Main trends and challenges resulting

from the DIF 2017 workshops

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Main trends and challenges resulting from the Digital Innovation Forum 2017 workshops The Digital Innovation Forum (DIF) is an international industry-driven event that focuses on Digital Innovation in Europe and beyond. DIF 2017 took place on 10 & 11 May 2017 in Amsterdam and welcomed the global software innovation community: large industry, SMEs, academics, start-ups, investors, representatives from funding agencies and public authorities. Digital Transformation This first edition of the Digital Innovation Forum was dedicated to the 'Digital Transformation', which is an imperative global topic that is accelerating the revolution of business activities, processes, competencies and models in a profound way, and will enable digital technologies to be fully leveraged. Often regarded as a threat to European industries, especially the more traditional ones, the digital transformation should be seen, and used, as an opportunity to create value for business and society. Interactive workshops One of the main highlights of the DIF were the interactive workshops on 4 emerging challenges for industry: Smart Energy, Smart Health, Smart Manufacturing and Smart Mobility. Each workshop was set up as a panel with key players in the domain, from large industry and academia to SMEs and customers, discussing the main innovation trends in the specific challenge. An important element of the workshops was the interaction with the audience, with ample room for Q&A. In this report you can find the main trends and challenges that came out of each workshop, (co-)written by the workshop leaders.

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Smart Energy Panellists Moderators Main trends and conclusions resulting from the Smart Energy workshop 1. Distributed Energy Resource Grid Integration Distributed generation with its inverse power flows, storage, new digital prosumers with their smart meters and the need for operating closer to the limits of design are radically modifying the conditions under which distribution grids operate, and impacting their reliability and efficiency. This radical change in the way of generating, transporting, distributing, and consuming energy creates many challenges that affect the entire business model around electricity. These challenges will transform the network operation process, providing new services to final users, optimising the use of energy resources and gaining significant knowledge on the generation and demand trends in these very dynamic and volatile environments. 2. Active Grid Monitoring The combination of the business challenges described in the previous topic with the massive volumes of information generated by the new distribution grids and the big number of assets to monitor and control down to the customer level require the convergence of Information and Operation Technologies (IT+OT) into advanced grid management ecosystems for the active management of the grids. An Active Grid ecosystem supports the dynamic operation of a distribution grid where intelligent grid assets, connected consumers and new distributed energy resources continually interact in a more reliable and efficient grid operation.

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3. Energy Consumption Optimisation Energy consumption is facing sustainability challenges that are leading to a profound transformation of Energy Management. In this emerging context, a deeper understanding of energy consumption is needed, requiring advanced platforms that are capable of gathering, computing and displaying data on energy usage and processes performance using the most innovative devices in the field. Acknowledging how energy is serving society is a necessary first step in order to make better decisions in our everyday lives and create a deep, long-lasting and positive impact. The energy consumption optimisation subdomain usually is subdivided in two clear areas: Smart Home and Smart Buildings. 4. Transactive Energy The Energy industry is undergoing a radical transformation from asset ownership to shared economy. This trend is being propelled by the introduction of horizontal business platforms that will be based on digital platforms that bring together:

• Those with access to goods and/or services, willing to ‘share / sell it’ • Those without goods and/or services interested in ‘using / buying it’

The new energy value chain will be ‘transaction centric’ enabled by a multi-sided market and characterised by localised, connected, transactive markets:

• Localised because by 2020, 20% of centralised generation will be replaced by distributed energy resources, resulting in a profit reduction for utilities of about 33%.

• Connected because the Internet of Things (IoT) will connect people, processes, data and devices to deliver the right information to the right person at the right time.

• Transactive because there will be decentralised generation and flexible consumption, resulting in transactive interactions among multiple actors and stakeholders.

5. Disruptive Energy Technologies We are moving away from the era where large (traditional) corporate and/or governmental capital investments are required to fund energy and other market verticals (e.g. manufacturing, transportation, etc.). Increasingly, ‘non-traditional’ companies and individual entrepreneurs can combine insight, resource diversity, substitution and scarcity (context) along with ‘lessons-learned’ (experience) to invent new business models. We are facing some exponential changes in the near future throughout all aspects of life, including the energy domain, e.g. we see that technology and customer expectation is changing faster than business culture and regulation.

