TRADE IN FLUX HANDEL contact kontakt RHEINLAND IM WANDEL · strengths of offline retail. check...

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01.16 WISSENSMAGAZIN VON TÜV RHEINLAND kontakt HANDEL IM WANDEL Wie die Digitalisierung neue Einkaufswelten erschafft DRUCKREIFE 3D-Drucker sind in aller Munde. Aber sind sie auch wirtschaftlich? BINÄRSCHUTZ Cyber-Security-Trends, mit denen IT- Security-Entscheider rechnen sollten 01.16 KNOWLEDGE MAGAZINE BY TÜV RHEINLAND Ü contact TRADE IN FLUX How digitalization is creating new shopping worlds PRINTER PERFECT 3D printers are creating a real buzz. But are they also economical? BINARY PROTECTION Cyber security trends IT security – decision makers should reckon with

Transcript of TRADE IN FLUX HANDEL contact kontakt RHEINLAND IM WANDEL · strengths of offline retail. check...

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01.16

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IM WANDELWie die Digitalisierung neue Einkaufswelten erschafft

DRUCKREIFE 3D-Drucker sind in aller Munde. Aber sind sie auch wirtschaftlich?

BINÄRSCHUTZCyber-Security-Trends, mit denen IT-Security-Entscheider rechnen sollten

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How digitalization is creating new shopping worlds

PRINTER PERFECT 3D printers are creating a real buzz. But are they also economical?

BINARY PROTECTIONCyber security trends IT security – decision makers should reckon with

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KNOWLEDGE04 COVER STORY: Mission Shopping

Increasingly individual, electronic, comfortable: Retail trade is currently undergoing a structural change.

08 My product: Check, inform, choose, replicate.

11 Online shopping: Practical, but watch out for data thieves.

13 Stefan Genth, Managing Director of Germany’s Trade Association, on the future of retail outlets.

22 Farewell to gas leaks CMS systems monitor technical

facilities during their operation.

24 Atoms reloaded 3D printers produce a lot of

things. Is this just hype or really the future?

28 More than just hot air The fuel-cell-powered tram leaves

behind nothing but steam.

GLOBAL 18 World of laboratories Replacement parts for the

human body are becoming more and more important. But they must be tested.

20 Handle with care Transport damage to gas pipes will

be significantly reduced in future.

32 Online information hub A new web-based portal offers

customers and auditors direct access to all relevant data.

PEOPLE36 Land in sight Karl-Heinz Land is considered the

digital Darwinist. In our interview, he explains how well-prepared companies are for the digital cus-tomer and how they can keep up with the times.

QUICK NEWS!14 Why TÜV Rheinland is moving

into a shared space I Where shorter is cheaper I Why it explodes at four I Why Mexico City is golden again I Why black on white isn’t always believable I Where it is really hot now I Why TÜV Rheinland employees regular-ly visit games arcades I Where trust is blue on white.

KNOWLEDGE

24 REALLY THREE-DIMENSIONAL A lot of people want them, but so far only a few actually have one: 3D printers. Even though food, medical prostheses and car parts are already being produced, the technology is still in its infancy. If manufacturers want to successfully market their 3D printing systems, they must have their machines tested and certified by independent inspection service providers.

KNOWLEDGE

04 TOUCH ME!Online, smartphone and Windows shopping – technology is now an integral part of retail trade. Mobile devices and computers are increasingly replacing shopping trips in the city. The brick and mortar retail sector has to jump on the mobile trends bandwagon in order to stay competitive.

30 Better safe than sorry Nine cyber trends in 2016

at a glance.

34 Computer dummies Product faults can be prevented

early on with virtual prototypes.

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PEOPLE

36 NEULAND 4.0 Karl-Heinz Land is a thought leader, out-of-the-box thinker and visionary. His ideas on the digital revolution heavily influence companies and top managers. Land is very cognizant of the enormous challenges that increasing digitalization brings with it. He shows how companies and our society can actively approach digital Darwinism and what opportunities it offers.

GLOBAL

20 WITH UTMOST CARE

Four million tons of gas pipes are to be transported from various loading stations in Russia to 158 unloading facilities. In the process, the damage rate should remain as low as possible.

RADICALLY DIGITAL

TV retail stores are closing down, bookstores are disap-

pearing – of course, because everyone is ordering online.

Shopping is changing radically, as every product is only

a click away and always available. It is predicted that

already in 2020, every fourth euro in Germany will be

spent online, resulting in the loss of 45,000 brick and

mortar stores. Whoever wants to survive has to combine

the advantages of both sales channels. Our cover story

shows the radical changes coming our way with the

digitalization of retail trade.

But in all the hustle and bustle of the digital revolution,

companies across all industries should not lose sight of

one thing: the security of data and services. Because in

future independently tested processes, service quality

and IT security will play an even larger role regarding

whom customers trust and where they spend their

money. Karl-Heinz Land, founder of the transformation

consultancy “neuland”, agrees.

Land describes himself as a “digital Darwinist”. The

author and thought leader is convinced that our economic

and social system is currently experiencing the biggest

change since the industrial revolution. We at

TÜV Rheinland are keeping a close eye on

the negative and predominantly posi-

tive consequences of this develop-

ment. It’s practically in our genes

to continually adapt our inspection

services to changing processes, new

products and services. And it is very

exciting to be playing such a big

role in the digital revolution.

I wish you an insightful read.

Dr.-Ing. Michael Fübi, Chairman of the Executive Boardof Management of TÜV Rheinland AG

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4 COVER STORY // The future of shopping

The internet and the digitization of everyday life are radically changing the way people acquire information and do their shopping. The expectations of Customer 2.0 in terms of product quality, service and value-for-mon-ey are constantly increasing. The retail sector is having to revise its business models: we are just at the start of a high-speed development that is seeing online shops and brick-and-mortar stores merge to create a virtual-real shopping experience – the omni-channel. This involves a huge upgrade in technology including smart shopping helpers, 3D shop windows and lots of big data.

Cover story:

How we shop

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Large-scale Ebay retailers present their range digitally on touch-screens and also “physical-ly.“

contact 01.16 5

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6 COVER STORY // The future of shopping

The yellow in this blouse goes well with your blue eyes.” There’s no doubt here: Pepper certainly knows her fashion. She helps de-

partment store customers choose shoes, skirts and tops, instantly selecting the correct size, with colors and styles perfectly matching the individual figure and type. Pepper knows the best offers, waits patiently in front of the changing cubicle and has friendly but honest words when the customer is wide of the mark in terms of fashion sense: “In my modest opin-ion, this model does not really flatter yourfigure.” Pepper is the best salesperson any de-partment store operator and their customers could wish for. But Pepper isn’t a human being, she’s a robot - with arms, hands, big eyes and fitted with 3D cameras, internet, touchscreen and sensors. Pepper was developed by Aldeba-ran Robotics. The French company promotes Pepper as the first emotional robot able to re-spond to the gestures, glances and voice pitch of the person it is interacting with. Pepper is a star at trade fairs and will soon be enriching ser-vice in shops all over the world. The empathetic robot is symbolic of the digital revolution the retail sector is currently going through. Online trade has seen double-digit growth for years, while stationary retail is increasingly losing out on market shares. One in four euros will proba-

bly be spent online by the year 2020 according to the research institute IFH Köln. 45,000 physical stores would have to close as a result of this. Department stores are especially under pressure, as are electronics and textile shops. E-commerce sales today amount to EUR 1.8 billion, in two years this figure will increase by 50 percent to EUR 2.7 billion.

COMBINING THE BENEFITS

From cars to toothpaste - everything can be purchased online, and online shopping is usually more conve-nient, fast, cheap and individu-alized. How on earth can the corner shop keep up? “Sta-tionary stores have one cru-cial advantage over online retail: they offer customer emotions, per-sonal consultation, attractive product presentation and an exceptional shop-ping experience, “says Josef Roosen,retail expert and corporate consultant with dachmarkenforum.com. Anyone

Digital transformation is making it possible: online shops

and physical stores are merging to create a new shopping

experience. As far as the retail trade is concerned, it's the

biggest revolution since self-service.

Continued on page 10

Objective shopping consultant:

Pepper the robot.

Everything! Rightaway!

the year 22020 ch instituute cal stores a result res are re, asile s

sby 50on.

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WECHSELN GROSSE MODEHAUS-

KETTEN WIE H&M, ZARA & CO.

IHR SORTIMENT.

WEWEEWEWEECHSESESESES LNLNLNLNL GGGGROROROROOSSSSSSSSSSSEE EEE MMOMMOODEDEEEEEEEEEEEEEEEEHHHAAHAAHAAAUUSUSSUS--

KEKEKEKETTTTTTENEN WWIEIE HH&M&M, ZAZZAZAZARARARAAAAAARAAAAAAAAAR &&&&&& CCCCCO.O.O..

IHIHHIHIHHIHIHRRRRRRRRRR SOSOSOSOSOOSOOOSORTRTRTTRTRTRTRTRTRTTRTIMMIMMIMIMMMMIMIMMI ENENENEENENENENNNENTTTTTTTT.T.

OF CONSUMERS DESCRIBE THEM-

SELVES AS TRADITIONAL RETAIL

SHOPPERS AND DON’T LIKE TO SHOP

ONLINE. TREND: DECLINING.

OF PURCHASES IN REAL STORES ARE PRE-

CEDED BY RESEARCH IN ONLINE SHOPS.

