This document discusses the readiness of engineering intensive industries for the fourth industrial revolution (Industry 4.0). It finds that the majority of plant engineering companies and plant operators are not fully prepared. Several barriers to readiness are identified, including a lack of standardized and modularized products/processes, isolated digital tools, and document-driven rather than data-driven approaches. The document argues that companies must recognize Industry 4.0 as a revolution and rethink their business models for the digital era through assessing readiness, creating a digital vision, and executing long-term transformation plans.

1. Wake Up!
Digital revolution readiness
of engineering intensive industries
Dr. Clemens Eckert, maexpartners

2. 2
Steam, water,
mechanization
First mechanical
loom
First conveyor belt,
Cincinnati
slaughterhouses
Electricity, mass
production
First programmable
controller (SPS),
Modicon 084
Microprocessors;
automatization
Cyber-physical systems;
big data; autonomous
production
1 2 3 4
First smart factory
solutions
1784 1870 1969 2010’s
Let’s get theory out of the way:
Industry 4.0 – the fourth industrial revolution

3. Steam, water,
mechanization
Important milestones*
3
Electricity, mass
production
Microprocessors;
automatization
Cyber-physical systems;
autonomous production
* There‘s more; these two are
chosen to make a point
Standardization and
modularization
2.5
Digitally integrated
workflows
3.5
indicate ability to cope with the next revolution
1 2 3 4

4. So how about
„Industry 4.0 Readiness“
4
within
engineering
intensive
industries
?

5. Our assessment:
5
WAY TO GO.
Products far from being standardized
and modularized
Digital tools in many cases are isolated
applications
Processes not fully digitalized; without
real end-to-end responsibility
Variability and complexity not properly
managed
Document driven approach (instead of
data driven)
Disruption potentials left and right
…

6. Well prepared
7% 10%
83%
Not prepared
Partly prepared
28%
67%
5%
Not prepared
Well
prepared
Partly prepared
6
Plant engineering companies Plant operators
maexpartners / VDMA study 2015*:
Self-evaluation Industry 4.0 readiness
90% not prepared / partly prepared 72% not prepared / partly prepared
* Joint study „Industrie 4.0 im Industrie- und Anlagenbau –
Revolution oder Evolution“ by VDMA and maexpartners

7. 7
3%10-25%
17%
5-10%
>25%
<5%
24%
56%
10%
Equipment supplier
Plant operation
Service provider
23%
20%
Plant engineering
42%
What about new digital business models?
Additional revenue through new
(digital) business models in 2020
Chances for new digital business models
80% below 10% additional digital business
* Joint study „Industrie 4.0 im Industrie- und Anlagenbau –
Revolution oder Evolution“ by VDMA and maexpartners
maexpartners / VDMA study 2015*:

8. 8
Where we will be in ten years
companies will utilize “digital”
processes in some wayAll
40% of today‘s businesses will be
out of existence
(Almost)
additional revenue created
through digital transformation$19 trillion
1
neurosynaptic CPU will
match the capacity of the
human brain
devices connected to the
internet500 billion digitally driven transformation
initiatives will failMost

9. 9
Uber, the worlds largest taxi
company, owns no vehicles
Facebook, the worlds most
popular media owner,
creates no content
If YOU don‘t re-invent your business,
somebody else will
Alibaba, the most valuable
retailer, has no inventory
Airbnb, the worlds largest
accommodation provider,
owns no real estate
… and please don‘t think
your business is different.

10. So what needs to happen?
10
Recognize that Industry 4.0 is a
revolution that will
impact your business
Stop digitally complementing your company‘s existing
business model, but start
re-thinking it for the digital era!

11. Basically you are facing a
two-stage challenge
11
Create Industry 4.0
readiness
Set out towards the
digital era
 Assess your Industry 4.0
readiness
 Plan what needs to happen
 Execute.
 Asses your digital disruption
opportunities and threads
 Create a compelling vision for your
business within the digital era
 Ensure C-level commitment
 Create a short term / mid-term /
long-term execution plan
 Do.
(and yes, we can help with those)

12. Infrastructural /
technical change
12
Digital process &
organizational
structure re-design
Organizational
mindset change
Compelling vision
and commitment to
change on C-level
Digital transformation is a
holistic approach
These are (relatively) easy to do Challenging Hardest

13. Changing the organizational mindset:
13
Control Empowerment
Hierarchy; silos Network; co-operation
Engineering in
consecutive,
self-contained phases
Trial & Test
Protection Transparency
Process orientation Result orientation
Document driven Data driven

14. Would you like to know more about
assessing readiness criteria
and disruptive challenges for
engineering intensive
industries?
Could you use some
inspiration for a compelling
digital vision?
Do you wonder how to take your
organization with you into the
digital era?
Stay tuned ;-)
14

15. Our coordinates:
15
51°14'02.4"N 6°49'07.6"E
maexpartners GmbH
Grafenberger Allee 277 - 287
40237 Duesseldorf
Germany
Phone: +49 211 598 396 83
Fax: +49 211 598 396 85
Dr. Clemens Eckert
Partner
Phone: +49 173 543 4082
Mail: clemens.eckert@maex-partners.com
LinkedIn: https://de.linkedin.com/in/dreckert
Twitter: @clemens_eckert
www.maex-partners.com
@clemens_eckert
https://de.linkedin.com/in/dreckert
clemens.eckert@maex-partners.com

16. At the end,
16
What will characterize the fifth industrial revolution
We would love to hear from you.
one question for you:
?
This presentation contains shutterstock materials from the following artists:
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Studio, Scirocco340, Shaun Derby, vitstudio, wavebreakmedia, Who is Danny, Lanzelot