Interview with tresmo
The Internet of Things (IoT) links the physical and digital worlds. In coming years, this network is expected to grow at a rapid rate. The German start-up company tresmo designs and implements individual solutions for IoT, web, mobile apps and embedded software. CEO Jan Rodig explains his vision on changing customer expectations and the necessity of new business models.
This interview is part of a larger dossier called " Construction Start-up Radar ".
- How will the construction industry look like in 2020? What role does digitalization play?
Although the economic potential is huge, the construction industry is still lagging far behind in terms of digitalization. We expect that in 2020 the BIM adoption rate will have increased significantly, bridging the media and information breaks between the value chain links. Additionally, IoT will have found its way to most construction sites via smart equipment and processes. Furthermore, the traditional sales structure in the industry will see a dramatic shift towards dominant digital platforms, significantly reducing profit margins for craftsman and trade players.
- What is your business model? What makes you and your company unique?
tresmo is a deep-tech software developer for tailor-made IoT, industry 4.0, cloud and mobile app solutions. We work for leading companies, especially in the construction industry, mechanical engineering, plant construction and electrical industry. With more than 30 large smart product and services projects, we are one of the leading independent IoT systems integrators in Germany. Clients include Vorwerk, Viessmann, Trumpf, Wilo, BMW, Velux, Geiger, Creaton, Braas, Rockwool and Rolls-Royce Power Systems.
- What is your company vision for the next five years?
Digital technology is evolving at an ever faster rate – against this background, five years is a pretty long time. We expect relevant exponential changes especially around the topics of machine learning, deep learning, blockchain and augmented reality (AR). Companies need to cope with this speed and complexity. Thus, we anticipate further increasing demand for our work as an independent technology advisor, IoT systems integrator and software developer. Our vision is to leverage our leading position in the smart product and service area towards a broader value proposition.
- What does your revenue model look like?
We have a consulting business model, based on daily rates. Thus we are independent and technology agnostic. This sets us apart from the vast majority of IoT vendors who simply want to sell their technology, generate recurring revenues or commission fees and try to create lock-in situations. We help our clients to avoid these lock-in effects and unnecessary costs through a diligent selection of the right technologies and IoT platforms for their requirements and the definition of a smart IT architecture. And we are truly independent as we don't accept commission fees.
- How is your company funded?
tresmo is a 100% privately funded company.
- As a startup, what is your next goal? What partners do you need?
Concerning partners: Our scope is deep tech software technology development. Thus, we have built an ecosystem of hardware, such as sensors, gateways and embedded systems, AI, science and cyber security partnerships to complement our services. These partnerships are pretty much "downstream" in the value chain. It would also be interesting for us to establish "upstream" partnerships with consultancies focussed on digital transformation. And not to forget - our next goal as a start-up is to make our table soccer in our Augsburg office smart - which would be applied IoT.
- Who are your key clients?
In the construction industry we work for construction companies, suppliers and wholesalers. Further key client segments are consumer durables and mechanical engineering.
- What are the biggest challenges your clients are currently facing?
We see three key areas of challenges: strategy, organization & culture, and technology. In terms of strategy the crucial challenges are to develop innovative digital products and services, to establish new business models and to fully embrace the implications of the ecosystem economy. In the area of organization & culture most traditional firms still struggle with their transition towards a consequently data-driven, client centric and agile mindset, as this is a huge change for every organization. Regarding technology, our core competency, we see five key challenges at German corporations: to define a future-proof, flexible and scalable IT architecture, to select and implement the right IoT platform and technologies, to cope with cyber security threats, to create a compelling user experience (UX) for their client facing solutions and to connect products, services and processes via IoT solutions.
- What options do you offer to potential clients to face their challenges (e.g. workshops, coachings)?
We help with end-to-end support in terms of technology, so to say starting from ideation workshops and requirements engineering towards IT architecture, technology selection and programming.
- What prerequisites (e.g. infrastructure, trained personnel, etc.) do your clients need to bring?
Not much – we just need someone with budget and product responsibility as a contact person to align ideas, get input and make decisions.
Editorial note: In 2019 the company name changed from Pave to Capmo.
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