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INTANGIBLES: THE EUROPEAN STATE OF THE ART 2nd International Policy Conference“ Frankfurt am Main, 12. September 2017 „Industrie 4.0“ – The Impact of Digitization on Sustainable Value Creation Professor Dr. Robert Obermaier

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Page 1: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

INTANGIBLES: THE EUROPEAN STATE OF THE ART

2nd International Policy Conference“

Frankfurt am Main, 12. September 2017

„Industrie 4.0“ – The Impact of Digitization on Sustainable Value Creation

Professor Dr. Robert Obermaier

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© Professor Dr. Robert Obermaier 2 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

13 Largest Companies of the World by Market Value (in Bn. US-$)

„Industrie 4.0“: Internet Revolution

Statista (2017): Internet, Financial, CG/Industrial

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© Professor Dr. Robert Obermaier 3 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

National and International Organizations

„Industrie 4.0“: Manufacturing for the Future

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© Professor Dr. Robert Obermaier 4 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

National and International Organizations

Quelle: DFKI (2011)

„Industrie 4.0“: Manufacturing for the Future

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© Professor Dr. Robert Obermaier 5 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

G20: Share Manufacturing/GDP

„Industrie 4.0“: Manufacturing for the Future

Obermaier (2017)

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© Professor Dr. Robert Obermaier 6 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

World Production Function

Quelle: Allen (2011)

„Industrie 4.0“: Manufacturing for the Future

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© Professor Dr. Robert Obermaier 7 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

World Production Function

Quelle: Allen (2011)

Germany1820–1990

„Industrie 4.0“: Manufacturing for the Future

Page 8: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

© Professor Dr. Robert Obermaier 8 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Concept and Technology

Definition

„Industrie 4.0“ describes a form of industrial value creation,

characterized by

• Automatization,

• Digitization, and

• Connectivity

of all actors within the value chain which have impact on

• Processes,

• Products and/or

• Business models.

Obermaier (2016)

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© Professor Dr. Robert Obermaier 9 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Technologies

1. Internet & communi-cation technology

2. Advanced manu-facturing technology, Robots

3. Sensors, Aktors

4. Embedded Systems, Software, Analytics

5. Human MachineInterface

„Industrie 4.0“: Concept and Technology

Page 10: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

© Professor Dr. Robert Obermaier 10 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Concept and Technology

Technologies

1. Internet & communi-cation technology

2. Advanced manu-facturing technology, Robots

3. Sensors, Aktors

4. Embedded Systems, Software, Analytics

5. Human MachineInterface

Page 11: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

© Professor Dr. Robert Obermaier 11 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Concept and Technology

Technologies

1. Internet & communi-cation technology

2. Advanced manu-facturing technology, Robots

3. Sensors, Actors

4. Embedded Systems, Software, Analytics

5. Human MachineInterface

Page 12: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

© Professor Dr. Robert Obermaier 12 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Concept and Technology

Technologies

1. Internet & communi-cation technology

2. Advanced manu-facturing technology, Robots

3. Sensors, Aktors

4. Embedded Systems, Software, Analytics

5. Human MachineInterface

Page 13: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

© Professor Dr. Robert Obermaier 13 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Concept and Technology

Technologies

1. Internet & communi-cation technology

2. Advanced manu-facturing technology, Robots

3. Sensors, Aktors

4. Embedded Systems, Software, Analytics

5. Human MachineInterface

Page 14: „Industrie 4.0“ – The Impact of Digitization on ...observatoire-immateriel.com/wp-content/uploads/... · 13 Largest Companies of the World by Market Value (in Bn. US-$) „Industrie

© Professor Dr. Robert Obermaier 14 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

US Investment Rates: Intangible Investments are increasingly important

„Industrie 4.0“: Investment and Performance

Quelle: Corrado & Hulten (2012))

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© Professor Dr. Robert Obermaier 15 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Fields of Action

11

Degree of Digitizationand Connectivity

of Products

Degree of Digitizationand Connectivity

of Processes

high

highlow

low

Process Innovation(User Role)

Product Innovation(Supplier Role)

Status quo

DigitalTransformation Path

Obermaier (2016)

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© Professor Dr. Robert Obermaier 16 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Smart Connected Processes: Cyber Physical Systems (CPS) and Smart Factory

„Industrie 4.0“: Fields of Action

Data collectionwith sensors(„real time“)

Data analysis withembeddedsoftware

Data exchange via internet

technologies

Controlling of real processes with

actuators

Human-machineinterface

Manufacturing technology

Communication

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© Professor Dr. Robert Obermaier 17 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Fields of Action