BY CONTRAST, ONLY ONE IN TEN ONLINE

PURCHASES IS PREPARED IN A PHYSICAL

STORE – SO IT'S CLEARLY NOT TRUE TO

SAY THAT PEOPLE “SHOPLIFT” THE

ADVICE THEY GET IN PHYSICAL STORES

IN ORDER TO BUY ONLINE.

DR. KAI HUDETZ,

MANAGING DIRECTOR OF THE

INSTITUTE FOR RETAIL RESEARCH,

COLOGNE

contact 01.16 7

“E-commerce isan iceberg – and at the moment we’re

only seeing the tip of it. It's still very

early days.”

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8 COVER STORY // The future of shopping

MORE AND AND MORE CUS-

TOMERS WANT TRANSPARENT,

SUSTAINABLE AND HEALTHY

PRODUCTS. INFORMATION ON IN-

GREDIENTS HAS TO BE AVAILABLE

ONLINE AND IN THE STORE. HERE,

EXPERT PERSONAL CONSULTATION

IS BECOMING MORE IMPORTANT

– TRADITIONALLY ONE OF THE

STRENGTHS OF OFFLINE RETAIL.

Check

Origins

CO2 footprint

Production

InformierenISELECT THE RIGHT PRODUCT

AT YOUR LEISURE – THAT’S

ESPECIALLY EASY ONLINE.

DIGITAL INFORMATION SER-

VICES DISPLAY THE PRODUCT

COMPLETE WITH 3D IMAGES,

VIDEOS AND REVIEWS TO

PREPARE FOR THE PURCHASE.

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9contact 01.16 9

THE SHOPPING LIST ON THE

SMARTPHONE IS SYNCHRO-

NIZED WITH THE SHOPPING

TROLLEY IN THE SUPER-

MARKET. GPS TAKES THE

CUSTOMER FROM PRODUCT

TO PRODUCT WITHOUT ANY

NEED TO SEARCH.

Alignment

UpdateGAS STATIONS AS A ROLE MODEL: ELECTRIC

PRICE TAGS ARE BECOMING INCREASINGLY

COMMON IN SUPERMARKETS. THEY ENABLE

DYNAMIC PRICING: PERISHABLE PRODUCTS

SUCH AS VEGETABLES AND SUSHI ARE

CHEAPER IN THE EVENING, WHILE ITEMS

THAT ARE MORE IN DEMAND AT THE

END OF THE DAY SUCH AS BEER AND

CHIPS BECOME MORE EXPENSIVE.

SelectionCUSTOMERS LOG INTO THE SHOP

SYSTEM AT THE ENTRANCE. DISPLAY

SCREENS PROVIDE THEM WITH INDI-

VIDUAL OFFERS AND RECIPE TIPS. AT

THE CHECKOUT, THE ENTIRE TROLLEY IS

PUSHED THROUGH A CENTRAL SCANNER

AND PAYMENT IS MADE CASH-FREE BY

MEANS OF A FINGERPRINT.

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who wants to secure success has to combine the benefits of both sales channels – and create an omni-channel or cross-channel.

ONLINE AND PHYSICAL

Some of the financially strong online retailers are showing how this might be possible: they are investing a lot of money to ensure their brands are anchored in the real world.

. Up until 2015, the Metro Group, Ebay and Paypal in Bremen ran “The Inspirations Store” on a trial basis: in a shopping center, large-scale Ebay dealers presented an alter-nating range of products digitally on touch-screens and physically, too. Customershad the choice of taking their purchases away with them right away or orderingby QR code and paying via smartphone.A digital mirror enabled virtual garmentsto be tried on.

. Amazon runs a book store in Seattle, soonto be increased to 400 throughout the US. These branches might offer an optimizedselection of books based on the data show-ing local residents’ previous Amazon pur-chases. E-book readers and other devices would be presented and sold exclusively – rather like in an Apple Store. The shop could also serve as a delivery and collection point for packages.

. The German online electronics retailer Cy-berport has opened small outlets in 15 cities so as to offer “highlights from a range of more than 40,000 products” and an “exqui-site shopping world”, as it says on the web-site. Goods ordered online can be collected at the store. And the products are cheaperin the store because there are no shipping costs.

Meanwhile, the retail sector is struggling to make optimum use of the opportunities offered by the online world. The necessary IT infra-structure is expensive. Those who wish to use the omni-channel approach have to intercon-nect their merchandise information systems, and they need IT expertise and specialists to

be able to set up user-friendly online services and protect customer privacy. What is more, returns are regarded as profit-killers - this is a problem even for e-commerce giants such as Amazon and Zalando. But even those who are not able tocreate a fully-fledged online shop should engage in digital activities - by communicating on so-cial networks, setting up virtual shop windowsor using “artificial” shopping consultants suchas Pepper.

FRUIT – FRESH FROM THE ROBOT

“Dovetailing the digital world intelligently with physical trade remains the greatest single chal-lenge currently facing companies,” says Josef Roosen. The food sector is a good example of how this can work. As a result of an aggressive price war and competition for consumer trust, supermarkets have become a testing ground for digital applications and services. Checkouts at which customers scan in their purchases them-selves are just the beginning. The retail chain Coop set up a high-tech supermarket at the 2015 World Fair, for example. Customers use screens at the shelves to surf by means of hygienic gesture

Continued on page 12

10 COVER STORY // The future of shopping

Shopas you pass

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“CUSTOMERS WILL SWITCH

TO THE COMPANIES AND

SERVICES THEY BELIEVE ARE

THE MOST SECURE. THEY WILL

CHANGE FROM BEING BAR-

GAIN-HUNTERS TO BECOME

REGULAR SHOPPERS, USING

THEIR KNOWLEDGE TO FOCUS

THEIR PURCHASING POWER

ON THE SHOPS THEY TRUST.”

PETER COCHRANE,

FUTUROLOGIST

NANOSUPERMARKET.ORGTHE DEPARTMENT STORE FOR THE POSSIBLE AND THE IMPOSSIBLE

kontakt 01.16 11 11

The “energy belt” draws energy from surplus stomach fat to charge hearing aids, pacemakers and smartphones. Wearers lose weight and cut energy costs at the same time – and mean-while they can eat whatever they want.

“Grow your own sneakers” is the slogan of Rayfish Footwear. The DNA of rayfish is manipulated in such a way that the fish’s skin takes on the design requested by the customer. The result: exclu-sive, unique specimens of natural beauty, created using the power of genetics.

Fitness armbands are a thing of the past. Those who wish to share lifestyle and fitness with others in a

a simple way use the “Twitter implant”. Practical: if there

are signs of disease, the online tooth automatically

notifies the dentist and the health insurance

company.

The Nano Supermarket by Next Nature Network offers the future for sale: the hypothetical products presented by the Dutch design and science cooperative confront consumers with the question: would I really buy it?

!?

3

1 2

A SHOPPING BINGE

WITHOUT SIDE EFFECTS

Personalized offers, online chats with sales personnel, payment by app: online shoppers

appreciate the convenience of the internet but reveal a lot of personal information. In view

of the mass of applications and services networked online, the consumer is

barely able to keep track of who is using their data and what is

happening to it.

But if a company wishes to

provide good service, this should include maintaining transparency so

that customers are told how their data is being used. “Data abuse and IT security

leaks can destroy trust in a brand or company on a lasting basis,” says Ralph Freude, IT security

expert with TÜV Rheinland. . A TÜV Rhein-land certificate for data security such as “Check Your App” enables companies

to demonstrate that they are ob-serving data privacy.

contact 01.16

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control to find out everything they need to know about tomatoes, baguettes and fish fingers - where the ingredients come from, informa-tion on allergens, CO2 footprint, nutritional val-ues, storage, recipes and purchase suggestions. Self-service is even done away with in the fruit section – an octopus-like cluster of robot arms packages apples and bananas on command. There are virtually no floor staff at all, yet cus-tomers still get all the information and trans-parency they need. The retail corporation Globus set up the Innovative Retail Laboratory (IRL) in Sankt Wendel in collaboration with the German Research Centre for Artificial Intelli-gence as long ago as 2007. Here, such things as smart shopping trolleys and shopping assistants for the smartphone are developed and tested (see graphic page 8). Tesco and Coop have gone as far as getting rid of stores completely, install-ing virtual supermarkets worldwide at stations, airports and bus stops instead: the productsappear in digital form on huge screens. In their day-to-day stress, customers simply scan in the QR codes with their smartphone as they pass by and have the products conveniently sent home.

ULTIMATELY THE CUSTOMER DECIDES

The new market concepts are based on the“Internet of Things” in which products, devices and machines communicate with each other rather than people. This leads to companies amassing large amounts of sensitive informa-tion. Customers who purchase via the om-ni-channel reveal a lot of details about

themselves – such as when and where they bought which products. According to a study conducted by IT security specialist Symantec, only about a quarter of consumers believe their data is safe with retailers. What is more, 44 per-cent avoid posting personal data online so as to protect their privacy. One third of those surveyed submitted false information in order to keep their real details private. “Companies would do well to convince their customers that the data is secure – by means of independent certification, for instance – otherwise they will lose out,” says Ralph Freude, IT expert with TÜV Rheinland.Ultimately it is the customer who decides which omni-channel concepts will be successful. Some people may find it very convenient when Pepper the robot makes shopping suggestions. Others may regard it as an infringement of their person-al freedom – and will prefer to go on shopping with their best girlfriend.