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Smart Health Panellists

Moderators Main trends and conclusions resulting from the Smart Health workshop 1. Cardiovascular disease and cancer are becoming chronic diseases More and more patients survive but still need to be treated or monitored long-term. This creates some different requirements and opportunities including handling co-morbidity. 2. There is a challenge to connect the different products in hospitals to create a holistic vision of the data and create value for the efficient integration of patient data The connection of the different products in the hospital is obviously a challenge given that the same data can be stored at different places, the formats can be different, the data might differ slightly as well as possible real-time requirements between systems, etc. 3. Industrialisation of healthcare is a must Although personalisation of healthcare is becoming increasingly common, it needs to have a basis of industrialised processes. State-of-the-art treatments are getting more and more expensive and this might

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result in only few patients getting the best care. Industrialisation allows common repetitive work to be analysed and optimised for improved care and efficiency gains. 4. Personalisation of healthcare will impact the healthcare industry (hospitals, LE, SME and insurance companies) Although all healthcare is personal to some extent, personalisation of healthcare means that the care of the patient is based on the integrated knowledge and digitally interconnected diagnostic and therapeutic systems. Clearly, the available data for making treatment decisions for the individual patient will continue to boom. This data needs to be collected, stored, made available, analysed, etc. How to interconnect different systems? How to certify systems? How to secure patient and personal data? 5. Population health can be addressed by the many digital footprints that we leave Many people use different health apps to record and monitor their personal training. This can be the number of steps, speed of running, heart rate, energy consumption, etc. Many sensors are being integrated in clothing and wearables, and values can be read-out. Instant and on-line access to the health parameters of much of the population is within near-term reach. These apps are often free but the user shares the data with the app provider and sometimes beyond, to associated and partner companies. 6. Automation requires the collection of large amounts of data from many different sources, the issue around data protection is not yet fully solved The ability of hackers to break into systems is well documented. To have many distributed systems sharing or feeding data and doing that without risk of the data being compromised is difficult and has not been fully solved. The strict data protection laws in EU on one hand and the ease of access to digital footprints on the other hand is not an easy conflict to resolve. 7. Frugal design: product or services need to take the requirements and constraints of local economies into account There seems to be a constant drive towards more complex and expensive systems for healthcare. The treatments for those that can afford it will get better and better but come at an increasingly higher cost. Affluent countries and patients can better afford this whereas poorer countries and patients will have to take advantage of outdated or low-spec systems. There is a need to use recent advances to create simple, inexpensive and easy-to-use systems to cater for the large population that is relatively poor but still needs to be treated according to recently established knowledge. 8. Disease prevention versus cure and the role of insurance companies is not yet mature enough to differentiate fees The value of detailed personal data for the insurance companies to asses risk is clear. Access to training and lifestyle data to possibly determine whether the person is likely to live a healthy life is of value. Similarly, genetic defects or a family history of diseases is also valuable in determining potential for future diseases. At this point fees are not differentiated.

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Smart Manufacturing Panellists Moderators Main trends and conclusions resulting from the Smart Manufacturing workshop 1. Manufacturing shall be smart to survive What is happening now in manufacturing is not so much an improvement but a revolution. Smart manufacturing covers many high-tech concepts and the main challenge is to use these new technologies in an integrated way to create an efficient manufacturing environment that is much closer to the customer than traditional methods. These concepts can be briefly listed as Smart Factory Data, Flexible Production, Collaborative Robotics, Production Workplace Design supported by Augmented Reality, Controlled Logistics – Supply Chain Automation, Multi-material Manufacturing – 3D Printing. By using these high-tech concepts, manufacturing will interact with technologies in its manufacturing plants, collaborating with its value chain and cooperating with machines/robots and employees. The other smart dimension in manufacturing will be interaction with customers whereby the personalisation of products needs Lego-like manufacturing environments and Lego-like products. 2. Innovation in technology is a certainty while innovation in business will be disruptive The use of the technologies will be disruptive to manufacturing and be based on the requirements received from customer. Human-centric design methodologies are being used and the prime objective is to find a change for which a customer is willing to pay. Technologies are available but the challenge is to find new methodologies to generate revenue. Such as automotive as part of service ecosystems in which relevant insurance, communications and content services are part of car manufacturing. There is a need to identify how new services can be integrated into car manufacturing. This will be enabled by using existing technologies in new concepts. Currently, car manufacturing ends with the delivery but with these new concepts, the connection to customers will also continue closely after delivery. These novel concepts need new technologies and new ways of using existing technologies along with open and flexible platforms to enable these services to be developed and delivered for fast adoption.

