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Wake Up!
Digital revolution readiness
of engineering intensive industries
Dr. Clemens Eckert, maexpartners
2
Steam, water,
mechanization
First mechanical
loom
First conveyor belt,
Cincinnati
slaughterhouses
Electricity, mass
production
First programmable
controller (SPS),
Modicon 084
Microprocessors;
automatization
Cyber-physical systems;
big data; autonomous
production
1 2 3 4
First smart factory
solutions
1784 1870 1969 2010’s
Let’s get theory out of the way:
Industry 4.0 – the fourth industrial revolution
Steam, water,
mechanization
Important milestones*
3
Electricity, mass
production
Microprocessors;
automatization
Cyber-physical systems;
autonomous production
* There‘s more; these two are
chosen to make a point
Standardization and
modularization
2.5
Digitally integrated
workflows
3.5
indicate ability to cope with the next revolution
1 2 3 4
So how about
„Industry 4.0 Readiness“
4
within
engineering
intensive
industries
?
Our assessment:
5
WAY TO GO.
Products far from being standardized
and modularized
Digital tools in many cases are isolated
applications
Processes not fully digitalized; without
real end-to-end responsibility
Variability and complexity not properly
managed
Document driven approach (instead of
data driven)
Disruption potentials left and right
…
Well prepared
7% 10%
83%
Not prepared
Partly prepared
28%
67%
5%
Not prepared
Well
prepared
Partly prepared
6
Plant engineering companies Plant operators
maexpartners / VDMA study 2015*:
Self-evaluation Industry 4.0 readiness
90% not prepared / partly prepared 72% not prepared / partly prepared
* Joint study „Industrie 4.0 im Industrie- und Anlagenbau –
Revolution oder Evolution“ by VDMA and maexpartners
7
3%10-25%
17%
5-10%
>25%
<5%
24%
56%
10%
Equipment supplier
Plant operation
Service provider
23%
20%
Plant engineering
42%
What about new digital business models?
Additional revenue through new
(digital) business models in 2020
Chances for new digital business models
80% below 10% additional digital business
* Joint study „Industrie 4.0 im Industrie- und Anlagenbau –
Revolution oder Evolution“ by VDMA and maexpartners
maexpartners / VDMA study 2015*:
8
Where we will be in ten years
companies will utilize “digital”
processes in some wayAll
40% of today‘s businesses will be
out of existence
(Almost)
additional revenue created
through digital transformation$19 trillion
1
neurosynaptic CPU will
match the capacity of the
human brain
devices connected to the
internet500 billion digitally driven transformation
initiatives will failMost
9
Uber, the worlds largest taxi
company, owns no vehicles
Facebook, the worlds most
popular media owner,
creates no content
If YOU don‘t re-invent your business,
somebody else will
Alibaba, the most valuable
retailer, has no inventory
Airbnb, the worlds largest
accommodation provider,
owns no real estate
… and please don‘t think
your business is different.
So what needs to happen?
10
Recognize that Industry 4.0 is a
revolution that will
impact your business
Stop digitally complementing your company‘s existing
business model, but start
re-thinking it for the digital era!
Basically you are facing a
two-stage challenge
11
Create Industry 4.0
readiness
Set out towards the
digital era
 Assess your Industry 4.0
readiness
 Plan what needs to happen
 Execute.
 Asses your digital disruption
opportunities and threads
 Create a compelling vision for your
business within the digital era
 Ensure C-level commitment
 Create a short term / mid-term /
long-term execution plan
 Do.
(and yes, we can help with those)
Infrastructural /
technical change
12
Digital process &
organizational
structure re-design
Organizational
mindset change
Compelling vision
and commitment to
change on C-level
Digital transformation is a
holistic approach
These are (relatively) easy to do Challenging Hardest
Changing the organizational mindset:
13
Control Empowerment
Hierarchy; silos Network; co-operation
Engineering in
consecutive,
self-contained phases
Trial & Test
Protection Transparency
Process orientation Result orientation
Document driven Data driven
Would you like to know more about
assessing readiness criteria
and disruptive challenges for
engineering intensive
industries?
Could you use some
inspiration for a compelling
digital vision?
Do you wonder how to take your
organization with you into the
digital era?
Stay tuned ;-)
14
Our coordinates:
15
51°14'02.4"N 6°49'07.6"E
maexpartners GmbH
Grafenberger Allee 277 - 287
40237 Duesseldorf
Germany
Phone: +49 211 598 396 83
Fax: +49 211 598 396 85
Dr. Clemens Eckert
Partner
Phone: +49 173 543 4082
Mail: clemens.eckert@maex-partners.com
LinkedIn: https://de.linkedin.com/in/dreckert
Twitter: @clemens_eckert
www.maex-partners.com
@clemens_eckert
https://de.linkedin.com/in/dreckert
clemens.eckert@maex-partners.com
At the end,
16
What will characterize the fifth industrial revolution
We would love to hear from you.
one question for you:
?
