Second Wave of Digitalization From Industrie 4.0 to Data-Driven Business · 2018-03-19 · –...

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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

Transcript of Second Wave of Digitalization From Industrie 4.0 to Data-Driven Business · 2018-03-19 · –...

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

4 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

8 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

9 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

11 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

13 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

14 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

15 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

16 | The Digital Transformation of Manufacturing Industries | March 6, 2018

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

Thank you very much

for your attention.