esamag EN

n.01 2023
Transition 4.0: What Changes in 2023

Smart Contracts: What Are They and What Opportunities Do They Offer?

The Importance of IoT in the Energy Crisis

Horizon Europe 2021-2027, European Fund for Innovative Enterprises

HIDRAWIFI: ESA Industrial Access Points

ChatGPT: What Impact Will It Have on the Industry?

ESA Case Study February 2023

www.esa-automation.com
Transition 4.0: What
Changes in 2023

What are the changes in the Transition

4.0 national plan starting from January
2023? Here’s everything we know
about the bonuses for investments in
technological and digital transformation.

2
 Transition 4.0 national plan: capital
goods
Support and encourage companies that
invest in new capital goods, tangible and
intangible, functional to the technological
and digital transformation of production
processes destined for production
facilities located in the territory of the
State. All these companies are granted a
tax credit under the following conditions:
+ Technologically advanced tangible
capital goods, from 2023 to 2025:
° 20% of the cost for the portion of
investments up to 2.5 million euros.
° 10% of the cost for the portion of
investments over 2.5 million euros and
up to the limit of total eligible costs of 10
million euros.
° 5% of the cost for the portion of
investments between 10 million euros and
up to the limit of total eligible costs of 20
million euros.
+ Technologically advanced intangible
capital goods functional to the 4.0
transformation processes:
° 2023: 20% of the cost within the maximum
limit of eligible costs of 1 million euro.
° 2024: 15% of the cost within the maximum
limit of eligible costs of 1 million euro.
° 2025: 10% of the cost within the maximum
limit of eligible costs equal to 1 million
euro.
The tax credit can be extended up to
30 June 2026 on condition that by 31
December 2025 the relative order is
accepted by the seller and the payment of
advances equal to at least 20 percent of
the acquisition cost has been made.
Transition 4.0 national plan: research
and development, technological
innovation, design and aesthetic
conception
The measure aims to support the
competitiveness of companies by
stimulating investments in Research and
Development, Technological Innovation,
also in the context of the 4.0 paradigm
and the circular economy, design and
aesthetic conception.
For technological innovation activities
aimed at creating new or substantially
improved products or production
processes, the tax credit is recognized:
3
° Up to the current tax period as at 31
December 2023: 10% of the relative
calculation basis, assumed net of other
subsidies or contributions of any kind
received on the same eligible expenses,
within the maximum annual limit of 2
million euros .
° After 31 December 2023 and up to the tax
period in progress on 31 December 2025:
5%, within the maximum annual limit of 2
million euros.
+ For 4.0 and green technological
innovation activities, aimed at creating
new or substantially improved products
or production processes to achieve an
ecological transition or digital innovation
4.0 objective, the tax credit is recognized:
° Up to the current tax period as at
31 December 2023: 10%, within the
maximum annual limit of 4 million euros.
° After 31 December 2023 and up to the tax
period in progress on 31 December 2025:
5%, within the maximum annual limit of 4
million euros.
+ For design and aesthetic conception
activities aimed at significantly innovating
the company’s products in terms of shape
and other non-technical or functional
elements, the tax credit is recognized:
° Up to the current tax period as at 31
December 2023: 10% of the relative
calculation basis, assumed net of other
subsidies or contributions of any kind
received on the same eligible expenses,
within the maximum annual limit of 2
million euros .
° After 31 December 2023 and up to the tax
period in progress on 31 December 2025:
5%, within the maximum annual limit of 2
million euros.
Extension of delivery deadlines until 31
December 2023
The Council of Ministers has extended
the deadlines for delivering the 4.0 goods
ordered during 2022 until 31 December
2023.
“It is a dutiful signal of attention for those
companies that are investing and will
thus be able to access a higher tax credit
in a profoundly changed international
context.”
Minister Adolfo Urso commented.
This was made necessary due to events
that changed the international context
with a major impact on production.
However, the extension of the term
is limited only to the tangible assets
included in annex A, law 232/2016
(tangible assets 4.0 referred to in Article 1,
paragraph 1057, law 178/2020).
4
Smart Contracts: What Are They
and What Opportunities
Do They Offer?

What is the role of smart contracts in industry?

