1. Advanced Manufacturing ecosystems, initiatives and case studies in Germany Alun Jones, Senior Consultant Finpro Germany

2. Table of contents Project goals, approach, team p. 4 - 6 Project objective and team members p. 5 Project approach p. 6 Executive summary p. 7 German industrial base p. 8 - 9 German industrial sectors p. 9 Background and history p. 10 - 14 Views of industry leaders p. 11 Industrie 4.0 - German perspective p. 12 Readiness for Industrie 4.0 p. 13 Revolution, vision or reality? p. 14 Overview Industrie 4.0 ecosystem p. 15 - 16 Ecosystem and project examples p. 16 Programmes, clusters, forums and smart factories p. 17 - 29 FP0001000495@Finpro 3. Table of contents Case studies p. 30 - 33 AGILITA p. 31 AutASS p. 32 AutoBauLog p. 33 Industrie 4.0 from an SME perspective p. 34 - 36 IHK Munich p. 35 IHK Karlsruhe p. 36 Services and further innovation stories in manufacturing ecosystem p. 37 - 39 Services p. 38 Virtual Fort Knox p. 39 Findings p. 40 - 42 Conclusions p. 41 Recommendations p. 42 Appendices p. 43 - 45 FP0001000495@Finpro 4. Project objectives, approach, team FP0001000495@Finpro 5. Project objectives and team members Objectives The objective of this project has been to study the ecosystem in Germany with regard to advanced manufacturing initiatives. The study involved a top-down analysis of the current situation, including the overriding political framework, participating government ministries and departments, official programmes, networks and case studies. Information has been gathered by a combination of networking and events, desk research, official reports and other statistical sources. Input gained from research and dialogue has been summarised in the following slides in order to help TEKES identify the status quo, best practice and highlight opportunities for Finnish companies in the German market. TEKES team members Kari Komulainen, Director, Growth companies, kari.komulainen@tekes.fi Jukka Salminiitty, Counselor, Innovations / Head of Tekes Washington D.C., Jukka.salminiitty@tekes.fi Finpro team members Lasse Baldauf, Vice President, Head of Region USA, lasse.baldauf@finpro.fi Alun Jones, Senior Consultant, alun.jones@finpro.fi FP0001000495@Finpro 6. Project approach Approach As a first step, an analysis of the ecosystem in Germany involved a desk study in order to gain an overview of initiatives conducted to date and understand the current status quo. The above research was subsequently used to identify the leading stakeholders, networks, events and German companies playing an active role in promoting advanced manufacturing. This information was supplemented with additional data from trade organisations and other sources in order to gain a deeper understanding of the state of play in advance manufacturing. A whole day of seminars on the industrial internet was attended in Aachen in May in order to gain an insider perspective on research activities in Germany. Furthermore, interviews was conducted with the Chambers of Commerce and Industry in Germany (Munich/Bavaria and Karlsruhe branches), in order to gain an SME-perspective on advanced manufacturing. Events Industrie 4.0 & Industrial Internet Collaboration Forum 2014 at the RWTH Aachen, one of the leading three technical universities in Germany (May 2014) Embedded Systems Lsungen fr Industrie 4.0, an event organised by Bayern Innovativ, 10 Networks comprising approximately 80,000 customers from 40,000 companies and 80 network organisations, national and international (July 2014) FP0001000495@Finpro 7. Executive summary Germanys GDP of 2735.8 bn Euro in 2013 represents 21% of the EU, or 29% of the eurozone GDP. As the fourth largest economy worldwide manufacturing plays an important role, contributing around 20% to GDP, and was the second largest exporter in the world in 2013 behind China, and ahead of the USA. Sectors with a strong influence here include mechanical & equipment production, electrical and electronic industry, automobile and medicine. In 2012 the German Government launched its Industrie 4.0 programme as part of its high-tech strategy to embrace next generation manufacturing based on the digitalisation and integration of all stakeholder networks to achieve smart industry. Germany thus acknowledged the significance of advance manufacturing for the countrys future wellbeing within the Internet of Things. Whether Industrie 4.0 is indeed a revolution or merely a vision is a matter of debate. Little doubt remains, however, that the digitalisation of all processes surrounding industrial production, supply, distribution, sales and services will depend in large measure on the following factors: Cyber physical systems (CPS), smart factories, embedded manufacturing systems, big data, the cloud A series of funding programmes, networks, clusters and initiatives are already in place, largely driven by PPP programmes under the leadership of leading companies, research organisations and academic institutes. Many initiative for SMEs are also in place, although smaller companies often have other priorities, where little knowledge of Industrie 4.0 exists automating industrial processes is often key for the day-to-day survival of SMEs. Other challenges facing companies include re- organisation of