Actyx. Exploiting Digital Industry

© Actyx. All Rights Reserved.
Version:
Published:
Release:
Exploiting Digital Industry
1.4.2
21/09/2015
Public

Why is it important?
Digital Industry

A backbone of the European economy
the highly-successful manufacturing Mittelstand
that through generations of continuous innovation
has developed the best processes and products and
kept the competition at bay on a global scale
is under threat by digitalization!
Retail:
Entertainment:
News:
Digitalization is a disruptive force:
New paradigm of
intelligent intra-
logistics
One of the most
innovative cars in
the world
© Niels de Wit from Lunteren
© Wired
It has already started in traditional
European industries:

1) No disruption
• The Mittelstand successfully innovates
• European manufacturing remains competitive
• Established technology suppliers (Siemens, SAP, etc.) thrive
2) Disruption
• Is the Mittelstand taking enough initiative?
• Will manufacturers prevail in a disruptively digital world?
• Are technology suppliers providing digital base-technology?
Europe
prepared
Challenge
for Europe
The Digital Industry trend has two potential outcome scenarios. Is
Europe prepared for a disruptive digital future?
• Strengthening of the “Mittelstand”
• Manufacture new generation smart products
• Grow market-share in globalized world
• Develop key digital expertise
• Ensure sustainable success in the digital world
Europe should become
Digital Industry pioneer!

How can you become a Digital
Industry pioneer?

Executive Summary
1 Digitalization is coming 2 How to exploit it 3 How Actyx helps
Market
pull
Technology
push
Product variety ↑
Product lifecycle ↓
→ Production
complexity
Cost of:
• Software
• Hardware
• Communication
Value proposition of digital industry:
A Increasing operational efficiency
[short-term]
B Business models innovation
[long-term]
↑
↑
A Uncertainty in innovation
B Interdisciplinary talent
C Change management
Digitalization
↳ Disruptive innovation
↳ Uncertainty
→ Leverage agile development in
order to control radical innovation
Digitalization → interdisciplinary talent
1). Manufacturing talent
2). Digital talent:
• Highly competitive market for
digital talent
• Culture/workplace must be
adapted to the idiosyncratic
needs of this talent pool
Co-operative innovation projects
with Mittelstand manufacturers
- Interdisciplinary talent
(connectivity, software, analytics)
- Agile development methodology
- Change management process
- Manufacturing expertise
- Application scenario
- Desire to innovate
Manufacturer
↳ Value proposition:
1 Increase in operational efficiency
2 Business model innovation
3 Digital spill-over
4 Brand recognition
Develop a comprehensive change
management strategy to successfully
exploit digitalization

Reading information: audience, motivation, content and reading
The intended audience of this guide are manufacturers interested in developing a digital
transformation strategy for their business.
The goal of this guide is to help you develop a strategy for exploiting the disruptive potential of digital
technologies in manufacturing. Digitalization will change what products and services we deliver and
how we make/deliver them. Broad changes are imminent. Successfully transitioning to a digital
industrial company requires a multi-dimensional approach.
We present digitalization, its roots, its value proposition, its potential impact and the fact that it has
already started changing manufacturing. We introduce the three main components necessary to
exploit it: (1) an understanding of disruptive innovation, (2) a appreciation for highly contested digital
talent, and (3) an awareness regarding the necessity for effective change management. Finally, we
discuss what Actyx does and how Actyx could help you digitalize your manufacturing company.
This is not a traditional presentation but a stand-alone slide-deck meant for individual reading. It is
dense and certain sections should be skipped if they are not of immediate interest.
Audience
Motivation
Content
Reading

1 Digitalization is coming
2 How to exploit it
A Uncertainty in innovation
B Interdisciplinary talent
C Change management
3 How Actyx helps
Contents

