Anne-Marie Sassen

Deputy Head of Unit

DG CONNECT – A3European Commission

Digitising European Industry

MTC Conference, 26 November 2015

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Value creation from digitisation:Products, Processes and Business models

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"Digital inside": Innovations in all types of products

• Smart connected objects powered by e.g.

Sensors, wearables, embedded software, Connectivity, Big data, Cloud …

• Large opportunities in all sectors (Non-tech, high-tech, SMEs, etc)

Digital transformations of processes

• From logistics and product design to automations

Increasing resource efficiency, productivity, ..

Built on CPS, IoT, digital design, robotics, laser technologies, big data,..

Radical/disruptive changes in business models

• Blurring the boundaries (products-services), reshuffling value chains

XaaS, 3D Printing & customisation, CRMs, maintenance

added value services

Built on real time information, data analytics, etc.

Digital transformation of industry: What is the situation?

Strong digitisation in high tech industries and in some countries.

Slowness and disparities in adopting digital solutions across industries and regions: SMEs and non tech sectors lag behind

New competition from non-EU on-line platform owners

Fragmentation of effort in Europe

Skills and re-skilling of work force

Legislative and regulatory gaps

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Overview of Digital Manufacturing Initiatives across Europe

Germany Industrie 4,0 Smart Service World Autonomik fur Industrie 4.0 It's OWL (Ostwestfalen-Lippe) Allianz Industrie 4.0 (Baden-

Württemberg)

NetherlandsSmart Industry

France Usine du Futur FoF Ile-de-France

United Kingdom High Value Manufacturing Innovate UK Action Plan for Manufacturing (Scotland)

SpainEstrategia Fabricacion Avanzada(Basque region)

Italy Fabbrica Intelligente Ass. Fabbr. Intell. Lombardia

SwedenProduktion 2030

Belgium Made Different Flanders Make/iMinds (Flanders)

EU-level Initiatives Application PPPs: FoF, SPIRE I4MS Smart Anything Everywhere ICT PPPs

Multi-region Initiatives Vanguard

AustriaProduktion der Zukunft

PortugalProdutech

European CommissionDG CONNECT, Unit A3, ML

European initiatives are in redNational initiatives are in blueRegional initiatives are in green

Finland FIMECC PPP Programmes

(MANU, S-STEP, SIMP, S4FLeet)

Industrial Internet Business Revolution

IoT pilot Factory (IoT PFF)

GreeceOperational Programme in Region Western Greece

Poland INNOMOTO INNOLOT Digital manufacturing for the SME

(Mazovia)

Digitising European Industry:Proposal for four key lines of action

Speech of Commissioner Oettinger

at Hannover Fair on 14 April 2015

• Europe's future is digital:Digitising European Industry:Proposal of four key lines of action

• Focus actions on digital transformation of ALL industry

• complementing our efforts on a Digital Single Market and on broadband investment

High-level Roundtables with Commissioner Oettinger

• Member States and industrial representatives welcomed EU plans and confirmed the need for action on EU scale

Next steps/plans:

• EU policy/strategy announcements in Spring 2016 4

Develop Policy – Make it Happen

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Policy Development forDigitising EuropeanIndustry

• Broad consultations with stakeholders

• Policy announcement planned for Spring 2016

Make it Happen –Starting Point:

• EU Schemes

• National initiatives

…

…

1- Wide-spread adoption by all industries

• Goal: Access to the latest digital technologies for any industry in Europe

• Any sectors, whichever size and wherever situated

• How: At least a "digital innovation hub" in every region

• Competence center is the core of digital innovation hub

• Networking of digital innovation hubs to ensure specialisation and excellence, and access from every region

Competence centers are the core of Digital Innovation hubs

Competence centers Digital innovation hub

Offer services for digital transformation of companies• Supporting experimentation and testing,

bringing together suppliers and users of technology

• Supporting fabrication of new products• Showcasing technologies in pilot

factories• Fab-labs, etc..

