Digital Readiness for Global Opportunities

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The document discusses digital readiness in Germany. It begins by examining digitalization as a global opportunity, noting the growing importance of digital transformation worldwide. It then assesses Germany's current digital readiness, finding that while industries like manufacturing are increasingly digitalizing, adoption of Industry 4.0 technologies varies and opportunities exist to increase revenue and productivity through further investment and innovation. The document concludes by emphasizing that the future is digital and change is necessary to remain competitive globally.

Technology

October 11, 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
Google searches for “digital transformation” worldwide, relative to the highest number of
searches during the period
Digital Readiness for Global Opportunities
Page 4

The role of manufacturing
Source: OECD, 2017
Industry activity as a percentage of gross value added
Digital Readiness for Global Opportunities
Page 5

Digitalizing manufacturing
Consumer
demands
Scarce
resources
Frame-wor
k
Manufacturing
industry
Digitalization
Industry 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
Page 7

Business tomorrow?!
Source: CallFire
Digital Readiness for Global Opportunities
Page 8

Digitalization – An international perspective
Index from 0 (no digitalization) to 100 (high degree of digitalization), 2015
Source: WEF, 2015
Digital Readiness for Global Opportunities
Page 9

Digitalization – Where do we stand today?
Source: Wikipedia, 2017
Digital Readiness for Global Opportunities
Page 10

Opportunities Challenges
Digital Readiness for Global Opportunities
Page 11
Infrastructure
Legal and
regulatory
framework
Overall
acceptance
Facilitation
Efficiency
and
productivity
Flexibility
and
transparency
Digital
business
models
New
products and
services
Digitalization at the company level

Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
Page 12

Industry-4.0-Readiness
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
Page 13

Opportunity versus risk in Industry 4.0
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
Page 14

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 15

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 17

Contact
Dr Vera Demary
Head of the Research Unit “Structural
Change and Competition”
☎ +49 221 4981-749
• vera.demary@iwkoeln.de

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Digital Readiness for Global Opportunities

1. October 11, 2017, Cologne Dr Vera Demary Digital Readiness for Global Opportunities

2. Contents ► DIGITALIZATION AS A GLOBAL OPPORTUNITY ► DIGITAL READINESS IN GERMANY ► CONCLUSION Digital Readiness for Global Opportunities Page 2

3. Contents ► DIGITALIZATION AS A GLOBAL OPPORTUNITY ► DIGITAL READINESS IN GERMANY ► CONCLUSION Digital Readiness for Global Opportunities Page 3

4. The importance of the digital transformation Source: Google Trends, 2017 Google searches for “digital transformation” worldwide, relative to the highest number of searches during the period Digital Readiness for Global Opportunities Page 4

5. The role of manufacturing Source: OECD, 2017 Industry activity as a percentage of gross value added Digital Readiness for Global Opportunities Page 5

6. Digitalizing manufacturing Consumer demands Scarce resources Frame-wor k Manufacturing industry Digitalization Industry 4.0 Digital Readiness for Global Opportunities Page 6

7. Source: Wikimedia Commons World shipping routes, 2012 World airline travel, 2009 Business as we know it Digital Readiness for Global Opportunities Page 7

8. Business tomorrow?! Source: CallFire Digital Readiness for Global Opportunities Page 8

9. Digitalization – An international perspective Index from 0 (no digitalization) to 100 (high degree of digitalization), 2015 Source: WEF, 2015 Digital Readiness for Global Opportunities Page 9

10. Digitalization – Where do we stand today? Source: Wikipedia, 2017 Digital Readiness for Global Opportunities Page 10

11. Opportunities Challenges Digital Readiness for Global Opportunities Page 11 Infrastructure Legal and regulatory framework Overall acceptance Facilitation Efficiency and productivity Flexibility and transparency Digital business models New products and services Digitalization at the company level

12. Contents ► DIGITALIZATION AS A GLOBAL OPPORTUNITY ► DIGITAL READINESS IN GERMANY ► CONCLUSION Digital Readiness for Global Opportunities Page 12

13. Industry-4.0-Readiness 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 Page 13

14. Opportunity versus risk in Industry 4.0 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 Page 14

15. 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 15

16. Contents ► DIGITALIZATION AS A GLOBAL OPPORTUNITY ► DIGITAL READINESS IN GERMANY ► CONCLUSION Digital Readiness for Global Opportunities Page 16

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 17

18. Contact Dr Vera Demary Head of the Research Unit “Structural Change and Competition” ☎ +49 221 4981-749 • vera.demary@iwkoeln.de

Digital Readiness for Global Opportunities

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