In the world of fashion, customers expect large selections of new products all the time. This is not a problem for on-line shops, but it is for physical stores. The latter have to be sure to keep large presentation areas and stocks in reserve. The digital design specialists at Dassault Systemes have created a rem-edy with “My Retail Theatre”: a touchscreen in the store which shows customers the entire product range virtually in 3D.

In the store, customers can try on a selection of shoes or clothes while on the screen they can surf through a whole range of sizes, colors and designs. The order comes to the store from a central ware-house or is shipped directly to the customer’s home. The image data comes from the manufacturer’s product design phase, and the retailer can also use of this for marketing and advertising purposes Thanks to virtual shop windows, even small-scale retailers can succeed not just in matching the variety of an online shop but also giving customers the bonus of personal consultation and as well as a distinctive shopping experience.

VIRTUAL SHOP WINDOWSHOW 3D PRODUCT IMAGES HELP RETAILERS

12 COVER STORY // The future of shopping

Cars, kitchens, suits, sunglasses: there are a growing number of products that customers

can configure virtually before purchasing them. Thanks to an increasingly automated and smartly

networked process of development, product and logis-tics as well as new technologies such as 3D printing, the age

of the mass product is coming to an end. Mass customization is a trend that reaches across all sectors. The customer can digitally

configure their perfect pair of shoes online or at a touchscreen in the store, for example. The display of materials, textures and colors is

photorealistic and can even be experienced in 3D thanks to virtual reality headsets – enabling the customer to make a reliable

purchase decision. Production is on-demand, at just a slight addi-

tional charge over the standard product and with precise

details of the delivery date.

My product

nline or at a touchscreen in theerials, textures and colors is rienced in 3D thanks to virtual to

di-rd

e.

mer to make a reliable

d

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13

are becoming blurred”boundaries

“The

contact 01.16

What other trends do you see?Genth: Not only are online facilities becoming more important but also special services for the many custom-ers who own smartphones. Beacons and location-based services can be used to send out vouchers or discount cards to mobile phones when the de-vices are located with a certain area. Payment via phone and smartphone navigation to the required product – all this will becoming broadly visible in the years to come.

This requires sufficient data protec-tion and IT security…Genth: Digitization of physical stores will only be possible when stable and reliable internet is available at all re-tail sites. This is often only possible via wireless networks. That’s why we support the abolition of disturberliability on wireless networks. Theincalculable legal risks are currently preventing a lot of companies from introducing this type of innovation. In the years to come, the boundaries between sales channels will become increasingly blurred. Online andstationary will no longer be clear-cut categories when customers order on one channel and pay on another. The future lies in multichannel or cross-channel retail.

Mr. Genth, the retail sector is becom-ing more experimental than ever. Why? Stefan Genth: The retail sector is currently undergoing the biggest structural upheaval since the intro-duction of self-service. This is a result of demographic change, an increasing demand for sustainable products and in particular the growth in online trading. Currently around ten percent of annual retail trade happens online in Germany. In some product groups such as electronics and technology,

the online share is even higher, at 31 percent. The greatest potential in the coming years lies in the area of food – here we are talking about a current online share of less than one percent.

How should companies respond?Genth: Growing e-commerce poses an enormous challenge for small and me-dium-sized retailers in particular. They often lack the financial means and the expertise to set up their own online shop. But in order to be successful on the market in future, all retail compa-nies will have to make the most of the opportunities offered by the internet. This doesn’t necessarily mean that they will all have to run their ownonline shop – online marketplaces are often a good solution, for example. In the years to come it will be increasing-ly important to be accessible to the

customer on all channels – station-ary, online and mobile. What

matters here is the intelligentinterlinking of the sales chan-

nels and the creation of new services for customers. Click & Collect enables customers

to order goods online and then pick them up directly

at the store, for example. Or people can get personal advice

on a product and then buy it con-veniently from the couch at home

via the store’s online shop.

Offl ine, online, omni-channel: the

retail sector is currently undergoing

structural change. Stefan Genth,

Managing Director of the German

Retail Federation HDE on opportunities

and challenges.

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QUICKNEWS!

HOLM Sweet Home

Brief and affordable

Frankfurt – financial metropolis, trade fair city, inter-national logistics hub and also home to a TÜV

Rheinland office since last December. The company has established a further branch office at the House of Logistics and Mobility (HOLM for short) located at Frankfurt Airport. HOLM, which was opened almost a year ago, is designed as a neutral platform for interdis-ciplinary and cross-industry cooperation in the fields of logistics and mobility. It brings together 20 univer-sities and 24 small and medium-sized businesses from the fields of mobility and transport under one roof, and offers events rooms, working areas and space for training and professional development. HOLM is therefore the ideal location for TÜV Rheinland, which announced digitalization and the connection to mo-bility as top issues in its 2020 strategy. “The proximity to important companies from the mobility and logis-tics industry promises wide-ranging opportunities for collaboration, such as in the field of intelligent trans-port systems,” believes Thomas Biedermann, Execu-tive Board member responsible for HR at TÜV Rhein-land. With around 70,000 employees, logistics and mobility are two of the largest industries in Frankfurt in terms of jobs. In the long term, a network for logis-tics and mobility is intended to develop at HOLM in a form which has not existed to date in Germany. Ac-cording to the Rhein-Main-Verkehrsverbund, global players like DB Schenker and Continental will also soon be establishing an office at HOLM alongside TÜV Rheinland.

Time is money – this may be a truism but in the case of the Petro Rabigh Refinery the concept

takes on considerable proportions. The listed compa-ny in Saudi Arabia operates a total of 23 plants. Every year, these plants produce 18.4 million tonsof petroleum-based products as well as ethylene and propylene-based derivatives. Every day of system standstill means losses, though downtime is some-times unavoidable due to inspections. TÜV Rhein-

They may look like the genuine article, but they are actually nothing more than well-made counter-

feits. Every year, over a million consumers purchase counterfeit electrical products in Great Britain alone – and that without even knowing it. These goods can sometimes be dangerous, as a test conducted by the British Charity “Electrical Safety First” underlines. It had the “Nutribullet”, one of the most popular mix-ers in Great Britain, tested by a TÜV Rheinland lab in United Kingdom together with a seemingly identical but counterfeit model. This test simulated what hap-pens if a stone or a piece of ice jams the cutting blades during mixing. While the original product passed the safety test with flying colors, the imitation product went up in flames with a bang after just 4.28 seconds. The test results came as little surprise to Steve Curtler, Product Safety Manager at Electrical Sa-fety First. “Many of these counterfeit products expose users to increased risks such as electrocution or fire hazards because they don’t work properly,” explains the safety expert. The company responsible for the sale of Nutribullets in Great Britain stated that the mixer undergoes rigorous testing by independent ex-perts and fulfils all the safety provisions applicable in both Great Britain and the EU. The company recom-mends that customers only buy the product from of-ficial sellers in order to avoid the danger of receiving a counterfeit model. You can view the video of this test at www.tuv.com/safetytesting.

In a matter of seconds

14 QUICK NEWS!

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15contact 01.16

Back on track

It took nearly two years, but now metro line 12 is up and running to

the great relief of the 450,000 daily commuters in Mexico City. Nick-named the “golden line” – a name which makes reference to the color of its signs – the recent reopening brings to a close a major scandal in the Mexican capital. Originally opened in October 2012 after a construction period of several years, large sections of the line had to be closed again after only 17 months of service. Serious deficiencies result-

ing from a lack of servicing and strong wear to the rails and wheels were discovered at eleven of the 20 stops. As a result, the stations affect-ed have not been served since March 2014 as they were not up to the required safety standards. An interna-tional team of 19 experts from TÜV Rheinland oversaw the necessary rehabilitation work on the twelve-kilometer section of the line which is 25 kilometers long in total. The team supported Mexican transport system staff in all issues relating to work

processes and safety precautions for rails, railed vehicles, overhead lines and signal systems. The specialists documented the progress of the project in detail and coordinated communications with the public authorities and companies involved. Finally, TÜV Rheinland experts issued temporary certification as tunnel work is still being carried out on the line in question as services resume. Final certification will be awarded after this last section of work has been completed.

land succeeded in mobilizing and coordinating a team of 66 highly specialized inspectors from differ-ent countries within a short space of time. In Octo-ber and November 2015, the team carried out inspec-tions and non-destructive tests on the pressurized containers, heaters, boilers, storage tanks and pipe-lines throughout the plant. “The successful disman-tling of a nuclear power plant in 2011 and risk-based inspections over the past few years were ideal refer-ences for this challenging job,” says Project Manager Waqas Munawar.

2,000 employees work at the site which measures some twelve square kilo-meters in size.

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Incredibly hot here!

After more than ten years of construction, the Wendel-stein 7-X, the world’s largest nuclear fusion reactor

of the stellarator type, launched its test operations at the Greifswald site at the end of 2015. Since 2014, the experts from TÜV Rheinland had been carrying out a safety assessment of the system concept and the installed safety and radiation protection systems, ultimately giv-ing the green light for operations to commence. The research reactor developed by the Max Planck Institute of Plasma Physics is intended to generate energy in the same way as the power source of the sun. At its core, the sun converts hydrogen plasma which melts into the noble gas helium at high temperatures. As part of this, energy is released in almost infinite amounts. However, this requires enormous temperatures and an incredible high pressure. As this type of pressure is not achievable on Earth, the scientists takes advantage of the laws of

nature to achieve the effect. In other words, if the tem-perature rises, the pressure can sink, and for a research reactor like Wendelstein 7-X this means a temperature of at least 100 million degrees Celsius. At this heat, atoms turn into ions. If the reaction continues as planned, plas-ma is created. In Wendelstein 7-X, plasma first travelled through the incredibly heavy metal ring, the trademark of the stellarator reactor type, in December 2015. The plasma vessel contains plasma with a temperature of 100 million degrees Celsius. Directly next to it are super-conducting magnetic coils, which have to be cooled to around minus 274 degrees Celsius. The plasma is trapped within the magnet fields produced and set in rotation. This prevents plasma particles from drifting away from the current and therefore cooling. The test operations with deuterium plasma are planned for the next phase at Wendelstein 7-X.

