RoundtableICT E INDUSTRIA

Il contributo dell’Italia al dibattito in Europa in vista del G7 Innovation Week di Torino

16 giugno 2017 Piazza dei Santi Apostoli 66, Roma

Global trends in manufacturing (1/2)

2Source: I‐Com elaboration on United Nations National Accounts Main Aggregates Database data

Manufacturing added value as percentage of Gross Domestic Product, 2015

Global trends in manufacturing (2/2)

3

0

500

1000

1500

2000

2500

3000

3500

Source: I‐Com elaboration on United Nations National Accounts Main Aggregates Database data

Leading Countries, Added Value in Manufacturing – billion dollars (2015)

‐15%

5%

25%

45%

65%

85%

Change in Added Value in Manufacturing, 2008‐2015

EU manufacturing trends

4Source: I‐Com elaboration on Eurostat data

Export of all products – billion euros (2016)

Export of all products ‐ unit value index (2010=100)

0

200

400

600

800

1000

1200

1400German

yNethe

rland

sFran

ceIta

lyUnited King

dom

Belgium

Spain

Poland

Czech Re

public

Austria

Swed

enIre

land

Hung

ary

Denm

ark

Slov

akia

Roman

iaFinlan

dPo

rtug

alSlov

enia

Greece

Bulgaria

Lithua

nia

Luxembo

urg

Croa

tiaEstonia

Latvia

Malta

Cyprus

95

100

105

110

115

120

2010 2011 2012 2013 2014 2015 2016

Germany Spain France

Italy Netherlands United Kingdom

The intake of technology in industryEU vs. rest of the world

5Source: IFR ‐ national robot associations

Yearly shipments of multipurpose industrial robots in selected countries

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

Brazil NorthAmerica

China India Japan Republicof Korea

Europe France Germany Italy Spain UnitedKingdom

Africa

Number of units ‐ 2015 Global share ‐ 2015 Estimated share ‐ 2019

The benefit of digitalization on industry (1/2)

6Source: I‐Com elaboration on Prometeia data

Export and production for consumer goods vs. high‐tech ‐ Italy

60

70

80

90

100

110

120

130

140

150

160

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

technological Made in Italy ‐ export Made in Italy for consumer goods ‐ export

technological Made in Italy ‐ production Made in Italy for consumer goods ‐production

The benefit of digitalization on industry (2/2)

7Source: I‐Com elaboration on Prometeia data

ROS, ROI and Added Value for Italian companies that invest or not in 3D and robots

0

2

4

6

8

2007 2009 2012 2013 2014

ROS with Investment in 3D and robots

ROS with No investment

0

2

4

6

8

10

12

2007 2009 2012 2013 2014

ROI with Investment in 3D and robots

ROI with No investment

15

20

25

30

2007 2009 2012 2013 2014

Added value with Investment in 3D and robots

Added value No investment

IoT deployment

8

0

25

50

75

100

Cloud computing of medium‐highsophistication

Rfid

ERP systems

CRM systems

SCM systems

Big Data analyticsEU 28

UK

Spain

France

Germany

Italy

0

3

6

9

12

15

0

20

40

60

80

100

M2M connections

M2M sim cards/100 inhabitants (left axis) M2M sim cards (in million; right axis)

NGA coverage

9

0

10

20

30

40

50

60

70

80

90

100in %

2017

2014

y = 0,1369x ‐ 2,3181R² = 0,3402

0

4

8

12

16

40 60 80 100

Enterpris

es ana

lysing

 big data

NGA coverage

5G technological features

10

data rates up to 100 times faster (more than 10 Gbps)

network latency lowered by a factor of five

mobile data volumes 1,000 times greater than today

battery life of remote cellular devices stretched to 10 years or more

increase of the number of devices connected to the network (1 mill. per 1 sq. km)

possible use of several bands from 400 MHz to 100 GHz

5G Revolution

5G revolution.“5G Empowering Vertical Industries” by 5G-PPP

11

Manufacturing industry connected goods energy saving processes collaborative robotics integrated logistics new production models and professionalism.Industry 4.0 is focused on the “smart factory” conceptwhich includes smart production, smart services andsmart energy

Transport sector  advanced driver assistance systems (up to

complete autonomous driving cars) multimodal transport solutions information on the road traffic control systems

Healthcare additional services such as “Personalized 

Medicine”  IoT and Big Data will support integrated care 

models including billing and future universal care accounts

chance for patients to take control of their healthcare and allocate resources in accordance with their perceived needs

assets and intervention management in Hospitals robotics remote monitoring  smarter medication

Energy sector  smart grid applications smart meter application

Media and Entertainment multi‐language and interactive contents and

formats new types of services for content distribution for

every type of device.