In the era of the Smart Factory and Industry
4.0, digital security is a primary challenge.

Today’s industrial control systems often

encounter a variety of issues that put
production data and instructions at risk.

Therefore, we have a need for up-to-date

solutions which implement enterprise security
and make systems tamper-proof. One of the
latest are smart contracts. Let’s see why.

5
What are smart contracts and how do they
work?
A smart contract is “an automated, executable
agreement that references intelligent
software.” It is an informatic protocol used
to formalize and translate the elements of a
contractual relationship into a cryptographic
code. Its objective is in fact to facilitate, verify or
impose the respect and execution of the terms
of the contract.
They reduce costs
Smart contracts eliminate the use of
intermediaries. You no longer need to rely
on third parties to verify the terms of the
contract and provide the necessary trust. Thus,
associated transaction costs such as brokerage,
arbitration and enforcement fees are reduced –
or disappear altogether.

Typically, we talk about smart contracts in the Privacy protection

context of the blockchain. Their use serves to
automate the execution of an agreement so that
all parties involved can be sure of the outcome in
real time, without involving intermediaries and
without wasting time resources. In addition, they
can automate a workflow as well, triggering the
next action when conditions are met.
Smart contracts can be used to strengthen
privacy protection. For example, facilitating the
selective release of privacy-protected data to
satisfy a specific request.
Greater range and speed

How do smart contracts work? First, the terms of
the contract are defined. Once finalized, they are
translated into programming code, which is then
stored in the blockchain network and replicated
among the participants. At this point the code
is executed by all the computers in the network
and, when the terms are met and verified, the
related transaction is executed.
Removing the need for trusted third parties
and human intervention in the process is not
just a solution to cut transaction costs. Autorun
also gives more autonomy to the parties and
speeds up the process.

Smart contract execution can involve providing

services, exchanging money, unlocking content
protected by digital rights management, or other
types of data manipulation, and much more.

Smart contracts: the advantages in the

blockchain

They function as a certification of data or

products authenticity

I Production data is vulnerable to attack and

tampering. For example, tampering with product
performance data during quality inspection. Or
the counterfeiting of products (such as NTF).
Since all participants have the same information
at the same time, the risk of forgery or tampering
is minimized. This level of transparency
guarantees security to the parties, making
the contracts impregnable and immune from
alterations.

6
The Importance of IoT in the
Energy Crisis

Energy management has been a hot

topic for years, but today more than
ever it’s clear that we are facing a global
energy crisis. The conflict in Ukraine has
highlighted how dependent the world is
on this resource and how vulnerable the
energy supply network is.

7
 IoT and energy crisis: the solution already exists

Growing uncertainty about energy security and rising tariffs are forcing companies to look for
solutions. Among these, IoT technology is one of the most promising to help us use energy
more efficiently and responsibly. The Internet of Things already plays an important role in
the energy sector in various forms and capacities. Its most widespread function concerns
smart monitoring of consumption. More and more companies are investing in smart metering
systems made up of sensors and devices interconnected with plant machinery, in order to keep
energy consumption (and other resources) under control.

The IoT to face the energy crisis, therefore, is not only a solution already present in various
production realities, but it has also already demonstrated its effectiveness. Suffice it to say
that the European Commission is evaluating the possibility of using the IoT through the smart
metering of electricity meters to request power reductions in certain time slots. Now, it is only
necessary to further explore its potential and exploit it.

Using the IoT to increase energy efficiency

The application of the Internet of Things

in energy management is not limited to
monitoring. From predictive maintenance
° Isolate the most efficient areas for
interventions aimed at increasing energy
to smart factories and smart grids, up to efficiency.
smart cities, the use of IoT technology
opens up numerous scenarios for optimizing
production processes and reducing energy
° Development of smart electrical systems and
networks.
waste.

Energy management systems based on

IoT networks are designed to maximize
efficiency and promote a more integrated
and conscious approach to industry.
Together with greater control over energy
consumption, they allow for the design of
new intelligent ways of working. By doing so,
it is possible to set up the entire production
chain on a more efficient basis, in all its
phases, from generation to consumption.

