Karsten Stoll Interview Brochure

KARSTEN S T O L L

THE VITAL COMPONENT

KARSTEN STOLL, CTO OF INTERCONNECTION OF WAGO GROUP, AN INTERNATIONAL SUPPLIER OF ELECTRICAL INTERCONNECTION, AUTOMATION, AND ELECTRONIC INTERFACE PRODUCTS AND SOLUTIONS, DISCUSSES THE IMPORTANCE OF CUSTOMER-CENTRICITY AND THE NEED TO ADAPT TO THE EVER-CHANGING TECHNOLOGY LANDSCAPE. SUPPORTED BY:

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How has technology and its role in WAGO Group evolved over time?

We make a lot of small parts that are worth a few cents, so we’re very much hardwarefocused on designing, producing, and selling these products, but differentiation with components is getting more difficult.

I’ve been with WAGO for 14 years now and in my current role for the last few years.

With our Interconnection Business Unit as our core business, we manufacture little pieces that consist of plastic, steel and copper that link two wires or more – components that seem simple. However, these components are one major enabler for digitalisation in a society that will become more electric and sustainable, so we are at the forefront of that.

We see much happening in the market; a lot of strong competition evolving core knowledge around production of components that have become a commodity. So, we must find other ways to help customers solve challenges.

Of course, technology and digitalisation software are a possible option and one we can follow. So, we can think about different business models and offerings, and ways to design and produce.

What I find is a good guiding principle for management and leadership is to always think

Digitalisation – occurring at a very high speed – has been a key driver across our

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I’m responsible for everything in our interconnection business, from first idea at customer level, to realisation of any new product. I’m also responsible for standardised data in a group function, especially product data, all IT and digitalisation topics that go with that, and intellectual property and standardisation across the world. With the business segment I’m responsible for, we make approximately €1 billion in sales.

I have about 250 people in my direct team.

of what we can do to make our customers’ lives a little bit easier, faster, cheaper, and better.

K A R S T E N S T OLL

Can you tell us about work and experience?

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internal processes, but also throughout our international customer base. They have changed their value chain a lot and we, as a component supplier, are delivering into that. But it can be a challenge to keep up.

How do you balance fostering a peoplecentric culture while driving technological advancements within the organisation?

We’re a family-owned business and have been a very people-centric company for ages.

So, it’s a core principle in my job. And if we think about how we can drive technological advancements in a people-centric culture, it’s easy. You must find the right people and then give them the correct tasks. That can be people already employed there, not just hiring

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“What I find is a good guiding principle for management and leadership is to always think of what we can do to make our customers’ lives a little bit easier, faster, cheaper, and better.”

K A R S T E N S T OLL

From my perspective, technology and the corresponding change is not necessarily my job. People and talents are my job.

So, I enable the team and organisation to drive tech and innovation. One example of this is when we set up a Kickbox method – everybody puts forward their ideas and if successful, they receive a small budget and a team. Then we develop these ideas to proof-of-concept and then, to implementation or market launch if they succeed.

We’ve developed a few products from this Kickbox process, like our 221 Series Green

Range – the first splicing connector with levers, where we use a mixture of recycled and bio-circular plastics. The green levers of the 221 Series Green Range consist of at least 27% reused PET bottles, the transparent housing about 77% of biological residues such as tall oil, old grease, and residues from the production of edible oils.

As a result, the consumption of fossil resources is significantly lower for the more sustainable 221 Series than for its orange sister. At the same time, existing plastics remain in circulation. The metal components (spring steel and copper) of both splicing connectors consist largely of recycled materials.

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new people. There’s a German saying, it goes like, “You have to learn to dance with the ladies that are in the ballroom.”

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And the Green Range idea was pitched in the Kickbox by two young colleagues that really had nothing to do with the product itself but had heard about the process of using more climate-friendly materials. And we introduced that product range last September.

Another successful exploration project was our 3D printing platform called Creators.

People can develop their own accessories around our products, upload them, share, and comment on them. This is a totally new approach to our existing business which again helps our customers.

What do you think makes an effective modern leader?

In the rapidly changing technology landscape, how does WAGO Group approach innovation and what strategies do you employ to ensure continuous adoption of new technologies?

So, our components were plastic, steel, and copper. We have a deep expertise in that.