5G European roadmap

12

“5G for Europe: an Action Plan” (14.9.2016)

8 ACTIONS:

1) preliminary trials from 2017 and pre‐commercial trials with a clear cross‐border dimension from 2018, adoption by Member States of national 5Gdeployment roadmaps and the identification at least one major city to be “5Genabled” by the end of 2020;

2) identification by the end of 2016 of a list of pioneer spectrum bands for theinitial launch of 5G services;

3) adoption of an agreement around the full set of spectrum bands (below andabove 6GHz) to be harmonised for 5gdeployment of commercial 5G networksin Europe;

4) identification of actionable best practice to facilitate denser cell deployment;5) promotion by the end of 2019 of 5G standard’s availability, the

standardisation on radio access and core network challenges and theconclusion of cross‐industry partnerships;

6) technological experiments to realize as early as in 2017 and detailed roadmapsby March 2017 for the implementation of advanced pre‐commercial trials;

7) 5G infrastructure’s usage to improve the performance of communicationservices used for public safety and security in Member States;

8) Identification of assumptions and modalities for a venture financing facility.

Skills, skill gap and the impact on the labor market (1/2)

13

5,6%

2,8%2,1%

10,7%9,4%

2,0%2,8% 2,5%

1,7%0,8%

3,0%

0%

2%

4%

6%

8%

10%

12%

14%

0

200

400

600

800

1.000

1.200

1.400

Data workers

2016 (in thousands) 2016,  % on total employment (*)

0

5

10

15

20

25

30

35

40

45

Ireland

Austria

Luxembo

urg

Nethe

rland

s

Denm

ark

Spain

Hung

ary

Finlan

d

UK

German

y

Czech Re

p.

EU 28

Slov

akia

Malta

Slov

enia

Italy

Fran

ce

Croa

tia

Bulgaria

Swed

en

Cyprus

Portug

al

Latvia

Lithua

nia

Estonia

Poland

Roman

ia

in %

Enterprises that employ ICT specialists

Manufacturing Total

Skills, skill gap and the impact on the labor market (2/2)

14

0%

4%

8%

12%

0

4.000

8.000

12.000

2016 2020

in th

ousand

s

Data workers skill gap in EU

Demand (left axis) Supply (left axis) Data workers skill gap (right axis)

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

Poland Italy Spain UK France

Data workers skill gap in the Big 5 countries

2016

2020

According to the ISO definition, standards are documents, established by consensus and approved by a recognized body, that provide for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context

Standards lead to cost reduction or cost savings derived mainly from economies of scale, the possibility to anticipate technical requirements, the reduction of transaction costs and the possibility to access standardised components. They increase productive and innovative efficiency, improve market access and increase competitiveness

Standards ensure the exchange of data between machines, systems and software within a networked value chain

If data and communication protocols are proprietary or only recognized nationally, only the equipment of one company or group of companies will be compatible, and thus, competition and trade can be expected to suffer and costs rise. On the other hand, independent, commonly agreed, international standard communication protocols, data formats and interfaces can ensure interoperability across different sectors and different countries, encourage the wide adoption of Industry 4.0 technologies, and ensure open markets worldwide.

Interoperability is essential for the deployment of the IoT and the seamless flow of data across sectors and regions.

Therefore, standards can provide safety and reliability, support of government policies and legislation, interoperability, business benefits and consumer choice

15

Standardisation and interoperability

Standards success stories

16

GSM  UMTS  4G

Smart cards

Power plug and outlet socket

Wiring colours

JPEG & MPEG compression standardsDECT

17

Standardization bodies

Complex products and systems are often based on multiple standards from several standards‐making organizations, or on requirements published by industrial fora. Collaboration between standards groups is therefore vital.

International level

National level

European level

IEC

ETSI

TLC domain All domains Electrotechnical domains

CENELEC

ISO

CEIUNI

ITU

CEN

The European strategy for standardisation and interoperability

April 2016: Communication of the EC on ICT Standardisation Priorities for the Digital Single Market. Proposal to focus on 5 priority areas: 

5G √ Internet of Things Cloud Computing √ Cybersecurity  Data technologies 

Action in these areas can accelerate digitisation and have an immediate impact on competitiveness in domains such as eHealth, intelligent transport systems and connected/automated vehicles, smart homes and cities, and advanced manufacturing.