On 2.25.

2009,In Greenlandic (Kalaallisut), numbers only go up to eleven. The following numbers are simply “many” (amer-lasooparssuit). But what happens when the Greenlanders celebrate their twelfth birthday and are asked how old they are? Then they just revert to Danish. Greenland is an autonomous country within the Kingdom of Denmark, so Danish is spoken there as well.

Google posted its fi rst Tweet. It read: “I’m 01100110 01100101 01100101 01101100 01101001 01101110 01100111 00100000 01101100 01110101 01100011 01101011 01111001 00001010.” The translation of this jumble of zeros and ones: “I’m feeling lucky.”

16 QUICK NEWS!

Web

Certifi cate forgames arcades

Some 10 million adults play on slot machines. The new certificate “Regularly tested games arcade” is awarded

to centers that voluntary submit to the testing of more than 120 criteria. These include a large number of man-datory requirements: is legal protection of gamblers and young people observed? Is there a concept for addiction prevention? Is the alcohol and smoking ban observed? More than 420 games arcades have undergone the tests. The press has been full of praise: “[…] if there’s going be a voluntary certificate, then it should be issued by TÜV”, writes the daily newspaper Kölner Stadtanzeiger.

More than 420 games arcades have already been inspected by TÜV Rheinland auditors.

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Today the Internet encyclopedia Wikipedia has 37,000,000 articles in more than 300 languages. In Germany alone, around 350 articles are added every day. By the way, the collaborative website launched by Jim-my Wales and a programmer is celebrating its 15th birthday this year – Happy Birthday!

Oddity

“The Statue of Liberty Enlightening the World” is Lady Liberty’s full name. For more than 125 years now, it has welcomed those arriving in New York Harbor, has symbolized a better future for immigrants and was declared a World Heritage Site in 1984. Its height from the top of its

base to the tip of its torch is 46.05 meters and 92.99 meters from the ground to the tip of its torch, mak-ing it one of the tallest statues in the world. Hard to believe but true:

Lady Liberty’s body sheeting weighs 28 tons yet is not even 2.5 millime-ters thick, which is the thickness of two pennies placed together.

A frequent promise, rarely kept

The new TÜV Rheinland annual report is upon us. Why is that important? Firstly, TÜV Rheinland is

right up there with the best in the rankings of the top annual reports. And secondly, the latest report is the first part of the trilogy “In trust”, “In dialogue” and “In work”. “In trust” takes account of the global development that trust is becoming an increasingly important commodity. Norms and rules, accredita-tions, inspections and certifications often make our lives and business easier and safer in many respects. But this field as well as its actors and processes is not always easy to understand for external observers. Featuring four special articles, the report describes the efforts that TÜV Rheinland undertakes to boost its most important asset – “trust”. First, we meet a Dutch expert for glass inspections, Henk van Ginkel, who has himself tested and meticulously prepares himself. Then we focus on the story of the nursing pillow – as one of 880,000 products, the pillow is in-cluded in the Certipedia database and everyone can see exactly what tests the pillow has undergone. The report also profiles the highly motivated Shang-hai-born Xiaojie Wu, who as an engineer in the field of energy systems and automation is already a top expert in Germany, but still strives for further per-fection – with a personal development plan. Finally, we also report on our Brazilian “Minister of Culture” who is responsible for compliance across all of South America. In addition to this freely formulated sec-tion with lots of interesting insights, the report of course also includes the financial and sustainability sections.

Trustcomes fi rst

To launch a product on the European market, the CE marking is obligatory in the harmonized regu-

latory area. Many consumers incorrectly believe that this is a testing seal provided by an independent third party, when in fact it is only a manufacturer declaration for authorities such as the customs office. By adding the CE marking, the producer provides assurance that its product corresponds with all appli-cable European guidelines and has undergone the prescribed conformity assessment procedure. It is up to the manufacturer to decide how the product is subjected to the necessary tests. In order to be able to provide the marking, the manufacturer can appoint a testing or certification body to carry out the tests. Alternatively, the tests can be conducted by the man-ufacturer itself. A recent study by the industry associ-ation International Confederation of Inspection and Certification Organisations (CEOC) shows that the latter option is significantly inferior. The association investigated to what extent CE-marked products which had been certified by the manufacturer itself actually conformed to EU standards. The bitter result: 77% of the products did not adhere to the required regulations, and 14% even exhibited safety-relevant deficiencies. By way of comparison: These products only made up 0.7% of those certified by independent third parties. In order to create a broader basis for the study, data from the USA and Canada was also includ-ed. There, the inspection of consumer products by third parties is obligatory in many areas.

IN TRUSTCorporate Report 2015

17

37.000.000

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18 GLOBAL // World of laboratories // Part 8: Germany

8

Biocompatibility laboratoryCologne, Germany

HARMFUL OR NOT – THAT IS THE QUESTION

When you can see yourself in a knee cap? When it’s made of ti-tanium and it’s lying on the lab table with the sun shining on it through the window. The ten experts at the laboratory for bio-compatibility in Cologne deal with spare parts for the human body every day. Since July 2015 on premises measuring 450 square meters, they examine medical products such as plasters, walker frame handles and implants to ensure compatibility with the human body.

Facts

FOR THE PROTECTION OF PATIENTS

Dialysis filters from Korea, surgery mats from Sweden and ar-tificial hips from Brazil - these are some of the items that end up on the lab tables in Cologne. Before a medical product or a biomaterial is put on the market, it has to be examined for compatibility. In fact this is a requirement in order to be able to bear the CE symbol. The experts carry out in vitro tests to see whether products have a harmful effect on human cells, blood and tissue, for example. They will typically insert stents into the coronary arteries of pigs, or bathe hip implants in mouse cells and then examine how the cells have changed, allowing them to draw conclusions as to the impact on hu-man beings.

Testing areas

EXPERTISE DURING THE DEVELOPMENT PHASE

The lab is not just used for finished products but supports manufacturers during the development of biomaterials or with “tissue engineering”: this refers to the production of artificial fabrics used for skin transplants after burns or nets used for hernias, for example. The Cologne experts also support the de-velopment of combined items that consist of a medical product and a pharmaceutical, testing how bone cement interacts with antibiotics, for example.

Specials

Be goodcompany!

From dialysis machines to new

spinal discs – medical products are

becoming more and more sophisti-

cated. The Cologne laboratory tests

products for biocompatibility to

make sure they will be accepted by

the human body.

Questions on this topic?Dr.-Ing. Ute Müller [email protected] phone: +49 221 806-5575www.tuv.com/safety

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Successful lab tests based on this ISO standard series are an important step on the way to a medical product acquiring the CE label.

Samples from all over the world end up on the tables of the Cologne laboratory for biocompatibility.

10.9931.000

Two spinal discs, sandblasted nails for for the thigh – biomaterials or substances than come into direct or indirect contact with the human body have to be free of tolerable side effects and must not be harmful to human beings. A biological test of a product’s biocompatibility provides an indication of its potential reactions when it comes into contact with the patient.

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20 GLOBAL // Pipes

Gas p

ipes

– h

andle with care

While they

don't need to be

handled like raw eggs, even

robust pipelines can suffer

dents, bumps or cracks in

the metal when they are

transported.

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TÜV International Rus GmbH, asubsidiary company of TÜV Rheinland, has been awarded an

ambitious mandate by one of the larg-est energy companies in Russia: to en-sure that as little damage as possible is caused in the loading, transporting and unloading of several thousand of new pipes at more than 150 locations throughout the country. “Before this, the percent of pipes that were dam-aged during loading, transportation and offloading occasionally signifi-cantly exceeded limits set by custom-er,” says Georgiy Shevardenidze, com-mercial manager at TÜV Rheinland. “We have given the customer an un-dertaking that we will reduce the aver-age damage rate to less than 2%.”Surveyors from TÜV Rheinland aredeployed at all loading and unloading points, initially for a year until Octo-ber 2016. “The pipes are manufac-tured in seven factories in western Russia and transported to various des-tinations from there. Some of them are used to replace existing pipes, oth-ers are part of new lines,” says Shevardenidze. Although his employ-ees have no influence over the quality of the pipelines, they can ensure that the metal behemoths are handled as

carefully as possible using heavy-duty cranes onto cargo trains. “We have a permanent presence at the major loading and offloading points, while smaller offloading loca-tions are supervised by mobile teams. In total around 70 surveyors are working on a project at a time” The surveyors collect extensive data on site, which is analyzed in TÜV Rheinland office in Moscow and then regu-larly transferred to the customer with recommendations on how to reduce risks of damage further.

HOW NATURAL GAS IS

TRANSPORTEDBefore the gas reaches consumers, it is extracted from under the seabed. The total length of all the pipelines and the gas distribution networks is many times greater than the circumference of the earth. The most frequently used process is the transportation of the gas via pipes. But the gas first needs to be prepared and cleaned. This must be done immediately after it emerges

from the drill hole, in above-ground separators, during transport and in compressor stations. Long-distance lines transport the gas over longdistances. At the consumer side, gas pipelines with a smaller diameter are used (gas distribution networks). Depending on the category of con-sumer, a distinction is made between low-pressure gas distribution lines (for homes) and medium- and high-pressure gas distribution lines (for industrial companies).

