digital readiness for global opportunitiesopportunities of digitalization at the company level...
TRANSCRIPT
June 13, 2017, Cologne
Dr Vera Demary
Digital Readiness for Global Opportunities
Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
Page 2
Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
Page 3
The importance of the digital transformation
Source: Google Trends, 2017
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Google searches for “digital transformation” worldwide, relative to the highest number of
searches during the period
Digital Readiness for Global Opportunities
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The role of manufacturing in Germany and Japan
Source: OECD, 2017
0
5
10
15
20
25
30
35
40
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Germany Japan United States Korea United Kingdom Euro area
Industry activity as a percentage of gross value added
Digital Readiness for Global Opportunities
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Digitalizing manufacturing
Consumer demands
Scarceresources
Frame-work
Manufacturing industry
DigitalizationIndustry 4.0
Digital Readiness for Global Opportunities
Page 6
Source: Wikimedia Commons
World shipping routes, 2012 World airline travel, 2009
Business as we know it
Digital Readiness for Global Opportunities
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Business tomorrow?!
Source: Pixabay
Digital Readiness for Global Opportunities
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Digitalization – An international perspective
Index from 0 (no digitalization) to 100 (high degree of digitalization), 2015
Source: WEF, 2015
0 10 20 30 40 50 60 70 80
Overall digitization index
Topics:
Infrastructure
Private use
Business use
Public use
Economic impact
Societal impact
Germany Developed countries
Digital Readiness for Global Opportunities
Page 9
Digitalization – Where do we stand today?
Source: Wikipedia, 2017
Digital Readiness for Global Opportunities
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Opportunities of digitalization at the company level
Source: Demary et al., 2016
Efficiency andproductivity
Improved use of input resources, raw materials, energy
Improved control of value-added chains
Flexibility andtransparency
Flexible production processes, batch size 1
Transparent production processes
Digital businessmodels
Increased benefits for customers
Increasing importance of online platforms
New productsand services
Anything as a service (XaaS)
Greater differentiation of product and service portfolio
Selected opportunities
Digital Readiness for Global Opportunities
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Challenges of digitalization
Standards
Infrastructure
• Broadband internet
• Submarine cables
• Frequencies for mobilecommunication
Applications
• Software
• Cloud
• Apps
Users
• Companies
• Public administration
• Private consumers
Selected challenges
Digital Readiness for Global Opportunities
Page 12
Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
Page 13
Industry-4.0-Readiness
58,2
30,9
8,6
1,7
0,6
0,0
55,0
28,3
13,4
2,9
0,4
0,0
00 10 20 30 40 50 60 70
Outsider (Level 0)
Beginner (Level 1)
Advanced (Level 2)
Skilled (Level 3)
Expert (Level 4)
Excellence (Level 5)
2016 2015
Percentage of surveyed companies, only companies with at least 20 employees in the
manufacturing sector
Source: IW Consult, 2015, 2016
Digital Readiness for Global Opportunities
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Opportunity versus risk in Industry 4.0
57,1
22,917,5
5,4
25,4
71,7
Disruptive digital transformation. Continuous digital transformation.
More risk than opportunity Balanced More opportunity than risk
Percentage of the companies in the manufacturing industry, depending on the type of digital
transformation, 2015
Source: IW Köln/IW Consult, 2016
Digital Readiness for Global Opportunities
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What German companies expect from Industry 4.0 until 2020
Increase of revenue
• 12.5 % over 5 years
Necessary investment
• 40.1 bn. euro annually
Machinery and plant engineering, automotive, process industry, electrical and electronic
industry, ICT, 2015
Source: PWC, 2015
Digital Readiness for Global Opportunities
Page 16
Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
Page 17
Conclusion
The future is already here.William Ford Gibson
You cannot step twice into the same stream.Heraclitus of Ephesus
Change before you have to.
Jack Welch
Digital Readiness for Global Opportunities
Page 18
Contact
Dr Vera Demary
Head of the Research Unit “Structural
Change and Competition”
+49 221 4981-749