business processes in future to make use of huge amounts of data currently not being leveraged. Many companies are likely to become services organisations, with huge implications for everyday business. The multifaceted nature of all Industrie 4.0 components offers opportunities for Finnish companies in areas such as the following: Industrial apps, sensors & embedded technology, big data, modularised production systems, RFID, IT security and interfaces between production and control systems. Deepening cooperation with German research organisations, universities, clusters and other programmes also offer excellent opportunities for Finnish companies to position themselves at an early stage in a coordinated manner. Furthermore, organisations such as FIMECC and possible the new Finpro organisation can play a crucial role in future with regard to identifying opportunities, networks and clusters that correspond to similar Finnish programmes, and enabling contact and cooperation. FP0001000495@Finpro 8. German industrial base FP0001000495@Finpro 9. German industrial sectors The four sectors shown above make large contributions to the German economy and will play an important role in the development of Industrie 4.0 The automobile industry alone contributes around 360 billion Euro p.a. to the above turnover, corresponding to ca. 20 percent of German industrial revenue Machinery and equipment is another large sector, contributing 209 billion Euro in turnover in 2012 and employing almost 1m employees in around 6.300 companies Source: Leading-Edge Cluster its OWL: Practical examples of Industry 4.0 development at its OWL, Christoph Plass; www.gtai.de FP0001000495@Finpro 10. Background and history FP0001000495@Finpro 11. Views of industry leaders In the past few years a series of definitions on the future industrial environment have emerged from industry leaders These definitions vary from Industrial Internet, to Internet of Everything and even Industrie 4.0 (Germany) Industrie 4.0 is a programme developed by government and industry in Germany to embrace next generation manufacturing based on the digitalisation and integration of all stakeholder networks to achieve smart industry Source: Finnish understanding regarding Industrial Internet, Heikki Ailisto, Research Professor, VTT Technical Research of Finland FP0001000495@Finpro 12. Industrie 4.0 German perspective Germanys industrial base with a strong manufacturing sector provides a solid foundation to the countrys economic and social wellbeing. Based against a backdrop of high IT competence, embedded systems know-how and automation engineering, Germany is ideally placed to consolidate and expand its position in the manufacturing engineering industry. The German Government recognises the opportunities and threats that future developments pose to its industrial base and has established the Industrie 4.0 working group as part of ist high-tech strategy. This is based on the notion that in future, businesses will establish global networks that incorporate machinery, warehousing systems and production facilities in the form of cyber physical systems (CPS), a concept that includes software, sensor-, processor- and communication-technology. These systems compromise smart machines, storage systems and production facilities, thus improving industrial processes in manufacturing, engineering, material usage and supply chain & lifecycle management. Smart factories are already beginning to appear smart products are uniquely identifiable, know their own history, current states and alternative routes to achieving their target state. Embedded manufacturing systems are vertically networked with business processes in factories and companies and horizontally conneced to dispersed value networks that are managed in real time, from order placement through to outboud logistics. Smart factories allow individual customer requirements to be met, thus allowing even one-off items to be manufactured profitably. Due to the heavy reliance on IT systems and data, there is general agreement that big data and therefore the cloud is a prerequisite for Industrie 4.0. Source: Umsetzungsempfehlungen fr das Zukunftsprojekt Industrie 4.0; Forschungsunion & acatech. Definition: The core of Industrie 4.0 is made of real-time intelligent, horizontal and vertical networking of humans, machines, objects and ITC systems to enable dynamic management of complex systems FP0001000495@Finpro 13. Readiness for Industrie 4.0 With an industrial share of value added corresponding to 23% in 2011, Germany is at the top end of the scale in Europe, along with a few Eastern European countries. Whereas the manufacturing share of GDP is shown on the horizontal axis on the left, the vertical axis represents the Industry 4.0 readiness index. This is calculated by considering values such as production process sophistication, degree of automation, workforce readiness and innovation intensity, combined with high value added, industry openness, innovation network and Internet sophistication. Source: THINK ACT Industry 4.0. The new industrial revolution. How Europe will succeed (Roland Berger Strategy Consultants) * * Ireland is a special case since several large pharmaceutical companies contribute heavily to a low overall GDP FP0001000495@Finpro 14. Revolution, vision or reality? Despite the fact that the German Government is referring to the fourth industrial revolution in the next 10-20 years, some industrial experts prefer to talk of a vision that could be realised by around 2030. In large companies, fully networked production is already reality, in smaller companies the reality is very different. Although 8 from 10 universities and companies are convinced that Industrie 4.0 will become reality by 2025, a survey by PWC shows other figures the survey sees Germany as lagging behind some other leading nations. 