German Case: Industrie 4.0

Munich, Sept. 9th 2015

Dr. Alexander TettenbornHead of Unit „Development of Digital Technologies“

Federal Ministry of Economic Affairs and Energy (BMWi)

The context of Industrie 4.0Challenges of Digital Change

• Strong international competition (USA, Asia)

• Value chain networks, that cross borders between countries and companies

• New disruptive technologies mark a turning point

• Reclaiming and extending the controllability and strength of digital systems

Objective : Strengthening German and European companies to develop innovative solutions

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Importance of Digital Economyfor Germany

• Digital Economy is the basis of competitiveness and growth in all industrial sectors

• Tighter interconnectedness between Industry and ICT(both hard- and software, especially internet technologies)

• ICT drives innovation and growth

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Where are the opportunities?

2015 2025

ICT-share Subjectcumulated revenue

German marketAnnual growth

cumulated revenueGerman market Subject ICT-share

Source: Technologische und wirtschaftliche Perspektiven Deutschlands durch die Konvergenz der elektronischen Medien, VDI/VDE-IT, 2011

+23.5%+23.5%

Added value for German industry €1,400 m.

Smart Home € 2,300 m.75 %

€ 11,400 m. Added value for German industry

€ 19,000 m. Smart Home 80 %

+23.3%+23.3%

+6.3%+6.3%

Added value for German industry €60,200 m.

Mechanical engineering € 100,300 m.50 %

€ 111,000 m. Added value for German industry

€ 185,000 m. Mechanical engineering60 %

+6.3%+6.3%

+8.0%+8.0%

Added value for German industry € 18,000 m.50 %

€ 38,700 m. Added value for German industry

70 %+8.0%+8.0%

+20.2%+20.2%

Added value for German industry € 1,800 m. 100%

€ 15,000 m. Added value for German industry

100%+23.6%+23.6%

BMWi, BMI, BMVI – Shared responsibility for theDigital Agenda of the Federal Government

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Fields of Action:

• Digital Infrastructure and broadband expansion

• Digital Economy

• Innovative State

• Digital Society

• Automated driving

• Research, Education and Culture

• Privacy, security and trust for society and economy

• European and international dimension of the Digital Agenda

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Key issues for strengthening the digital economy from the perspective of the BMWi

1. Development and support of new future technologies and applications like Industrie 4.0 , industrial 3D , Cloud Computing and Big Data , Smart Services , especially by connecting classical industrial competence and Internet technologies

2. Strengthening young innovative companies (e.g. cooperation between established industry and startups), supporting SME support to introduce new ICT

3. Support of digital change in cultural and creative industries

4. Strengthening the growing IT security

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5. Further development of the framework for the Digital Economy (e.g. network neutrality, open WiFi networks)

6. Internationalisation of national digital policies, e.g. agreements on standards and interfaces (participation in creating a digital agenda for Europe, Internet Governance)

7. Effects of digitalisation on employment

Key issues for strengthening the digital economy from the perspective of the BMWi

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From Industrie 1.0 to Industrie 4.0

Source: DFKI (2011)

Source: Abele, Eberhard/Reinhart, Gunther (2011): Zukunft der Produktion. Herausforderungen, Forschungsfelder, Chancen, Hanser, München.

• Production is the backbone of German prosperity− Direct jobs: 7.7 m.− Indirect jobs: 7.1 m.

• The mega trend CPS is of vital importance to answer the question how we are going to produce tomorrow:

− Acceleration of production cycles (e.g. with specific sales-market trends)

− Penetration of new technologies (innovation at all interfaces)− Production that considers the shortage of resources

(recycling, substitutional materials)− Production in a global world (control of global production

networks with ICT)

• We need adaptive, self-configuring and self-organisingproduction systems

National Key Project: Industrie 4.0

Research Map Germany Industrie 4.0

Initiatives by BMWi• Autonomik for Industrie 4.0 (19 collaborative projects)• Competence Centres Industrie 4.0 (for SME support)• Congress „Working in the digital world”

(01/2016 in coop. with Federal Ministry of Labour and Social Affairs)• Study “Industrie 4.0: Economical and business factors for Germany

as an industrial location”• Study “Global strategies in the context of Industrie 4.0” (running)

Initiatives by BMBF • National production research (17 projects)• National ICT-research (8 projects)• it‘s OWL – excellence cluster: Intelligent Technical Systems

Ostwestfalen-Lippe• Industrie 4.0 – International benchmark, future alternatives and

recommendations for production research (INBENZHAP)• EU coordinated projects: ERANET-MANUNET

Platform„Industrie 4.0“

Unit „Development of Digital Technologies“ (BMWi/VIB4)

• Internet of Things: „Autonomik für Industrie 4.0“

• Internet of Services: „Trusted Cloud“, „Smart Data“

• Internet of Energy: „ICT2Green“, „ICT for Electric Mobility“

Fostering Research & Innovation at a pre-competitive stage. Accelerate the transfer of scientific findings into the development of marketable technologies.

my responsibilities

• Study provides a summarised overview over existing surveys and analyses on the subject of Industrie 4.0

• Specifies Germany’s assets, weaknesses, risks and opportunities as an industrial location from an economical but also business point of view

• About 65 publications referring to digitalisation and networking in the field of industrial production (Industrie 4.0) have been analysed

Source: BMWi 2015

Industrie 4.0: Economical and business factors for Germany

Economic potential of Industrie 4.0

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Objectives

� Integration of new dimensions into the virtual world of the Internet and its representation (Augmented X)

� Intelligent skills / cognition (Smart X – Technologies) allow to handle complex tasks autonomously in the future

� The existing technologies need to become suitable for the mass market, through modular systems, standardisation and solutions for consumer market

� Impulses for new products / services and business models

New methods for continuous involvement of external knowledge and competences to react on new changes, i. e. Open Innovation, Crowd Sourcing etc.

