European Approach on Digitalization · (compare Infosys/ FIR global asset efficiency study 2015) In 2015 68 percent of respondents from China have partially or systematically implemented

© FIR e. V. an der RWTH Aachen

© A

ndre

as H

orsk

y

European Approach on Digitalization Prof. Dr. Volker Stich, Managing Director, FIR e.V. RWTH Aachen

Industry 4.0 Conference | 09th May 2017 | Ijmuiden, Netherlands


Digitalisation: What is the future „NORMAL“ ?...

2017: 69 % of the citizens over

the age of 65 use a Mobile

Source: ARUP, 2014

453% more Internet users worldwide (Relation 2000 to 2013)

In 2017: 176 Mio. kids will be online (in 2012 „only“ 70 Mio)


0

10

20

30

40

50

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Conn

ecte

d O

bjec

ts (B

illio

ns)

Year

1992 1.000.000

2003 0,5 Billions

2009 Begin IoT

2012 8,7 Billions

2013 11,2 Billions

2014 14,4 Billions

2015 18,2 Billions

2016 22,9 Billions

2017 28,4 Billions

2018 34,8 Billions

2019 42,1 Billions

2020 50,1 Billions

2008 More connected objects

than People living on earth

Source: Cisco (2014) Source Icons: flaticon.com, lizensiert durch Creative Commons BY 3.0

Digitalisation: An (almost) unlimited network of Objects…


Global Digitalization: pushed via Internet and it`s technologies

Each of us leaves trackable digital footprints, which identify: „what are we dooing, where and why?“

What`s happening in the internet / min?

~ 4,1 Mio Suchanfragen

~ 350.000 Tweets

~ 200.000 App Downloads

~ 6 Mio Aufrufe

~ 140.000 $ Umsatz

~ 100 Stunden Videoupload ~

650.

000

GB

/ m

inut

e Zettabyte

Exabyte

Petabyte

Terabyte

Gigabyte

Megabyte

1438 1878 1926 1969

1981

1991

1998

2007

2010

1.800 Milliarden GigaByte

Internet

Data volume

Jahr

„The world‘s information is doubling every two years.“

2004

Quellen: INTEL: What Happens In An Internet Minute, 2013 BITKOM: Big Data im Praxiseinsatz, 2012 FIR: KVD Service Studie, 2013


The increasing connection of objects and rising variety of data characterize tomorrow’s (business)- environment

Papal election 2005 Papal election 2013


The capability of using data and generating knowledge will differentiate “Digital champions” from “Digital losers”

6

For Companies success it‘s important,

To adopt and

to learn faster than others.

What does that mean?

| European Approach on Digitalization | 09th May 2017 | Ijmuiden, Netherlands | Prof. Dr. Volker Stich


In Europe Industrie 4.0 is more focused on production than on user centric, internet based developments so far

? American way: Industrial Internet The European way: Industrie 4.0

In which departments do you already rely on Industrie 4.0 or plan its employment in the near future?

29% 86% Development Production

Source: Staufen, Studie Deutscher Industrie 4.0-Index, 2015, p. 4; multiple answers possible, n = 70


Five paradigms characterize the behavior patterns of today’s “way of working”

Development of incremental product innovations.

Paranoia towards completion of tasks.

Specialization and optimization within departments.

Thinking in standards and acting in accustomed patterns.

Decentralized systems are not directed at comprehensive adaptions.

…associates progress with the enhancement of existing concepts.

…urges to complete things.

…categorizes and filters impressions based on experience and knowledge.

…develops resistance when fear evolves from unaccustomed circumstances.

…has limited ability for short-term adaptions.

THE HUMAN MIND…

…BEHAVIOR PATTERNS OF TODAY’S “WAY OF WORKING” ..HAS INFLUENCE ON..


Example: Viessmann vs. Tado° - Traditional family owned business and one of the biggest European heating manufacturers versus a small Munic start-Up

Heating costs are about 350€ per month, in addition to the heating control, a timer is in use

One thermostat inside and outside control the temperature Usability only by numeric codes and hardly readable Heating system can be upgraded to enable controlld by app,

but a special controlling unit is required Technicians fail at the implementation, because of limited

compatibility between control unit and boilers

Starter-Kit for private use, full compatibility with all Viessmann boilers

Thermostat, control und wireless moduls are delivered together and can be installed by non-specialists

Sensors measure temperature throughout the house. System connects automated to the internet and send data to the app

Analysis of all data available (e.g. percentage of solar energy)

Amortization after 2 months

9 | European Approach on Digitalization | 09th May 2017 | Ijmuiden, Netherlands | Prof. Dr. Volker Stich

Viessmann

Start-ups are pushing between etablished heating manufacturer and customer and degrade them to simple supplier

tado°


How can companies manage the path towards digitalization?

