Business and Society in the Digital Age

EFAA International ConferenceAt the Wirtschaftsprüferkammer, Rauchstrasse 26, Berlin, Germany

BDI – The Voice of German Industry

Prof. Dieter Kempf

June 8, 2017

Industrie 4.0, Industrial Internet or Society 5.0?

End of 18th century

1st mechanical loom in 1784

First Industrial Revolution

First mechanical looms driven by

water or steam

First assembly line in the

slaughterhouses of Cincinatty

1870

Second Industrial Revolution

Electric Energy allowed a totally

new way of production

Beginning of 20th century The late seventies of the

20th century

today

Computer Numerically Controlled

(CNC) machines, Modicon 084,

1969

Third Industrial Revolution

Electronic and IT allow an

improved way of production

Fourth Industrial Revolution

Cyber Physical Systems and the

Internet of Things

Time

Complexity

Source: BITKOM

Professor Dieter Kempf June 8, 2017 Page 2

Industrie 4.0

Example: Value Creation Chain in Automotive Production

Quelle: BITKOM

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A Value Creation Chain is developing to a Value Creation Network

IoT allows the communication between everysingle item involved in production within theplant as well as the communication to thedevelopment teams of the supplier, the forwardshipping agents and also the preventivemaintenance data, etc.

The digital transformation in production is muchmore a question of processes rather than a question of digitised products!

Source: https://www.bitkom.org/Themen/Branchen/Industrie-40/Perspektive-der-Arbeit.html - Stand: 26.09.2016

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Humans and robots as a team

Humans and robots are working hand-on-hand in the smart factory due to a totally

new generation of robots

Inflexible automation is substituted by a totally

flexible definition of co-working-spaces

between humans and robots

Robots can work as hand-in-hand assistants of

humans

Improve efficiency and create new workplaces

Source: http://www.kuka-robotics.com/germany/de/products/industrial_robots/sensitiv/lbr_iiwa_7_r800/start.htmas of: 28.09.2016

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Additive Manufacturing substitutes traditional ways of manufacturing metals

Artificial human knee. Individual prototype (left) printedfrom plastic material in 3-D. The final product (right) printed by a Laser-Sinter-3D-Printer instead ofconventional production made from cast iron.Source: BrandEins 10/16 Page98, Reporting aboutAesculap AG

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Digital Transformation at the craftsmen

Example: Online-Shop selling individually created pieces of jewelry

Amoonìc sells jewelry which can be individually

designed by the customer using an online

configurator.

At a value exceeding 100 € the customer gets a

guarantee, that his product is a single-piece-product.

Monthly order volume is exceeding 1.000 orders,

mainly from the German speaking countries.

▪ All products are unique specimen produced with 3D-printing▪ Future technologies combined with excellent craftmanship end up

in top quality in Polyamid, Silver (925) or Gold.

Sources: http://www.amoonic.dehttps://stilnest.com/de_de as of 24.10.2016

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Digital Transformation at the craftsman

Science Fiction or Reality? The modern interior decorator

1. Measures the room in 3-D with his smartphone

2. Uses an online configurator to allow the customer to select floor,

wall-painting, curtains, etc.

3. Furniture which shall stay is pictured and included in the digital

twin of the room

4. All items are selected online, quantities and prices calculated in

realtime

5. Order entry made by finger print or Smartcard-ID

6. …and so on

See the change for the craftsmen? And what about his accounting data?

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What is changing your Business Model?

New Portals or Platforms?

Quelle: Anzeige im Handelsblatt vom 27./28./29. März 2015, Nr. 61

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Bianca Heinicke runs „Bibis Beauty Palace“ , Hereshe publishes hits for fashion, cosmetics, etc.Her channel has 3,8 Mio followers and she createsadvertising revenue of approx. € 4.700 per day.

Influencer on Youtube!?

Konstantin („Konzi“) Hert runs „Freekickerz“. Approx. 4,8 Mio. „Followers“ watch his films withfootball training sessions and test of sports shoesand fashion. He creates adverstising revenue ofapprox. € 3.500 per day.

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Are Frey/Osborne right?

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THE FUTURE OF EMPLOYMENT: HOW SUSCEPTIBLE ARE JOBS TO COMPUTERISATION?Carl Benedikt Frey and Michael A. OsborneSeptember 17, 2013

Are Frey/Osborne right?

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THE FUTURE OF EMPLOYMENT: HOW SUSCEPTIBLE ARE JOBS TO COMPUTERISATION?Carl Benedikt Frey and Michael A. OsborneSeptember 17, 2013

Rank Probability soc. Code Occupation

1 0,002829-1125 Recreational Therapists

:::

243 0,3133-9021 Private Detectives and Investigators

:::

589 0,9413-2011 Accountants and Auditors

:::

695 0,9913-2082 Tax Preparers

:::

702 0,9941-9041 Telemarketers

Tax the Robots !!!

Post-Chef Frank Appel will eine Robotersteuer: „Man könnte zum Beispiel bei Arbeit, die von Menschen geleistet wurde, auf die Mehrwertsteuer verzichten – und nur die Arbeit von Robotern besteuern.“ So sein Vorschlag in der „Welt am Sonntag“.(Quelle: https://www.welt.de/wirtschaft/article159228215/Wenn-der-Mensch-Briefe-

sortiert-laeuft-etwas-falsch.html; Stand vom 12.03.2017)

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Arbeit 4.0 or Society 5.0

Digital Competencies are a must!

Source: BITKOM Jahresbericht des Präsidenten 2016

German Minister Wanka (10.10.2016):

„I want to make schools fit for the digital age.“

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Importance of Digital

Competencies:

• 87% as important as

social skills and specialist

skills

• 4% digital competencies

will be the most important

skills of workers

• 7% digital competencies

will be of minor

importance

• 2% do not know

Digital Transformation – what do we have to do?

June 8, 2017Professor Dieter Kempf Page 15

▪ Improve digital competencies

▪ Improve broadband digital infrastructure – also in rural areas

▪ Convince the SMEs and let them learn by best practice showcases

▪ Improve Safety and Security of Data with International rules and regulations and efficient

technical measures

▪ Assure data privacy by a modern approach of data sovereignty rather than by data poverty

▪ ….

Thank you very much!