This presentation contains shutterstock materials from the following artists:
agsandrew, Denis Belitsky, chungking, Lanzelot, Killua X, Mykola Mazuryk, Minerva
Studio, Scirocco340, Shaun Derby, vitstudio, wavebreakmedia, Who is Danny, Lanzelot

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Wake Up! - Digital revolution readiness of engineering intensive industries

  • 1. Wake Up! Digital revolution readiness of engineering intensive industries Dr. Clemens Eckert, maexpartners
  • 2. 2 Steam, water, mechanization First mechanical loom First conveyor belt, Cincinnati slaughterhouses Electricity, mass production First programmable controller (SPS), Modicon 084 Microprocessors; automatization Cyber-physical systems; big data; autonomous production 1 2 3 4 First smart factory solutions 1784 1870 1969 2010’s Let’s get theory out of the way: Industry 4.0 – the fourth industrial revolution
  • 3. Steam, water, mechanization Important milestones* 3 Electricity, mass production Microprocessors; automatization Cyber-physical systems; autonomous production * There‘s more; these two are chosen to make a point Standardization and modularization 2.5 Digitally integrated workflows 3.5 indicate ability to cope with the next revolution 1 2 3 4
  • 4. So how about „Industry 4.0 Readiness“ 4 within engineering intensive industries ?
  • 5. Our assessment: 5 WAY TO GO. Products far from being standardized and modularized Digital tools in many cases are isolated applications Processes not fully digitalized; without real end-to-end responsibility Variability and complexity not properly managed Document driven approach (instead of data driven) Disruption potentials left and right …
  • 6. Well prepared 7% 10% 83% Not prepared Partly prepared 28% 67% 5% Not prepared Well prepared Partly prepared 6 Plant engineering companies Plant operators maexpartners / VDMA study 2015*: Self-evaluation Industry 4.0 readiness 90% not prepared / partly prepared 72% not prepared / partly prepared * Joint study „Industrie 4.0 im Industrie- und Anlagenbau – Revolution oder Evolution“ by VDMA and maexpartners
  • 7. 7 3%10-25% 17% 5-10% >25% <5% 24% 56% 10% Equipment supplier Plant operation Service provider 23% 20% Plant engineering 42% What about new digital business models? Additional revenue through new (digital) business models in 2020 Chances for new digital business models 80% below 10% additional digital business * Joint study „Industrie 4.0 im Industrie- und Anlagenbau – Revolution oder Evolution“ by VDMA and maexpartners maexpartners / VDMA study 2015*:
  • 8. 8 Where we will be in ten years companies will utilize “digital” processes in some wayAll 40% of today‘s businesses will be out of existence (Almost) additional revenue created through digital transformation$19 trillion 1 neurosynaptic CPU will match the capacity of the human brain devices connected to the internet500 billion digitally driven transformation initiatives will failMost
  • 9. 9 Uber, the worlds largest taxi company, owns no vehicles Facebook, the worlds most popular media owner, creates no content If YOU don‘t re-invent your business, somebody else will Alibaba, the most valuable retailer, has no inventory Airbnb, the worlds largest accommodation provider, owns no real estate … and please don‘t think your business is different.
  • 10. So what needs to happen? 10 Recognize that Industry 4.0 is a revolution that will impact your business Stop digitally complementing your company‘s existing business model, but start re-thinking it for the digital era!
  • 11. Basically you are facing a two-stage challenge 11 Create Industry 4.0 readiness Set out towards the digital era  Assess your Industry 4.0 readiness  Plan what needs to happen  Execute.  Asses your digital disruption opportunities and threads  Create a compelling vision for your business within the digital era  Ensure C-level commitment  Create a short term / mid-term / long-term execution plan  Do. (and yes, we can help with those)
  • 12. Infrastructural / technical change 12 Digital process & organizational structure re-design Organizational mindset change Compelling vision and commitment to change on C-level Digital transformation is a holistic approach These are (relatively) easy to do Challenging Hardest
  • 13. Changing the organizational mindset: 13 Control Empowerment Hierarchy; silos Network; co-operation Engineering in consecutive, self-contained phases Trial & Test Protection Transparency Process orientation Result orientation Document driven Data driven
  • 14. Would you like to know more about assessing readiness criteria and disruptive challenges for engineering intensive industries? Could you use some inspiration for a compelling digital vision? Do you wonder how to take your organization with you into the digital era? Stay tuned ;-) 14
  • 15. Our coordinates: 15 51°14'02.4"N 6°49'07.6"E maexpartners GmbH Grafenberger Allee 277 - 287 40237 Duesseldorf Germany Phone: +49 211 598 396 83 Fax: +49 211 598 396 85 Dr. Clemens Eckert Partner Phone: +49 173 543 4082 Mail: clemens.eckert@maex-partners.com LinkedIn: https://de.linkedin.com/in/dreckert Twitter: @clemens_eckert www.maex-partners.com @clemens_eckert https://de.linkedin.com/in/dreckert clemens.eckert@maex-partners.com
  • 16. At the end, 16 What will characterize the fifth industrial revolution We would love to hear from you. one question for you: ? This presentation contains shutterstock materials from the following artists: agsandrew, Denis Belitsky, chungking, Lanzelot, Killua X, Mykola Mazuryk, Minerva Studio, Scirocco340, Shaun Derby, vitstudio, wavebreakmedia, Who is Danny, Lanzelot