Technologies that develop quickly change the processes of our customers, as well as the tech we employ. So, we need a lot more expertise in digitalisation and what the customers are doing. Then we adapt our processes internally.

When approaching the topic, we must ensure we keep what made it strong in the past, and then add new strategies around that to

What do you see as key trends and challenges in the electrical interconnection and automation industry? And how is WAGO Group positioned to address them?

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At some point in time, that group will have enough energy to move forward by itself and then drive a topic beyond what they were working on. And that’s the best thing that can happen. They will then become unstoppable.

secure the future. A very easy example is if you have a set of product managers that deal with components, you let them manage components because that’s what they’re good at. You don’t try to move them to also manage digital offerings like configuration software or digital twins, we add experts into the team instead. They learn from each other and eventually become an even stronger team.

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I strongly believe people who experience an elevated level of trust can take on almost any challenge; you give trust and ensure the right people are working on the right tasks.

Of course, you need some basic knowledge, but if you give a team enough trust, they will be able to tackle challenges. My role is then only supporting them if I can – that might just be having a different perspective. Or maybe getting the budget for a new product, solution, or technology from the owners, or just clearly saying, “I really like that.”

“I strongly believe people who experience an elevated level of trust can take on almost any challenge; you give trust and ensure the right people are working on the right tasks.”

Currently, in the electrical interconnection and automation industry, we see an incredible change in the competitor’s landscape, mainly coming from China. Whereas we come out of a world that was local for global, developing basically everything locally in Germany and then distributing it across the world. We see a lot more local for local, more regulation, and a more digitally connected world. We are in a very strong position, both for what we have set up as offerings, and with our network and value chain partners. But there are very serious challenges that bring major changes to our core business model – we must learn to work more in networks not only with customers, but also with our core competitors, 89

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ways to support our customers to get better, faster, and cheaper products and solutions.

Software is an option, which could be configuration or an intelligent product finder.

And, of course, this happens differently to component development, which is hardware.

Hardware development normally is slow, involving building new plants or machines.

The component world is very investment intensive. Software isn’t. Software is much more people and customer centric.

Given the increasing integration of software with hardware and automation products, how does WAGO Group approach development and management of product related software?

Software development is more agile, and with new regulation that comes from the European Union and across the world that we must fulfil.

It’s a totally different world we’re now looking at, with totally different skills in the product management and development team.

Differentiation through components is getting more difficult, therefore we must find other

And of course, engineering itself will become more digital; for both hardware and software.

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to solve general challenges with them.

Like the International Digital Twin Association here in Germany, we actively developed a new standard for communication of product data called ‘asset administration shell’. That’s something we would’ve always done in competition before in Germany.

But now, we’re moving together as an industry initiative within the International Digital Twin Association. And it is also a huge success for our customers – as download numbers are showing.

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Let me quote our partner CADFEM: “Digital engineering involves tapping the full potential of technical creativity, precise data models, and clever workflows.

This ensures that a good idea results in an excellent product – for manufacturers, customers, and the environment.”

Given the diverse applications of products, how do you foster collaboration and partnerships with other businesses?

Differentiation in our existing business of course means excellent hardware products, and excellent new digital products and services. If you think of that, we will only be able to succeed if we are a very digital company concerning our internal processes. Here is where we partner up with various strong partners.

One very good example is CADFEM. CADFEM is our long-standing partner in virtual product development technologies, especially advanced physics-based simulation.

Simulation software enables us to develop, optimise and innovate our products digitally, on the screen. This does not only save a lot of time and money in product development –

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“Sustainability has always been anchored in our corporate strategy.” just think of the physical prototypes that do not have to be built, tested, and measured – it also helps our engineers to quickly test their ideas or compare hundreds of options, to be innovative – a key to differentiate ourselves.

Long story short: this is done by our engineers and CADFEM is our partner for software (we use Ansys), but also expert advice, seminars, customised development etc.

CADFEM supports us to explore new application areas and accompanies us until they are fully implemented and dominated by our own engineers.

For example, simulation technology at WAGO is evolving from being a rigid part in the R&D process chain, to a technology that accompanies the complete product lifecycle and can be used by everyone involved in the

DIGITAL ENGINEERING: A SINGLE PROTOTYPE IS ALL IT TAKES.