Questions on this topic?Georgiy Shevardenidze [email protected]: +7 495 660 0889

BRINGING GIANTS SAFELY

TO THEIR DESTINATION

1. The pipes are large, with a diameter of more than 426 mm, they feature as large-diageter

pipes .

2. They are manufactured in seven factories in western Russia and transported to more than 150 locations throughout the country.

3. While the shortest distance is 50 km, the longest is up to 6,000 km.

4. The pipes total tonnage is around 2 million.

The new pipelines are loaded onto the railway from thefactories.

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22 Knowledge // Condition monitoring systems

Trust is good, control is better. Many companies have their machinery

and plants checked by condition monitoring systems on a voluntary

basis. This enables weak points and damage to be detected early on and

promptly repaired, thereby avoiding total failure.

Always

on the spot

A certain internal pressure has to prevail inside the cavern for optimum storage and extraction of natural gas. It is possible to achieve a maximum pressure of 200 bar.

Pipelines link the caverns to the compression and ex-traction station, via which natural gas is put into storage and extracted.

PiPipepelilineness lilinknk tthehe ccaaverernsn to thhe compmpressioon n and ex-traction station, via whwhicich h nanatural gas is put into storage and extractedand exextrtraca teted.d.

AA cecerrrtrt iainn iintet rnal prprp esessssususurererereeeee hhhasasasas ttttooooprevaiaill iinnsiidede tthehe ccavaverernnfor opptimmum storage and exextrtracactitionon of natural gag s. It on of natural gas Itti f t l Itisis pposossiisiblblblee ttoto aachhhchieiiieveveve aaa maximum pressure of 200 bar.

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Wind turbines, power plants, high-temperature energy systems, storage devices and the like are exposed to enormous stress on a day-to-day basis

and have to work perfectly smoothly. Damage to this type of equipment not only causes potential production failure and enormous repair costs but also a loss of reputation. While up until a few years ago this kind of plant hadto be shut down to enable repair work to be carried out, today companies make use of so-called condition moni-toring systems. These allow damage to machines and equipment to be identified early on so that they can be shut down promptly for maintenance work to be carried out selectively.

APPLICATION CASE: TECHNICAL ACOUSTICS

The basic concept was showcased at the EXPO in 2000 under the name HISS - “Human Interface Supervision System”. The groundbreaking idea at the time was that a computer with “sensory” organs would identify leaks and damage to the machinery directly and pass this informa-tion on. Since then, condition monitoring systems have been used to monitor various types of technical plants and machines during operation. Special microphones or sensors are the helpers of the future: they register acoustic signals or vibrations directly on the spot and relay anyirregularities to the control center. In this way, acute anomalies can be captured promptly and eliminated, thereby ultimately reducing follow-up costs. There are a wide range of potential uses, with gas caverns requiring special attention. These special reservoirs are located in natural or man-made cavities underneath the earth’ssurface and serve to compensate any imbalance between availability/extraction and demand/consumption as well

as increasing supply secu-rity. Gas caverns are gen-erally filled with gas during the summer months when thedemand for gas is low and emptied during the winter months to cover additional requirements. “Seam runners regularly monitor the gas caverns, butthe technical acoustic condition monitoring system ta-COMOS is now used to an increasing extent,” explains David König, industrial and mechanical engineeringspecialist with TÜV Rheinland. The system draws on its capacity to “listen”, using optical microphones for sound and light wave conversion. This type of optical micro-phone is required for use in areas at risk of explosion (Ex).

DETECTING DAMAGE SAVES COSTS

The investment is especially worthwhile for companies operating in the field of gas storage. “Leakage at the cavern head can result in the rapid loss of a quantity of gas that would normally be used by one or two normal households in a year,” says König. The earlier the damage is detected, the lower the subsequent costs and the less probable it is that the security of the system will beimpaired during operation. Condition monitoring isnot generally required but is increasingly used by compa-nies of their own accord for security and cost reasons. “In future, monitoring will not be applied to each individual unit, but whole areas will be covered by several devices,” says David König, looking ahead to the future of condi-tion monitoring systems.

1. Optical microphones in the Ex category are used to monitor the condition of gas caverns.

2. They are typically mounted at collection points on the cavern head.

3. The microphone continuously records all noises in its environment. Any leakage near the cavern head causes a high-frequency hiss which is not necessarily perceptible to the human ear.

4. If a sound event occurs within the relevant monitoring area, a message is sent to the control center. The event report is delivered by the computer voice “Steffi”.

5. It is possible to respond immediately to damage, thereby minimizing loss and risks.

ACOUSTIC SIGNALS:

HOW IT WORKS

Questions on this topic?Benjamin Jendrosch [email protected]: +49 221 806-4912

Wind: The condition monitoring systems of the WKA-COMOS series can monitor and detect changes in state in the relevant components and parts of wind power plants.

Industry: The tf-COMIS monitors vibrations in machines or in pressurized components in power plant technology; it is also used on small units in the production industry.

Rail: RW COMOS are diagnosis systems for the selective examination of damage development in rail traffic.

Spot vibration measurement and analyses: At a generic level and depending on the area of application, cyclical data analysis based on vibration diagnosis can replace a stationary system. This can also be used with existing monitoring systems (applicable to all manufacturers).

APPLICATION AREAS FOR CMS

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It’s the reversal of digitization: bits turn into atoms – the world is printing in 3D. An exciting technology that’s already fascinating millions of people – but where does the hypefi nish and the profi tability start?

Mechanical engineering, consumer goods, aviation, fashion, medicine, pharmaceu-ticals, art – the most varied areas of

activity all agree on one thing: “We want 3D printers!” And it's hardly surprising - after all, the technology allows all kinds of objects tobe designed at the computer and produced bya printer. Additive manufacturing creates just about anything anyone could want, layer by layer. The media can’t get enough of news about the latest fascinating printed products: “touchable memories” enable blind people to capture moments in a 3D model like a photo-graph, for example, while replicated paintings and sculptures bring the originals to life inmuseums. There's a touch of science fiction in the air when models stride down the catwalkin futuristically styled print garments or sur-geons perform complex operations on printed organs. Even food such as pasta can come out of the printer.

24 KNOWLEDGE // 3D printersrinters

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LAYERBY LAYER

The 3D printer per se is not a brand-new invention. It was originally developed by the American engineer Chuck Hull as long ago as 1986, when a patent was applied for. Even back then the specialty of the machine was that it does not create things by pouring material into a mold but ap-plies it layer by layer or fixes it in a shape on a computer-controlled basis.

The process is known as additive manufac-turing. There are various methods, four of which are currently distinguished. Stereo-lithography involves an object being held in the desired shape and cured in layers by means of a laser. In highly simplified terms this variant works rather like aprogrammed hot glue gun. The melting process involves melted material beingapplied in drops and cured.

With sintering, material is applied inpowder form. One alternative is for theindividual layers of powder to be welded together by the heat of the laser, which is known as laser sintering. Once complete, the solid workpiece is simply brushed off to remove excess dust. Meanwhile selec-tive laser melting is a similar process whereby the material is applied selectively and melted.

A shoe – fresh out of the printer. Checkmate to all those who

don’t see 3D printing as a future trend: there are plenty of visionaries out there - such as Local Motors - who plan to print cars in twelve hours in the future.

Fashion off the printing press: the Kinematics dress by de-signer Jessica Rosenkrantz and Jesse Louis-Rosenberg (Ner-vous System) present strikingly complex shapes and structures.

Selfi es are old hat. Nowadays it's fairly simple to print a three-dimensional mini-me.

A shoe – fresh out of the printer.

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26 KNOWLEDGE // 3D printers

THE THIRD BIG REVOLUTION?There’s a lot of hype surrounding 3D printers. Die-hard fans refer to them as the next ground-breaking IT innovation after computers and the internet, for example. Volker Növermann can’t help but grin when he hears this kind of glori-fied comparison. “Of course 3D printing is a technology with enormous potential. But it’s still in its infancy. The future will tell whether all the hype we’re hearing now will actually turn into sustainable profitability,” says the Manager for Strategic Projects at TÜV Rhein-land. There is certainly no question that 3D printer technology is more than a flash in the pan. Firstly, the machines have already been used in industrial manufacturing for years, for example in the production of prototypes or air-craft parts made of plastic or metal. Secondly, according to a forecast by Siemens, the cost of production using 3D printing is set to at least halve in the years to come, while printing speed is expected to increase by 400 percent. “This is precisely why it’s so important for us as a test-ing company to look at the whole area very closely so as to keep up-to-date and go on learn-ing,” says Volker Növermann. In order to be able to market 3D printing systems successfully worldwide, it’s very important for manufactur-ers, sales partners and operators to be able to obtain testing and certification services for their manufacturing machines from an independent source. A particular challenge in these tests is individual risk assessment since 3D printersdiffer considerably in their design and function-ing. “Based on our considerable expertise inapproving and testing industrial machines,our team in Japan under Vilmos Sztaroveczki and Frank Becker was recently able to attract two producers in the area of industrial 3D print-ing as customers. In the USA, the team under Jonathan Kotrba is also working with well-known manufacturers and in Germany wewill soon be holding a specialist conference,” says Volker Növermann. There's a lot of new territory for the experts to cover: in additionto the electrical and mechanical risks, there arealso potential chemical risks to be taken intoaccount from the printing material used.

