Interview with Dr. Miklós Dániel Berzsenyi, CEO, Controlsoft Automatica

08 May Interview with Dr. Miklós Dániel Berzsenyi, CEO, Controlsoft Automatica

Dr. Miklós Dániel Berzseny, could you give us a brief overview of your education and career path, and what led you to become the CEO of Controlsoft?

I attended the Technical University of Budapest, Hungary’s main technical university, where I earned a master’s degree and PhD in computer science. Through a scholarship, I studied for one year in Colorado and another year at Carnegie Mellon University in Pittsburgh. ControlSoft was founded by my father, and I have been working here for 25 years. For the past 11 years, I have been running the business myself.

Since its founding in 1991, Controlsoft has expanded its portfolio and strengthened its position in industrial automation. The company’s success is built on continuous technological advancement and strategic development. What have been the key milestones in Controlsoft’s growth, and how has the company evolved over the years?

The company was founded in 1991 during significant changes in Hungary. My father started ControlSoft, believing automation would be an opportunity even in the 90s. Initially, we focused on automating the water and sewage industry, including water works, networks, wastewater treatment plants, and sewage systems. Despite starting without any instruments, we managed to secure and complete projects. We developed a supervisory data control system for monitoring networks and gradually added new features. Although there were many competitors, our Hungarian software was more affordable, which was important in Hungary. After working in the sewage industry, we expanded into other sectors, including gas and oil. We also worked with Mercedes Benz in Hungary and had projects in Germany. We embraced Industry 4.0 and the Internet of Things, enabling machines to communicate with each other. For 30 years, we’ve been exploring new fields and collaborating with universities, like the Technical University of Budapest. We’re focusing on AI, though our process automation work involves much smaller databases than AI systems like ChatGPT. This year, we opened a subsidiary in Romania, building a new office and manufacturing plant with the support of the Hungarian government. We’re also exploring expansion into Bulgaria and Serbia. Recently, we delivered machines to Schneider Electric in Barcelona and have three ongoing projects in Spain, with plans to expand to Schneider Electric France. We aim to strengthen our presence in Central and Eastern Europe.

Can you tell us a little bit more about the services or products that you offer at the moment?

If you have a factory, we can provide everything related to electricity, including transformers, cabling, and power distribution cabinets. We are particularly interested in projects that incorporate smart technologies, such as measurements, local controllers, data collection, and analysis. For example, in a wastewater treatment plant, we automate the entire process, from the sewage entering to the clean water being discharged. Similarly, in a power plant, we use various measurements and machines to operate the system. Through the supervisory spread system, we collect and analyze the data, enabling operators to optimize the process.

Controlsoft provides automation solutions for various industries, including water treatment, automotive, air traffic control, and energy. With such a diverse portfolio, the company is involved in numerous impactful projects. Could you share some details on Controlsoft’s most significant ongoing projects?

We’ve completed around 3,000 projects over the past 30 years. One notable project is at Ferenc International Airport in Budapest, where we rebuilt the control system for runway lighting. This project has been ongoing for many years, with yearly expansions, maintenance, and support.

When it comes to maintenance and support, what’s your business model?

We handle the design and implementation of projects. After completion, we provide maintenance and support, but we don’t outsource this part, as many of our clients, especially utility companies, are not allowed to do so. We do not handle operations, only maintenance and support after the project is finished.

R&D is currently very popular in Hungary, as it is an innovative nation. Looking at R&D both as a sub-branch of the industry in Hungary and within your company, how do you approach it? Do you come up with the ideas yourselves, or do you have a specific department focused on exploring new things? What’s your approach?

There are several approaches we take. One is that we listen to our clients and work together with them, or we brainstorm on our own to figure out how we can solve their problems, help their customers, and gain a competitive advantage. We also focus on whether we can solve specific issues. For decades, we’ve been collaborating with three universities in Hungary, listening to their ideas, and combining the market’s needs with academic research to create solutions that can be sold commercially.

When speaking about your collaborations with universities, are there any particular initiatives currently ongoing? Do you have internship programs, or is it more focused on collaborative R&D efforts?

We offer internship programs and enjoy seeing young students or engineers bring fresh ideas and new perspectives. We have several programs, including practical training, and we’re always open to students who approach us. We also visit universities to encourage students to apply for summer internships. Additionally, we have a dual education program where students split their time between the university and our company. We teach classes and provide practical exercises, which help us get to know the students and vice versa. This approach is beneficial because it allows us to assess potential future collaboration, saving costs compared to hiring someone who might leave after a short time. Overall, the internship program is very valuable.

How important is expansion to your growth, and how do you allocate funds and resources toward it?

The last few years have been challenging due to high interest rates. Five to ten years ago, life was much easier with interest rates at 1% or nearly zero in euros. Back then, we had EU-funded projects, and we were able to apply for government funding in Hungary for our research and development. Our investment in Romania was partly funded by the Hungarian government through some of these programs. However, now we lack those resources. We need EU funding, and investors may be more important now than in the past, as it was easier to attract funding back then, either from banks or EU-supported programs.

You’re a big part of the Industry 4.0 movement in Hungary as well. How do you feel about Hungary’s development in digitalization and AI? What potential do you see in these areas?

Hungary still has a long way to go in digitalization, with many growth opportunities. Currently, Hungary produces about half of what Austria does, and there’s a need for development. Automation offers a solution by working 24/7 instead of relying on human labor, which was more feasible in the past when there was an abundance of workers and low productivity. However, with the unemployment rate now under 2%, there is a shortage of skilled labor, making it difficult to hire new people. The government is pushing for foreign investments, particularly from China, Korea, the USA, and major European car manufacturers. As in Western Europe and the US, companies are turning to automation to maintain production with fewer workers. Digitalization, robots, and autonomous systems present significant opportunities. Although Hungary doesn’t manufacture robots, it acts as a system integrator, assembling systems and instruments sourced from the US and China. If Hungary doesn’t intensify its push for digitalization, it risks falling behind.

As consumer demand for wellness solutions evolves, companies must continuously innovate and adapt. Wellis has already established itself as a market leader in Europe, but what’s next? Where do you see Controlsoft in the next five to ten years?

We want to grow internationally because Hungary is a small country with a limited market. Expanding into more markets helps balance risks when the economy declines, as conditions vary by country. For example, our operators in Romania are working on many projects within our expertise. As a small company, I hope to expand into three or four neighboring countries like Bulgaria in the next five to ten years. We’ve had projects in Albania but faced challenges in securing new ones and would like to return. I envision my company becoming an expert in digitalization and AI, helping customers reduce costs, improve efficiency, and be more environmentally friendly. We need to grow and strengthen ourselves as competition is everywhere.

What is you final Message for the readers of USA Today?

Hopefully, there will be peace in the region, and the inflation and challenges of the last few years will be behind us, allowing us to focus on the future. The community could then invest in areas that improve people’s lives, like digitalization, AI, and research and development, rather than spending on war. This shift could help us progress further.