10 | European Approach on Digitalization | 09th May 2017 | Ijmuiden, Netherlands | Prof. Dr. Volker Stich

In order to successfully implement

the digital transformation, the specific positioning levers

must first be identified.

source: www.flemming.events


Traditional businesses spent a lot of time on understanding unplanned events

11

Insight latency

Analysis latency

Decision latency

Action latency

Valu

e of

ada

ptat

ion

t

Typical reaction to unplanned event

Event delays/

loss of value

Insights about event become available

(Counter-)measure takes effect

(Counter-)measure approved

Analysis completed

Reducing latencies bears great potential

Organizational structure Culture

to reduce value losses !

Digital, agile businesses outperform traditional businesses because of lower latencies in the entire reaction chain

(Counter-)measure takes effect

Event

Valu

e of

ada

ptat

ion

t

time saved / increased value

Typical reaction to unplanned event

Real-time capability Systems integration A

Big Data Analytics Machine Learning and

Artificial Intelligence B

Decision support systems Automated decision

making C

Vertical and horizontal process and systems integration

Cyber-physical systems

D

Technological drivers of Industrie 4.0

A

B

C

D

Organizational structure Culture


Iterative, fast Processes By iterative value chains errors can be early identified and productivity can be increased sustainable


“Digital red thread” enables fast adaption of products, production and customer integration

13

CAD-Models

Work plans Feedback

Use of assistant systems

Fast Feedback about producibility Automated generation of work plans

Part 1

Part 2

Underbody

Body

Frame Front

Part 8

Customer Supplier Sales Design Product modelling Production Work plans



Companies are currently failing with the implementation of Industrie 4.0

■ Companies need a precise development path for a holistic implementation of Industrie 4.0

■ An Industrie 4.0 roadmap is necessary to operationalize the implementation, to schedule the projects and to highlight the modifications of the organization

■ A well-structured roadmap supports benefit-oriented development of the company and enables modalities to ensure investments

14

Planned implementation of Industrie 4.0 in 2020 (State 2015)1



Country comparison of Industrie 4.0 concepts to manage assets in 2015 and 2020 (compare Infosys/ FIR global asset efficiency study 2015)

In 2015 68 percent of respondents from China have partially or systematically implemented asset management programs, potentially rising to 89 percent by 2020. Comparable numbers for France are 27 percent and 61 percent respectively.


Early Adopter and Follower analysis by country

Across the five countries surveyed - China, France, Germany, the United Kingdom and the United States – the level of maturity in Industry 4.0 varied significantly.

While no country can claim to be the global early adopter in implementing Industry 4.0 in the context of asset efficiency, the percentage of companies in China that claim to be early adopters is significantly higher than anywhere else


The necessary architecture is a cross-domain learning platform

Development Cycle Production Cycle User Cycle

Mobile Apps and Application Software Quality

Analytics Research Apps Predictive Maintenance

Raw Data

Machine sensors

Test data

Control data

Simulation data

ERP Data

Work planning

Product Lifecycle Management

CAQ Data Data Envelope

Raw Data

Middleware+

Learning Algorithms

Analytics Algorithms

Smart Data

Scop

e

Scope

Data Provision and Access (Batch and Streaming)

Aggregation and Synchronization

Multi-Modal Information Access

…and many more

Digital Shadowing Data Integration Data Storage and Caching

Model


A successful implementation of Industrie 4.0 in manufacturing companies requires a holistic transformation approach

18

Resources Information Systems

Organizational Structure Culture

The consideration of resources, information

systems, organizational structure and culture

enables a holistic determination of a

company’s Industrie 4.0 maturity level and

allows the derivation of company-specific

fields of action.



Companies can leverage diverse potentials on the development path to Industrie 4.0 by choosing a stepwise approach (compare ACATECH I4.0 Maturity Model)

19

Industrie 4.0

Indu

strie

4.0

Mat

urity

Inde

x B

usin

ess

Valu

e

Transparency Predictability Adaptability

Industrie 3.0

What does happen? “Seeing”

Visibility

Development Path

Computerization Connectivity

Industrie 4.0

Why does it happen?

