Second Wave of Digitalization – From Industrie 4.0 to Data-Driven Business Henning Kagermann President acatech Global Representative Plattform Industrie 4.0 New York City, March 6, 2018 The Digital Transformation of Manufacturing Industries
Second Wave of
Digitalization –
From Industrie 4.0 to
Data-Driven Business
Henning KagermannPresident acatech
Global Representative Plattform Industrie 4.0
New York City, March 6, 2018
The Digital Transformation of
Manufacturing Industries
1 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Strategic Projects of the German Government
Research Union (2011 - 2013)
Cross-cutting issues in CPS
Energy
Smart Grid
Health
Smart Health
Mobility
Smart Mobility
Manufacturing
Smart Factory
Internet of data & services
Internet of things
Edge computing, reference architecture, norms & standards, security, people & workplaces, …
Cross-cutting issues
Cloud computing, semantic technologies, tradability & bundling of services, …
Economy Culture …
…
SP2
SP1
2 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Mission: Ensure Competitiveness in the Digital Economy
– IoT enters the factories
– Smart, connected, decentral & autonomous
Rethink production processes and workplaces
– Business model of the digital economy
– Data driven, platform based, XaaS
Rethink business models and ecosystems
– Enabler of an inclusive society
– Ubiquity: at home, at work, on the way
Rethink social, legal, and ethical implications
Industrie 4.0
Smart Service Welt
III Autonomous Systems
I
II
3 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Industrie 4.0
Smart Factories as Part of Connected Smart Infrastructures
▪ Smart Products:
Actively support production processes
▪ Smart Machines:
Offer data and capabilities as smart services,
negotiate independently
▪ Smart Operator:
Digital assistance systems support employees
▪ Hybrid teams: Robots become co-workers
▪ Increasing complexity:
Decentralized, connected autonomous systems
Agile, learning and adaptable factories
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Realized Vision of a Smart Factory
Example: Trumpf´s Smart Factory in Chicago
▪ Situated in Rust Belt only 20km away from Chicago
▪ Production with 1 central storage, 3 laser cutting machines,
4 bending machines, 1 Welding Machine
▪ Whole production handled by only 2 employees
▪ Connected manufacturing:
– Vertically, from machine up to cloud
– Horizontally, from customer order to parts delivery
▪ Live machine status and order tracking
▪ Minimized lead time up to -30%Digital Shopfloor Cockpit
Source: Trumpf
5 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Vertical Integration: A first Step towards Industrie 4.0
Connected Products & Cloud-based IoT-Platforms
Source: WZL of RWTH Aachen; own illustration
6 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Horizontal Integration of the Production Chain
The Digital Twin
Asset
7 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Key Success Factor: Interoperability I
Reference Architecture Model RAMI 4.0
Architecture Product Life Cycle Hierarchy
A solution space with a coordinate system for Industrie 4.0.
Development, Production/Sales, Service
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Key Success Factor: Interoperability II
Asset Administration Shell
▪ Unique ID and nesting
▪ Structuring according to views
▪ Standardized mandatory properties
▪ Free, manufacturer-specific properties
▪ Considering aspects of information
security
▪ Possible accessibility via apps (SOA)
Asset Administration Shell
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The Digital Transformation needs a Broad Foundation
Organizational Initiative Plattform Industrie 4.0
Legal
framework
Security of
networked
systems
Work,
education and
training
Research and
innovation
Reference
architectures,
standards and
norms 1 2 3
4 5
Business
models for
the digital
economy* 6Scientific Advisory Committee
International Cooperations
SME Mobilization
Recommendations
10 | The Digital Transformation of Manufacturing Industries | March 6, 2018
International Cooperation is Critical for Success
Example USA / Germany
Opportunities Risks
Highest Priority: Interoperability
Open standards for architectures, interfaces, semantics…
Need for international cooperation of national initiatives
Source: acatech (2016): Industrie 4.0 in global context
50%
50%
79%
31%
62%
62%
Expansion of productand service portfolio
New business models
Optimized production
40%
25%
55%
50%
38%
38%
Solutions not in line withmarket requirements
Problems withstandardization
Data security
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Smart Products in Use
Basis for New Business Models and Real-time Business
▪ Business model innovation:
– Optimal user experience
– New profit/revenue models
– New business areas
▪ Performance parameters:
– Capability
– Functionality
– Reliability
▪ Digital technology platform:
– Bundling digital technologies
12 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Business Model of the Digital Economy
Smart Services
▪ Individualized product-service-bundles on demand
▪ Superior user experience / real-time responsiveness
▪ “Everything-as-a-service”, low switching costs
▪ Flexible pricing model: – usage-based (time)
– output-based (piece)
– value-based (profit sharing)
▪ Data as (direct & indirect) value generator
What value is created?
