Co-Creatinga Digital and Circular Economy

Henning Kagermann
Chair of the Board of Trustees; former president acatech
Global Representative & Advisor Plattform Industrie 4.0

Tokyo, October 4, 2021

Every crisis is an opportunity for innovation
Strategic directions confirmed – with adapted priorities~ 2000: Dot-com bubble (technological crisis)−

Digital Business is bimodal→ (R)Evolution−

Digital B2C Platforms and Exchanges→ Future growth engines~ 2010: Financial & Economic Crises (financial crisis)–Agility in Strategy and Execution–Business Models of the digital economy → Smart services→ Industrie 4.0

2020: Covid-19 pandemic (societal crisis)→ Sustainability & Resilience–

Aim for an improved reality–

Dig. Sovereignty in a connected economy → Open data eco-systems

2 | Co-Creating a Digital and Circular Economy | 4 October 2021

Digital Factory: The digital twin will revolutionize business
ERP

PLM

Public Clouds

virtual representationof the reality

Edges
Edges
Edges

Private Cloud

Finishedcomponent

Measuring technology

CAD/CAM

Laser processing

Flexible Cells

Team robotic

Simulation

EDM

Raw component
Milling machine

M2M: OPC-UA, 5G

Industrial AI3 | Co-Creating a Digital and Circular Economy | 4 October 2021
Source: Laboratory for Machine Tools and Production Engineering (WZL) of RWTH Aachen University

Digital Enterprise: Self-learning Smart Service architectures
The Power of Artificial Intelligence
AI Enablement

AI-based platform

Customer
Personalized and adaptive experiencethrough user and context modeling

Data flows
Payment flows
Service flows

Customer

Smart Service provider▪ Self-learning smart services and chatbots▪ Chatbots recommendation systems

Generalcontractor

Subcontractors

Platform operator▪ Machine learning to understand the data▪ Information extraction from unstructured
documents

Data provider
Intelligent multisensory fusion,
AI-based data curation

Services: Data enrichment, Data fusion,
AI-based analytics & forecasting

4 | Co-Creating a Digital and Circular Economy | 4 October 2021

Sources: acatech (2017), Wegweiser Smart Service Welt, Plattform Lernende Systeme (2020)

Digital Ecosystem: SME enablement with LNI testbeds
Asset Administration Shell(AAS)

Open Edge Management▪ Standardization of edge andfield devices mgmt.

▪ Testing and validation

Time-Sensitive Networking (TSN)▪ Validation of extensions tothe IEEE 802.1 standard
familyInternational cooperation in practiceSpecification with OPC UA▪ Validation of horizontal andvertical networks of machines

Cloud

5 | Co-Creating a Digital and Circular Economy | 4 October 2021

Human -Machine - ProcessIntegration (HMPI)▪ Creation and Validation ofproposals for intelligent
Human Integration andinteraction

plannedBusiness Ecosystem Workstreams
Ecosystem governance
Company▪ Certification (partner& products)▪ Code of partner conduct

Customers▪ Self-services▪ My products▪ Support forum

CompanyCommunity Platform▪ Yellow pages▪ Matching

Solution extensions
Data flows▪ APIsPayment flows▪ Developer portal
Service flows▪ Technology tool-box& testbedPartners▪ Partner-services▪ My offerings▪ Support forum

Data flows
Payment flows
Service flows

6 | Co-Creating a Digital and Circular Economy | 4 October 2021

Sources: Own graphic based on Plattform Lernende Systeme (2020)

Digital Economy: Resilience & Digital sovereignty
Data Spaces as Enabler for new Business Models•SmartServices(in and acrossverticals)

GAIA-X…

▪ Data infrastructure thatcombines interoperable &flexible infrastructure
ecosystems with mechanisms& policies for sovereign dataexchange▪ Architecture of standards,
policies & rules that serve as
underlying framework for data
space activities▪ More than 2000 partnering
companies all over Europe▪ More than 100 use cases thatshow potential & value
proposition of cross-domain
data sharing

Use Cases

AI-based
Data Value
Creation

Industrial AI (e.g. BDVA)
Data Spaces

GAIA-X
Software
Infrastructure

Hardware
Infrastructure

Quantum

EuroHPC, EPI, Edge systems

7 | Co-Creating a Digital and Circular Economy | 4 October 2021

Technology Readiness Level

Sources: Plattform Industrie 4.0 (T. Hahn)

DataSpace Industrie 4.0
An Initiative of Plattform Industrie 4.0„What do wemean by an
Industrie 4.0
data space?”(available Website Plattform Industrie 4.0)

▪ A "collaborative network" of technical, legal and business foundations
for tomorrow's digital ecosystems▪ Companies can use it as a common basis for multilateral data exchange
and cooperation
8 | Co-Creating a Digital and Circular Economy | 4 October 2021

Source: Plattform Industrie (2021), Creating the DataSpace Industrie 4.0

Supply chain resilience for the automotive industry
acatech (2021) Resilience as Goal for Economic and Innovation Policy
Increase adaptability▪
▪

Make production systems
more adaptable
Review competition law forpre-competitive collaboration

Strengthen microelectronics in Europe▪

Resilience in theThink circular for batteries▪
▪

Create supportive framework, e.g.
recycling rates at the component level
Promote circular economy concepts

automotiveindustry

Strengthen the ecosystem:
microelectronics IPCEI

Trustworthy use of data▪
▪

▪

Rapid implementation ofEuropean Data Spaces
Build trust, with government
acting as mediator
Strengthen cybersecurity

9 | Co-Creating a Digital and Circular Economy | 4 October 2021

Source: acatech (2021), Resilience as Goal for Economic and Innovation Policy

Sustainability: Circular Economy and related business models
acatech (2021) Circular Business Models
Product-oriented

Use-oriented

Result-oriented

Maturity Matrix for strategic options

10 | Co-Creating a Digital and Circular Economy | 4 October 2021

Source: acatech (2021), Circular Business Models: Overcoming Barriers, Unleashing Potentials

Sustainability: New ways of mobile and hybrid working
Recommendation from the acatech HR-Working Group

Actively co-designing the corporate culture

Rethinking the role of the “office“

Increasing empowerment through opennessand trust
Refining the management role model

Targeting the use of tools and analytics applicationsDevising guidelines and clear parameters

Creating a framework for trust-based collaboration

11 | Co-Creating a Digital and Circular Economy | 4 October 2021

Source: acatech (2021), From a Presence Culture to a Culture of Trust

Digitization is the key enabler for a Circular Economy

Digital Factory

Digital Enterprise

Digital Ecosystem

Bild
Factory F3▪ Digital Twin
▪ AIoT▪ HMI & TeamRobotics▪ Self-adapting factory

Digital Economy

Bild
GAIA-X F7▪ Smart Services▪ Digital Businessmodel (data-based)▪ Next generation
business processes▪ Building abusiness ecosystem

12 | Co-Creating a Digital and Circular Economy | 4 October 2021

▪ Ad hoc connectivity▪ Orchestration model▪ Ecosystemgovernance:
Business partner▪ Data spaces: open,
exchange-based▪ Guidelines:
technological, legal
and business▪ Governance all
stakeholders

Thank you very muchfor your attention.