Offers other relevant innovation services, such as: • mentoring services• access to finance for growth of

companies • advice on access to new markets• access to competence centers

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Competence centers Digital innovation hub

Reinforces and makes use of

Reinforces and makes use of

Networking of digital innovation hubs

Should ensure:

• specialisation and excellence of hubs

• access for every company to all expertise needed wherever situated

Basis:

• Existing initiatives of digitising industry across Europe

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Digitising European Industry - Growing the Ecosystem:Action Line 1 - Reaching out to every Region in Europe

Regions/MSs with initiatives

Establish catalogue of initiatives EU-wide

Reinforce links between initiatives, share best practices

Concentrate EU funding on x-border actions

Other regions (e.g. less developed)

Establish digital innovation hubs

Co-fund hubs through ESIF et al

Digitising European Industry Strategy proposed by Commissioner Oettinger

Leitmotiv: Ensuring that every business in Europe can fully benefit from digitialtransformation

Action Line 1: One world-class digital innovation hub in every region in Europe

Planned Launch: Before summer 2016 …

Building the network of digital innovation hubs Launch I4MS Mentoring and

Sponsorship Programme (2M€)

Bootstrap ~25 Innovation Hubs in non-I4MS Regions

Call for EoI 11/2015- close 3/2016

3rd party contracts to potential hubs

Link smart specialisation to I4MS competences

Best Practice feasibility studies

Link to local funding (ESIF et al)

First Steps in Making it Happen

Action Line 2: Leadership in digital platforms for industry

• Goal: Availability of interoperable open platforms for any business to support its digital transformation

• What's new: Pool resources from industry, MSs, regions and H2020 for platform building and their standardisation

• EU added value: Focus PPPs and promote EU-level platforms

• New EU-level actions: Launch an EU platform initiative on digital manufacturing

• Expected complementary actions:

• MSs: provide national R&I funding for platform building

• Industry: Match public funding through private investment

• Estimated EU-level investment:

• 0.8B€ through H2020

• Up to 3B€ in total

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AUTOSAR: Digital platform example in automotive

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Standardized architecture for automotive software

• Software developers can complement the functionality of a car

• Standards based

Car manufacturers/OEM

Software developers

Action Line 3: Prepare our workforce

• Goal: Concerted effort to adapt education & life-long learning schemes

• What's new: Get commitment from Industry, MSs on a roadmap

• EU added value: Act as catalyst across MSs and regions

• New EU-level actions: Work as catalyst for "digital" education, reskilling and learning

Agree on a charter of actions across EU, MSs, regions

Promote exchange of Best Practices

Launch a new EIT-KIC

• Starting Point: Grand coalition for digital jobs but should go further

• Expected complementary actions:

• MSs: Stimulate national and regional initiatives

• Industry: identify essential components of a digital skills set 12

Action Line 3: Fill the skills gap and prepare our workforce for the 21st century

• Promotion of digital skills and non-routine related skills

• adapting to new situations

• thinking creatively

• interacting with others

• seeing the big picture

• solving unstructured problems

• looking for new frontiers

• Entrepreneurship

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Action Line 4: Smart legislation for smart industry

• Goal: Make regulation fit for the digital world

• What's new: Explore further "emerging" regulatory issues

• EU added value: Stimulate regulatory dialogue on smart digitisation issues towards a single EU-level playing field

• New EU-level actions: Start dialogue with stakeholders on:

Liability issues for autonomously acting digital systems

Safety issues for autonomous cars, robots, … working with humans

Big data issues: ownership, data and IPR protection, innovative use

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Further steps

• Success depends on a strong collaborative effort

• Between EU, national and regional initiatives

• Across DGs and programmes (H2020, DSM, industrial policy, EIT, …)

• Across all actors: industry, RTOs, social actors, …

• Next steps towards implementation

• Launch next consultation rounds with stakeholders

• Prepare a Communication of the Commission

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THANK YOU

Digitising European Industry:https://ec.europa.eu/digital-agenda/en/digitising-european-industry

Digital Agenda for Europe – Components and Systems:https://ec.europa.eu/digital-agenda/en/science-and-technology/components-systems

Horizon 2020 on the web: http://ec.europa.eu/research/horizon2020/index_en.cfm

ICT Innovation for Manufacturing SMEs: i4ms.eu

Structural Funds 2014-2020 and Smart Specialisation:http://ec.europa.eu/regional_policy/index_en.cfm

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