Covid-19:
A call to strategic agility

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

5th International Robot Revolution Symposium
October 12, 2020

Three different Crises in 20 Years
Have we taken forward-looking Action?
~ 2000: Dot-com bubble (ICT sector)– Manageable transformations, no rip & replace– Potential of electronic marketplaces were underrated~ 2010: Financial & Economic Crises (Banking sector)– Adaptable Business & strategic agility → Industrie 4.0– Resilience Cycle with stress tests (in Banking only)
2020: Covid-19 pandemic (Society)– Different approaches to respond underway→ Prepare, but for a crises that will be different
Slide 6
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Echo
Spot

Exponential Growth is often misjudged
revenues

Echo

Amazon Web Services& clothing

$100B

80

Fire TV

Prime InstantVideosExpansionof inventory
to CDs & DVDs

Amazon Basics
AmazonKindle

60
Amazon.com
launches
as a bookseller

40

AmazonStudiosToys, games,
electronics
video games

Amazon Prime(USA)

20IPO$511,000 $16M $148M $610M

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: The company/The Wall Street Journal/finance.yahoo.com.

Back
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Megatrend Digitalisation: ‘The second Wave’
Germany’s way
to securing the economic competitiveness

2011
–2013

Industrie 4.0

2013
–2018

Smart
Service Welt

2015
–2017

AutonomousSystems

New aspects▪ SmartX− Digital twin
▪ Internet of Things− Ubiquitous connectivity▪ Autonomous Systems− Perception': Sensors− 'Understand': AI− 'Acting': Robotics&Familiar aspects▪ User-centered− Personalization▪ IT driven ‘Servitization’− ‘Everything as a service’▪ Platform economy− Changing market dynamics− Better utilization of resources→ ‘share economy’→ Attention economy

 Data-driven business model innovation andtransformation of the societyBack

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First conclusion from Covid-19
Acceleration of the digital Transformation everywhere
Health sector▪ Health data base▪ Supporting Biotechnology

Everyday life
▪ Expand digital
infrastructure

Economic system▪ Digital twins▪ Sustainability– Vaccine development▪ „Social distancing“– Circular Economy– Personalised therapy– Home office▪ New ways of working→ Bio. Transformation– Blended Learning→ Hybrid Services→ Resilience→ Sustainable, Circular Economy & Resilient SocietyBack
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Resilience is Recovery & Rethinking!
Scenario planningwith five dimensions in mind
RespondRecover

1) Geopolitical stability2) Economic outlook
3) Technological progress4) Societal environment

PreparePrevent

5) Regulatory responses

 Resilience is not about returning to the state before the crises,it´s about achieving an improved reality.

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Should we rethink the vison of Industrie 4.0?
Many paradigm shifts are already addressed✓ Business Model of the digital age: Smart Service✓ Adaptable Operations and Business Processes✓ From internal R&D to open Co-Innovation✓ From Built-to-last enterprise to open ecosystems✓ Semantic interoperability based on international Standard+ Lifelong learning and Nano degrees+ Resilience and Circular Economy+ Composable Business and Strategic Agility

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2030 Vision for Industrie 4.0 (from 10/ 2019)
Shaping digital Ecosystems globallyResilience

Interoperability
Cooperation and openecosystems permit
plurality and flexibility

Autonomy
Self-determination not self-sufficing

Sustainability
Modern industrial value creation
ensures high standards of living

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Source: Plattform Industrie 4.0

Shaping digital Ecosystems globallyAutonomy
Technology
Development Business

TrustworthinessmodelsIdentity
management

Ordercontrolled
production

Security

Security
bydesign▪ Freedom to select technology
and partner▪ Freedom to switch to anotherecosystem-partner▪ Data-protection and security

Valuebased
services

GAIA-X

Distributed
Computing

5GOpen Digital
infrastructure

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Source: Plattform Industrie 4.0

GAIA-X is a genuinely European project
European Data Strategy▪ GAIA-X is mentioned explicitly in the European Data Strategy and proactively addresses key issues
including security, quality of service, data protection and portability as well as energy efficiency.
▪ Exchange between GAIA-X and the European Commission to identify synergies between GAIA-X
and initiatives and programmes such as the European Cloud Federation, CEF 2 and DigitalEurope.
Franco-German cooperation▪ GAIA-X has been developed as aFranco-German cooperation of relevant
ministries and participating companies.

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Further member states▪ Various other member states havebeen involved in the development ofGAIA-X, the aim is now to further
Europeanise the project.

GAIA-X provides a user-friendly and homogenous
ecosystem of services and data
Advanced Smart
Services
Data Spaces

GAIA-X Federation
services

Portability,
Interoperability &Interconnectivity
Compliance
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Shaping digital Ecosystems globally
Interoperability
Regulatory
framework Competitionlaw

Levels ofautonomy

Value byDesignData
sovereignty

Decentralisedsystems and AI▪ Portability of data and services

AI inIndustrie4.0▪ Composable business applications→ International cooperation

AAS(Admin.
AssetShell)

RAMI4.0

Security in
RAMI 4.0▪ Avoid single point of failure

IEC63088

Standards andintegration

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Source: Plattform Industrie 4.0

Shaping digital Ecosystems globally
Sustainability
SocialInnovation

Lifelong
learning

New skills

SocialDistancing

Dialogue
betweenthe social
partners

Agility

Circular
EconomyEnvironment

EconomyProductlife cycle

New waysof working▪ Finding the right balance betweeneconomic, ecological and social
sustainability▪ A new hybrid model of working

Resourceefficiency

ResourceProductefficiency
life cycle

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Source: Plattform Industrie 4.0

A new hybrid model of working▪ Joint problem solving in hybrid, collaborating
teams
Human & Machine

CreateJudge, …
Train
Explain, …

Amplify
Interact, …
Transact

Predict, …

Human-only▪ Adaptive & hybrid processes
On-Site & remote

On-SiteEither On-SiteHybridHybrid

Machine-only

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Produce, …
DesignHumanscomplement

Machines
complement

Assembleor remote

Simulate, …
MaintainDevelop, …

RemoteOffice work

Analyse, …

Sustainability: Key success factor digitalization
Industrie 4.0

1Digital twin,
Resource efficiency

Smart Service Welt

2

Sharing economy,
Everything-as-Service

Autonomous Systems

3

Symbiosis Human & Machine

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Circular
EconomyResilience is also Rethinking & Reshaping
Future Challenges require global collaboration
Technology▪ Quantum technologies ofthe 2nd generation– Sensors– Computer→ New medical ingredientsand functional materials

Application▪ Digital everyday life

▪ Digital sovereignty▪ Autonomous systems– Value by Design– Human Machine
Collaboration▪ Global value chains→ ResilienceAI

16 | 5th RRI Symposium, 12 October 2020SocietyHMI▪ Ageing society▪ Sustainable growth→ Circular Economy

Thank you very muchfor your attention.