50% of companies are planning to network their production, but only 20% have already introduced a smart factory. Some of the strongest barriers to Industrie 4.0 include IT security problems, missing norms and standards as well as qualification issues. A further problem for smaller companies is that the whole issue has been pushed and promoted to date by IT experts, with machine and equipment producers only playing a minor role. However, automation experts such as Siemens, Bosch Rexroth, Pilz or Festo are already working full- speed to develop practical solutions. e.g. Bosch has attempted to create a bridge between automisation and IT with its Open Core Engineering interface technology. The modular nature of smart production means that modifications to individual plant or machine parts have huge implications for the control systems. This is an area where Pilz has tried to create a corresponding SW solution with its PAS4000. The integration of all production-related processes and stakeholders via cyber physical systems (CPS) is the ultimate complicated step. However, Siemens smart factories in Amberg and Chengdu have already acomplished this by means of an integrated digital platform. Source: Werkstcke der Zukunft. Industrie 4.0 hat begonnen; www.scope-online.de FP0001000495@Finpro 15. Overview Industrie 4.0 ecosystem FP0001000495@Finpro 16. Ecosystem and project examples Federal Ministries Clusters First mentioned at the Hannover Fair in 2011, Industrie 4.0 is key part of the high-tech strategy 2020 and a project that was officially launched there in 2013. The programme is coordinated by the Federal Ministry for Economic Affairs and Energy as well as the Federal Ministry of Education and Research 200m Euro have been made available for the Industrie 4.0 project German Government Universities and Research Organisations High Tech Strategy 2020 Includes projects such as National Roadmap Embedded Systems (2009), Digital Product memory, Changeable Logistics Systems, Autonomic Computing and Industrie 4.0. Also excellence clusters such as Integrative Production Technology for High Wage Countries, Cognition for Technical Systems, Intelligent Technical Systems (Its OWL) Programmes its OWL is a leading cluster financed by the Federal Ministry of Education and Research The cluster includes 174 companies, universities and further partners A total of 45 intelligent technical systems projects are coordinated and currently running in order to help make Industrie 4.0 reality A large number of projects and clusters involve PP (private-public) funding Projects are conducted with the cooperation of well-known technical universities and research institutes (examples above), together with participating companies The approach is very applied in nature, where new products, systems and networks are developed in close cooperation with all participants FP0001000495@Finpro 17. Programmes, clusters, forums and smart factories FP0001000495@Finpro 18. Autonomik for Industrie 4.0 (SME programme) Definition and background AUTONOMICS is a funding programme of the Federal Ministry of Economics and Technology (BMWi). As part of the AUTONOMICS competition (autonomous, simulation- based systems for small and medium-sized enterprises) the Ministry selected fourteen winning pilot schemes. With this initiative, the Ministry wants to promote research and development activities to speed up the development and broad use of ICT-based technologies and services along the whole supply chain to enhance the autonomy of user systems. Projects With the aid of an independent expert jury, 14 projects were chosen, involving a total of 80 companies and research organisations. The selected R&D projects focus on the following application areas: Production Logistics Robotics Simulation Medicine The projects are required to base their research on prevailing robotics and ICT technology and use existing modelling, simulation and visualisation methods. Case studies See selection of case studies slides for more details FP0001000495@Finpro 19. Cyber Physical Systems (CyProS) Definition CyProS is a research programme financed by the Federal Ministry of Education and Research Project Background Manufacturing companies form the backbone of the German economy. The trend to customised products and faster delivery times means hugely increased international competition. The CyProS project has been conceived in order to develop cyber-physical systems and a conceptual and methodological basis for their operation under real production conditions.. The development and introduction of cyber-physical production systems (CPS) helps to deal not only with