Technology pushMarket pull
Market pull and technology push
Average purchase price of
individualized products: +28%
1/. “IoT basics: Getting started with Internet of Things”, Knud Lasse Lueth, IoT Analytics
2/. “Mastering product complexity”, Roland Berger, November 2012
3/. “Making it personal: Rules for success in product customization”, Bain & Company 2013
1997-2012:
Product variety across all
industries: +100%2
Product lifecycle: -50%2
Communication
cost of of bandwidth
Significantly reduced cost in digital
technology enablers over the last 10
years:
Customers are demanding more
individualized products, increasing
production complexity:
Hardware
cost of sensors -54%1
Software
cost of processing -98%1
-97%1
Drivers of digitalization in industry

Coca-Cola’s #shareacoke campaign
Campaign:
 Approx. 800 million labels printed2
 3000 different names in each country3
Results:
 Rise in sales (after 10 years of decline)4
 +7% consumption among young Australians5
VW hit by complexity
 Product variety has doubled in the 1997-2012 period8
 Fast expansion in production capacity
Consequence:
 Hardly-manageable complexity9
 Uncontrollable development costs9
Reaction:
 Certain models to be cut from portfolio10
 All options sold with less than 5% of vehicles to be
cut10
Two cases studies showcasing the limits of state-of-the-art manufacturing systems
Market pull: product variety is driving manufacturing complexity
”
“More than one-third [of surveyed
manufacturing executives] indicate that
manufacturing operations are increasingly
complex and almost 90% rate the need to
address the challenges of complexity at three or
above on a five point scale.”1
1/. “Five Factors in Optimizing Complex Manufacturing Operations”, M. Humphlett, IndustryWeek, February 2014
2/. “Coca-Cola gets personal with HP Indigo digital technology”, Hewlett-Packard, June 2013
3/. “Behind the scenes of ‘Share A Coke’”, Coca-Cola Enterprises, August 2014
4/. “’Share a Coke’ Campaign Grows Sales For First Time in 10 Years, WSJ Reports”, T. McQuilken, AdWeek, September 2014
5/. “’Share a Coke’ Credited With a Pop in Sales”, M. Esterl, WSJ, September 2014
6/. “Share a Coke push leaves a lasting legacy | Case study”, P. Chadwick, July 2013
7/. “Diet Coke Prints 2 Million Unique Labels in Latest Stroke of Packaging Genius”, T. Nudd, AdWeek, October 2014
8/. “Mastering product complexity”, Roland Berger, November 2012
9/. “Wie VW zehn Milliarden Euro sparen will”, N. Doll, Die Welt, November 2014
10/. “VW-Chef Winterkorn über sein Sparprogramm: "Vielleicht weniger Leiharbeiter", DER SPIEGEL, October 2014
11/. “New manufacturing platform headaches add to VW cost worries” (quoting Stefan Bratzel), A. Cremer, July 2014
Case Study
”“enormous production challenges”7
Case Study
”
“The pitfalls of complexity are
seemingly beginning to haunt VW.”11
Modern manufacturing systems and supply chains are highly complex
systems involving large numbers of specialized and interacting
components. Increasing product variance and, indeed, demand for
mass-customized products are putting traditional production technology
and methodology under strain.
 More than 100 people involved3
 One year of planning6

The value proposition of Digital Industry
Operational efficiency will increase and new business models enabled
Resources and processes
Improved processes will increase
productivity, reduce lead-times and
resource usage
Different technologies will permit increasing efficiency along different
dimensions. Some examples include:
Labor productivity
Labor productivity will be increased by
assistance systems and collaborative
robotics
Quality
Adaptive processes, digital traceability
and information sharing in supply-
networks will increase quality
Time-to-market
Integrated and collaborative product
development and real-time factory
feedback will reduce time-to-market
Asset utilization
Predictive and remote maintenance
and digital integration of equipment
and material suppliers will increase
utilization
Inventory
Increasing make-to-order and digitally
integrated supply-chain management
will reduce the need for inventory
Supply-demand match
Vertical customer-to-factory
connectivity and improved data-based
forecasting will facilitate matching
supply to demand
Service and aftersales
Customer integration, asset
transparency and traceability will
enable better services and improve
sales processes
Digital technologies will enable new business models for all
stakeholders in manufacturing value-creation networks.
These innovations will involve disruption (i.e. some KPIs
may be lower). The current four main business model
innovation trends:
Platforms
Examples: market for products, resource spot-markets, data-
management and “app” platforms.
Data
Examples: real-time data sale, knowledge sharing through
historical data sharing.
Intellectual property
Examples: IP licensing, design platforms.
Service
Examples: power-by-the-hour, make-to-order, analytics on
demand.
Digital industry will create value for manufacturers, for supply networks, for OEMs, for IPR-holders and all other
involved stakeholders in two main ways:
And many more yet to be invented …
A Increases in operation efficiency [short-term] B Business model innovation [long-term]