PLASTIC, GOLD AND CHOCOLATE

Plastic and metal are the most common materi-als from which objects are printed. But depend-ing on the technology used, numerous other materials are possible such as ceramics, clay, gold, silver, plaster, synthetic resin, sand, glass, chocolate and dough. In China the company

3D printers are running at full steam, producing everything from spectacles through to objets d’art and even entire houses. But who is actually respon-sible for all this output? Questions about manu-facturers, copyright and security are hotly debated everywhere, but there are no answers as yet.

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Questions on this topic?Volker Nö[email protected]: +49 221 806-5666

contact 01.16 27

WinSun printed ten stable houses in 24 hours from recycled garbage. Cost: less than 5,000 dollars each. 3D printing is not generallyspeaking a low-cost option, however. “Thematerials are often considerably more expensive than those used in normal production,” says Növermann. So it is debatable whether the technology will ever be used for classic mass production. But on the other hand 3D printing does save a lot of material. When a three-di-mensional workpiece is created using a printer, only the amount of material is used that is actu-ally required for the object – unlike in the case of cutting, milling, lathing or drilling. Another advantage can be seen on a global economic level. People are increasingly asking why goods have to be transported by air or ship over long distances. It’s expensive, time-consuming and harmful to the environment. So why not print products out where they're needed? Even on the moon. It may sound fantastical but it’s true:the European Space Agency is already testing 3D printers to make a lunar base. There’s no doubt that 3D printers very much capture the spirit of the times with their capacity to provide endless new creative possibilities. The range of functions continues to grow non-stop: experi-mental materials, user-friendly software, the ability to scan objects and replicate them, and new complex tools that allow objects to be printed using different materials at the same time. “It’s exciting to observe how the technol-ogy is developing and how the way we think about production itself is changing, too – both in the industrial context and in household use,” says Volker Növermann. But in spite of all the euphoria, it's good to remember that 3D print-ers are ultimately machines programmed byhuman beings and not magic boxes. And the idea of an all-purpose home 3D printer formaking toys, electronics, new pair of jeansand ideally lunch as well is likely to remaina Utopia – for the time being.

A great idea but not strictly true: according to the current state of technology, 3D printers are not able to print out a cake on a plate. The device would have to use different printing methods and materials at the same time.

Great hopes are attached to 3D printing in the medical sector: The idea: sugar molecules arranged precisely by means of 3D printing, accumulated on stem cells and then used to create an artifi cial organ or body part.

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28 KNOWLEDGE // Fuel cell technology

Electric streetcars? That’s old hat, right? Cor-rect. Werner von Siemens ran the world's first ever electric tram in Berlin-Lichtenrade

as long ago as May 1881. But the new high-tech tram doesn’t require an overhead line or heavy and bulky batteries to power it. The electric tram of the 21st century produces its power it-self – and it's entirely emission-free. The secret lies in the fuel cell. To put it simply, the hydro-gen contained in the on-board fuel tank reacts

with oxygen from the ambient air in an electro-chemical process. The result is a continuous supply of electrical energy. The electricity feeds a battery that can power one or more electric motors as required. The only thing that comes of out of the exhaust is steam.

CLEAN TRAM FOR CHINA

In the automotive sector, local transportation companies in Stuttgart, Hamburg and Cologne have been using clean hybrid buses on their scheduled services for years. The first standard fuel-cell cars are now on the market here in Ger-many too, though they are still rather expen-sive. Their advantage is that they offer a consid-erably greater range than purely battery-powered cars. What is lacking in Germany is an extensive infrastructure of hydrogen filling stations. Ac-cording to the German Hydrogen and Fuel Cell Association, some 400 such filling stations are to be set up nationwide by 2023. In the railway sector, however, fuel cell technology is still in its infancy. An international, interdisciplinary team of experts from TÜV Rheinland in Cologne and Shanghai has now taken the first step towards large-scale use of the technology in trams and urban railways. The experts have been commis-

Water on!

sector helps us“automotive

“Experience from the

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The fuel cell converts chemical reaction energy into electric current and heat.

1 Two electrodes are separated from each other by means of a separating layer covered with platinum, for example (electrolyte). On one side hydrogen is fed in from the fuel tank, on the other side oxygen from the ambient air.

2 The hydrogen is split into its component parts: two elec-trons and two protons. The protons go to the oxygen side via the electrolyte. The electrons have to take the detour via an electric circuit to get to the oxygen side, where there is a lack of electrons. The protons, electrons andoxygen then go together to form water.

3 A large number of fuel cell stacks connected in series are required to supply sufficient energy to power a vehicle.

4 A power inverter converts the direct current from the fuel cell block into alternating current which in turn powers the electric motor.

HOW IT WORKS:

“THE FUEL CELL”

sioned by a Chinese railway vehicle manufac-ture to compile the world's first safety review for the fuel cell powertrain. The latter consists of a stack of fuel cells connected in series, the hydrogen tank including the pipeline system, an energy reservoir and the electric motor. “We use the well-established approach of inspection and certification during the course of develop-ment. Our specialists start with the relevant norms, safety standards and technology regula-tions as familiar from the automotive sector. Based on these they identify the requirements and necessary modifications for use in the rail-way sector”, says Dirk Eliasmöller, rail expert with TÜV Rheinland. Document inspection in-cludes the leak-tightness of the hydrogen tank and the pipeline system, the weight distribution of the units on the roof of the tram, ride and brake response, electromagnetic compatibility and secure operation including filling, repair and maintenance. “The plan is to initially use the tram in the city of Foshan, which has a population of several million”, explains Eli-asmöller, adding: “With this technology we can help contribute to reducing air pollution in conurbations and megacities.”

Questions on this topic?Dirk Eliasmöller [email protected]: +49 221 806-4460

Fuel cell power for a tram? That’s impossible! No

it isn’t. TÜV Rheinland is currently assessing an

environment-friendly power unit that emits

nothing but steam.

The fi rst fuel cell powered tram in China.

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30 KNOWLEDGE // Cyber Security Trends 2016

Mission:

digital safety

Internet criminals have long ceased

to focus mainly on e-mail accounts

and credit card numbers. TÜV

Rheinland security analysts have

assessed the consequences of the

increasing complexity of cyber

attacks from the IT decision-maker's

point of view, identifying nine

cyber security trends for 2016.

Questions on this topic?Nigel Stanley [email protected]: +44 791 9446324

CYBER SECURITY

TRENDS 2016

CYBERCRIME

BECOMES EASIER

Because of the increasing digitization of business. Cybercrime will become a more attractive proposi-tion for criminals.

INDUSTRIAL CONTROL SYSTEM

SECURITY (ICS) IS MORE IMPORTANT

THAN EVER

The wide-spread adoption and use of industrial control systems means that effective cybersecurity measures that address this area will become increasingly important.

INFORMATION SECURITY –

MORE THAN COMPLIANCE

Organizations will increasingly take a risk oriented approach to securing their business rather than just focusing on meeting compliance requirements.

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2

3

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contact 01.16 31

Hackers benefit from technological progress when car-rying out their attacks because ongoing digitization and the increasing connectivity between office and

production is causing a rapid rise in the number of weak spots and potential targets. More than 60 percent of SMEs already suffer a disproportionately high rate of cyber at-tacks. Suppliers and medical devices are attracting particu-lar interest. Most organizations are already compromised without even being aware of it. Identifying and resisting increasingly frequent attacks is often beyond the capabili-ties of these companies, both technologically and in terms of the specific expertise required.

EARLY PREPARATION FOR ATTACKS

So there will be new attacks and increased numbers of them in 2016. Excellently equipped and highly qualified attackers make such assaults increasingly complex. “This is why it is so important to be prepared and establish solid security incident response processes so that companies can maintain operations in spite of an attack or recommence as quickly as possible after an attack has taken place,” says Olaf Siemens, Business Unit Manager ICT & Business Solu-tions with TÜV Rheinland. TÜV Rheinland supports com-panies and public-sector organizations by providing com-prehensive consultation services and solution expertise in the field of IT and cyber security. These trends will be im-portant to IT security decision-makers this year:

DATA PROTECTION AND

DATA SECURITY ARE INCREASINGLY

IMPORTANT

Regulatory requirements for the operators of critical infrastructure will increase. Laws, regulations and standards in the world of cyber security will be updat-ed to meet the current threat situation.

NEW CLOUD MODELS

New cloud-operating models will be established. Cloud service providers and their customers will need to define clearly who is doing what to ensure effective incident response. Companies have to re-alize that the responsibility for data security always lies with the company using the cloud.

THE INTERNET OF THINGS IS

A TREASURE TROVE

The development of connected products and the Internet of Things will introduce new attack vec-tors. Nonetheless, manufactures still attach greater importance to features than security when devel-oping networked devices. Security by Design has to become an integral part of the software develop-ment process so that innovations gain acceptance among increasingly security-conscious users.

INCREASING DEMAND FOR

MANAGED SECURITY SERVICES (MSS)

In order to protect the organization against cyber-attacks more and more companies will rely onexternal Managed Security Services (MSS). These services depend on hiring external service provid-ers to manage and operate IT security services.

INCIDENT RESPONSE

BECOMES DAILY BUSINESS

Companies that need to detect advanced persistent threats at an early stage will need power-ful incident response processes and structures.

DEMAND FOR CYBER THREAT

INTELLIGENCE (CTI) IS RISING

The use of external CTI will increase as organizations review their own capabilities and defenses.