What will happen?

How can autonomous reaction take place?

“Understanding”

“Being prepared”

“Self-optimizing”

5

6

3

4

1 2



The five behavior patterns are addressed by the paradigms of an agile company

Development of incremental product innovations.

Paranoia towards completion of tasks.

Specialization and optimization within departments.

Thinking in standards and acting in accustomed patterns.

Decentralized systems are not directed at comprehensive adaptions.

Interdisciplinary Association

“seeing, what will happen”

Learning companies “Being prepared”

… WILL BE ADDRESSED BY THE PARADIGMS OF AN AGILE COMPANY

Definition of user stories/ Cases As fundament for learning

High-frequency change requests

“Self optimization”

New understanding of completeness

“Understanding”

BEHAVIOR PATTERNS OF TODAY’S “WAY OF WORKING”…


Comparison by industry sector

Currently the automotive, electronics and process industries have the highest maturity levels and the process, machinery and electronics industries have planned the most extensive improvements between now and 2020


Six leadership characteristics to ensure future success in digital business

1.- Fundamental shortage of skilled talents in a number of key areas,

- especially core engineering and advanced data and automation technologies

- Being nimble and flexible in how these skills are resourced and managed will be critical

2.- Information management needs to be improved for achieving operational efficiency.

- Industry-wide data standards need to be agreed and implemented

- data security must be a constant focus

3.- Implementation needs to be faster than most companies are prepared for.

- Hence a robust ecosystem and open partnering behavior will be necessary

4.- Those with legacy infrastructures can succeed, but they may need to adopt innovation more aggressively.

- This can be achieved not only by the bold use of technology, but also in building new partnerships with companies, large and small, research organizations and academic institutions

5.- Speed - Focusing on quick wins and building on these will bring advantage.

6.- Embracing the inevitable change and building a clear road map that can flex over time are critical.

- to stay a step ahead, companies must constantly look to learn from competitors and other companies outside their traditional sphere.


But: Take care on the future of your established business model: Disruption never stops on borders!

Companies Value in Bln €

500 employees

Worlds biggest taxi company without …any cab of it`s own 63 187

610.000 employees

Worlds biggest media company does not generate …It`s Own content. 346 191

17.048 Employees 195.000 employees

Worlds biggest retailer without …any stocks 249 256

36.450 employees 2.300.000 employees

Worlds biggest Hotel provider without …any beds 30 29

1.800 employees 130.000 employees

Quellen: medium.com, Wilkat; yahoo finance


Join us in forming the future of digitalization of our economy at the Cluster Smart Logistik!

24

Campus-Boulevard 55 · 52074 Aachen · Germany www.fir.rwth-aachen.de Prof. Dr. Volker Stich Head of RWTH Aachen Campus Cluster Smart Logisitk Phone: +49 (0)241 477 05-100 Fax: +49 (0)241 477 05-198 E-Mail: [email protected]


Indu

strie

4.0

Mat

urity

Inde

x B

usin

ess

Valu

e

Transparency Predictability Adaptability

Industrie 3.0

What does happen? “Seeing”

Visibility

Development Path

Computerization Connectivity

Industrie 4.0

Why does it happen?

What will happen?

How can autonomous reaction take place?

“Understanding”

“Being prepared”

“Self-optimizing”

5

6

3

4

1 2

Data standards and interoperability between modern and legacy shop floor systems in a multi-vendor environment as a precursor for seamless interaction, which enables multiple aspects of efficiency up the value chain

Effective root-cause analysis and corrective actions that build a logical approach in solving problems at

their source, rather than just fixing the apparent.

Dynamic asset classification based on asset type, relation to other equipment, hierarchy, complexity and criticality is an important aspect to build the right model that enhances operational and maintenance efficiencies

Real-time production feed back and customers response can optimize all aspects of operations accurately by minimizing resources consumed and maximizing efficiency

Knowledge capture and -management enables improved operations of complex machines, as people and their knowledge are intangible assets in industrial manufacturing.

Documents

European Approach on Digitalization · (compare Infosys/ FIR global asset efficiency study 2015) In 2015 68 percent of respondents from China have partially or systematically implemented