How is value created?
How are revenues/profits created?
Business Model
+
+▪ Digital platforms scalable & repeatable business
▪ Dynamic ecosystems attract developers of complements
▪ Smart talents individualized qualification on the job
Value proposition
Profit formula
Value creation architecture
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How are Smart Services Created?
In Dynamic Digital Ecosystems on Digital Technology Platforms
Active users:
▪ Co-creation
▪ Recommendations and ratings
Smart Service-providers:
▪ Superior user experience
▪ Superior value proposition
Platform operator:
▪ Data integrity and -processing
▪ Trustworthy cloud services
Manufacturer of digitally enhanced products:
▪ Efficient generation of data
Source: acatech (2017), Wegweiser Smart Service Welt
Smart Service
Smart Data
Smart Products
Platformservices
Advancedanalytics
AIBlock-chain
Serviceplatform
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Smart Service Platforms and Applications
German Examples for Data-Driven Business Models and
Platforms
Source: acatech (2017) Wegweiser Smart Service Welt, SAP SE, ADAMOS GmbH, AXOOM Solutions GmbH
Trumpf AXOOM
IoT Platform for
Manufacturers
ADAMOS
IIoT Platform for
Mechanical Engineering
Siemens MindSphere
Example: Smart Condition
Monitoring Services
SAP Leonardo
Example: Open Agriculture
Network
Mechanical Engineering Companies IT Companies
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Production environment
for Smart Services (n:1)
Digital image of the real
factory (1:m)
Connected
Products
Connected
Factories
Coordinating the
business network (n:m)
Connecting the
digital platforms
(cross-sectoral)
Platform
interoperability
Digital
Economy
Coordinated
Business Network
Utilization of Digital Technology Platforms
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From Optimized Production to Data-Driven
Business Innovation
Connecting & acting live
Optimizing & deliver efficiently
Business
model
Product &
support services
Product &
after-sales services
Business Driver Product sales Process optimization
IoT skillsEmbedded systems,
augmented reality
Analytics, machine learning,
optimization
Integration &
technology
Vertical Integration (OT-IT),
machine connectivity
Horizontal integration
(from design to delivery)
Standards Connectivity (e.g. OPC-UA) Semantic standards
Optimized production
Expanding & increasing revenue
Product-as-a-service &
value-added services
Services growth
Services management
(portfolio, product mgmt.)
Services platform,
SLA management,
accounting for services
Interoperability of services
Smart services
Innovating & growing ecosystem
Data-driven &
digital business model
Expanding ecosystem
Ecosystem
business development
Open data platform,
business networks
Cross-industry standards
Business innovation
Source: acatech, SAP
17 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Future of Work & Corporate Culture
Speed
&
Flexibility
▪ Scrum / Design thinking
▪ Innovative workplace design
▪ Flexible working time
▪ Innovative partners
▪ Individual skills management
▪ New feedback tools
Agile working Lifelong learning
▪ On-the-job / on-demand
▪ Digital tools (e.g. MOOCs)
▪ Nanodegrees / Digital
achievement awards
▪ Tailored to individual needs
▪ Hybrid skills
Ambidextrous structures Life-long employability
18 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Strategic Project III “Autonomous Systems” (since 2015)
From Automation to Autonomous Systems (AS)
Recommendations
Technological
Enablers
Societal Challenges &
Regulatory Framework
Germany: Platform Learning Systems
established in 2017New societal, legal and ethical challenges
19 | The Digital Transformation of Manufacturing Industries | March 6, 2018
Relevance of International Cooperations
Activities of the „Plattform Industrie 4.0“
Industrial Internet ConsortiumSmart Manufacturing Leader Coalition
Alliance Industrie du Futur +
Piano Nazionale Industria 4.0
Joint Road Map
Japan
•
• IoT Accel. Consortium
China
• Made in China 2025
• Internet Plus
• Memorandum of Understanding
Australia
G 20
• Digitising Manu-facturing in the G 20
• Round Tables
• First Stakeh. Conference
EU
• Narodni IniciativaPrumysl 4.0
Czech
Republic