1. Discrete factory automation, focused on production lines, limit-switches and the like, mostly digital input/output;
2. Continuous process automation, dealing with fluid flows, tank levels, temperature controls - analog measurement and control; and
3. Batch controls - a blend of discrete and continuous, with a mix of discrete and continuous, digital and analog measurements - for example, in the pharmaceutical batch processes.

For these segmented markets, packaging is “industrial” and intended for use in relatively harsh factory and process environments, with wider temperature limits. Though the technology and designs are very similar, packaging brought a differentiated view of “industrial” versus “commercial” products. Also, commercial products are typically sold in much higher quantities, demanding lower pricing and profit margins. Further, the products and services are sold through entirely different sales and distribution channels.

Similar technologies, different markets

One such growth arena is energy management. This market has a significant need for utilization of automation & control technologies and methodologies, yet has hitherto been considered a totally different market segment, because it is "commercial"

The largest companies in the industrial controls business - Emerson, Honeywell, Invensys, Johnson Controls - seem to have developed a clear separation of their “industrial” and “commercial” businesses, perhaps mainly because the sales and distribution channels are completely different. Interestingly, Honeywell’s “Home & Building Automation” business exceeds its Process Solutions business in size, growth and profitability.

Energy expenses can be minimized, comfort and safety improved

Commercial buildings generally do not operate economically, and building managers are usually left to themselves to resolve the problems. However, they are usually busy with the regular problems of satisfying customers, and energy is not managed for the best economic value. Good automated monitoring and control systems typically generate savings of 10% or more, while still retaining optimal comfort levels. Further, whole-building energy savings of 20% or more can be achieved through improved operation and maintenance practices.

Novar’s multi-site management systems are intended to work at the enterprise level, to support large numbers of installations with heavy data handling requirements. The applications are usually installed at the user’s headquarters, monitoring all remote sites via the Internet. Novar’s enterprise software family of applications extends beyond energy analysis, to include other business-critical requirements such as alarm handling, systems configuration, data collection and performance monitoring. These measurements can be extended to capture many different business processes to deliver new and advanced enterprise solutions.

Soft differentiation

In my opinion, the differentiation is "soft". When growth is elusive in traditional industrial automation markets, it behooves good companies to look for expansion and growth in other similar markets. Industrial automation companies must extend their existing products, and develop new marketing and sales channels, to attract new "commercial" customers. Conversely, leaders in “commercial” markets may adapt their products and services to expand into "industrial" markets.

In the changing business environments of a new century, the companies that are able to broaden their horizons will succeed.