Smartification – How Companies Make Products and Grids Intelligent
IoT Blog
Smartification – How Companies Make Products and Grids Intelligent
18.07.2025by
Annalena Rauen
Share
The term smartification refers to the upgrading of traditional products, systems or infrastructures with digital intelligence. Physical components such as machines or power units are equipped with sensors to digitalise and network processes. Smartification occurs across industries – from manufacturing and the energy sector to building technology.
Unlike general digitalisation, which mainly aims to replace analogue with digital processes, smartification goes a step further: it integrates physical products deeply into digital ecosystems, turning them into active data sources or autonomous actors. The technological foundation is provided by embedded systems – microcontrollers integrated into devices, equipped with sensors, actuators and interfaces.
In conjunction with IoT platforms, cloud architectures and artificial intelligence, these form scalable, learning, and networked systems.
Definition of Smartification
The term smartification refers to the upgrading of traditional products, systems or infrastructures with digital intelligence. Physical components such as machines or power units are equipped with sensors to digitalise and network processes. Smartification occurs across industries – from manufacturing and the energy sector to building technology.
Unlike general digitalisation, which mainly aims to replace analogue with digital processes, smartification goes a step further: it integrates physical products deeply into digital ecosystems, turning them into active data sources or autonomous actors. The technological foundation is provided by embedded systems – microcontrollers integrated into devices, equipped with sensors, actuators and interfaces.
In conjunction with IoT platforms, cloud architectures and artificial intelligence, these form scalable, learning, and networked systems.
Smartification in Grid Operation: Opportunities in the Energy Sector
The increasing integration of renewable energies, the boom in electromobility and the electrification of heating systems are posing new challenges to electricity grids. Particularly at the low-voltage level, reliable real-time data is often lacking to detect peak loads or avoid grid disturbances. Smartification provides a remedy here.
Digital local grid stations (digiONS), smart metering systems (iMsys) and networked sensors make grid operations more transparent, automatable and robust. Regulatory requirements such as § 14a EnWG (Energy Industry Act) can also be technically implemented with these systems. At the same time, smartification is part of a larger development: the digitalisation of the power grid.
This includes not only smart applications but the structural transformation of the entire system, including communication networks, IT security and interoperable standards. The goal is a grid that is flexibly controllable and seamlessly connects diverse components. A digitalised power grid enables the exchange of large volumes of data in real time – a prerequisite for efficiently managing power flows and integrating volatile sources such as wind and solar energy.
In the long term, a dynamic system emerges that focuses not only on power generation but also on resilience. Smartification is the entry point. What is crucial is that individual applications are not implemented in isolation but are integrated into a well-thought-out overall system – technically, economically and regulatorily.
Practical examples: How smartification works in everyday life
Smart technologies open up new possibilities to increase efficiency, automate processes and make data-based decisions. Typical fields of application include:
Industrial production: Modern machines record parameters such as temperature or pressure in real time. Intelligent software analyses the data and identifies deviations early – before they lead to quality losses or failures. Production can thus be not only monitored but actively controlled.
Construction site: In sensitive environments such as civil engineering, networked sensors continuously measure, for instance, the pressure on excavation pit walls. The data is centrally analysed in the cloud. This enables early risk detection – without time-consuming on-site inspections.
Facility management: Technical systems such as doors or heating systems can be monitored and remotely controlled via digital platforms. Their status is always visible, and maintenance is carried out on demand.
Component manufacturing: Even simple parts like filters or valves can be smartified. For example, built-in sensors can automatically report contamination or wear. A dashboard display replaces manual visual inspection, increasing efficiency.
The advantages of smartification at a glance
The following advantages illustrate why investments in smart technologies are worthwhile:
1. Increased efficiency through automation: When machines and systems communicate with each other, processes become faster, more precise and less prone to errors. Sensors and digital systems handle data collection and condition monitoring in the background. This saves time, reduces sources of error and relieves skilled workers.
2. Predictive maintenance reduces downtimes: Instead of reacting to faults, predictive maintenance enables forward-looking servicing through the use of sensors. These continuously monitor the condition of technical systems and detect early signs of wear. Maintenance can then be planned and targeted.
3. Remote services create flexibility: Remote maintenance and central control reduce service efforts and allow rapid intervention across locations. At the same time, updates and configurations can be rolled out centrally. This accelerates processes and shortens downtimes.
4. Foundation for data-based business models: Smartification creates the basis for data-driven business models. Usage data forms the foundation of new services – for instance, usage-based billing or personalised offers.
5. Cost savings through optimised operation: Automated processes and targeted data usage reduce ongoing operating costs. Additionally, sensors reveal inefficient processes and enable precise interventions. Maintenance is no longer based on fixed intervals, but only takes place when truly necessary.
6. Scalability for future requirements: Smart systems can be quickly and flexibly expanded – from single applications to networked complete solutions. Companies can start small with retrofitting and gradually expand their smartification. Investments remain manageable and grow with the requirements.
7. Greater transparency and better decision-making: Continuous collection and evaluation of operational data creates a clearer picture of actual processes within the company. Managers and specialist departments can make informed, data-based decisions. This improves planning, investment and strategic orientation.
Conclusion – Leveraging smartification as a competitive advantage
Smartification is a strategic response to real pressure for change and an opportunity for companies to regain technological control over processes and networks. Instead of rigid procedures, systems emerge that react to real-time data – working more efficiently and with greater resilience.
Those who start early gain valuable experience, identify potential and secure strategic advantages in the market. The key lies in a well-planned implementation – with clear goals, the right technologies and an experienced partner at your side. Telekom supports companies with scalable IoT solutions, secure networks and comprehensive consulting.
IoT connectivity with best coverage for your IoT project
IoT connectivity with best coverage for your IoT project
Whether sensors, vehicles, or machines – every IoT application has its own connectivity requirements. With Deutsche Telekom, you get reliable, secure, and scalable IoT connectivity worldwide – tailored to your project and ready for the future.
Whether sensors, vehicles, or machines – every IoT application has its own connectivity requirements. With Deutsche Telekom, you get reliable, secure, and scalable IoT connectivity worldwide – tailored to your project and ready for the future.
Back in 2016, Anna worked on IoT topics at Deutsche Telekom for the first time. Since then, she has been supporting customer best practices in a wide range of industries – always focusing on the benefits that the Internet of Things can provide. Her IoT blogposts describe real use cases and the value these innovations add to market players, their business models, and even entire industries.
Interested? Click here:
24.04.2025
The Path to the Future: Digital Transformation
Digital transformation is no longer just a buzzword – it is changing business models, processes, and entire industries.But what does that actually mean for your company? Find out how to successfully shape the digital shift and what opportunities and challenges lie ahead.
Connected Cars: How connected vehicles are redefining mobility
Whether it's live traffic data, software-based driver assistance, or real-time fleet management – connected cars offer new opportunities for businesses, manufacturers, and drivers to make mobility safer, more efficient, and more sustainable. Learn more about the transformation of the automotive industry in this article!
Centralised was yesterday – how edge computing is revolutionising IT
Autonomous driving, industrial robotic arms or smart cameras – technology is advancing relentlessly. However, for everything to run smoothly, networks and machines must process all data quickly, efficiently and securely. Edge computing is designed to solve exactly this problem.