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

Transcription

1 Andreas Horsky European Approach on Digitalization Prof. Dr. Volker Stich, Managing Director, FIR e.v. RWTH Aachen Industry 4.0 Conference 09 th May 2017 Ijmuiden, Netherlands

2 Digitalisation: What is the future NORMAL? % more Internet users worldwide (Relation 2000 to 2013) 2017: 69 % of the citizens over the age of 65 use a Mobile In 2017: 176 Mio. kids will be online (in 2012 only 70 Mio) Source: ARUP, 2014

3 Digitalisation: An (almost) unlimited network of Objects ,1 Billions ,1 Billions Connected Objects (Billions) ,7 Billions ,5 Billions ,9 Billions ,8 Billions ,4 Billions ,4 Billions 2009 Begin IoT ,2 Billions ,2 Billions 2008 More connected objects than People living on earth Year Source: Cisco (2014) Source Icons: flaticon.com, lizensiert durch Creative Commons BY 3.0

4 Global Digitalization: pushed via Internet and it`s technologies What`s happening in the internet / min? Data volume The world s information is doubling every two years Milliarden GigaByte ~ 6 Mio Aufrufe ~ $ Umsatz ~ 4,1 Mio Suchanfragen ~ Tweets ~ GB / minute Zettabyte Exabyte Petabyte Terabyte ~ App Downloads ~ 100 Stunden Videoupload Gigabyte Megabyte Internet Jahr Each of us leaves trackable digital footprints, which identify: what are we dooing, where and why? Quellen: INTEL: What Happens In An Internet Minute, 2013 BITKOM: Big Data im Praxiseinsatz, 2012 FIR: KVD Service Studie, 2013

5 The increasing connection of objects and rising variety of data characterize tomorrow s (business)- environment Papal election 2005 Papal election 2013

6 The capability of using data and generating knowledge will differentiate Digital champions from Digital losers 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 6

7 In Europe Industrie 4.0 is more focused on production than on user centric, internet based developments so far The European way: Industrie 4.0 American way: Industrial Internet? In which departments do you already rely on Industrie 4.0 or plan its employment in the near future? Development 29% 86% Production Source: Staufen, Studie Deutscher Industrie 4.0-Index, 2015, p. 4; multiple answers possible, n = 70

8 Five paradigms characterize the behavior patterns of today s way of working THE HUMAN MIND..HAS INFLUENCE ON.. BEHAVIOR PATTERNS OF TODAY S WAY OF WORKING associates progress with the enhancement of existing concepts. Development of incremental product innovations. urges to complete things. Paranoia towards completion of tasks. categorizes and filters impressions based on experience and knowledge. Specialization and optimization within departments. develops resistance when fear evolves from unaccustomed circumstances. Thinking in standards and acting in accustomed patterns. has limited ability for short-term adaptions. Decentralized systems are not directed at comprehensive adaptions.

9 Example: Viessmann vs. Tado - Traditional family owned business and one of the biggest European heating manufacturers versus a small Munic start-up Viessmann tado 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 Start-ups are pushing between etablished heating manufacturer and customer and degrade them to simple supplier European Approach on Digitalization 09th May 2017 Ijmuiden, Netherlands Prof. Dr. Volker Stich 9

10 How can companies manage the path towards digitalization? In order to successfully implement the digital transformation, the specific positioning levers must first be identified. source: European Approach on Digitalization 09th May 2017 Ijmuiden, Netherlands Prof. Dr. Volker Stich 10

11 Traditional businesses spent a lot of time on understanding unplanned events Typical reaction to unplanned event Event Insights about event become available delays/ loss of value Value of adaptation Analysis completed (Counter-)measure approved (Counter-)measure takes effect! Reducing latencies bears great potential to reduce value losses Insight latency Analysis latency Decision latency Action latency t Organizational structure Culture 1 1

12 Digital, agile businesses outperform traditional businesses because of lower latencies in the entire reaction chain Typical reaction to unplanned event Technological drivers of Industrie 4.0 Event time saved / increased value A Real-time capability Systems integration Value of adaptation C D (Counter-)measure takes effect B C Big Data Analytics Machine Learning and Artificial Intelligence Decision support systems Automated decision making A B t D Vertical and horizontal process and systems integration Cyber-physical systems Iterative, fast Processes Organizational structure Culture By iterative value chains errors can be early identified and productivity can be increased sustainable