increased competition, but will also lead to a sustainable and significant increase in the prodction and flexibility of manufacturing companies. Participants A consortium of 20 institutes and companies involves the following players: Goals CyProS has three goals, as follows: 1. Development of reference architecture and a representative spectrum of cyber-physical system modules for production and logistics systems 2. Preparation of an universal approach, tools and platforms for the implementation of cyber-physical production systems 3. Development of a technical and methodological basis for the economic use of cyber-physical production systems and their implementation in a real production environment Development of CPS modules for intelligent drives, building & running of model factory Conception and evaluation of CPS based control for internal prod. logistics, competence and transfer centre Development of automatic updating planning database for production control methods Integration of machines into the reference architecture FP0001000495@Finpro 20. Robotics Definition SME Robotics is an initiative consisting of major European robot manufacturers and research institutes. It is developing technical foundations for intelligent robot solutions suitable for SME scale production. Project background & goals The project is based in Stuttgart and aims to simplify the deployment of robotic applications for production in SME manufacturing. The goal is to allow SMEs to benefit from the advantages of automation, e.g. high efficiency, high quality, streamlined processes, but still allowing for small volume production. The core of the vision lies in the SMErobotics IT-toolchain. Robot manufacturers and system integrators will be able to build more robust and self-adapting robots & systems, enabling workers in SMEs to (re)configure, setup and use novel and robust robotic systems. Participants The consortium of 14 organisations includes the players shown below: Project Examples: Assembly Assistant robot system to relieve workers of repetitive assembly tasks CoWeldRob Welding robot assistant offering constant quality welding, also for small manufacturing volumes Software Components for SMEs Software components of assembly sequence planning and grasp planning Collaborative Machining Different types of robots communicating & working together over neutral and replaceable interfaces Symbiotic human-robot interaction Enables human robot cooperation both in teaching phase and during execution Leading reserach institute for robotics and automation Growth promotion by encouraging synergies between research and business Leading robot producer. KUKA laboratories set up 2010 for future market product innovation Leading Swedish research inst. Focus here on non-linear & hybrid control. Also system ID and iterative learning control Source: www.smerobotics.org FP0001000495@Finpro 21. RWTH Aachen University Amongst the leading technical universities in Germany, with the status of an Excellence University. 800.000m of campus space is currently being developed to house 19 research clusters, of which the following are already in operation Logistics, Production technology, Biomedical technology, Photonics, Sustainable energy, heavy plant engines. The research campus already involves 120 companies, both large and small. Also, 4 Fraunhofer institutes are based in Aachen. RWTH attracted 350m Euro 3rd party funding for R&D in 2013, the highest of any German university. RWTH employs a very applied approach to research, aiming to improve production & systems at various companies. ProSense is one of the first Industrie 4.0 projects (included in logistics cluster) funded by the Ministry of Research & Education. It aims to develop regulation and control systems for complex production networks based on cybernetic control loop behaviour and adaptive design of logistics networks. FIMECC has established a factory (office) on the RWTH campus which will allow FIMECC staff and companies to identify new research and business opportunities with technology leaders. Source: www.rwth-aachen.de FP0001000495@Finpro 22. RWTH Aachen The digitalization of all production objects will radically increase the information density Due to massive development of mobile broadband connections companies will become more networked and agile IT solutions as an app will considerabyl increase usability and consumer acceptance The radicalness of innovations will increase due to accelerated prototype-development The Aachen Perspective main enablers for Industrie 4.0 Source: Prof. Dr. Gnther Schuh, RWTH Aachen University FP0001000495@Finpro 23. its OWL its OWL is an alliance of 174 businesses, universities, research institutes and organizations working together to make the innovative leap from mechatronics to intelligent technical systems. The joint development strategy was one of the winners in the Leading-Edge Cluster Competition run by the Federal Ministry of Education and Research (BMBF) in January 2012. The competition is the flagship of the German federal governments High- Tech Strategy. The Leading-Edge Cluster pools the resources of global market leaders in mechanical engineering and the electrical, electronics and automotive supply industries, as well