WORKSHOP DIGITALIZATION -THE NEXT STEP OF ECONOMIC DEVELOPMENT-

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1 WORKSHOP DIGITALIZATION -THE NEXT STEP OF ECONOMIC DEVELOPMENT- Digitalization Chances for the Business Environment -Some Topics- AHK-Romania Deutsch-Rumänische Industrie- und Handelskammer Bucharest - 6 th September 2016

2 THIS PRESENTATION CONCERNS The changes caus ed by digitalization The increased need for internationalization and big data systems The driv ing forces of digitalization The synchronization of the real and the virtual world The s ocio-econom ic effects res ulting from digitalization Some suggestions about guiding principles of digitalization

3 TOPICS 1. The storm of change 2. Focus of Fraunhofer-Center IMW in Leipzig 3. Analog vs. digital technologies 4. Driving forces and pros and cons of digitalization 5. Steps from lab to industry 6. Working system in Industry Some guiding principles of digitalization

4 1. DIGITALIZATION -THE STORM OF CHANGE- 1. Race against the machine, reconfiguration of production 2. Second machine age, fourth industrial revolution (4.0) 3. Machine-to-machine communication, renaissance of modularization 4. Digital transformation, cloud computing, closed loops 5. Big/smart data, cognitive abilities 6. System intelligence, synchronization of the virtual and real worlds 7. Agile value creation networks, contextualization 8. Flexibility, diversity, smart processes/services 9. Internet of things, markets, services 10. Digital knowledge-work and life-work, transdisciplinarity But: Disruption (e.g. innovation, technology, business models)

5 FOCUS OF FRAUNHOFER IMW IN LEIPZIG -INTERNATIONALIZATION- IMW is the partner for internationalization in businesses, science and research, for policymakers and for the general public IMW supports companies and regions for positioning themselves within a global context (international technology transfer and commercialization) Special expertise on specific countries and regions: Europe, Turkey, CIS (Commonwealth of Independent States), North and South America, North Africa, South Asia and South Korea Main customers and partners: Small and medium enterprises, chambers of commerce and industry Trade associations and business development corporations Networks, cluster organizations, and research institutions European Commission, federal and state ministries

6 2.2. FOCUS OF FRAUNHOFER IMW IN LEIPZIG -UNIQUE TOOL: BIG DATA CENTER- With the technical infrastructure of the Big Data Center and the expertise in economics, IMW helps clients in getting ready for digitalizing their own processes and business models The Big Data Center at IMW in Leipzig facilitates the large-scale storage and evaluation of digital data Detailed information is provided for patenting processes and the examination of the competitive environment for companies Expertise in the simulation of business models, or price forecasts (e. g. for the energy market) IMW makes data analyses, simulations, real-time forecasts, visualizations of selected firm element, and offers innovative solutions for clients and research partners

7 3.1. ANALOG TECHNOLOGY 1. Expensive 2. Limited applicability 3. Limited capacity 4. Difficult to interconnect 5. Restricted to one site 6. Machine automation 7. Tedious R&D 8. Needs special know-how to manipulate 9. Understandable by a single expert 10. Cumbersome for further development 11. Etc., etc. Traditional workplace: The role of the worker is the classical master

8 3.2. DIGITAL TECHNOLOGY 1. Inexpensive 2. Extensive applicability 3. Unlimited computer capacity 4. Easy to interconnect 5. Usable everywhere 6. Factory automation 7. Virtual R&D; tremendous poentials 8. Very complex; impossible to be handled by a single expert 9. Optimal for new developments 10. Etc., etc. But easy to manipulate New workplaces: The role of the worker changes from the classical master into the captain, and finally, into the conductor

9 4.1. DRIVING FORCES OF DIGITAL SYSTEMS -INTERLINKING TECHNOLOGY AND BUSINESS- Learning m achines Simulations Big data analytics Self-learning algorythms Autonomics Quantum computing Netw orking Cloud computing Mobile/wireless Broadband infrastructure Internet of everything Sensors everywhere Econom ic features Digital business models Sharing economy Information systems Plattforms App stores Bus ines s features Open/embedded innovation Crowd sourcing, crowd innovation Reciprocal collaboration Co-working Code of conduct

10 4.2. BALANCING THE TWO SIDES OF DIGITALIZATION -PROS AND CONS- Chances Evolutionäre innovations Productivity Flexibility Quality Costs Time to market Disruptive innovations New products, technologies, processes, and services New markets, new chances of opportunity New business models vs. Risks Loss of primacy of data (proprietary digital know-how) Cyber criminality (theft, manipulations, damage) Loss of IP (IP-rights, tacit know-how)