© HAWE Hydraulik SE www.hawe.com

“Whether new or further development, our goal is to get by with a single prototype before a product goes into series production,” emphasizes Stefan Macho, Head of R&D Simulation, who has been driving the use of simulation in the development area of the HAWE Hydraulik SE for more than ten years.

With great success: HAWE hydraulic power packs are ready for the market faster and in a more cost-effective way, without compromising on quality. This is achieved by virtual prototyping, that allows the product to modeled, analyzed, and optimized on a PC or cloud, providing engineers with the ability rapidly explore & identify innovative designs.

MASTERING COMPLEXITY Hydraulic power packs depend on the reliable and intelligent interaction of mechanical, fluid dynamics, acoustics, and control effects. Not only must each individual physical domain function properly, but the interactions between them must also be identified, evaluated, and coordinated.

This is made possible with simulation-based Digital Engineering. At HAWE, physical testing

is carried out for the final validation of the digitally developed product. The goal is, to get along with just one single prototype before a new hydraulic power pack design is finished and ready for series production.

With simulation, complexity becomes an opportunity for innovation, improvement, and for the realization of new approaches.

Small but important details are identified, correlations are made transparent, and ideas are quickly tested - even in areas that traditional development processes do not often consider.

Innovation as a fundamental approach Continuous improvement of hydraulic power packs and other products reflects the commitment to innovation embedded in the corporate principles of HAWE. The use of engineering simulation technology is key, and the close and long-term partnership with experts from Digital Engineering specialist CADFEM underscores HAWE’s claim to always be on the cutting edge of technology and methodology.

After all, innovative not only refers to the products, but to all processes and systems at HAWE. WWW.CADFEM.NET/HAWE

Empowering Digital Engineering.

Globally.

SIMULATION-BASED DIGITAL ENGINEERING LEVERAGES THE FULL POTENTIAL OF TECHNICAL CREATIVITY, PRECISE DATA MODELS AND INNOVATIVE WORKFLOWS. CADFEM has been synonymous with simulation since 1985 and has been supporting companies, researchers, and students in the successful use of simulation technology ever since. Simulation has evolved into an essential component of Digital Engineering: Our global team of over 450 employees provides technical support, mentoring, training, project work, contract projects and IT services to ensure a rapid, seamless implementation and deployment of digital engineering solutions.

CADFEM are also experts in data management solutions, workflow customization, automation and utilizing game changing technologies like AI.

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Our approach guarantees that good ideas get translated into excellent products – benefitting manufacturers, customers, and the environment.

E LI T E C H A N N E L PA RT N E R

CADFEM.NET

CADFEMGROUP.COM

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How does the company approach social and environmental responsibility in its operations and product development?

Our business areas are oriented towards sustainable developments like production, buildings, energy, and mobility. We try to place our products there and focus development of new products, services, and offerings around that with our partners.

And when we develop products, we have clear set requirements we pay particular attention to. We also have a WAGO circular economy action plan that also gives us good guidance to focus on. And nothing is too small to have an impact – as mentioned before, our

As a CTO, how do you envision the long-term technological landscape for the company?

For the major challenges that climate change is posing, a more electrical world with sector coupling as well as the convergence of OT and IT, all means a more digital world will just happen, and we will be there to support and enable our customers. We are in the driver’s seat as we supply components, systems, and solutions. So, we can drive sustainability and digitalisation. But this vision will only partially guide us, so our focus must be customercentric overall, which will lead us to new innovations and concepts.

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Sustainability has always been anchored in our corporate strategy. It’s not only something we manage across in our daily business; it’s in the DNA of our company owners.

Our sustainability program is a benchmark for business decisions. We’ve been part of the UN Global Compact sustainability initiatives since 2012, and we try to provide solutions for customers to move to more sustainable businesses.

221 Series Green Range splicing connector with levers for example, uses plastics from alternative sources – a mixture of recycled and bio-circular plastics.

K A R S T E N S T OLL

engineering process. Having a comprehensive simulation-based digital model of each product (a “Digital Twin”) is a huge advantage and that is where we are going to with the expert advice of our partner CADFEM.

By learning more of our customers, their processes, and linking them up digitally, we can gather data. This is a self-reinforcing system. We will be able to provide new offerings, and in the end, become even closer to the customer, obtain even more data, and then develop new offerings. That’s something that will move us along as a components and system supplier. We are probably best positioned if we follow and focus on that.

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