as internationally renowned, cutting-edge research institutes. The commercial and scientific members of the technology network work together on 45 applied research projects worth a total of around EUR 100 million. In this way, the partners will over the next four years develop technologies for a new generation of products and production systems. Partners Its OWL partners with the Finnish innovation network HERMIA and with Fimecc. It has a huge pool of partners from business, research and academia and has been awarded a Gold Label for cluster management by the European Cluster Excellence Initiative. Source: www.ist-owl.com FP0001000495@Finpro 24. Hardware & Software for Embedded Systems Embedded4You was established in 2006 as an informal (to date only German) network of innovative SMEs in the area of hardware and software development (middleware and application) for embedded systems, and recognises the challenges of Industrie 4.0 in the industry The platform recognises the fragmented nature of the embedded systems market (components, assembly parts, SW), and propagates open systems which make users less dependent on providers. Embedded4You draws on a broad basis of SMEs providing them with cooperation with similar companies and research organisations to enable technology transfer, exchange of know-how, best practice, joint- development of customised solutions and centralised organisation of participation in trade fair and events. Funded projects to date with E4Y participation included SPES2020 (development of methodology for model-based development of embedded systems) and ComVantage (see following slide. Members Member include: Berger IT-COSMOS GmbH, iSyst Intelligent Systeme GmbH, IMACS GmbH, Klsch & Altmann GmbH, RST Industrie Automation GmbH, Protos Software GmbH, University of Applied Sciences Munich Source: www.embedded4you.com FP0001000495@Finpro 25. Collaboration platform for mobile maintenance ComVantage (Collaborative Manufacturing Network for Competitive Advantage) is a product-centric collaboration space for dynamic and flexible information exchange between multiple companies including the end-customer, particularly with regard to mobile maintenance. It was established in the last few years with three objectives: Secure Collaboration via a Dynamic and De- centralised Access to Information Easy to Handle and Trustful Collaboration Apps for Mobile Interaction Collaboration Apps with Verified Added-Value ComVantage has a consortium of international members listed on the left. The platform facilitates and helps to optimise the following: collaboration between multiple companies (incl. SMEs) and customer; focus on information exchange & optimised access to machine data for maintenance purposes; fast & agile re-configuration of production processes; increasing operational excellence; optimising product design and innovation. The website lists a range of further collaboration projects (present and past) which may contain valuable networking information for Finnish companies. Source: www.comvantage.eu FP0001000495@Finpro 26. Bosch Venture Forum Smart Industry (Industrie 4.0) Definition The Robert Bosch Venture Forum 2014 offers innovative companies the opportunity to win the Bosch Group as an investor, partner or customer. Project Background & goals The Bosch Group is looking for partnerships with companies focusing on the following technology areas: Smart Industry (Industrie 4.0) Algorithms, applications and solutions that promote cyber-physical production systems and secure ind. automation. Autonomous Systems enabling technologies for components, systems and SW in fields of robotics, vehicle technology systems and driving technology Wearable Electronics Materials, devices and applications worn close to body or on body for measuring and analysing Participants Current partners in the control & automation field include, amongst others, the following: Opportunities: Opportunities to collaborate with the Bosch Group include the following aspects: Minority equity investment by Robert Bosch Venture Capital GmbH Partnering with the Bosch Group and its tier suppliers Development cooperation Building customer-supplier relationships Marketing & support for national / international roll-out Autonomous mobile robot and delivery tracking software Semiconductor company and leader in ultra low power wireless & battery-free communication MEMS-based IR sensor technology for high performance components Source: www.rbvc.org USA Netherlands UK Hardware Intrinsic Security technology for private & corporate data, mobile, embedded & cloud Netherlands FP0001000495@Finpro 27. ARENA2036 Active Research Environment for Next Generation of Automobiles The research campus ARENA2036 PPP project has a focus on R&D for lightweight materials. It was set up in 2012 when the project won a Research Campus competition by the Federal Ministry of Research & Education. Another integral focus is car production in future factories, where there are no conveyor belts, and where robots and humans intuitively work hand in hand. The research (future) factory will combine development work from two areas: construction & materials, simulation & digital prototypes A major project goal is to secure Germany as a location for future