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32 GLOBAL // CIS

Quality and sustainability have been part of the Faber-Castell brand core for

more than 250 years. To make sure things stay this way, the offi ce supply

manufacturer now manages its certifi cates using the new CIS web platform

provided by TÜV Rheinland.

Whether crayons, water color sets, school chalk or exclusive writing utensils: almost every-

one has probably held a Faber-Castell product in their hand at some time in their lives. Faber-Castell is the biggest manufacturer of wooden crayons and pencils in the world with an output of some two million per year. Founded in 1761 by Kaspar Faber in Stein near Nuremberg, the family business cur-rently employs an international work-force of some 7,500 staff. There are nine production facilities worldwide and 23 sales subsidiaries Trade agencies are to be found in 120 countries. In all its operations, Faber-Castell attaches great importance to social, ecological and economic sustainability. This is underpinned with numerous certifica-tions in areas such as quality and envi-ronment management, social standards and the sustainable use of wood as a raw material.

CENTRAL ONLINE INFORMATION

INFORMATION POINTManaging all these certificates is a complex task - but it has just got sim-pler. Faber-Castell is one of the first companies to handle its pool of certifi-cates and its audits through the Cus-tomer Information System (CIS), the new web-based platform provided by

TÜV Rheinland. “We’re currently de-veloping the CIS further with our large-scale customers,” says Christian Nonnenmacher, project coordinator with TÜV Rheinland. “For customers it provides a central point at which to manage all information relating to ser-vices provided by TÜV Rheinland.” The platform homepage gives custom-ers a summary of their certificate status right away, categorized according to company sites. There is also informa-tion on upcoming audits complete with the relevant contacts and initial procedural details. A communication channel ensures the certification pro-cess remains transparent and all those involved are kept up to date. “We pro-vide information on newly issued doc-uments and potential deviations di-rectly on the central platform. This means are experts are much closer to customers and can respond to ques-tions quickly,” says Christian Nonnen-macher. For international and exten-sively networked CIS users such as Faber-Castell and the vehicle supplier Rehau in Rehau, the platform reduces error sources, closes security gaps and thereby increases efficiency: sensitive documents no longer have to be sent by e-mail and saved on potentially in-secure computers and mobile devices. All data is stored on TÜV Rheinland data centers, which undergo regular

security checks. Nothing is outsourced or saved on external servers.

DIRECT COMMUNICATION

The customer alone determines theuser rights of staff and external indi-viduals on the platform. The platform is easy to use and the interface issimple to adapt to individual needs. “In addition to the standard languages of German and English, we’re gradual-ly providing the platform in otherlanguages,”, says Christian Nonnen-macher. Password-protected access to the CIS is via a secure internet connec-tion. The CIS can be used anywhere at any time on all end devices offering online access – this is perfect if details of a certificate are required duringan audit on the production floor, for example. The CIS is internationally available for large-scale TÜV Rheinland customers in the area of management systems.

Questions on this topic?Christian Nonnenmacher [email protected]: +49 221 806-2641

Multifaceted

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QUALITY DERIVED FROM TRADITION

CO2-neutral production, sustainable forestry, social responsibility: Anton-Wolfgang Graf von Faber-Cas-tell, head of the family business in the 8th genera-tion who passed away at the end of January 2016, did not believe in fast profits. His company motto:

“To be successful in the long term, you have to think in terms of generations.”

contact 01.16 33

Cedar wood is the basis for the high-quality artist crayons produced by Faber-Castell.

Colored pencil leads are mainly made of color pigments, kaolin (white clay) and binding agents.

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34 KNOWLEDGE // Virtual testing

Development and market launch cycles are becoming increasingly

short, while customer and product demands are rising. In order to be

able to meet these demands, companies make use of virtual testing on

high-performance computers during the product development phase.

Every 25 seconds somebody dies in a road accident according to a WHO estimate - even though manufac-turers have improved safety standards in new cars

over recent years. One focus in the development of a car is carrying out accident tests with dummies on board. It’s an indispensable but expensive test procedure: the dummy itself costs several thousand euros, not to mention the car. For some time now, carmakers and other industrial compa-nies have used a different method, moving tests from the vehicle hangar to high-performance computers. Instead of having car prototypes carrying dummies drive up against concrete barriers, experts simulate crash tests using a virtu-al 3D prototype on the computer.

A GREAT TIME-SAVER THAT DOESN’T COST MUCH

Virtual prototyping has long become an integral part ofindustry - and it's hardly surprising. Dynamic markets are forcing companies to adopt increasingly short develop-ment and market launch cycles, which requires high inno-vation speeds. In addition there are factors such as increas-ing customer demands, growing cost pressure and more flexible product characteristics. Companies can only do justice to these demands if they shift the development of their products into the virtual world. By the time there would have been no more than a basic framework accord-ing to conventional methods, complete virtual product prototypes are already available on high-performance com-puters. Another advantage: based on interactive visualiza-

Part-timedummies

VIRTUAL REALITY

Virtual prototypes allow complex processes to be enacted that occur throughout the entire lifecycle of a product. 3D representation and the option to hide certain components make parts visible in the virtual word which would be difficult to see physi-cally: as a result, potential errors can be ruled out from the outset.

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contact 01.16 35

tions and simulations, it is possible map out complex pro-cesses within the overall lifecycle of the product concerned at an early stage. Faulty designs can be identified directly, for example, so they can be eliminated more quickly and less expensively. “Virtual tests such as structural tests are possible in many areas of product testing today and are not geographically restricted,” says Stephan Scheuer, Elec-trical Certification Projects & Innovations Expert with TÜV Rheinland. Virtual testing is increasingly used on electrical and mechanical products in particular.

A SUPPLEMENT, NOT A REPLACEMENT

Virtual tests are based on 3D simulation, which imitates the response of a product The benefit here: both manufac-turer and tester can gain initial experience of the virtual specimen and move freely within the virtual domain to test the product. Early predictions and the concept deci-sions are key success factors in modern development pro-cesses. TÜV Rheinland test whether the necessary legal requirements relating to a product have been observed. There is one catch when it comes to virtual testing, how-ever. The situation in terms of legislation and standardiza-tion is currently such that regulations stipulate physical tests. In other words: although it is technologically possi-ble, not all physical tests can be replaced with virtual tests. Another reason why physical dummies will not be discard-ed completely any time soon is the legal provisions that apply in the sales markets. The legislation sets out the re-

quirements for the various products, and implementation is taken care of by standardization bodies, who are respon-sible for the virtual testing methods. However, no codified regulations for virtual testing have been defined to date. For this to happen, standardization directives would have to be re-written which would take an enormous amount of time. So virtual tests can only act as supplement - to make physical tests more effective, for example. Stephan Scheuer still believes strongly in the importance and future prom-ise of virtual testing: “We draw on virtual tests as part of preliminary testing and product checks so as to identify structural errors even before prototype manufacture, thereby increasing efficiency. Where it provides validated results, virtual testing is definitely an option for every expert,” explains Stephan Scheuer.

SAVE TIME, CUT COSTS

“Virtual tests can be carried out in many areas of product testing today, especially in the case of electric and mechanical products. The prototype doesn’t have to be built first –it can be provided to the experts as a virtual model. This form of testing saves time and costs - both for the manufacturer and tester.”

Questions on this topic?Stephan Scheuer [email protected]: +49 221 806-1654

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The founder of the Cologne-based strategy consultancy “neuland” is co-author of the bestseller “"Digitaler Darwin-ismus – der Stille Angriff auf Ihr Geschäftsmodell und ihre Marke" (“Digital Darwinism - the silent attack on your busi-ness model and your brand) and “Dematerialisierung – Die Neuverteilung der Welt” (“Dematerialization - the redistri-bution of the world”). As an advisor, coach and speaker working with decision-makers all over the world, he raises people’s awareness of the digital transformation and rapidly changing markets. Karl-Heinz Land has worked in manage-ment positions with Oracle, creates start-ups, is an active investor and works on the supervisory board of companies in both the old and new economy.

KARL-HEINZ LANDDIGITAL DARWINIST & EVANGELIST

Continued on page 38

Mr. Land, your business card states you are a “Digital Dar-winist and Evangelist”. What’s

your message?Karl-Heinz Land: Charles Darwin defined the Theory of Evolution for nature. I say there is such a thing as digital evolution, too. Businesses have to adapt to rapid digitization or else they risk dying out. It’s a brutal change process. But as an evangelist I have good news: companies have their fate in their own hands.

Is the situation really that dramatic?Land: Digitization is progressing at an incredible pace. Think of smart-phones, cloud computing, social net-works – these things have been around for about ten years now and they’ve already radically changed our lives. And the speed of development is increasing – it’s exponential, not linear. The “Internet of Things” will account for annual value creation of 1.9 billion dollars in 2020, 50% of which will be generated by start-ups that may not even exist yet. 80 per cent of sales will come from software and service, not physical products. So those who only build cars, machines and plants won’t get a slice of the cake. The winners will be those who think in terms of software and ser-vices.

How can companies initiate a digital transformation?Land: The main obstacle to the suc-cess of the future is the success of the past. A company has learned how things work in a particular area of business and has become a world market leader, a hidden champion – great. The trouble is, many of the rules that applied yesterday will no longer apply tomorrow. Power plant builders, energy suppliers and me-chanical engineers are often as un-wieldy as dinosaurs in the way they

operate. What they really need is to be agile, flexible and more digital. Darwin didn’t say the biggest or the most intelligent would survive, but those who are best at adapting. Com-panies have to create a culture of adaptability, of constant observation and learning. Instead of hierarchies that block innovation they need net-works of autonomous project teams invested with the freedom to act. The digital transformation certainly has to do with technology and IT but it also has a lot to do with people.