ETALEX using UR collaborative robot
Problem:
 Repetitive manual press loading (8 hours/day)1
 Significant accident risk2
Solution:
 Installation of Universal Robots’s UR10 robot
 Configured using intuitive teach-mode and
tablet2
Bosch Rexroth Industry 4.0 Assembly Line
Problem:
 Frequent manual reconfiguration necessary3
 High product variance (hydraulic valves)
Solution:
 Autonomous auto-configuring workstations4
 User-aware assistance system4
Initial pilot case-studies and roadmap
A Example for increasing operational efficiency
Case Study
40% increase in sales with
same number of employees2
1/. “Etalex. Robot technology improves safety and increases job satisfaction”, CaseStudy, Universal Robots
2/. “Collaborative Robot Helps Manufacturer Rack Up 40% Increase in Sales”, Tooling&Production, 2015
3/. “Sieger Industrie 4.0-Award 2014 Bosch Rexroth AG - Wie gelingt eine „Smart Automation“?”, ROI Management Consulting AG, February 2015
4/. “Industry 4.0 - Bosch Rexroth Multiproduktlinie”, Bosch Rexroth, May 2015
5/. “Gewinner des Industrie 4.0-Awards”, C. Wilk, Produktion, December 2014
The implementation of the Digital Industry
vision is in its infancy (see conservative
roadmap on the right). However, a small
number of pioneering companies are already
pushing ahead and profiting. 10+ years
5-10 years
2-5 years
First pilots
First industrial
systems
Widespread
industrial use
Reality
Vision
Case Study
- 100% reduction of configuration time5
- 50% reduction of inventory5
- 11-20% productivity increase5

Examples from retail, entertainment and journalism
B Business model innovation in other industries
The retail industry is arguable that which has so far been most disrupted by digital technologies such as the
internet, mobile devices and ubiquitous connectivity. US physical retail store visits have dropped 48% in the
period 2009-20131, US E-commerce sales as a percentage of total sales have grown with a CAGR of 15.6% from
2000 to 20152. Traditional retailers such as Best Buy and Target are increasingly under pressure from E-
commerce giant amazon.com when it comes to low-margin goods. Innovative retailers such as Nike or
Walgreens are investing tremendous resources into redefining themselves are digital companies, able to meet
the modern digital consumer’s needs and behavior.
Digital technology is also disrupting the news and journalism business. Users can now easily filter suitable
news stories and check their authenticity by searching for original documents. Events like the Boston
marathon, the killing of Osama bin Laden or the uprising of the Arab spring were first mentioned on Twitter,
making it the fastest news channel in the world5. Traditional newspapers like the Washington Post have
struggled in making the transformation to the digital age, in this case finally leading to the (ironic) sale to
Amazon founder Jeff Bezos.6 However, digital technology is only the beginning disrupt journalism. Whilst 30%
of US adults receive news from Facebook, still only 4% say that it is their most important way to get news7.
The entertainment industry provides another example of the disruptive impact of digitalization. Blockbusters,
which at its peak in 2004 had nearly 60’000 employees and more than 9’000 stores, went bankrupt in 2010
and was auctioned off, in April 2011, for $233 million.3 This downfall was caused primarily by DVD-by-mail
competition from internet-based Netflix and Redbox. Netflix has gone on to become the world’s biggest on-
demand internet-streaming media company, with over 62 million subscribers in April 20154.
1/. “Total Retail 2015: Retailers and the Age of Disruption”, PwC, February 2015
2/. “E-Commerce Retail Sales as a Percent of Total Sales, Percent, Quarterly, Seasonally Adjusted”, Economic
Research Division, Federal Reserve Bank of St. Louis
3/. "Dish Network wins bidding for assets of bankrupt Blockbuster", B. Fritz, Los Angeles Times, April 2011
4/. “Netflix Inc. Earnings: Crushing Milestones”, R. Munarriz, The Motley Fool, April 2015
5/. “Twitter is becoming the first and quickest news source of investement news”, The gurdian, April 2013
6/. “Washington Post closes sale to Amazon founder Jeff Bezos”, The Washington Post, October 2013
7/. “The Role of News on Facebook”, PewResearch Center, October 2013
See BCG's "The Digital
Imperative, Animated"
Journalism:
Entertainment:
Retail:

”
Forecasts regarding industrial digitalization’s impact on German and global GDP
The impact digitalization will have on manufacturing is enormous
$23
$1,279
$-
$250
$500
$750
$1,000
$1,250
$1,500
2012 2020
Billions
Projected value delivered by the
Industrial Internet 2012-20202
0% 10% 20% 30% 40%
Other
Wind
Machinery
Mechanical Components
Food and Beverage
Automotive
Additional productivity on conversion costs*1
10-20
20-30
20-30
20-30
25-35
10-15
1/. “Industry 4.0: The Future of Productivity and Growth in Manufacturing Industries”, BCG
2/. “Defining and Sizing the Industrial Internet”, David Foyer, Wikibon
* Conversion costs are manufacturing costs excluding material costs
“The impact of Industry 4.0 will be significant. Our research shows that in Germany alone it
will contribute about 1 percent per year to GDP over ten years, create as many as 390,000
jobs, and add €250 billion to manufacturing investment (or 1 to 1.5 percent of
manufacturers’ revenues).” The Boston Consulting Group1

”Political push, big investments, rising interest
Digital Industry: it is happening now
Political and industrial initiatives in EU, USA, PRC:
Search trend:
“Industrie 4.0”4
Plattform Industrie 4.0 – Major initiative in the German government’s Digital Agenda. More than
100 million Euro have been invested for research and innovation in the field. A strong focus lies
on providing the “Mittelstand” (SMEs that drive the German economy to some extent) with the
necessary tools for the next industrial revolution1.
1/. “Industrie 4.0: The Digitisation of the Economy”, Federal Ministry for
Economic Affairs and Energy, Accessed August 2015
2/. “The Industrial Internet Consortium®: A Global Nonprofit Partnership Of
Industry, Government And Academia”, IIC, Accessed August 2015
3/. “Chinese cabinet unveils ‘Made in China 2025’ master plan”, W. Liwei,
MarketWatch, May 2015
4/. Google Search Trends (“Industrie 4.0”), Google, Accessed August 2015
5/. “Industrial Internet of Things: Unleashing the Potential of Connected
Products and Services”, World Economic Forum, January 2015
Industrial Internet Consortium – Industry-driven initiative in the United States bringing
together industrial companies (worldwide), university and government institutions. The goal is to
accelerate growth of the Industrial Internet by identifying, assembling and promoting best
practices. The IIC is very much focused on industrial use-cases, following a more bottom-up
approach than Germany’s top-down approach2.
Made in China 2025 – ”Made in China 2025” is an initiative by the People’s Republic of Chinaœ.
Not much is know yet, except that the goal seems to be to “give China an edge in innovation,
green development and quality goods.”3
Big players are investing (headlines 2014-2015):
Search trend:
“Industrial
Internet”4
72% of respondents believe that the development of
the Industrial Internet will be disruptive to their
businesses and industries, and more (79% of
respondents) think those disruptions will occur within
the next five years.”5