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3. Communications for Smart manufacturing is still an issue Bluetooth 5.0 and 5G will be key technologies for the future for smart manufacturing. The flexible architecture of 5G will make the online changes possible. Private communication networks will be necessary for manufacturing as security will remain an ongoing issue to be resolved. Latency features of 5G and network slicing will be useful for smart manufacturing. Existing communication platforms are adequate for now while 5G will cater to future needs. While there is currently no communication standard for RF frequencies, which creates a mess, machine type communication has been discussed and now is in draft status. Radio communication requirements and how to integrate these needs of smart manufacturing in 5G technologies are now under discussion. 4. Digitalisation will enable Servitisation Servitisation is about adding new services to existing manufacturing methodologies. Virtualisation, online data services supported by IoT and cloud technologies will change the nature of manufacturing and move it towards servitisation each and every day. Virtualisation and online systems will also change how we manufacture, from manufacturers supplying machines to supplying proper working machinery as a service. The many changes are not all related to technology, such as financing these services and the obvious need for a new business model. For servitisation, a totally digital environment and a common language between partners and components are needed. Once servitisation is enabled by digitalisation, manufacturing will be based on services. 5. Security will not be a show stopper but… Security is key, so doing nothing is to take most insecure action. Security by design will be the model to make systems safe, and security will adopt a system approach. Cybersecurity is fine so long as all the data is kept internal or when systems are separated physically in the automotive industry. Some manufacturers connect their factories with each other and its partners in the outside world. Although this is costly, it helps to organise things better. Connecting is not only a security issue but it also creates data ownership conflicts. There is no ubiquitous legislation that defines the owner and location of data, and the policies differ from country to country. However, despite all the legal issues and potential attacks from hackers, security is not a showstopper. 6. Future of Smart manufacturing is in open source Open source enables direct technology transfer between academia, SMEs and industry. Whenever there is a new concept or a new algorithm, it is openly shared by industry via open source and that shortens time to market. The main risk is continuity of support for open source platforms. 7. More people with new skills is needed… Nowadays, students in primary schools learn reading, writing and coding so our future is safer. For the needs of today, companies collaborate with universities and establish new disciplines in universities. Also companies create either their own universities or use e-learning systems to train their employees.

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Smart Mobility Panellists

Moderators Main trends and conclusions resulting from the Smart Mobility workshop 1. The future of automated driving is founded on must-have safety and security

There is a need for trust throughout the entire ecosystem and across different cultures. This concerns dealing simultaneously with a high level of security, privacy protection and functional safety, embedded in and thanks to a multi-stakeholder dialogue. So in order to achieve this, multiple layers of protection, at different levels in the system, must be created in a kind of ‘Defence-in-Depth’ provision. 2. A system safety perspective based on iterative field observations

Design methods and approval processes require a specification language to create scenario catalogues, validation and verification methods for design methods and approval processes, thereby enabling perfect and complete observation and standardised representation for better exchange and proof. The aim is to base type approval on iterative field observations. Furthermore, a public accredited trust centre will enhance the approval and release of processes as well as their evolution.

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3. Digitising Mobility – putting connectivity before automation

This relates to the multimodal traveller (both passengers and goods) and concerns the integration of data from the static to the highly dynamic, and achieving high-precision localisation and (wireless) communication V2X for all road users. It needs highly reconfigurable hardware platforms to be associated with hardware-agnostic software platforms, essentially prioritising connectivity above automation. The goal is to be able to embed diagnostic capabilities in the infrastructure. 4. Embracing the synergies of automation and electrification to produce service and sharing models

In tackling the major challenge of decarbonising transport, the same technology of nanoelectronics, sensors, embedded systems will be deployed and exploited in the domains of automation and electrification. This will happen in urban and highway scenarios, from high-tech to economy vehicles, and in the private, public and commercial sectors. Ultimately, the aim is to be able to implement successful service and sharing models in an economically feasible and profitable way. 5. The application of automotive technology for societal benefits in the Netherlands

In the huge amounts of data (100 TB/h) generated by ECUs and code lines (100x the Boeing 747) and in the context of ‘outsmarting’ the driver/human, both the technological and societal impact must be understood and tackled. To this end, society-wide cooperation between knowledge institutes, industry and government within this context is essential. In the Netherlands, there are various initiatives (such as Amsterdam) for implementing the societal benefits of automotive technology based on a pragmatic approach.