36 PEOPLE // Karl-Heinz Land

“Adapt or die” – when it comes to the capacity of companies to adjust to the

challenges of the digital age, strategy consultant Karl-Heinz Land has a clear

message. In this interview the visionary expert explains how business and society

can successfully tap into rapid technological change.

Bad times for dinosaurs

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37

“The world

newly distributed”is currently being

contact 01.16

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Are smaller companies at an advantage?Land: The world is currently being newly distrib-uted. That’s presents a huge opportunities for SMEs - more so than for big corporations. Owner-man-aged companies have equity, often operate more sustainably, pursue long-term visions and are less focused on short-term profit. I have great faith in the capabilities of SMEs if they recognize the op-portunities available to them. But a tolerance of mistakes is required too. We have to learn to deal with failure and with trial and error. The motto is: “Fail fast, scale fast”: Get quickly to the point at which things don’t work, and then change direc-tion - but only a little. This is unfamiliar as a strate-gy, but it works. In the digital economy everyone can offer their product globally right away, which used to be impossible. Time and space are immate-rial. The smallest company can quickly become a world market leader.

How will digitization impact on existing business models?Land: We have to be very radical here. Here’s an example: to produce and sell a key you need raw materials, equipment, molding and milling machines, warehouses, lorries, retail outlets and a whole lot of energy, money and specialists. Nowadays I can just open a door with a smartphone. Digitization, networking and automa-tion is putting jobs, business models and whole sectors at risk, of course. That may not be nice, but it’s inevita-ble. They’re being replaced with new things. Take Claas, the manufacturer of agricultural machinery. They’re still building their combine harvesters and tractors. But they also have a software company with almost 450 staff and have set up a service

1. Collect data - yes, but only with the customer’s agreement.

2. Administer data securely and accept liability in the event of misuse.

3. Only collect the data really needed for the product or service.

4. Offer customers benefits and added value for their data.

5. Guaranteed complete data deletion when the business relationship comes to an end.

NEULAND’S FIVE RULESFOR CUSTOMER-FRIENDLY USE OF DATA

called 365FarmNet. Claas processes data from their networked farmers to enable the latter to cut down on pesticides and fertilizer and generate higher yields. They’ve developed a lucrative, data-driven business model which seems far removed from their regular trade at first sight.

What impact will digitization have on the economy as a whole?Land: Certain developments are predictable. Take the sharing economy. Sharing a car with other peo-ple is not just economical and ecologically sensible for consumers, it’s also convenient thanks to digiti-zation. This is not about doing without things: change is simply happening very fast. More over-night stays are arranged per month through AirBnB than through the Hilton Group with its 4,000 hotels. This is a mass global phenomenon that is cross-cultural. I believe society is currently undergoing a major upheaval. Capital and personal possessions are becoming less important because consumer goods and status symbols are dematerial-izing.

“Capital and

less important” possessions are becoming

38 PEOPLE // Karl-Heinz Land

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Digitization requires data - a lot of it. Does that pose a risk to data privacy?Land: On the one hand, data quantities are in-creasing exponentially. We’re surrounded by data. In the “Internet of Things” there will be some 30 billion objects talking to each other by 2020 - and this will leave data tracks of course. People will still be entitled to privacy and security. When it comes to data security, companies shouldn’t be naive, but nor should they get paranoid. I encourage compa-nies to be proactive in handling user data. The requirement here is that data is collected in the honest interests of the customer, not as an end in itself. Trust will become the new currency. Those who operate with transparency will gain trust, those who abuse trust will cease to do business. Independent security certificates for data centers, cloud services and apps can help establish trust.

What will life be like in a digitized society?Land: There is no stopping digitization, it affects all areas of life - both business and private. Think of the car: now it is being digitized, then networked and then automated. The self-driving car, the care robot, the electronic tax return: the result of digiti-zation is that we will have people without work. We now have to think about how we can fairlydistribute the remaining work and the remaining income. And we’ll learn to occupy ourselves with other things.

currency”become the new“Trust will

Published by: TÜV Rheinland AG, Unternehmens-kommunikation, Am Grauen Stein, D-51105 KölnTel.: +49 221 806-0E-mail: [email protected]: www.tuv.comResponsible: Aud FellerEditor: S+L Partners GmbH, KölnPrint: Druckhaus Ley + Wiegandt, WuppertalPhotos: 123rf.com/fiphoto (Titel), Rodrigo Reyes Marin/AFLO/Nippon News/Corbis (Titel, pp. 6), thinkstockphotos.de/Naborahfatima (Titel), Tesco PLC/South Korea Virtual Store (pp. 2, 7), istckphoto.com/Sami Sert (pp. 2-3), istckphoto.com/kozmoat98 (pp. 3, 20), Hanne Engwald (pp. 3, 37-39), thinkstockphoto.de/szefei (pp.4-5), fotolia.com/RonnyRakete (pp. 4-5), ebay Deutschland/presse (pp. 4-5), Inter IKEA Systems B.V (pp. 5), Severin Elektrogeräte GmbH (pp.5), fotolia.com/eugenesergeev (pp. 5-13), fotolia.com/Mr Twister (pp.7), fotolia.com/zhaubasar (pp. 7, 12), ROSE Bikes (pp. 7), barcoo (pp. 7), fotolia.com/sellingpix (pp. 8-9), 123rf.com/Leung Cho Pan (pp. 8), fotolia.com/Jürgen/ Fälchle, BillionPhotos.com (pp. 8), fotolia.com/lord_zigner (pp. 8-9), BLUE/ Alamy Stock Foto (pp. 8-9), istock-

Publishing notesphoto.com/RapidEye (pp. 8-9), 123rf.com/Jason Winter (pp. 9), Waitrose.uk (pp. 8-9), Business Wire (pp. 9), Coop/Heiner H. Schmitt (pp. 10-11), nanosupermarket.org/colophon (pp. 11), istockphoto.com/Georgijevic (pp. 12-13), HDE/Stefan Genth, BBC.UK (pp. 14), shutterstock.com/TTstudio (pp. 15), Thoms Ernsting/TÜVRheinland (pp. 15), IPP, Wolfgang Filser (pp. 16), 123rf.com/niroworld (pp. 17), Ralf Bille (pp. 18-19), shutterstock.com/Minerva Studio (pp. 21), KGE – Kommunale Gasspeichergesellschaft Epe GmbH & Co. KG(pp. 22), 123rf.com/ Alexander Kirch, Sergii Iaremenko (pp. 24), Tomáš Mikula, (pp. 25), istockphoto.com/ Plus (pp. 25), thinkstock-photos.de/ Czgur (pp. 25), Jessica Rosenkrantz (pp. 25), think-stockphotos.de/Sbastien Bonaim(pp. 26), istockphoto.com (pp 26), 123rf.com/ Olena Kachmar (pp. 27), thinkstockphotos.de/ Danor_a (pp. 27), istockphoto.com/LeeYiuTung (pp. 28-29), www.skoda.cz (pp. 28-29), istockphoto.de/Matej Moderc (pp. 30-31), fotolia.com/val_iva (pp. 32), Faber-Castell AG/Uwe Mühlhäußer (pp. 32-33), shutterstock.com/Lukas Beran (pp. 34), 123rf.com/ cla78, fotolia.com/Vjom (pp. 36-39) TÜV Rheinland (pp. 3, 14, Thomas Ernsting 15, 16, 17, 18-19, 30-31, 35)

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Termine 2016

20.–22. AprilAutomotive Testing Expo India, Chennai, Indien

20.–22. AprilMEDTEC Japan 2016, Tokio, Japan

6.–9. MaiChina Cycle 2016, Shanghai, China

16.–18. MaiIEEE Symposium, Anaheim, USA

17.–20. MaiHospitalar, São Paulo, Brasilien

23.–25. MaiSNEC PV Power Expo,Shanghai, China

31. Mai–3. JuniComunicAsia 2016,Marina Bay Sands, Singapur

21.–23. JuniPOWER-GEN Europe,Mailand, Italien

22.–24. JuniIntersolar, München, Deutschland

18.–20. Juli57th India International Garment Fair, Pragati Maidan, Neu-Delhi, Indien

18.–21. JuliEletrolar Show, São Paulo, Brasilien

20.–22. SeptemberPOWER-GEN Asia, Seoul, Südkorea

27.–30. SeptemberSecurity Essen, Essen, Deutschland

Dates 2016

April 20–22Automotive Testing Expo India, Chennai, India

April 20–22MEDTEC Japan 2016, Tokyo, Japan

May 6–9China Cycle 2016, Shanghai, China

May 16–18IEEE Symposium, Anaheim, USA

May 17–20Hospitalar, São Paulo, Brazil

May 23–25SNEC PV Power Expo,Shanghai, China

Mai 31–June 3ComunicAsia 2016,Marina Bay Sands, Singapore

June 21–23POWER-GEN Europe,Milan, Italy

June 22–24Intersolar, Munich, Germany

July 18–2057th India International Garment Fair, Pragati Maidan, New Delhi, India

July 18–21Eletrolar, São Paulo, Brazil

September 20–22Power-Gen Asia, Seoul, South Korea

September 27–30Security Essen, Essen, Germany