car production. ARENA2036 is based at Stuttgart University, has partners shown on the left and has an investment volume of 30m Euro. Further networks and associations have also already agreed to cooperate. Source: www.arena2036.de FP0001000495@Finpro 28. Smart Factory European Project SmartFactoryKL is a manufacturer- independent demonstration and research platform and is unique in Europe. The aim is to introduce sophisticated IT into factory automation. Founded 2005 as non-profit association to establish network of industrial and research partners to develop base technologies and marketable products. Has been cooperating intensively with the German Research Center for Artificial Intelligence (DFKI) from the beginning. At the Hannover Fair 2014 the DFKI- SmartFactoryKL introduced an unique, modular crossvendor production unit for the first time (see left). Other members include Lund University, Cisco, John Deere, Johnson Controls, Siemens, Fraunhofer Institute, BASF (amongst others) Source: www.dfki.de; www.smartfactory-kl.de FP0001000495@Finpro 29. Smart Factory Siemens Siemens has opened an Electronic Works smart factory in Amberg, Germany. The 10,000m high-tech factory has smart machines that coordinate the production and distribution of the companys simatic control devices. The whole system involves 1.6bn components for over 50,000 annual production variations. A total of 10,000 materials are sourced from 250 suppliers to make the plants 950 different products. 1,100 employees have to be intelligently scheduled to meet the requirements of an ever-changing job. Gartner Industry Research only found 15 defects per million, 99% reliability and 100% traceability in a study conducted in 2010. Source: www.industryweek.com FP0001000495@Finpro 30. Case studies FP0001000495@Finpro 31. AGILITA Project goal: The AGILITA project (agile production logistic and transport methods) aims to develop a flexible and efficient material flow system for production purposes in SMEs. Consortium Leader: Premium AEROTEC GmbH Consortium members: E&K Automation GmbH, Institut fr Fertigungstechnik und Werkzeugmaschinen (IFW) an der Leibniz Universitt Hannover, MFP GmbH, Waldemar Winckel GmbH & Co. KG. Focus: One focus of the AGILITA development is the connecting of production control systems with RFID technology in order to enable automatic control and complete tracking of components that need processing. Also, the development of a concept for automated, individually configurable transport units, to enable transport and safety of high-quality components. RFID-capable plastic container for production documents Source: www.autonomik.de FP0001000495@Finpro 32. AutASS Project goal: Automised monitoring of machinery is expensive for SMEs. The AutASS project aims to develop a permanent health check for machines and equipment. Consortium Leader: Hanning Elektro-Werke GmbH & Co. KG Consortium members: Fraunhofer Institut fr Integrierte Schaltungen, Hochschule Ostwestfalen-Lippe, Interroll Trommelmotoren GmbH, RWTH Aachen, Universitt Paderborn. Focus: A main focus of the project is the integration of sensory functions in electrical drive systems such as electric motors. This creates intelligent and automatic diagnostic capabilities for individual components from drive systems and processes, and a mechatronic control circuit is established. Source: www.autonomik.de FP0001000495@Finpro 33. AutoBauLog Project goal: Construction machines cannot speak and dont therefore know when the next truck is due for loading. The AutoBauLog project attempts to link all construction machines on a building site in an intelligent network, so that they can in future understand, analyse and optimise their own situation in relation to the task they are being asked to do. Consortium Leader: RIB Information Technologies AG Consortium members: Universitt Hohenheim - Forschungszentrum Innovation und Dienstleistung, Topcon Deutschland GmbH, Drees & Sommer Infra Consult und Entwicklungsmanagement GmbH, Ed. Zblin AG, Karlsruher Institut fr Technologie, Institut fr Technologie und Management im Baubetrieb und Fachgebiet Building Lifecycle Management. Focus: The main focus of the project is based around three innovations: 1) Equipping of all construction machines on the 15 km construction site with software-based intelligence and sensors; 2) Enabling machines to cooperate and form machine teams; 3) Combining of machine-based construction processes in one virtual reality and simulation- supported control panel. Source: www.autonomik.de FP0001000495@Finpro 34. Industrie 4.0 from an SME perspective FP0001000495@Finpro 35. IHK Munich Interview on 12.6.14 with Mr Gruber, consultant in the department for Industry, Innovation, Environment and Transport at IHK Munich (chamber of trade and commerce) The IHK in Munich started to first address the topic of Industrie 4.0 around 1 year ago. Companies targeted by the IHK are mainly SMEs (which are automatically members of the chambers of trade and commerce), although some larger companies are also occassionally involved. So far there have been 2 events to which the SMEs were invited. Companies pay a small fee of around 50 Euro to participate. Events also sometimes include the participation of local academic