Guest Lecture at FOM University of Applied Sciences BonnNovember 8, 2013

Industry 4.0 and the upcoming management challenges

GOODARZ MAHBOBI

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Agenda

» Industry 4.0 and the upcomingmanagement challenges

» axxessio GmbH» Question and answer session

The technical and industrial revolution is in full swing

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Innovation Push

Industral revolution Machines and factories create economies of scale arising from synergies

as of 1750

Digital RevolutionComputer performance and emergence of distributed networks

as of 1950

Industry 4.0 IT-based analysis:digital, automized, anticipatory

today

Start of IndustryPeople and products

before 1750

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Components of the industry 4.0

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Components of the industry 4.0

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First component of revolution: Mobile

» More IP devices than people» More than 1 billion smartphones at the end of

2013» Mobile affects the daily life

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Components of the industry 4.0

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Second component of the revolution: Cloud» 67% of adult internet users in the U.S. use

personal cloud services» Die Cloud will replace the PC» NSA affair

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Components of the industry 4.0

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Third component of the revolution: Collaboration» Transformation of collaboration

» Cyber-physical production systems» Connection between virtual and real world

» Processes» Embedded systems» Software components, which are integrated

in machines» Robots do not receive the commands from a

central computer, but rather from a product

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Third component of the revolution: Collaboration» How does it work?

» via RFID (Radio-Frequency-Identification)» NFC (Near-Field-Communication)» QR (Quick-Response-Code)

» Advantages:» Components may be provided by different

manufacturers» All components communicate using the same

language (semantic technology)» Production starts only when the order is received» Client is constantly informed about the development» Exact number of the product in the production

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Third component of the revolution: Collaboration» Challenges:

» Shift from centralized to decentralized factory control system

» Security:» Cannot be controled by all smartphones» Robots should only be able to read certain RFIDs

not all of them

» How will the revolution arrive?» No big bang

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Third component of the revolution: Collaboration» Transformation of collaboration, use of

networks, buying, selling and learning behavior, knowledge sharing

» PeopleProcesses Collaboration

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Components of the industry 4.0

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Fourth component of the revolution: Big Data» Data is produced everywhere» According to IBM 2.5 – 3 exabytes / day 1 exabyte = 1.000.000.000.000.000.000 bytes» 90% of data produced in the last two years

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Everyday examples of the industry 4.0

» Parking» Museum visit» Online purchases/ caomparison of prices

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Examples of the industry 4.0

» Car 2.0» LAPD/ UCLA

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Industrie 4.0 – in a few not only in factoriesUbiquitous Computing

Items will communicate with each otherExample: Fridge with notebook/ supplier

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Missed opportunities

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Global Change and Diversity

» Networking of markets and companies» Diversity management

Demographic Development and Skill Shortage

» Demographical scissor: young - old» Lack of young talent and skilled professionals

Dynamics and Complexity

» Flow of information – networked thinking and action» Number of employees/ activities/ structure and processes

Strategic Repositioning and Continuous Improvement

» Structural change of businesses – new (subsidiary) companies/ mergers» Activities/ structures and processes

Technological change and half-life of knowledge

» Up-to-dateness of knowledge» Innovations/ improved general conditions

Management challenges

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Consequences for organisations

Traditional Organisations

» Inflexible IT-Systemsbased on application silos

» Business and administrative processes with media disruptions

» HierarchyInternal and external communication

» Limited information

Digital Organisations

» Scalable IT-Systemsbased on cloud, mobile, big data and collaboration

» End-to-End processesbased on collaboration and real-time KPIs

» Social interactionwith employees, customers and partner

» 360° information

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axxessio – IT- und Management Consultancy

November 2006Establishment

BonnHeadquarter axxessio GmbH

Darmstadt and CologneSubsidiaries

BerneHeadquarter axxessio AG

80 employees40 of them permanent

(October 2013)

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Management at axxessio

» Corporate Culture» Commitment

Headquarter Bonn

Kurfürstenallee 553177 BonnTel +49 228 – 76 36 31 0Fax +49 228 –76 36 31 3

Our Locations

Subsidiary Cologne

Wilhelmstraße 351143 CologneTel +49 22 03 – 91 22 0Fax +49 22 03 – 91 22 23

Subsidiary Darmstadt

Kasinostraße 6064293 DarmstadtTel +49 61 51 – 78 90 0Fax +49 61 51 – 78 90 23 0

SubsidiariyBerne

Frohbergweg 73012 BernTel +41 31 – 534 07 06Fax +41 31 – 536 69 78

Thank you for your attention!

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