Our programmatic approach

Autonomik für Industrie 4.0

Autonomik für Industrie 4.0

• Main Objective : Foster highly flexible production infrastructures that enable disruptive products

• Focal points : working conditions (human-machine-interaction, safety & security), engineering models (i.e. decision making support schemes), logistics, robotics

• Application areas : Industry (Smart Production infrastructures), Smart home

Autonomik for Industrie 4.0

• Measures: 19 projects, 110 m€ costs, 55 m€ funding,2014-2017; conferences, workshops, accompanying research on cross-cutting issues, trade fair appearances

• Example: „Speedfactory“: Highly automated production processes in textile industry close to the customer

• Corresponding: Platform Industrie 4.0, Manufuture, FoF

• More information: http://autonomik40.de

Autonomik for Industrie 4.0

Challenges:

• Resilience: How can we secure CPS against attacks, disasters, malfunction etc.?

• Liability: Who pays when things go wrong?

• Privacy: How to avoid control of workers?

• Communication: How can we combine security and simplicity?

• Business models: Who will catch the big fish? Microsoft?

What do we need?

Net Production Apps, Source: DFKI 2012

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• Intelligent, self-organising or rather self-optimising, cross-business production processes

• General integration of information technology, sensors, actuators or rather software (Embedded Systems) in products, buildings, workpiece carriers and machines

What do we need?

• Smart Objects allow self-organisation of comprehensive logistic networks

• Mastery of complexity through neutral encapsulation of functionalities

• Covering of all services needed for the illustration of business processes (end-to-end)

Priorities of the technology program “Autonomik für Industrie 4.0“

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• Trendsetting production systems(capital equipment)

• Trendsetting (premium-) products(including service robots)

• Trendsetting knowledge-intensive smart services , especially for interconnectedness with innovative products (hybride products, business apps)

Funded projects byAutonomik für Industrie 4.0

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• Cluster 1: Automation (Speed Factory, OPAK, Smart FacE, InnoCyFer, SmartSite, CoCoS, APPSIST)

• Cluster 2: Service-ROBOTIC (FTF OutOfTheBox, InventAIRy, InSA, MANUSERV, ReAPP)

• Cluster 3: 3D (motionEAP, CultLab3D)

• Cluster 4: Home Automation (GUIDED AB, UHCI, ProShape, Program Certification of Conformity)

Project volume total : ca. € 110 m, Funded volume total: ca. € 55 m.Duration : 2014 – 2016/2017Website : www.autonomik40.de

task forces on cross-cutting issues

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Legal ChallengesThe legal challenges facing Industrie 4.0 are closely linked to legal issues regarding autonomous systems and, in some cases, go far beyond this.

StandardisationStandardisation play a key role for the success of Industrie 4.0 as a project for the future.

IT security for Industrie 4.0With the use of computer-based and, at times, networked machines in production, a new security requirement arose, i.e. information security.

The future of work in Industrie 4.0New qualifications, new thinking, new forms of organisation and communication will revolutionise the employment world.

Example SPEEDFACTORY

• automatic custom manufacturing of sports shoes and textiles (Lot-size 1 production)

• by use of cooperative and autonomous robotics solutions

• enabling profitable production in Germany

Partner• adidas AG• RWTH Aachen, Institut of textile technology• KSL Keilmann Special Mechanical Engineering Ltd.• Johnson Controls

• Smart machinery will work hand in handwith human worker

• Automatisation won’t replace human workersIn the German automotive industry thedensity of robots is one of the highest (1.100 robots/10.000 employees)and the employment rate shows a positive trend!

• Employees have to fulfill the tasks that require creativity, flexibility and problem-solving capacities leading to an increased demand for specialists

• There will be new customer-oriented work profiles

• Through digitalization companies now can, more then ever before, organize working conditions to simultaneously foster economic growth and employee qualification and well-being

Congress „Working in the digital world”(January 2016 with Ministers Gabriel and Nahles)

Future of work

Strategies to develop newbusiness models

Business model inovators are on average 6 % moreprofitable compared to product and process innovators

(Boston Consulting Group (2008) BusinessWeek/BCG Innovation Survey)

Cross-Cutting Issue: Business Models

• GEMINI-Project coveringgroup of experts

• exchange of experiencesfor the development and implementation of Industrie 4.0 - specific commercial models, methods and instruments

• Verification of the GEMINI methods at real examples

forthcoming reports / studies

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• 3D – Additive Manufacturing

• New Processes for Product-Engineering

• Service Robotics in Germany

• Future of Work II

• Social Manufacturing (mission statement on “Work in Industrie 4.0”)

Thank youfor your attention !