A European Multi Stakeholder Platform on ICT Standardisation has been set up to advise the Commission on matters relating to the implementation of ICT standardisation policy, 

June 2016: Communication of the EC on European standards for the 21st century sets out EC’s vision for a single and coherent European Standardisation System that adapts to the changing environment, supports multiple policies and brings benefits and predictability to consumers and businesses. The package includes:‐ a Joint Initiative on Standardisation: a dialogue process which brings together stakeholders (industry, institutions, consumers, unions…). The partnership will develop concrete actions to better prioritise, speed up and streamline standardisation work by the end of 2019.‐ the Annual Union Work Programme for 2017, setting out priorities in European standardisation for the next year. 

18

Cyber security

19

0

10

20

30

40

50

60

Swed

enPo

rtug

alIta

lyIre

land

Croa

tiaMalta

Slov

akia

Denm

ark

Cyprus

Finlan

dSp

ain

Slov

enia UK

Czech Re

p.EU

 28

German

yNethe

rland

sAu

stria

Fran

ceLuxembo

urg

Roman

iaBu

lgaria

Estonia

Latvia

Poland

Hung

ary

%

Enterprises had a formally defined ICT security policy (2015)

All enterprises

Manufacturing

0

5

10

15

20

25

30

35

40

45

EU 28 Germany Spain France Italy UK

%

Enterprises with a ICT security policy, by risk addressed

Destruction or corruption of data

Disclosure of confidential data

Unavailability of ICT services due to an attack fromoutside

Cyber security – Regulatory issues

20

1) INCREASING CYBERSECURITY CAPABILITIES AND COOPERATION

Cybersecurity capabilities need to be brought at the same level of development in all the EU Member Statesand ensure that exchanges of information and cooperation are efficient, including at cross-border level

2) MAKING THE EU A STRONG PLAYER IN CYBERSECURITY

Europe needs to be more ambitious in nurturing its competitive advantage in the field of cybersecurity toensure that European citizens, enterprises (including SMEs), public administrations have access to the latestdigital security technology, which is interoperable, competitive, trustworthy and respects fundamental rightsincluding the right to privacy. This should also help take advantage of the booming global cybersecuritymarket. To achieve this Europe needs to overcome the current cybersecurity market fragmentation and fosterEuropean cybersecurity industry

3) MAINSTREAMING CYBERSECURITY IN EU POLICIES

There is a need to embed cybersecurity in the future EU policy initiatives from the start, in particular withregard to new technologies and emerging sectors such as connected cars, smart grids and the Internet ofThings (loT)

Cyber security – EU actions

21

• EU Cybersecurity Strategy (2013), setting 5 priorities: Increasing cyber resilience Drastically reducing cybercrime Developing EU cyber defense policy Developing the industrial and technological resources

for cybersecurity Establishing a coherent international cyberspace

policy for the EU

• European Agenda on Security (2015), focused onimplementing existing policies on cybersecurity and attacksagainst information systems, combatting fraud andcounterfeiting of non-cash means of payments, reviewingobstacles to criminal investigations on cybercrime andenhancing cyber capacity building action

• Digital Single Market Strategy (2015), including a PPPsigned, in 2016, by the Commission and the European CyberSecurity Organization (ECSO), aimed at helping overcomecybersecurity market fragmentation

• Communication on strengthening Europe’s cyberresilience System and fostering a competitive andinnovative cybersecurity industry (2016), aimed at steppingup cooperation across Europe, supporting the emerging singlemarket for cybersecurity products and services in the EU andestablishing a contractual PPP with industry

• Regulation on electronic identificationauthentication and signature (EIDAS) (2014),entered into force on 17 September 2014(applicable starting from July 2016), in the field ofelectronic identification and trust services forelectronic transactions in the internal market

• General Data Protection Regulation (2016),entering into force on 24 May 2018 and repealingDirective 95/46/EC

• Network and Information Security (NIS)Directive (2016), concerning measures for ahigh common level of security of network andinformation systems across the Union

European Commission European Parliament

The EC approach to Industry 4.0

The European Commission launched on 19 April 2016 the first industry‐related initiative of the Digital Single Market package. The European Commission will> Help coordinate national and regional initiatives on digitising industry by maintaining a continuous 

EU‐wide dialogue with all actors involved. A governance framework will be set up with Member States and industry. 

