Daniel Pacheco, Co-founder and CEO of Novus Inova, joins us to talk about his technology holding company and some of the innovations they are working on.
Please excuse any typos in this hasty transcript.
Matt Register: Welcome to Texas Business Radio. Texasbusinessradio.com is the web site. 844-814-8144 is our 24 call in line. 24 hours a day, get your calls in. We’re going to get your questions answered and bring the experts on here that know the answer to it. I’m your host Matt Register. Jay Curry’s over there in the co-host chair and we’re pretty excited to talk about innovation today. There is a lot, and Texas is a hotbed for it. There is a lot of thought going into all kinds of industries, the oil and energy industry is no different. Oil is not at $100 a barrel. And the smart money is saying, it’s not going back to $100 a barrel real soon. So what that means is a lot of thought is going into how in the world do we make money at $50 a barrel oil. And we’ve got an entire show, some really good stuff for you. Jay what do you think?
Jay Curry: Absolutely. This is America at its best. We’re not, we going to have a couple oilfield. But, but also America and Texas particularly is very strong in non oil innovation as well, medical and some of those. So this is going to be a great program. We’re going to kick off, I think, with a real strong with Daniel’s story. But people need to listen to this. This is going to be entertaining.
Matt Register: Yeah, no doubt. And as always, we have a very packed show. So we’re going to jump right into it. Novus Inova is a think tank out of Houston. Daniel Pacheco is the co-founder and CEO. Daniel welcome to the show sir.
Daniel Pacheco: Thank you Jay. Thank you Mr. Matt for having us here today. We appreciate it.
Matt Register: Well, tell us a little bit about Novus Inova. What is it you do?
Daniel Pacheco: So, Novus was formed in 2015 with the purpose of providing niche innovative solutions to the industry. That industry may appeal to oil and gas, obviously, offset of medical and then industrial applications. So, really our core, our core focus is to develop new technologies that are going to improve efficiencies, operations within drilling applications. Or whether it may be the testing of a bio specimen within the medical field. But really our core is to develop technologies that are going to improve, in some fashion or another, an operational process within a company. Or overall to solve a challenge that humanity is facing, so to speak.
Matt Register: Well and, and what you’re trying to do is for your clients for, for the large operators. You’re helping them figure out how to do this better, faster, cheaper. Right?
Daniel Pacheco: That is correct.
Matt Register: And operating as somewhat of a, of a “skunk works”, a, you know, third party, fresh set of eyes that can look at a problem and find an innovative solution to it. Is that right?
Daniel Pacheco: That’s precisely our, our, our process and our focus in the industry. It is to provide those operators, those manufacturers with an out of the box solution to tackle a problem that they’ve been trying to solve for the last, you know, 20 years or 40 years or whatever it may be.
Matt Register: So, tell me what your company looks like? We talking about engineers? We’re talking about software guys? Who, who, who is it you have?
Daniel Pacheco: Yeah. And, you know, we’d like to use the term Imagineers. You know, because we’re, we’re half mechanical engineers, half software engineers.
Matt Register: I got it. So, it’s, it’s really marring the metal with, you know, with a silicon chip. And that’s kind of, since we have the experience in both those realms and in the, in the IT world as well. And we’re able to, to not only design a mechanical product but also give us some type of smarts and to communicate with the outside world, so to speak.
Jay Curry: So you’re very oriented toward finding the pain and solving it. Right? So. And you mentioned, not just oil but also in the medical. Those are two areas where we have to get more efficient, we have to get costs down and that’s kind of your expertise. But you’re focusing on companies who have a, have a pain. The cost is too high, the efficiency is not good. Maybe it hadn’t been re-engineered in decades. That’s where you’re going.
Daniel Pacheco: And that, and that’s precisely it. For the most part, you know, companies, whether they be a drilling operator or equipment manufacturer, for the most part have always operate in a certain fashion based on certain prices in the industry of a barrel. You know, and, and Mr. Matt mentioned that earlier in the beginning of the program that, you know, $100 oil is certainly gone and we understand that. And so, now we have to take what we have and make it smarter. Where it will produce more results utilizing the same capacity that perhaps they used in the past. And so a lot of it is that. Listening to the customer, you know, listening to their pains. You know, what are they currently doing today? Where could it be improved? And how can technology be applied to that particular issue, you know, to help them kind of operate more efficiently. And considering that the industry that we’re in right now has faced some challenges in the last two years.
Matt Register: Well, I’ll tell you what, $100 barrel oil certainly forgives a lot of inefficiencies. Right?
Daniel Pacheco: By all means, yes.
Jay Curry: And it creates a lot.
Matt Register: And forty five, $50 barrel oil does not.