LCD as example
Beginning:
 1968: Developed by RCA Corporation, USA
 Primarily used in low power & low energy
consumption applications like watches or
calculators
 Resolution considerably lower than conventional
CRT screens
Breakthrough:
 Japanese firms didn’t have experience with CRT
screens and thus focused heavily on LCD
 1988: Sharp presented 14’’ screen, (1/13 of
thickness of conventional screens, 75% less
weight)
 2005: More LCD screens sold than CRT2
Radical innovation has higher rewards with higher risk
Disruptive innovation is associated with uncertainty
Radical
innovation
15 80 40
Product
modification
8 60 20
Market
development
4 40 20
Market
penetration
1 30 1
Management
effort (%)
Probability of
failure (%)
Profitability
(%)
Radical innovation is challenging but rewarding1
1/. “Managing the “Unmanageable”: Radical Innovation”, BCG, September 2013
2/. Clayton Christensen, 2015
3/. “LCD - a Disruptive Technology”, C. Sandström, Slideshare 2009
Disruptive/radical innovation
Initially a simple/primitive application at the bottom of
the market. but relentlessly moving up the market,
eventually displacing established competitors.2
Case Study
LCD initially had poor performance, but
once performance was good enough
disruption happened at a furious pace.

Rigid waterfall product development
Manufacturing traditionally does not deal well with uncertainty
73% state that they are still using the classical (waterfall)
approach in product development of non IT-products1
1/. “Status Quo Agile”, Prof. Dr. Ayelt Komus, University of Applied Science Koblenz, 2014
2/. “Managing the “Unmanageable”: Radical Innovation”, BCG, September 2013
After-the-fact changes are costly, as each phase starts
upon completion of the last phase. This technique is only
suitable for stable and predictable environments
Root causes of failure for radical innovation projects:
Values
 Aiming to predict the unpredictable
 Avoiding risk rather than controlling it
Processes and tools
 Rigidly following a gate-focused, sequential management process
 Applying highly structured tools developed for incremental innovation
 Emphasizing KPIs for near-term gains and process efficiency over
learning
 Extrapolating existing data rather than thinking out of the box
Interaction
 Little collaboration with colleagues beyond the product team
 Little exchange with outsiders to learn about markets and technology
 No attention on acquiring advance commitments from stakeholders to
reduce risk
Requirements
Design
Maintenance
Verification
Implementation
Waterfall development… …and its inability to deal with disruptive innovation.
Quoted verbatim from “Managing the “Unmanageable”:
Radical Innovation”, BCG, September 2013

Salesforce introducing agile
Problem:
 1999: 3 people in R&D: 4 major product releases per year
 2006: 200+ people in R&D -> 1 major product release per
year1
Solution:
 Major enterprise-wide agile transformation2
Agile development allows for control through fast product iteration
Leverage agile project management to deal with uncertainty
Disruptive innovation can not be predicted, but it can be governed to minimize risk. It needs an open, patient, and
creative mindset in the company. Radically innovative products need to be constantly iterated and tested to ensure
that customer needs are still met. This lies at the heart of the agile development methodology. Prototypes are built,
tested and refined in short, iterative cycles. Constant product review and validation by project stakeholders enable
governance and minimizes risks in a fast changing environment.
1/. “Scrum: Gemeinsam schneller zum Erfolg”, Produktion, August 2015
2/.” Agile transformation best practices”, A. Chiarini, Slideshare 2012
3/. “The fast track to success with agile product development”, Bosch Presse, June 2015
4/. “Salesforce.com Agile Transformation”, S. Green Agile conference 2007
5/. Wikiinvest
”
“With the help of new and unconventional
methods, we are able to respond even better
than before to new customer requirements
and increasingly volatile markets”
Dr. Volkmar Denner, CEO Bosch3
Build
Measure
Learn
Time to market: -50%
Cost efficiency: +10%
Quality: + 10%2
Case Study
• 60+ critical features delivered in <9 months4
• 2200% revenue increase since introduction5
More on agile development
in the appendix

