Warm Beer, Stolen Tires, Missing Fridges—IoT Answers the Toughest Business Questions (Petr Blabla, Adastra)

Ivana Karhanová: Petr, you say that IoT enables the tracking and measurement of previously immeasurable aspects for companies. Could you provide some examples of these new capabilities?

Petr Blabla: Certainly. We’re seeing applications across the entire supply chain. Initially, it was largely in retail, especially with the shift in consumer behavior post-COVID. Brands were eager to understand these changes, which led to increased monitoring. But now, it’s expanded to encompass raw materials, manufacturing, logistics, and even sustainability efforts like reverse logistics. Essentially, IoT provides insights across the entire product and customer journey.

Ivana Karhanová: Can you give us specific examples of what you’re measuring and the types of insights companies are seeking?

Petr Blabla: In retail, for instance, physical stores were somewhat of a black box compared to online stores, where metrics like visitor counts and engagement are readily available. Now, we can measure foot traffic in stores, customer movement patterns, dwell times, and conversions. This level of detail was previously exclusive to online analytics but is now accessible for physical retail, offering a comprehensive view of in-store customer behavior.

Ivana Karhanová: So, you can pinpoint from which shelf or section customers are purchasing products, like beer, for example?

Petr Blabla: Exactly. We can also identify other areas of the store visited along the way to reveal the full customer profile. For instance, if a customer primarily buys beer on promotion, what else do they purchase on their journey? Do they visit the vegetable section, buy bakery items, prefer sweets, or something else? Understanding the complete customer journey helps in strategically positioning promotions and marketing efforts to maximize market share.

Ivana Karhanová: How do you determine the point of purchase for a product?

Petr Blabla:This is done by monitoring secondary placements. You can track only secondary placements, and if you have the pay slip showing total sales for that category, you just divide one by the other to see how much was sold from the primary vs. secondary placement. And, of course, you pay extra for this store display.

Ivana Karhanová: Shifting gears, you’ve also applied IoT in monitoring police car tires, correct?

Petr Blabla: Yes, that was an unusual case. The issue was that cars were leaving the premises with new tires but returning with old ones. Our task was to monitor and prevent these tire swaps, ensuring vehicles retained their new tires throughout their use.

Ivana Karhanová: Let’s touch on construction. What IoT applications have you explored there?

Petr Blabla: In construction, material sensitivity to environmental factors like temperature and humidity is critical. We track these variables throughout the supply chain to ensure product quality and optimize logistics, aiming to maintain quality while minimizing costs and environmental impact. This ties directly to key business decisions: How should materials be transported? In what quantities? Over what maximum distance? Under what conditions? By addressing these factors, we ensure that materials comply with quality standards from the factory to application.

Ivana Karhanová: You’ve also tracked the journey of plastic bottles in the Czech Republic, is that right?

Petr Blabla: Yeah, that was a very interesting use case because it addressed a widely discussed topic across academia, politics, and the general public—waste management. As a country, we are good at sorting waste, but the brief here was to track what happens to plastic waste after it is placed in recycling bins.
The assumption was that pretty much everything would end up being recycled, but that was not the case. We knew how much plastic was being released into the market in bottles, but the unknown factor was how much of it was actually recycled after consumption. Ideally, everything placed in recycling bins should make it to recycling facilities. However, we found that while some waste reached sorting and recycling facilities, a portion still ended up in landfills.

Ivana Karhanová: You tracked the entire journey of the plastic bottle, right?

Petr Blabla: Exactly. We adapted an end-to-end solution using multi-sensor devices from previous projects, modified to fit inside plastic bottles. These bottles were placed across the country to ensure regional representation. We tracked their journey—where they traveled, stopped, and ultimately ended up. Temperature measurements helped detect if a bottle was burned or diverted. This provided real data for informed discussions among the public, policymakers, and stakeholders.

Ivana Karhanová: And the key issue in the Czech Republic was that there was no clear understanding of what happens to plastic bottles after they’re thrown into recycling bins, right?

Petr Blabla: That’s correct. It’s not just about efficiency but also about the broader sustainability challenge—how to manage plastic as a reusable resource for further production, upcycling, or other processes.

Ivana Karhanová: How do you initiate projects with clients seeking these IoT solutions?

Petr Blabla: There are two approaches, but with end-to-end solutions, clients want business answers, not the technology details. We start with consulting to understand their challenge and adapt the solution accordingly. Our approach is modular, like Lego blocks. We customize sensory solutions—developing new ones, adapting past projects, or using existing market components. We can also integrate client technology to enable unique data collection, transferring it to our flexible IoT platform for seamless integration.