or research institutes, such as the Munich Technical University. The next event will take place on 16.7.14, where participants will visit the machine engineering department at the university to see a demonstration smart plant that has been built to fill containers with yoghurt. Mr Gruber confirmed that only few SMEs have even started thinking about Industrie 4.0 at all at this stage. Companies have other priorities, have very limited knowledge of the whole topic and also limited resources (compared to BMW, for example, which has a department with around 30 persons for Industrie 4.0). The topic most commonly addressed by SMEs is IT security. Mr Gruber believes that until standards and platforms have been defined, SMEs will only play a minor role. FP0001000495@Finpro 36. IHK Karlsruhe Interview on 6.6.14 with Ms Jeromin, consultant in the department for Industry, Energy, Environment and Technology at IHK Karlsruhe (chamber of trade and commerce) Each IHK is autonomous and organises events on topics that they see fit for companies in their own region. There is no official national IHK policy on Industrie 4.0 at the moment, nor is that expected soon. An event was orgnised on 20.2.14 by IHK Karlsruhe called: Industrie 4.0 Automation trends also for SMEs? This was an IHK initiative, and was not the initiative of local SMEs. Ms Jeromin confirmed that political circles have great expectations of the whole Industrie 4.0 issue. In practice, however, things look very different to the picture that is being portrayed by political circles, research organisations and certain leading companies. Even some large companies that IHK Karlsruhe speaks to have done little to nothing so far to find out what implications the whole issue might have for them. More active companies who have started to think in more depth about Industrie 4.0 are either doing so as part of a research projects, or even going it alone. However, in many companies the 3rd industrial revolution has not yet properly taken place in terms of automation. Automation (not Industrie 4.0) remains the immediate priority for many companies. Problems with RFID chips have been slowing down automation efforts for several companeis Ms Jeromin has spoken to. Another problem will be companies in the South-West who do a lot of hands-on work, with customized heavy plant, machinery etc. Much of the value-add lies here with the manual work done, i.e. in the furniture, wood or metalworking industry. This will be problematic to automise, let alone integrate into Industrie 4. Heavy involvement in next 10 years by SMEs likely to be restricted by innovative, technological leaders involved in complicated supply chains. FP0001000495@Finpro 37. Services and further innovation stories in manufacturing ecosystem FP0001000495@Finpro 38. Services Spare parts and maintenance services, traditionally strong revenue drivers in the engineering products industry, are declining. A recent Roland Berger survey showed a clear correlation between service revenue and EBIT margins (where services accounted for 30%+ of revenues, EBIT margins were 10%+). Future potential exists in areas such as performance increase (upgrades, updates, performance audits) and consulting services (technical assessment, due diligence, dimensioning, factory planning). Theser are currently a small part of service portfolios, which have historically grown reactively. Machines currently often only connected to wireless sensing devices if problems expected. 80% of companies currently receive some data from installed base, but usually acquired reactively, when responding to specific problems. Companies should look to industry leaders in data monitoring, e.g. aviation, energy, oil & gas. OEMs can also own data management intermediaries, as in the case of Rolls Royce and OSyS. Source: www.rolandberger.com FP0001000495@Finpro 39. Virtual Fort Knox Flagship project of the Baden-Wrttemberg region in the South West of Germany, sponsored by the regional ministry of finance and economy. Launched in 2013 and coordinated by Fraunhofer IPA institute, the project also cooperates with HP, Schenk, SimBean, Xetics amongst others. The project is an interface between the IT systems of companies (manufacturers) and their clients, and is a service-oriented approach to leveraging data. In the virtual Fort Knox project user data (data from warehouses, tools, machines and plant, as well as from CPS systems) is regarded as a treasure that needs the highest protection. The offering is regarded as interesting for SMEs (machine & plant manufacturing), which so far only have limited experience of digital tools to support production. It also offers software providers a platform to offer flexible, competitively priced and customised solutions to manufacturing SMEs. Source: http://projekt.virtualfortknox.de; www.vdi-nachrichten.com A secure, federative platform for service-oriented applications in machine and plant manufacturing User (SME) Displays Visualisation of machine data via app (Elog App) Internal company IT HW & SW + eLog Shopfloor with machine tools that need monitoring FP0001000495@Finpro 40. Findings FP0001000495@Finpro 41. Conclusions Industrie 4.0 is about the very future of German as one of the leading international