Necessary talent and where that talent currently is
Digitalization of industry requires manufacturing and digital talent
Digital industry
Digital
Industry
Manufacturing
Processes
Big-data
Wireless
connectivity
Virtual and
augmented reality
Applied
Artificial Intelligence
User Experience
DesignScalable software
architectures
Cloud
technologies
Dev Ops
Unstructured
data
Data exploration
Internet
security
Internet-of-Things
Social
media
Continuous
Integration
Physical
design
Quality
Assurance
Supply-Chain
Management Product-Lifecycle
Management
Resource
optimization
Real-time
communications
Robotics
Materials
Precision
Engineering
Labor Relations
Procurement
Complexity
Management
Where is manufacturing talent?What talent is required?
Where is digital talent?
Hidden-champions/Mittelstand/SMEs:
Big players:
Big players:
Startups:

The market for digital talent and initial approaches
Digital talent is in high demand, you need to change and fight for it
”
1/. “The Digital Talent Gap. Developing Skills for Today’s Digital Organizations”, Capgemini Consulting, 2013
2/. “In Deutschland fehlen 41.000 IT-Experten”, bitkom, November 2014 (translated)
3/. “Unemployed in Europe Stymied by Lack of Technology Skills”, L. Alderman, The New York Times, January 2014 (*=projected)
4/. “Internet Trends”, D11 Conference, M. Meeker et al., Kleiner Perkins Caufield Byers, May 2013
„The rising demand for software
developers in application-industries
shows that Digitalization is
accelerating in the entire [German]
economy.“ - Bitkom-President
Prof. Dieter Kempf 2
”
“77% of companies
considered missing
digital skills as the
key hurdle to their
digital
transformation.”1
77%
Digital talent shortage is real and growing:
Combined 10’000 job
openings in US (2013)40
100
200
300
400
500
600
700
800
900
1000
'11 '12 '13* '14* '15*
Thousands
New IT graduates
IT job
vacancies
EU IT skill shortage3:
Companies must change and fight for it:
Source: Capgemini
Consulting
Innovative
Recruitment
Methods
Targeted
Company
Acquisitions
Partnerships
Incubating
for the
Future
Training
Programs
Gamified their
recruitment
process
Made several
acquisitions of
mobile, social
and technology
firms
Partnered with Kaggle, a
platform for data
prediction competitions
Partnered with
Techstars for an
incubator program
Examples of Best Practices:
Launched
an employee
exchange
program with
Google

Compensation is not everything
What digital talent is looking for
Digital talent won’t work at a company where:1
1/. “Why digital talent doesn’t want to work at your company”, A. Shaprio, Fastcompany
Work is pored over by layers of bureaucracy. Digital talent wants to create new products
within short time-frames and doesn’t want to be held back by bureaucracy
Mediocre is good enough. Digital talent wants to be challenged and expected to do
something great and not have to leave at 5 p.m.
Trial and error is condemned. Digital talent needs freedom to take initiative, make
decisions and learn from their mistakes
Promotion is based on years spent, not on merit. Digital talent needs to see a
long-term perspective in your company
Offices are isolated, communicating power among individuals. Digital talent
wants to work in an open, friendly and collaborative environments

Change strategy supporting introduction of SAP
module in large multinational manufacturer1
Problem:
 System reaching 500 internal users and 2’700
geographically dispersed dealers
 Highly complex and important processes: “dealer
warranty operations, supplier collaboration,
warranty analytics and intelligence”; customer
satisfaction directly related to performance
 Compliance and regulatory issues
Solution:
All-encompassing change management program:
 Three-month communication plan (225 unique
communication events with messages tailored to
specific groups of employees)
 “Change Management Advisory Board” (weekly
meetings involving all stakeholders)
 Web-based interactive trainings at 47 different
training locations
Likely affected areas in the manufacturing domain and exemplary case study
Change will be necessary to exploit digitalization
The introduction of digital technologies in established
companies naturally leads to change, especially radical
innovation initiatives such as those associated with the
introduction of new business models. In the manufacturing
domain required changes may concern:
Customers – Actual product and service features and pricing,
marketing methods and channels, user experience management,
co-creation and integration, …
It all comes down to the workforce
 general company culture
 required skills
 knowledge and processes
 workforce size and composition
 location and mobility
 tooling and assistance
 safety and regulatory requirements
Equipment and IT – Re-configured, re-furbished, upgraded or
new assets and IT systems, new tools and processes for user
assistance and automation, infrastructure upgrades or changes, …
Supply network – Changing or new upstream/downstream
relationships, product, service or co-operation changes (new
pricing, pay-for-use, etc), IT integration and knowledge-sharing, …
Case Study
• First week of use: more than 7000 claims
successfully submitted
• Enhanced business competitiveness through
aligned warranty process
 and more …