Daniel Pacheco: Yes.
Matt Register: What are some of the ways, you know, we were talking very quickly during the break. Right? This is a, these are problems that everybody is trying to solve. Right? And the guy who solves it the best ends up being a profitable company in the land of companies that are otherwise struggling. Right? What are some of the areas that you are focusing on and see opportunities for these companies to cram cost out of this?
Daniel Pacheco: You know there’s a big movement in the industry now and it’s being applied to oil and gas. And has been more in the Internet of Things or industrial Internet of Things. And so, it’s a broad term. Right? But in our case it applies to making equipment smarter. And what does that mean? It could be anything from taking a dumb piece of iron, so to speak, and giving it some type of intelligence or smarts too. You can start predicting when to maintain the equipment accordingly. You know, wow! How has it been utilized during it’s life cycle? Is there, is, is it, is it prone to failure due to negligence of inspection or maintenance of things to that nature? So by utilizing certain traceability technologies, whether it be RFID, whether it be some data analytics unit that’s on the equipment. Then we started getting an insight in regards to how that piece of equipment is actually functioning. So, in simple terms or simple terms basically, now the operator or the, or the service company knows exactly when this particular machine is going, it needs maintenance and how can they prolong the life of this unit or this piece of, piece of machinery.
Daniel Pacheco: Which cuts down on downtime, which lowers unneeded maintenance, which does a whole lot of things when you have that stream of data. Right?
Daniel Pacheco: And that’s correct because now you have a smart component that’s actually reporting home and telling you how it feels. Think of it as a Fitbit for equipment. So instead of sending, you know, field personnel or sending in a group of inspectors to go check on this type of equipment, the equipment now is reporting home and letting you know how it’s, how it’s functioning and things of that nature.
Jay Curry: So, you have engineers but you also have software people and kind of your specialty is bringing some intelligence into the engineering part.
Daniel Pacheco: That is correct because for the most part, you know, engineers do a very good job of designing something from, from, from concept, you know, to reality. But now we have to take that piece of equipment and give us some type of brain, so to speak. And so that’s kind of where the software developers come in and say “Okay, this is how I’m going to treat this piece of equipment. This is how I’m going to give it a brain”. Kind of like the scarecrow, you know…
Matt Register: sure.
Daniel Pacheco: In the Wizard of Oz. Right? And so when you put these two together, you know, they have to certainly understand one another to, to make a desirable product. You know that’s going to function in a, in a, in a very streamlined fashion. And so software is very key to this as well, hence the industrial Internet of Things.
Matt Register: Yeah, no doubt. And we’ve talked to some guys in that business. Fascinating and probably, personally, the most use useful part of the internet of things that I have found. Right? Is the industrial side of it. I’m not sure I’m real excited about my refrigerator telling me I need to buy some more milk. However this is an actual very useful, you know, business application for it. Very quickly, before we run out of time. I want you to talk very briefly about the traceability you mentioned just a second ago. Right? It is, is, walk me through some of the things you’re working on on traceability. Because we’re talking about something fails and you’re going to able tell a whole lot about that part. Correct?
Daniel Pacheco: Yes, certainly. I mean in a quick example may be a component that’s failed in the field and there’s been catastrophic, catastrophic failure for whatever reason. Or maybe something small. But now, you know, engineers in the field can actually tell, you know, when it was manufactured, who manufactured. You know, what was the, what was the material spec of this, of the material utilized in this process. And going back to accountability, as well.
Matt Register: Well, no. It makes a whole lot of sense. Novus Inova is the company. Daniel Pacheco is the founder, co-founder and CEO. Web site, NovusInova.com and we’re going to have that linked right from Texasbusinessradio.com. Daniel thank you very much for joining us.
Daniel Pacheco: Thank you Mr. Matt. Thank you Jay.
Jay Curry: Great story, great story.
Daniel Pacheco: It’s been a pleasure, thank you.
Matt Register: Very interesting stuff. And like I said, you can learn more at NovusInova.com. We’re going to have it all linked, as well as see the entire thing in beautiful high definition video right there at Texasbusinessradio.com. We have a whole lot more innovation in oil field and out of oil field but innovation in Texas is a big business and only getting bigger. We do have to go to a break. We do have to pay a couple bills ourselves. We’ll be back right after this with a whole lot more innovation here on Texas Business Radio.
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In addition to hosting "Texas Business Radio," Matt is an investment banker and serial entrepreneur from Montgomery, Texas. He is the owner of RREA Media and Register Real Estate Advisors and a Managing Director and Principal at Corporate Finance Associates. He has a BS from the United States Military Academy at West Point and an MBA from Rice University in Houston. You can read more about Matt HERE.