IoT in operations: how mid-sized companies in Bavaria get started sensibly

A plastics processing company in the Berchtesgadener Land has had 14 temperature sensors hanging on its injection moulding machines for two years. The data flows into a central dashboard that controls maintenance intervals not by calendar but by the actual condition of the machine. Result: three fewer unplanned machine outages per year, maintenance costs down 22 percent. The system cost around 6,000 euros to introduce.

That is IoT in the SME segment — not the smart-city vision from a strategy paper, but a concrete problem with a concrete solution.

The Internet of Things (IoT) describes the networking of physical objects with digital systems: machines, sensors, building technology, vehicles. What sounds big in theory begins in practice with a single sensor — and scales from there once the first added value becomes visible.

What IoT actually means in operations

IoT is not a product you buy. It is an architectural principle: physical measuring points generate data, the data is transmitted, stored and analysed, and the analysis triggers actions — automatically or through an informed human.

The layers behind it:

Sensors — temperature, pressure, fill level, motion, consumption, position. Today there are ready-made, inexpensive modules for each of these parameters. An energy meter with an MQTT interface costs less than 60 euros and delivers minute-accurate consumption data for every machine.

Transmission — Wi-Fi, LAN, LoRaWAN (for outdoor areas across long distances without cellular), NB-IoT (cellular-based, battery powered). The choice depends on the deployment site. In buildings, Wi-Fi is the simplest option once the infrastructure is in place — which it usually is at our customers if we have laid out the network infrastructure cleanly beforehand.

Platform and analysis — from simple dashboards (Grafana, Home Assistant) to cloud-based IoT platforms (Azure IoT Hub, AWS IoT). For SMEs, local or hybrid solutions are sufficient in most cases — no obligation to go to the cloud if the data should stay in-house.

IoT and Loxone: building automation as a natural entry point

For companies that already use Loxone, IoT is no new territory — at its core, Loxone is an IoT platform for buildings. The Loxone Miniserver communicates with hundreds of sensors and actuators over various protocols: Loxone Tree, Loxone Air, KNX, 1-Wire, Modbus.

What is possible beyond that: Loxone as a data point in a larger IoT architecture. Energy consumption data from the building flows into the same dashboard as machine data from production. Presence control in the building automatically triggers heating and ventilation adjustments in the production hall. Access data from the Loxone access system can be linked with time tracking.

That is not a theoretical scenario — we implemented exactly this at a food processing operation in the Chiemgau area. Loxone as the building's brain, HELITS HRIS for personnel master data, an MQTT broker system in between as the integration layer.

Security: what the BSI recommends for IoT devices

IoT and security is a topic many companies underestimate. Every networked device is a potential point of attack. The BSI has clear recommendations for this: segmentation of the IoT network from the office network, regular firmware updates, no default passwords, and an inventory of all connected devices.

In practice, during initial site visits we regularly find IoT devices on the same network as workstation PCs — without a firewall rule between them. That is a risk you can fix in two hours with a VLAN, but it remains undetected for years if no one looks.

Anyone introducing IoT should consider network segmentation from the outset, not correct it afterwards.

Where to start

The most common mistake in IoT projects in SMEs: starting too big. A pilot installation at two or three measuring points delivers enough data within four to eight weeks to judge whether the approach works for the specific operation — before larger investments follow.

A sensible entry point we recommend: energy monitoring. Every machine, every production line, every building segment gets a smart meter. The data quickly shows where energy is actually being consumed — and where savings potential lies that was previously in the dark. That pays off directly even without elaborate automation.

For companies that want to start with IoT — whether in building services, production or energy — we accompany the project from planning through to productive operation. More on this under IT Networks & Infrastructure or in the context of Loxone Smart Building.

---