Smart Factory@IT2I: from business models to production

The importance of digitization and of employing it in ongoing business operations has now been understood by most companies that have their own production facilities and already wish to convert these into a “Smart Factory” now or in the future. So that the company can stay successful and safeguard its competitiveness, digital transformation of business processes and production is indispensable. Practical lectures at the Open Conference of IT2Industry 2016@AUTOMATICA take up this subject area of production, Smart Factory and the Industrial Internet of Things.

To increase their competitiveness, 39 percent of companies make use of technical or IT solutions; in addition, 22 percent of companies are planning to do so; and 19 percent are in the process of gathering information and taking decisions—those are the results of a representative survey by BITKOM Research and EY.

On the way to the Industrial Internet, five steps can be applied by companies as a simple rule of thumb for sustainable factory production:

  1. Become digital – 2. Complete automation – 3. Build up networking – 4. Become remote-controllable in real time – 5. Employ networked applications

In the conference program of IT2Industry@AUTOMATICA, the subject area of the Smart Factory includes a keynote and numerous lectures during the entire event from June 21 to 24, 2016. Here, the Business Track (apart from the Technology Track) is specifically aimed at commercial decision-makers in companies that are already on the way to digital transformation or are about to embark on it.

Keynote address and lectures about the Smart Factory, Industrial Internet of Things and IT security

Prof. Dr. August-Wilhelm Scheer
Prof. Dr. Dr. h.c. mult. August-Wilhelm Scheer, Scheer Holding

Prof. Dr. h.c. mult. August-Wilhelm Scheer, Managing Partner of Scheer Holding GmbH, answers the question ‘How to develop successful business models for Industry 4.0’ in his keynote speech on Wednesday 22 June 2016 at 12:30  (#IT2I16 day 2). Here, he introduces a method as to how new business models of digitization can be systematically developed and realized through specific concepts—instead of isolated solutions—from the vision surrounding the catchphrase ‘Industry 4.0’. For this purpose, he examines essential economic driving forces of digitization which are derived from the demands of a fundamental revolution and which do justice to this: the increased personalization of products; the self-controlling of objects and systems; products and services free of marginal costs; and new company structures which rnove in as platforms between customers and suppliers.

Michael Gaudlitz Gemalto
Michael Gaudlitz, Gemalto

New business opportunities: flexible licensing models in the Internet of Things’ are introduced by Michael Gaudlitz, Regional Sales Manager at Gemalto, in his lecture on Tuesday 21 June 2016 at 14:00 (#IT2I16 day 1, this lecture is in English). He describes how the Internet of Things (IoT) is changing engineering- and technology-powered companies into software producers, which necessitates new business models and protection of intellectual property to the highest degree. This lecture gives an insight into what are the driving forces behind the IoT, a world where software is becoming an increasingly important part of the value added. To show how this value can be carried over into profit, new business models are identified and these are compared with traditional ones. (Further input from Gemalto on Wednesday 22 June at 13:30 in the discussion round “IT security: cyber attacks on industrial facilities—risks, costs, countermeasures, liability”.)

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Dr. Armin Pfoh TÜV SÜD
Dr. Armin Pfoh, TÜV SÜD

n his lecture on Tuesday 21 June 2016 at 15:40 (#IT2I16 day 1, the lecture is in English), Dr. Armin Pfoh from TÜV SÜD AG warns that The attackers can be anywhere’. He presents the results of a study by TÜV SÜD about a high-interaction honeynet project; during the running time of eight months, there were over 60,000 accesses to the real hardware and software—combined with a virtual infrastructure—of the simulated environment of a smaller waterworks. Considering the accesses from servers worldwide—partly with concealed IP addresses—proof was furnished that infrastructures and production facilities were being deliberately investigated. Thus the factors of digitization and networking make infrastructures and production facilities more and more susceptible. Industry 4.0 presents many companies with the challenge of assessing their current IT security quite differently and largely setting it up anew.

Markus Geier ComCode
Markus Geier, ComCode

The lecture Cyber security as the enabler of the Smart Factory on Thursday 23 June 2016 at 16:00 (#IT2I16 day 3) by Markus Geier, General Manager of ComCode GmbH, considers the question of why cyber security is a key factor and an integral component of the Smart Factory (the lecture is in English). In so doing, he describes a realistic approach and shows what action can be taken here. Special attention is given to the aspect of ‘security by design’, i.e. how the subject of IT security plays a leading role right from the start in structuring the production processes.

Peter Seeberg Softing Industrial Automation
Peter Seeberg, Softing Industrial Automation

Peter Seeberg, Market Segment Manager at Softing Industrial Automation GmbH, communicates the possibilities of Industrial data intelligence: data-based optimization of production on Friday 24 June 2016 at 11:30 (#IT2I16 day 4). In his announcement, he describes the status quo of industry:

Data is the oil of the 21st century. Data-oriented firms dominate the global economy. Industrial firms band together with IT firms and combine automation and EDP towards the (Industrial) Internet of Things […] Individual processors [have] reached the point […] where they can do great things. […] In the first expansion stage, it’s a matter of […] overall equipment effectiveness (OEE), a product of three factors (availability, performance and quality).”

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