We live in a time of upheaval. Today’s decisions affect the lives of future generations like never before – keyword: climate change. Current investments determine the future of Made in Germany. As an industrialized country, we may still be a role model for many other countries. But when it comes to digitization, we are one thing above all: too slow.
The corona pandemic shows how important digitization is – for citizens, the state and the economy. In order to meet the challenges of our time, individuals as well as business and politics have to help. What could be the right decisions for Germany? Where is the sustainability lever for Made in Germany? What are suitable, future-oriented investments?
In 2011, the Industry 4.0 concept gained public attention. The core idea: to combine the physical with the virtual world and drive the automation of business and manufacturing processes forward in order to serve customer needs with individualized products – and thus secure the competitiveness of Germany as an industrial location. The vision was the digital factory. There was talk of a paradigm shift towards product-controlled, highly automated production. The people behind the concept showed foresight.
They assumed that with the integration of machine and sensor data in business processes (vertical integration) and with the exchange of data between companies (horizontal integration), production can not only be more efficient but also more resource-efficient.
There was an inspiration, an impetus.
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Today, digitized factories are already standard in many places, with noticeably positive effects for companies. In a study by the MPI Group last year, 61 percent of the around 670 companies surveyed stated that Industry 4.0 would strengthen their competitive position. Industry 4.0 means digitization that has to be socially and at the same time ecologically sustainable against the background of the climate crisis.
Industry 4.0 is a catalyst
The Climate Protection Act presents us with major challenges: By 2030, we in Germany will have to reduce our CO2 emissions by 50 percent, that is around 440 million tons of CO2 per year. The industry should become climate-neutral as an emitter as well as producing climate-neutral machines, systems and products.
The Federation of German Industries describes this challenge in the study “Climate Paths 2.0” as a “historic opportunity for Germany’s industry”.
The network “Plattform Industrie 4.0” states in a theses paper: “In parallel to the digital transformation, we need a sustainability transformation.” Although Industry 4.0 is not a panacea, it is an important catalyst for more sustainability. Vertical integration makes it possible to map and thus control the CO2 footprint in production and for products.
More transparency along the value chain helps with sustainable decisions, conserves resources and feeds them back into the cycle. The horizontal integration thus enables the value creation networks to be geared towards climate neutrality and sustainability. And Made in Germany does not act independently of the rest of the world. I think we can be the spark, the inspiration, the impetus.
Controlling business processes and production digitally promises great potential for optimization. Fully automated production facilities already exist today. For example, a joint venture between Porsche and the Schuler company opened a press shop in Halle an der Saale this year that is second to none: completely digital and fully automated, from the production order to tooling and the manufacture of the body parts.
Think interdisciplinary, learn for life
Paperless production not only conserves resources and avoids waste, it is also operated 100 percent with green energy. Everything runs in the cloud – this enables transparency, speed and flexibility of operational processes.
The factories work differently than conventional production facilities. The new way of working also requires a new way of learning. Technical knowledge is only one side of the coin. The other side is shaped by skills such as interdisciplinary thinking and lifelong learning. Technological transformation must therefore go hand in hand with training and further education offers for skilled workers.
Thought one step further: Industry 4.0 brings efficiency gains in order to be able to realize the economic change towards sustainable business and production processes – from e-mobility to climate neutrality to the circular economy. Industry 4.0 is an innovation strategy for Germany.
According to the online portal Statista, there will be around 25.4 billion IoT devices worldwide in 2030. In contrast to the beginnings of Industry 4.0, the necessary technologies are already widely available today to ensure the connection of data and devices – from the sensor to the balance sheet, from the factory floor to the executive office. But there is a lack of implementation.
In the last decade, the focus has been on optimizing business processes in companies. The 2020s will be shaped by enabling efficiency gains across company boundaries, the real potential of Industry 4.0. Individual benefit is a customer-friendly effect, but Industry 4.0 is not an end in itself. The added value lies in the responsible use of natural and business resources.
Use opportunities for a new departure
Digital processes between companies along the value chain create the necessary transparency. This requires a protected space for the secure exchange of data between those involved. Catena-X, a new network for data exchange in the automotive industry, can provide the blueprint for this.
We have to take a new perspective, as formulated by the “Platform Industry 4.0” in its 2030 model, on Industry 4.0. The focus is on interoperable, digital ecosystems that reflect the diversity of the industries. Germany has the opportunity to set standards and thus secure its competitiveness and technological sovereignty.
But back to the decisions we have to make today. Small and medium-sized enterprises in particular often lack an understanding of how Industry 4.0 can be used profitably.
A study by the management consultancy Roland Berger shows that most digitization projects in the production of medium-sized companies are still at an early stage of development: 40 percent of the projects exist as ideas, 25 percent are in the planning stage.
That has to change if Made in Germany is to remain the best brand of origin and if we want to start into a digital and sustainable future. Our motto must be: technology as the basis for a better world, innovation as the path to the goal. Let us use Industry 4.0 as the best opportunity for a new departure.
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