Engaging every level leads to higher value creation
Change management can increase impact of innovation
Companies need to change in order to stay ahead of their competitors. However, 75% of company transformations fail
in terms of value generated, timing or both.1 A strategic change management approach is thus necessary to ensure
successful change and maximize positive impact.
The following McKinsey study shows the importance of change management:
1/. “Transformation: The Imperative to Change”, BCG, 2014
2/. “Helping employees embrace change”, McKinsey, 2002
Quality of engagement is
used here as an indicator for
the efficiency of change
management
3 of 3 143
129
68
35
2 of 3
1 of 3
0 of 3
100% = expected
value of initiative
Worst
Best
Percentage of expected value of
initiative captured by company
Factors for successful change:2
Senior managers
 Commitment
 Communication
 Financial incentive
 Nonfinancial incentives
 Leadership
 Stretch targets
Middle managers
 Decision authority
 Skills in managing
people
 Skills in managing
projects
Frontline staff
 Skills
 Tools
 Motivation
Quality of
engagement
See an examplary change
management methodology

Actyx: a digital industry pioneer
1 Interdisciplinarity
Actyx believes in interdisciplinarity. Digital industry brings together four main
domains: manufacturing, connectivity, software and analytics.
2 Exploration
Actyx follows a lean and agile development approach, enabling efficient and
manageable radical innovation under uncertainty.
3 Hands-on
Actyx believes in demonstrated value, not ivory-tower research. We develop on-
site and work hand-in-hand with experienced local personnel.
Actyx is a young startup company aiming to contribute to the digital industry vision. We believe in a resource-efficient,
customer-centric and human-supportive manufacturing future. We are contributing to the development of the (global)
factory of the future.
Actyx was started with serious financing by two ETH engineers in June 2015. Through university and company
relationships, Actyx has access to a large pool of digital talent and is supported by a network of mentors, advisors and
experts from the manufacturing, technology, strategy, finance and startup domains.
Actyx’s founding principles: Meet the
founders

Win-win partnership proposal for manufacturers
How Actyx can help: co-operative innovation project
Actyx brings together a world-class interdisciplinary team of junior developers and
senior experts with expertise in digital technologies (connectivity, software and analytics).
Actyx enables on-site disruptive innovation by introducing an agile development process
and supporting associated change processes.
Innovation partner provides an application scenario, manufacturing expertise and a
desire to disruptively innovate (ex: rethink your business model).
Perform a data-centric analysis of the status quo in order to
identify potential innovation focus areas.
Develop radically innovate concepts enabled by digital
technology such as the Internet-of-Things or big-data analytics.
Together we will:
Validate and implement these concepts as prototypes and
industrial solutions.
Value proposition
next slide

Improve OE, business model innovation, digital spill-over & brand recognition
How Actyx can help: co-operative innovation project
1 Increase in operational efficiency
Operational efficiency can be increased in a manufacturing companies along the eight key value-drivers mentioned in part
one. Maximizing the operational-efficiency impact of digital innovation in your company will involve identifying key
improvement areas in the different fields. Following an agile and data-centric approach digital enablers will be identified and
their potential evaluated and demonstrated through prototypes and, finally, industrial digital solutions. [see part 1]
4 Brand recognition
If you wish, developing and implementing digital industry applications can position you as a high-tech innovative company.
Industry and media attention can be leveraged to help you acquire high quality talent and could be exploited to increase sales.
3 Digital spill-over
Actyx will bring in a team of digital experts, who will work hand-in hand with your on-site personnel to advance digitalization in
your company. Knowledge transfer across company borders will empower your employees to innovate within your company
even outside the scope of this project. This digital spill-over will provide you with the talent necessary to win in the Digital Age.
[see part 2]
2 Business model innovation
Whilst digitalization offers enormous potential in terms of improving operational efficiency, it will have an even greater impact
by enabling the implementation of innovative business models. Business model innovation allows capturing new value-pools
and gaining market share. Potential concepts for innovation in this area will be explored throughout the project. [see part 1]

