How IHM Stefanini is looking to ride the industry 4.0 wave

Founded in 1994 as a systems, electrical and industrial IT integrator, IHM evolved its operations over the years until being acquired by Brazilian IT multinational Stefanini in 2015.

In recent years, with the new technological wave, the company has focused on consultancy services for the development of automation, data and digitization projects – from the factory floor to the cloud – and mainly for the mining, metals, oil and gas, and paper and pulp sectors in Latin America, the US and Europe.

In 2021, IHM Stefanini opened a factory in Contagem, Minas Gerais state, to meet demand from enterprises. 

In this interview, Gustavo Brito, director of digital industry at the firm, talks about ongoing and forthcoming projects.

BNamericas: We are past the middle of 2023. How has business been regarding demand for digitization and automation by companies? What is the outlook for the rest of the year?

Brito: If we consider the first half, 2023 has been a surprisingly positive year, especially when we think about the culture of innovation coming from companies. 

And here I’m mainly referring to the digital transformation and the ESG agenda, which is how we have positioned ourselves in the market. That is, to be the main strategic partner in the digital journeys that accelerate our clients' agendas.

Now, it's always a challenge. There is this difficulty that the industry in general has in changing some paradigms. It's like investing in a shift of business model, for something more digital, innovative, on top of a model that, for all it’s worth, is already generating results for shareholders. 

Breaking some paradigms, bringing emerging technologies, however much they may and will improve processes, is always challenging.

But in recent times we’ve seen more maturity. The industry is investing more in innovative approaches, even if this comes with some risk, as all innovation does.

This can obviously be mitigated through correct methodologies, which put people at the center and involve several stakeholders, with several different perspectives. And at the same time addressing sustainability agendas, which have become a necessity for everyone in the value chain.

BNamericas: You mentioned sustainability more than once. How, exactly, have you been working with companies in this regard?

Brito: From the moment I'm in the production environment, with raw material becoming a product, providing technology not only thinking about the return on that investment but on how to make those processes as efficient as possible, I'm already consuming less inputs.

I'm generating less waste, within the circular economy concept. I'm having a better consumption of energy... for me to be more efficient, that is, producing better or more while spending less. 

This is one side of how we’re addressing that. 

But we’ve also been working on initiatives aimed directly at environmental issues, for example through the application of machine learning to predict pollutant particles, so that pollutants are not emitted above an acceptable level.

Also application of industrial analytics, for example, for detecting leaks in pipelines for ore slurry, and to reduce the waste of concessionaires in the distribution of drinking water in large cities.

BNamericas: Can you mention some cases?

Brito: Today we count with around 30 use cases, in the last three years, where we impacted significant environmental indicators in different ways.

We are a consultancy and also executors. We design the project and implement the technology, from IoT to sensors, from the factory floor to the cloud itself.

Automation systems, controls, production control planning systems, process optimization and industrial analytics. We are almost 1,000 engineers and technology professionals in this Stefanini group unit. We do the complete cycle, consultancy plus the execution of the technological initiatives that were generated in that consultancy stage.

BNamericas: You end up competing with giants like Accenture, Deloitte and EY, right?

Brito: Right. But our differential in relation to them is our executive capacity. We’re not just a consultancy. I will not propose solutions that I cannot implement. I generate for the client a forecast of the return on investment that he will make, I propose to execute it and I execute it. With professionals who work with different disciplines within the productive environment.

I'm not going to generate a two-year plan for the client. I will generate short-cycle plans.

BNamericas: Equipment and software, however, come from market partners.

Brito: Yes, all that hardware, the systems themselves, come from third parties with whom we work.

BNamericas: Which company profile do you mainly target?

Brito: Mid-sized and large industries. In the industrial segments, we’ve worked with all the main ones, from consumer goods, mining, steel, paper... cosmetics. We’ve been working a lot with logistics companies, for example. Waterways, gas carriers.

We have around 200 active projects in this model, distributed across the locations where we operate: Brazil, Latin America, the United States and Europe.

BNamericas: Do you have fixed contracts too, or mostly contracts per project?

Brito: Yes, with some companies we have a more long-term relationship, a really strategic partnership. I would say that we have a dozen contracts today in this format.

BNamericas: Can you name some clients?

Brito: We have developed projects for Vale, Hexagon Mining, Gerdau and Sabesp, among those we have authorization to divulge. But there are others in South and Central America and the US.

BNamericas: Is there any vertical to which you intend to give particular emphasis?

Brito: We are very interested in the agribusiness segment. We see a blue ocean of opportunity there.

BNamericas: And in Latin America [outside Brazil], which markets are deemed interesting?

Brito: Today we have active contracts in Colombia, Mexico, Dominican Republic. Our focus in Latin America has mostly been Peru, Chile, Colombia, Mexico and Argentina, despite the local challenges.

BNamericas: What is the growth target for this year? And investments?

Brito: We're projecting around 15% year-over-year revenue growth at IHM. We don’t divulge specific numbers but we annually invest approximately 15% of our profits in digital products.

We’re now investing in and planning to launch by the end of the year a generative AI solution to improve decision-making processes related to operation and maintenance. Our expectation is to launch this by November.