Advantages of the IoT in energy

management

When implemented, IoT technologies offer

substantial benefits at every stage of the
energy chain. Among the main ones:

Get granular insights into each stage of

° the production journey through energy
monitoring of performance and efficiency
metrics.

° Improve predictive maintenance of

production plants to reduce consumption
peaks, waste and interventions. 8
Horizon Europe 2021-2027,
European Fund for Innovative
Enterprises

Invest to shape the future. This is

the vision of Horizon Europe, the
European framework program to
support research and innovation.

In this article we go over what it is

about, the goals of the program, and
how to access funding.

9
 What is Horizon Europe?
Horizon Europe is the new European
Union funding program for business
research and innovation for the
programming period from 2021 to 2027.
It stands out as the most ambitious
financial instrument in this field, with
a budget of €95.5 billion (including
€5.4 billion from the Next Generation
EU program for the recovery from the
COVID-19 crisis). This fund will be divided
as follows:
° Scientific excellence – 25 billion
° Global challenges and European industrial
competitiveness – 53.5 billion
° Innovative Europe – 13.6 billion
° “Enlargement and SER” – 3.4 billion
Accordingly, Horizon Europe intervenes in
three macro-areas:
Science and technology: nurture the EU’s
°
scientific and technological excellence
and strengthen the European Research
Area (ERA).
Economy: boosting the diffusion of
°
innovation, competitiveness, and job
creation in Europe.
° Society: Addressing policy priorities,
including the green and digital transitions
and the Sustainable Development Goals.
To succeed in its intent, the program
adopts a mission-oriented approach. That
is, through interdisciplinary actions aimed
at achieving a bold, stimulating and
measurable goal within a pre-established
period.
Objectives of Horizon Europe 2021-2027
Horizon Europe has the following
objectives:
° Improve science and technology in the
EU through increased investment in highly
skilled people and cutting-edge research.
° Promotion of the EU’s industrial
competitiveness and its innovation
performance, in particular by supporting
innovation that creates new markets
through the European Innovation Council
and the European Institute of Innovation
and Technology.
° EU strategic priorities, such as the
Paris Agreement on climate change, by
addressing global challenges that affect
the quality of our daily lives.
Also:
Tackle climate change, help achieve the
°
United Nations Sustainable Development
Goals.
Facilitate collaboration and enhance
°
the impact of research and innovation
in developing, supporting and
implementing EU policies by addressing
global challenges. It supports the
creation and better diffusion of excellent
knowledge and technologies.
Create jobs, fully engage the EU’s talent
°
pool, stimulate economic growth, boost
industrial competitiveness and maximize
the impact of investments within a
strengthened European Research Area.
10
Horizon Europe: who can participate?

Participation in Horizon Europe is open to

legal entities, irrespective of their place
of establishment, including legal entities
from third countries not associated
with the Program or international
organizations. It is essential to highlight
that participation in the program is
independent of whether or not the
subject in question can receive European
funding.

By legal entities we mean legal persons,

natural persons and entities without legal
personality compatibly with the art. 197(2)
(c) of the Financial Regulation.

11
HIDRAWIFI:
ESA Industrial Access Points

In the smart factory, where production

is based on IoT systems, connectivity
becomes a priority. This requires
reliable technology that guarantees the
continuity and security of the network.
To this end, ESA has created its
HIDRAWIFI industrial wireless access
points.

These devices represent a robust,

reliable and cost-effective solution for all
industrial applications that require Wi-Fi
connectivity.

12
Wireless connectivity with HIDRAWIFI

Connectivity is the keyword of the

HIDRAWIFI line. The range is designed
to ensure constant Wi-Fi connection to
clients and mobile stations or other ESA
industrial network products. The result is a
complete solution for industrial wireless
networking.

User can use HIDRAWIFI as access point

(AP), WDS (Wireless Distribution System)
bridge and AP client. It supports IEEE
802.11 a/b/g/n wireless connectivity
standards. It also lends itself to use in
both the 2.4GHz and 5GHz bands. Ideal
for avoiding interference on the crowded
2.4GHz.