Get in touch!
Oliver Stollmann
oliver@actyx.io
www.actyx.io

Appendix A - Basics of agile project management
Agile management is an iterative and incremental project
management method allowing for fast and flexible product
development. It requires are capable team with inputs
from business, technology and customer needs and high
engagement of involved project stakeholders. It is based
on short, iterative development cycles at which end’s
stands a deployable prototype.
The agile cycle is based on three steps: (1) build, (2)
measure and (3) learn. At the beginning ideas are
developed, followed by their implementation as
prototypes, which are then used to validate the ideas
through measurements. Based on the results,
improvements or changes will be implemented in a new
cycle unless they show no promise in which case the idea
will be discarded and new ideas developed. The focus lies
on minimizing the total time through this feedback loop in
order to allow many of these build-measure-learn
iterations.
LEARN BUILD
MEASURE
IDEAS
CODEDATA

The eight steps necessary for successful change
Appendix B - Kotter’s 8-step process
Prof. John Kotter observed change projects in organizations and synthesized 8 necessary steps for a successful company
transformation1:
Build a guiding coalition:
A coalition coming from the own company’s rank is
necessary to guide, coordinate and communicate
change
Form a strategic vision:
The whole company needs to be aligned and
focused on the same goal
Enlist a volunteer army:
Large-scale change can only occur when very
significant numbers of employees amass under a
common opportunity and drive in the same
direction
Create a sense of urgency:
Employees need to be aware of the upcoming
digital revolution and sense the need for digital
innovation
Enable action by removing barriers:
Removing inefficient processes or hierarchies
provides the employees with freedom to work
across boundaries and create impact
Generate short-term wins:
Short-term wins need to be clearly communicated
to track progress and energize your employees
Sustain acceleration:
Management needs to search relentlessly for
ways to promote change to assure that the vision
will be achieved
Institute change:
Successes need to be visible and well
communicated, demonstrating clear benefit and
leading to sustainable change
1/. “Leading change”, J. Kotter, 1996

Appendix C - Actyx: meet the founders
Oliver Stollmann (Vision)
Before co-founding Actyx, Oliver was a research fellow at the Fraunhofer Application Center Industrial Automation
(IOSB-INA) where he developed a decentralized control system for industrial transportation systems.
Previously, Oliver designed an AI-based manufacturing planning and scheduling system at the Palo Alto Research
Center and developed an intelligent assistant for demand forecasting and production optimization of waste-to-
energy plants at the ETH’s Institute of Machine Tools and Manufacturing and ABB’s Power Systems division.
Oliver holds a Bachelor and a Master of Science in Mechanical Engineering from the ETH Zurich.
Maximilian Fischer (Operations)
Before co-founding Actyx, Max was a research fellow at the ETH Zurich working on basic research in physical
chemistry. He investigated doping effects on the electrical and optical properties of semiconductor quantum dots.
Max was also a research assistant at Caltech, Duke University and the EPF Lausanne. He holds a patent for
developing a method to produce structure cellulose patches, enabling faster and scar free healing.
During his time in Zurich, Max co-founded HackZurich, the largest hackathon in Europe and is still a member of the
committee.
Max holds a Bachelor and a Master of Science in Mechanical Engineering from the ETH Zurich.
Actyx also has access to a pool of manufacturing and digital talent and a large network of advisors,
mentors, business angels and supporters from industry, academia, business and the start-up world.

Actyx. Exploiting Digital Industry

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