Dr. Alexander Tettenborn , LL.M (USA)

Head of DivisionDevelopment of digital technologiesFederal Ministry for Economic Affairs and EnergyScharnhorststrasse 34-37, D-10115 Berlin Germany

Tel.: +49-302014-6330alexander.tettenborn@bmwi.bund.de

The „Länder“get more and more involved

Hessia: „Efficient Factory 4.0“ (TU Darmstadt; funded by theHessian Ministry for Economics)

Bavaria: Technology Initiative „Bavaria Digital – digitalized production“ (e.g. establishing a centre for digitalized production; funded by the Bavarian Ministry for Economics)

Rhineland-Palatinate, North Rhine-Westphalia and other “Länder”: initiatives under preparation

role & task portfolio of scientific assistance

© VDI/VDE-IT, Botthof 18.05.2015

strategicnetworking

politicalenvironment

technical andscientific

steering ofR&D projects

exploitation

businessmodels

� industrial service robotics

� 3D technologies

� logistics

� smart home

� human machineinterface / interaction

� …

cross-sectional

topics

events

knowledgetransfer

� legal framework

� implications on employees andorganisation(„future of labour“

� IT Security

� standardisation/architecture

briefexpertises /

studies

project evaluation

SWOT Analysis

� Autonomik Innovation Days

� Smart Home 2 Market

� Workshops

� Webinars

� Conference „Future of Work in

digitalised economies“

� CeBIT, Hannover Messe Trade Fair

� Automatika

� analysis of technolo-gical and economicalpotential

� Smart Home – strategy& market opportunities

� additive manufacturing3D technologies

� engineering 4.0

� platform Industrie 4.0

� FM Education & Rearch

� FM Economic Affairs and Energy

� FM Labour and Social Affairs

� Board of Academic Advicers

� acatech

� trade union

� DGs EU (Robotic, Complex

Systems, Internet of Things)

APPsistMobile assistance systems and Internet

services in smart production

InSAProtection and safety concepts for co-

operation between humans and robots in joint working areas

Examples

InnoCyFerBionic control of production systems for

manufacturing customized products

InventAIRyStocktaking in warehouses with

autonomous flying robots / drones

Examples

motionEAPA system to boost efficiency and provide

assistance in production processes

OPAK3D-supported engineering platform for

intuitive development and efficient commissioning of production plants

Examples

Examples

SPEEDFACTORY• automatic custom manufacturing of sports

shoes and textiles (Lot-size 1 production)

• by use of cooperative and autonomous robotics solutions

• enabling profitable production in Germany

ReApp• Plug-and-play integration of robots into

industrial automation

Announcement „AUTONOMIK III“

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• 3D – Technologies / Additive Manufacturing

• Engineering 4.0

• Service Robotics

• …

Start: end of the year

BMWi – Autonomik for Industrie 4.0

� APPsistMobile assistance systems and Internet services in smart production

� CoCoSPlug&Play-network in production

� CultLab3DMobile laboratory for 3D-digitalization of cultural treasures

� FTF out of the box Autonomously acting driverless transport vehicles with voice and gesture control

� InnoCyFerBionic control of production systems for manufacturing customized products

� InSAProtection and safety concepts for co-operation between humans and robots in joint working areas

� InventAIRystocktaking in warehouses with autonomous flying robots

� GEMINIBusiness models for Industrie 4.0

� GUIDED AB energy efficiency, comfort and security by networked and self-learning techniques for buildings and houses

Autonomik for Industrie 4.0

� MANUSERVplanning and decision support for election of industrial service robots

� motioEAPa system to boost efficiency and provide assistance in production processes

� OPAK3D-supported engineering platform for intuitive development and efficient commissioning of production plants

� ProShapehard- und software solutions for flexible energy supply and minimisation of energy costs

� ReAppPlug-and-play integration of robots into industrial automation

� SMART FACEdecentralized production control for automotive industrie

� Smart Homecertification program for Smart Home

� SMARTSITEautonomous and networked construction machines used in road building

InnoCyFer – Integrated design and production of customer oriented products in cyber-physical manufacturing systems

Project leader: Michael Niehues, TU München (iwb)Cost/grant: € 3.4 m. / € 3.2 m.Partner: Bosch und Siemens Hausgeräte GmbH, Festo Didactic GmbH, Fraunhofer IWU, Hyve AGObjective: Implementation of design and production for customer-innovated productsFeatures: Adaptive productions and planning systems based on a bionic communication structure

Open innovation platform for producingindividual coffee machines

interactive simulation ofbionic communication

Project example InnoCyFer

Competence Centers Industrie 4.0

• Feasibility Study finished with recommendations for implementation

• Objective: Boost the digitalization of our industry andstrengthen the innovation power of entrepreneurs & SME

• Implementation just under way in second half of 2015

• It’s not only about technology, it’s a change management issue (skills, migration etc.)