Proving the Business Case for the Internet of Things

Arkados smart factory tech to bolster productivity for Tatung

Iain Morris
July 23, 2014
Software and hardware design specialist Arkados has licensed the use of its “smart factory” technology to consumer electronics company Tatung, which plans to use the system to bolster the efficiency and productivity of its operations.

Arkados (Newark, NJ, USA) says the smart factory platform – or PEMS-SF – provides real-time status updates and can be used to gather, harvest, monitor, analyze and report data for production testing and logistic material handling.

According to a licensing agreement signed earlier this month by the two companies – which already had a strategic partnership – Arkados is to provide Tatung (Taipei, Taiwan) with a number of smart factory-enabled stations or subsystems, as well as data analytics and reports on a subscription basis.

Tatung will pay a software license fee per station as well as update and annual maintenance fees.

Arkados also expects to collect a royalty fee for any products manufactured by Tatung that contain software intellectual property owned by Arkados.

“Today marks an important milestone for Arkados as our strategic partnership with Tatung enters into a new chapter,” said Terrence DeFranco, chief executive Arkados. “The licensing agreement attests to Tatung's continued confidence and support for Arkados and sets the stage for broader adoption of PEMS-SF at Tatung’s manufacturing facilities as well as potential contract wins at other customers in the future.”

“While the immediate financial benefit of this licensing agreement is tremendous for Arkados, we are also thrilled with the long-term prospects of PEMS-SF and believe it can be one of the key drivers for revenue growth and eventual profitability,” he added.

Tatung said the smart factory system would be integrated with IT systems it already has in place to deliver efficiency benefits.

“While Tatung is dedicated to providing industry leading products and solutions to customers around the world through continuing innovation and integration, we believe that Arkados’ cutting-edge PEMS-SF solution allows us to gain additional intelligence throughout the entire production cycle and drive down our production costs with its seamless integration into our existing computer systems in our manufacturing processes,” said Alan Pan, the chief strategy officer of Tatung’s consumer business group.

“We look forward to expanding the scale and scope of our win-win partnership with Arkados,” he added.
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