Focus investments in EU's public‐private partnerships and strongly encourage the use of the opportunities offered by the EU Investment Plan and European Structural and Investment Funds. 

Invest €500 million in a pan‐EU network of digital innovation hubs (centres of excellence in technology) where businesses can obtain advice and test digital innovations. 

Set up large‐scale pilot projects to strengthen internet of things, advanced manufacturing and technologies in smart cities and homes, connected cars or mobile health services. 

Adopt future‐proof legislation that will support the free flow of data and clarify ownership of data generated by sensors and smart devices. The Commission will also review rules on safety and liability of autonomous systems. 

Present an EU skills agenda that will help give people the skills needed for jobs in the digital age.  Overall, the EC’s plans should mobilise up to €50 billion of public and private investments in 

support of the digitisation of industry. €37 billion investment to boost digital innovation. €5.5 billion national and regional investments in digital innovation hubs. €6.3 billion for the first production lines of next‐generation electronic components. €6.7 billion for the European Cloud Initiative.

22

Digitising Europe Industry

Source: European Commission 23

To facilitate coordination of European, national & regional initiatives

Mainstreaming digital innovation across all sectors:Setting up a pan‐European network of Digital Innovation Hubs

Strengthening leadership in digital technologies• Public‐Private Partnerships• Industrial platforms• Large scale pilots & test beds

Preparing People for the digital age: Skills & Training

Regulatory framework:• Free flow of data & data ownership• Safety & liability of  autonomous systems & Internet of Things

Challenges & opportunities of the Internetof Things

CLOUDEuropean Cloud Initiative in a data‐driven economy:• European Open Science Cloud• European DataInfrastructure• Widening access& building trust

STANDARDSFast developmentin 5 priority areas:• 5G• Cloud Computing• Internet of Things• Data Technologies• Cybersecurity

DIGITAL PUBLIC SERVICESeGovernment Action Plan:• New Digital Single Gateway• eJustice Portal• “Once‐only” principle inAdministrations• Cross‐border Health services• eProcurement & “Once‐only” in public procurement

To focus investments (Horizon 2020, EU Investment Plan, EU Structural & Investment Funds, national & regional funds, private sector)

MOBILISING €50bn of public & private investments

List of National Initiatives active in May 2017

Source: European Commission 24

Industry 4.0 national plans in France, Germany, Italy and UK

25

FranceIndustrie du FuturCentral government steering the process which involves investing in technologies and devising industrial strategies compliant with I4.0 guidelines.Main initiatives:• Employees training• Fiscal benefits for private investments• Facilitated financing for SMEs (€2,5B tax incentives 

and €2,1B loans)• Tax credit for research expenditure• Project financing

GermanyIndustrie 4.0Strategic plan shouldered by the Federal government and with the involvement of the main firms in the industrial and technology sectorsMain initiatives:• Tax incentives bestowed to investments in hi‐tech 

start‐ups• Project financing and tax creditAreas of activities: legal framework, research and innovation, standards and norms, work education and training, security of networked systems

UKBuilding our industrial strategyGreen paper seeking comments from industry• Goals: increase labor productivity, improve access to 

capital and cultivate “world‐leading” sectors• 10 pillars: science, research and innovation; skills; 

infrastructure; business growth and investment; procurement; trade and investment; affordable energy; sectoral policies; driving growth across the whole country; and creating the right institutions to bring together sectors and places

• Industrial Strategy Challenge Fund to provide funding (£700M for the next 4 years). 

ItalyIndustria 4.0Government steering the strategy with universities, research centres, CDP, industry associations, unions. Private and public funding. Main initatives: • Innovative investments: stimulate private investments 

in R&D, I4.0 technologies and start‐ups via fiscal incentives and fund

• Skills: €900M investments in technical education& training and the creation of Innovation hubs

• Enabling infrastructures: €13.7B for the Ultra Broadband Plan, 

• Public instruments at support

Thank you!Giulia Berni

Silvia CompagnucciStefano da EmpoliGiusy MassaroMichele Masulli

Piazza dei Santi Apostoli 6600187 Romatel. +39 06 4740746fax +39 06 40402523

Rond Point Schuman 6 1040 Bruxellestel. + 32 (0) 22347882

info@i-com.it www.i-com.itwww.i-comEU.eu