13 Digital red thread enables fast adaption of products, production and customer integration Fast Feedback about producibility Automated generation of work plans Use of assistant systems Body Frame Front Part 1 Part 2 Underbody Part 8 Supplier Design Product modelling Work plans Production Sales Customer CAD- Models Work plans Feedback European Approach on Digitalization 09th May 2017 Ijmuiden, Netherlands Prof. Dr. Volker Stich 13

14 Companies are currently failing with the implementation of Industrie 4.0 Planned implementation of Industrie 4.0 in 2020 (State 2015) 1 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 benefitoriented development of the company and enables modalities to ensure investments European Approach on Digitalization 09th May 2017 Ijmuiden, Netherlands Prof. Dr. Volker Stich 14

15 Country comparison of Industrie 4.0 concepts to manage assets in 2015 and 2020 (compare Infosys/ FIR global asset efficiency study 2015) In percent of respondents from China have partially or systematically implemented asset management programs, potentially rising to 89 percent by Comparable numbers for France are 27 percent and 61 percent respectively.

16 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

17 The necessary architecture is a cross-domain learning platform Scope Development Cycle Production Cycle User Cycle Mobile Apps and Application Software Quality Analytics Research Apps Predictive Maintenance and many more Smart Data Multi-Modal Information Access Data Integration Data Storage and Caching Digital Shadowing Model Scope Middleware+ Aggregation and Synchronization Learning Algorithms Analytics Algorithms Raw Data Data Provision and Access (Batch and Streaming) Data Envelope Raw Data Simulation data Product Lifecycle Management Test data ERP Data Control data Work planning Machine sensors CAQ Data

18 A successful implementation of Industrie 4.0 in manufacturing companies requires a holistic transformation approach The consideration of resources, information Resources Organizational Structure Information Systems Culture 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. European Approach on Digitalization 09th May 2017 Ijmuiden, Netherlands Prof. Dr. Volker Stich 18

19 Companies can leverage diverse potentials on the development path to Industrie 4.0 by choosing a stepwise approach (compare ACATECH I4.0 Maturity Model) How can autonomous reaction take place? Self-optimizing 6 Industrie 4.0 Industrie 4.0 Maturity Index Business Value What does happen? Seeing What will happen? Being prepared Why does it happen? 5 Understanding Computerization Connectivity Visibility Transparency Predictability Adaptability Industrie 3.0 Industrie 4.0 European Approach on Digitalization 09th May 2017 Ijmuiden, Netherlands Prof. Dr. Volker Stich Development Path 19

20 The five behavior patterns are addressed by the paradigms of an agile company BEHAVIOR PATTERNS OF TODAY S WAY OF WORKING WILL BE ADDRESSED BY THE PARADIGMS OF AN AGILE COMPANY Development of incremental product innovations. Definition of user stories/ Cases As fundament for learning Paranoia towards completion of tasks. New understanding of completeness Understanding Specialization and optimization within departments. Interdisciplinary Association seeing, what will happen Thinking in standards and acting in accustomed patterns. Learning companies Being prepared Decentralized systems are not directed at comprehensive adaptions. High-frequency change requests Self optimization

21 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

22 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.

23 But: Take care on the future of your established business model: Disruption never stops on borders! Companies Value in Bln Worlds biggest media company does not generate It`s Own content Employees employees Worlds biggest retailer without any stocks employees employees Worlds biggest Hotel provider without any beds Worlds biggest taxi company without any cab of it`s own employees employees employees employees Quellen: medium.com, Wilkat; yahoo finance

24 Join us in forming the future of digitalization of our economy at the Cluster Smart Logistik! Campus-Boulevard Aachen Germany Prof. Dr. Volker Stich Head of RWTH Aachen Campus Cluster Smart Logisitk Phone: +49 (0) Fax: +49 (0)

25 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. How can autonomous reaction take place? Self-optimizing 6 Industrie 4.0 Maturity Index Business Value What does happen? Seeing Why does it happen? Understanding What will happen? Being prepared 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 3 accurately by minimizing resources consumed and maximizing efficiency Knowledge capture and Connectivity -management Visibility enables improved Transparency operations Predictability of complex machines, Adaptability as people Computerization 2 and their knowledge are intangible assets in industrial manufacturing. Industrie 3.0 Industrie 4.0 Development Path