ­Generation Z?

High on the list

Welcome to the Anthropocene?

Generational change

Generational change

INTERNAL SUCCESSION

SECOND REPRESENTATIVE OF THE FAMILY

Close relationships

How green is Generation Z?