11 5.1. STEPS FROM LAB TO INDUSTRY -VALIDATION AND TRANSFER STRATEGIES- Res earch Factory Prototyping lab High flexibility Hybrid research systems Parametrization Upscaling to real world Indus trial Factory High process stability High series maturity Readiness Readiness Technologies / Methodologies Requirements process time energy demand energy revenue Research demand costs quantity time Source: Fraunhofer IWU/Art-Kon-Tor (2015) Ready solutions

12 5.2. STEPS FROM VIRTUAL TO REAL PRODUCTION -SYCHRONIZATION OF REAL AND VIRTUAL WORLDS- Production steps Plant data services Production engineering Production planning Product design Real Virtual Inventors Partners Suppliers Customers

13 6. WORKING SYSTEM IN INDUSTRY 4.0 -SOCIO-ECONOMIC ASPECTS- Attractive jobs Qualifications capabilities/skills Competitiveness Human engineering ergonomics Work in industry 4.0 Productivity labor costs Appropriate work agility Organization function/tasks Employment security

14 Joseph von Fraunhofer Discovery of the Fraunhofer lines in the solar spectrum EXCURS US The three pillars of Applied Res earch Researcher The Fraunhofer- Gesellschaft R&D on behalf of industry and state New methods for processing lenses Inventor mp3 format, white LED, hi-res thermal camera Director and partner in a glassworks Entrepreneur Research volume: approx. 2.1 bn p.a. The corres ponding pillars of digitalization 1- Research/Invention, 2- Development, 3- Entrepreneurship Fraunhofer MOEZ Fraunhofer Center

15 7. GUIDING PRINCIPLES OF DIGITALIZATION -SOME SUGGESTIONS- Fraunhofer s Guiding Principles of Applied Research could also lead to defining Basic Principles of Digitalization, e.g. to: contribute to sustainable R&D structures achieve technological breakthroughs develop solutions for long-term success create a sound ecosystem lead strategic initiatives to cope with future challenges foster a successful socio-economic world strengthen the National and European innovative capacity shape the future for societal benefit Fraunhofer MOEZ Fraunhofer Center

16 FRAUNHOFER AWARDS Technology Award of the Eduard Rhein Foundation mp3 Prof. Dr. Karlheinz Brandenburg, Dr. Bernhard Grill and Prof. Dr. Jürgen Herre EARTO Innovation Award 2015 technology for positioning & treatment of wounds Fraunhofer Institute for Integrated Circuits IIS & Fraunhofer Institute for Silicate Research ISC Steel Innovation Prize 2015 rotor blades made of steel Marco Pröhl, Fraunhofer Institute for Machine Tools and Forming Technology IWU ERC Advanced Grant Prof. Andreas Tünnermann, director of Fraunhofer Institute for Applied Optics and Precision Engineering IOF in Jena ERC Consolidator Grant Prof. Alexander Böker, director of Fraunhofer Institute for Applied Polymer Research IAP in Potsdam-Golm ITU150 Award video coding standard Fraunhofer Institute for Telecommunications, Heinrich-Hertz-Institute HHI GreenTec Award 2015 Wood foam Natural oil-free rigid foam for insulation and packaging Fraunhofer Institute for Wood Research, Wilhelm-Klauditz-Institute WKI Fraunhofer MOEZ Fraunhofer Center

17 LAST MINUTE NEWS -DIGITALIZED PRODUCTION COLLOQUIUM- Colloquium on Digitalized Production Engineering (Produktions technis ches Kolloquium PTK 2016) Fraunhofer Institut für Produktionsanlagen und Kons truktions technik IPK (Fraunhofer Institute for Production Systems and Design Technology) Produktionstechnisches Zentrum Berlin - Technische Universität Berlin Meeting place: Pascalstraße Berlin Date: Language: German Program: Weiterbildung/tagung_konferenz/flyer/A4_Programm_PTK-2016.pdf Fraunhofer MOEZ Fraunhofer Center

18 Thank you for your attention! -Contacts- Prof. Dr. Arno Basedow Senior Strategy Advisor Dr. Steffen Preissler Head of Division / Knowledge and Technology Transfer Telephone: Fax: Steffen.Preissler@imw.fraunhofer.de Management and IMW Neumarkt Leipzig GERMANY 82 Fraunhofer Contacts: institute/institute-einrichtungendeutschland.html Fraunhofer MOEZ Fraunhofer Center

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