HIDRAWIFI industrial access points are

wireless devices designed to support
production even in the most difficult
environments. In fact, their robustness
allows them to operate at temperatures
between -10°C and 60°C. But not only.
What makes them even more interesting
is the ease of installation. Thanks to the HIDRAWIFI: technical characteristics
DIN rail, it can fix itself on practically any
surface in the plant. ° Configuration via webserver and management
utility

° 4 GHz frequency support

° 5GHz
GHz support to reduce interference on 2.4
with other wireless devices

° Client isolation
° Different operating mode and topology options
° FCC, ETSI, NCC certified wireless equipment
° Industrial
environment
grade device designed for harsh

° Security: encryption and virtual network

segmentation

13
ChatGPT: What Impact Will It
Have on the Industry?

The ChatGPT language model is gaining

popularity every day due to its potential
in various fields of application. In the
industrial context 4.0, it promises to
revolutionize processes to support a
further step forward in improving the
efficiency and productivity of companies.

14
ChatGPT and artificial intelligence in
industrial automation
Latest OpenAI project, ChatGPT is a
highly versatile and effective solution
for automatic text generation, language
understanding, code generation and
human-machine interface creation. The
field is generative artificial intelligence,
i.e. a machine learning system capable
of classifying or recognizing existing data
and generating content, such as text,
images or sounds.
Industry 4.0 is not new to the use of
artificial intelligence algorithms. In
recent years, these technologies have
contributed to the digitization process
of real-time connection of production
systems. Similarly, the ChatGPT model in
industry can contribute to this direction,
particularly in the advancement of
collaboration (and communication)
between humans and machines.
With over 100 million users and 13 million
individual active users every day, the most
striking in the industrial sector is its ability
to understand and process data.
Potential applications of ChatGPT in
industry
The potential uses of ChatGPT in industry
are many. Here are the main areas of
application:
Monitoring and prevention
It can be used to analyze historical data
collected by sensors on machinery, to
identify any anomalies and generate
alarms. This would also allow him to
implement and suggest predictive
maintenance actions even before a
problem occurs, thus contributing to the
safety of the production plant.
Data simplification and accessibility
In the industrial context, ChatGPT can
be used to automatically generate
technical documentation on production,
maintenance, or safety processes. In
fact, it can “translate” the tabulated data
obtained from automated dashboards
into an easily understandable text format.
The data could then be incorporated into
the firm’s annual reports to gain a broader
understanding of plant productivity.
Assistance and training
Simplifying the interaction between
operators and systems is fundamental in
Industry 4.0. As? Through natural dialogue
interfaces for the management and
control of the machines. For example, a
chatbot that answers questions about how
it works, troubleshoots, etc. In that sense,
ChatGPT would play a very useful role in
providing real-time guidance and training
to field personnel.
15
 ESA Case Study February 2023
Company ID
With over 30 years of experience, the
customer manufactures and markets
high quality industrial compressors.
Its product portfolio also includes
valves and air starters. In this way, the
company can follow the complete
cycle of the product: from design,
engineering, development, production,
to maintenance, technical assistance,
and spare parts management.
Application description
Customers can buy or rent one or
more industrial compressors which are
normally networked together.
The operator panel implements the
user interface for commanding and
displaying the status and takes care of
collecting the data necessary for the
following functions:
1. Predictive maintenance
The manufacturing company must
be able to check the state of wear
of the compressor and send the
consumables and any spare parts to
the end customer, so as not to interrupt
the work cycle of the machine. The
variables that are monitored are:
° Oil level
° Oil temperature
° Oil pressure
° Level of vibration
° Hours of operation
° Date and time of last maintenance
2.Billing
The customer can rent the compressor, receiving an
invoice based on the hours of use.
Data is then sent to a SQL database in the cloud via
the OPC UA server interface.
ESA’s solution
For the customer ESA has developed the following
solution:
° LUMIA110 in edgeHMI version with application
developed with KREO HMI.
° Communication via Ethernet Ip with PLC Siemens S7
1200.
° Responsive user interface using SVG graphic objects
developed with the Kreo SVG converter utility.
° Possibility to control and view the compressor status
on mobile devices (phones, tablets).
° Export of variable value to SQL cloud database via
OPC UA server.
° Import of production batches from factory
management applications via OPC UA server.
16
Mind
Over
Innovation.
www.esa-automation.com