The subject of the diploma thesis is the design and implementation of a home/industrial automation system. The main scope of the system is not remote access but the automated execution of certain tasks without human intervention. This is achieved by a flexible control unit, which has a unique set of instructions and executes code previously developed, compiled and uploaded by the user. The control unit and the peripherals are connected by a local area network and use UDP based communication. With the use of a client program the user can get access to any of the units and configure them in any way desired. The hardware is made up of modular components so it is easy to change the configuration of the peripheral units. In case there is a malfunction, only the faulty component needs to be replaced, which means a reduction in cost. The control unit creates logs during operation which the user can inspect any time and use it to debug the controlling software. In the course of the thesis a control unit, and a peripheral unit has been implemented along with the client application. An assembler has also been implemented which is used for the development of the control unit’s software. In the thesis we examine the hardware components, and then go through the details of the control unit and peripheral units. Next we look at the client application, and then go through the process of developing and uploading a control program. At the end of the thesis we look at some potential goals of future development.