Smart Connected Processes: Manufacturing Execution Systems (MES)

Maschinenfabrik Reinhausen (2015)

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© Professor Dr. Robert Obermaier 18 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Smart Connected Products: Products and Product Systems

„Industrie 4.0“: Fields of Action

Porter / Heppelman (2014)

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© Professor Dr. Robert Obermaier 19 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Smart Connected Products: Functions and Capabilities

„Industrie 4.0“: Fields of Action

Monitoring

Control

Optimization

Autonomy

1 2 3 4

Porter / Heppelman (2014)

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© Professor Dr. Robert Obermaier 20 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Smart Connected Products: Condition Monitoring & Predictive Maintenance

„Industrie 4.0“: Fields of Action

Detection of anomalies in systems behavior

Time (ms)10 20 30 40 50 60 70 80 90 100 110 120 130 140 150

Energy (mA)

0

10

20

30

40

50

60

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© Professor Dr. Robert Obermaier 21 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Smart Connected Products: Google Nest*

*) In January 2014 Nest (130 Employees) has been acquired by Google Inc. for US-$ 3,2 Bn.

„Industrie 4.0“: Fields of Action

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© Professor Dr. Robert Obermaier 22 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Smart Connected Processes/Products: Infrastructure, Data Pool and Analytics

„Industrie 4.0“: Fields of Action

ExternalData

(prices, weather, ocation…)

Firm data(maintenance history,

…)

ProductCloud

(state, usage, …)

1 2 3

Data Analytics

(1) Description(2) Diagnosis(3) Prediction(4) Prescription

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© Professor Dr. Robert Obermaier 23 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Fields of Action

Type A: Free data collectorand aggregation

Type B: Analytics-as-a-service

Type C: Data generationand analysis

Type D: Free dataknowledge discovery

Type E: Data-aggregation-as-a-service

Type F: Multi-source datamash-up and analysis

Smart Connected Processes/Products: Data-based Platform Models

Type E

Type C

Type B

Type A Type D

Type F

Data generation

Key activity

Trac

ked

and

gen

erat

edC

usto

mer

-p

rovi

ded

Free

av

aila

ble

Aggregation Analytics

Dat

a So

urce

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© Professor Dr. Robert Obermaier 24 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Platforms: Market-to-Book-Ratio of US Industry Sectors

„Industrie 4.0“: Investment and Performance

WEF (2014)

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© Professor Dr. Robert Obermaier 25 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Fields of Action

2 nodes

20 (unilateral) connections 132 (unilateral) connections

5 nodes 12 nodes

2 (unilateral) connections

Platforms: Size and Openness

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© Professor Dr. Robert Obermaier 26 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Platforms: Size and Openness

„Industrie 4.0“: Fields of Action

Size of Network

Value, Cost

high

highlow

low

Value

CostCritical MassBreak Even Point

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© Professor Dr. Robert Obermaier 27 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Platforms: Unicorns (Private Companies valued at >$1Bn)

„Industrie 4.0“: Fields of Action

CB Insight (2017)

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© Professor Dr. Robert Obermaier 28 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

„Industrie 4.0“: Fields of Action

11

Degree of Digitizationand Connectivity

of Products

Degree of Digitizationand Connectivity

of Processes

high

highlow

low

Process Innovation(User Role)

Product Innovation(Supplier Role)

Status quo

DigitalTransformation Path

Obermaier (2016)

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© Professor Dr. Robert Obermaier 29 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Solow‘s Paradox: US Productivity

Acemoglu et al. (2014)

„Industrie 4.0“: Investment and Performance

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© Professor Dr. Robert Obermaier 30 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Solow‘s Paradox: German Productivity

Computer & Electronic IndustryTotal Manufacturing (Average)

Prod

ucitv

ity

„Industrie 4.0“: Investment and Performance

Obermaier (2017)

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© Professor Dr. Robert Obermaier 31 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Digital Managerial &

TransformationalCapacity

Digital Technological Capacity

high

highlow

low Digital

StartersDigital

Conservatives

DigitalHipsters

DigitalMatures

„Industrie 4.0“: Increasing Digital Maturity

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© Professor Dr. Robert Obermaier 32 Lehrstuhl für Betriebswirtschaftslehre, insbes. Accounting und Controlling

Thank you very much for yourattention!

Professor Dr. Robert Obermaier

Universität Passau

Lehrstuhl für Betriebswirtschaftslehre

mit Schwerpunkt Accounting und Controlling

Telefon: 0049 (0)851 509-3270

Telefax: 0049 (0)851 509-3272

E-Mail: [email protected]

Contact