manufacturing powerhouses. This is why Industrie 4.0 lies at the heart of the governments high-tech strategy. Whether Industrie 4.0 is a revolution or a vision is still unclear. It is currently not reality, however, especially not at smaller companies. The following IT application areas will all be crucial for the success of Industrie 4.0 and will represent opportunities for Finnish companies: Industrial apps Electrical actuators, sensor and embedded technology Big data Modularised production systems Short-distance wireless data (RFID), long-distance (broadband) IT security Interface between production systems and control systems A wide range of R&D projects, cooperations and clusters already exist, many profiting from PPP programmes Finland already has crucial networks to leading German clusters of excellence (Aachen and its OWL). Although several large companies and research institutes are particularly active, some programmes (e.g. Autonomik) are aimed especially at SMEs. Chambers of trade & commerce are also starting to introduce events. Despite high awareness (especially large companies), activities at grass roots level is low and likely to be dominated by early adopters and those participating in research programmes or leveraging clusters. FP0001000495@Finpro 42. Recommendations Industrie 4.0 is a long-term vision, not necessarily conducive to short-term profit. Finland needs a strategic approach based on competence centres, bundling of skills , clusters and participation in international activities. Traditional manufacturers will gradually migrate towards being data-based service providers and non- manufacturing companies will emerge as new players. Finlands with strong ITC heritage and competence is ideally placed to profit, but will a need a coordinated, professional, Industrie 4.0-focussed approach as opposed to undifferentiated SME subsidy-programmes. Germany already has a comprehensive legislative and political framework in place. This includes a wide range of PPP programmes and projects, some of which are international. Networking and contributing to these circles underlines technology leader mentality and can lead to business opportunities. The role of FIMECC provides established Finnish companies with excellent access to leading-edge research and collaboration projects, also in Germany, and should be further developed and leveraged to the full. Participating in events such as the Hannover Fair and Automatica offer great opportunities to approach the market jointly with German institutes and companies, in order to create networks and new business opportunities. SMEs will need time to get familiar with the needs of Industrie 4.0. Finlands company ecosystem offers an opportunity to demonstrate leadership in this area build up a strong base of SME case studies for all types of industrial production companies. Chambers of trade and commerce offer an potential funnel into this area, often have foreign trade departments focussed primarily on doing foreign business and could be interesting cooperation partners for SME-based Industrie 4.0 issues. Programmes such as SME Robotics can be leveraged by Finnish research organisations (and ultimately companies) involved in systems and software for robotics. FP0001000495@Finpro 43. Appendices FP0001000495@Finpro 44. Trade Fairs, Events (1/2) AUTOMATICA, Munich (21-24 June 2016). The leading trade fair and platform for automation and production-process innovations. The trade fair is held every two years and has the worlds largest range of robotics, assembly lines and machine-vision systems. FP0001000495@Finpro The following examples of trade fairs/events for both large and small companies can act as hubs for Industrie 4.0 networking and promotion work from a Finnish perspective: HANNOVER Messe, Hannover (13-17 April 2015). The world's leading show for industrial technology, showcasing new products across the entire value chain and highlighting innovations in all core sectors . www.automatica-munich.com www.hannovermesse.de International: 45. www.bayern-innovativ.de www.ihk-muenchen.de Trade Fairs, Events (2/2) Bayern Innovativ, Munich (9 July 2014). An organisation of platforms, networks and clusters set up by the Bavarian Government in 1995 to promote innovation and technology transfer. On 9 July 2014 the BAIKEM network (3.600 companies and 400 research institutes from 32 countries) is organising an event called Embedded Systems, solutions for Industrie 4.0 in Munich. Focus is on hardware, middleware- and software-development. IHK Mnchen und Oberbayern, Munich (6 May 2014). The Chamber of Commerce and industry for Munich and Upper Bavaria is one of 9 chambers in Bavaria and one of more than 60 throughout Germany. The Munich chamber is responsible for 380.000 member companies, ranging from one-man setups through medium-sized enterprises to global players. Bavarian industries currently make 53 percent of their sales abroad, tendency rising. As part of their remit to support and advise (mainly) SMEs, the IHK has started organising Industrie 4.0 events. At an event called IT secures production, organised in May, academic and business speakers presented on secure solutions options for SMEs in Industrie 4.0. Regional: FP0001000495@Finpro