The final result fits client needs—a report, an app, or real-time alerts for process deviations. If something goes wrong, they’re notified; otherwise, the system remains invisible, providing long-term insights. Nearly all projects incorporate AI to filter data, optimize processes, and offer predictive insights—giving decision-makers clear answers to simplify their work.

Ivana Karhanová: You reminded me of the refrigerator case—some weren’t stolen but got lost, right?

Petr Blabla: Yes, there were several use cases, one being missing fridges. We tackled this with just three simple sensors: an accelerometer to detect movement, GPS for location tracking, and a temperature sensor. These sensors allowed us to determine if the fridge was on or off—critical because a turned-off fridge means no sales, as no one buys warm beer. Temperature trends also helped with predictive maintenance, allowing repairs before breakdowns. GPS tracked inventory and ensured fridges stayed where they should be. The accelerometer also detected movement. If a fridge moved beyond a set radius, we could adjust the firmware to increase tracking frequency, monitoring its exact journey if it was stolen.

Ivana Karhanová: And only the responsible person would be notified if action was needed?

Petr Blabla: Exactly. If everything is fine, just a daily update confirms it’s running and at the right location. But if it moves, breaks, or gets stolen, the system alerts the responsible person to take action.

Ivana Karhanová: What technologies do you employ in these projects?

Petr Blabla: We’re completely technology-agnostic, integrating everything from off-the-shelf sensors to custom-built devices, depending on the project’s needs. We don’t push unnecessary solutions—our goal is to provide the best answer to the client’s business challenge. If required, we design custom sensors by combining market components on a printed circuit board (PCB), ensuring clients pay only for what they need without adapting their processes to a rigid, pre-built solution.
On the software side, our solutions are just as flexible, seamlessly integrating with any existing data ecosystem—whether it’s Microsoft, AWS, on-premises, or another platform. While cloud deployment is the trend for scalability, our IoT platform is built to work on any infrastructure.

Ivana Karhanová: You’ve developed your own IoT analytics platform, correct? How does this benefit your clients?

Petr Blabla: Exactly. It’s about speed to market and cost. Initially, development costs were ten times higher than today. Now, we reuse existing solutions, finding the closest match from our IoT platform and adapting it to the client’s use case. This means clients mainly pay for setup and adaptation, which is significantly cheaper than four years ago, plus the device and ongoing support.
A typical project launches within 2–3 months, sometimes 3–6 months for newer use cases, but most fall within the shorter timeline once officially confirmed.

Ivana Karhanová: Given the rapid ROI, what drives the demand for IoT projects globally?

Petr Blabla: Several factors contribute, including COVID-19’s impact and the push for sustainability through ESG and SDG initiatives. These external pressures, combined with the constant quest for operational efficiencies and cost reductions, drive businesses to seek IoT solutions for better data-driven decision-making.

Ivana Karhanová: Do you notice any differences in IoT adoption between regions, such as the Czech Republic and North America?

Petr Blabla: Yes, the adoption levels vary. In the Czech Republic, we often see end-to-end project requests, where clients are focused on solving business problems, not the technology itself. In contrast, North American clients may already be experimenting with IoT and are looking to integrate and optimize these technologies more deeply into their operations.

Ivana Karhanová: What lessons have clients learned from implementing IoT solutions?

Petr Blabla: Many realize the importance of having the capacity to analyze the vast amounts of data generated by IoT devices. The success of IoT projects hinges not just on collecting data but on deriving actionable insights that align with business goals and KPIs.

Ivana Karhanová: What’s been the most impactful project you’ve worked on?

Petr Blabla: Projects like the plastic bottle tracking in the Czech Republic stand out because they demonstrate tangible benefits, such as improved recycling rates and reduced environmental impact. Seeing our work lead to real, positive change is incredibly rewarding.

Ivana Karhanová: To wrap up, if a company is interested in exploring IoT solutions, what’s the first step?

Petr Blabla: We start with a detailed workshop to understand the client’s specific challenges and objectives. This collaboration helps us design a tailored solution that not only addresses their immediate needs but also aligns with their broader business strategy. Our goal is to ensure the solution we provide offers clear value and a quick return on investment.

Ivana Karhanová: Petr, thank you for sharing your expertise with us and for shedding light on the fascinating world of IoT solutions.

Petr Blabla: Thank you for having me.