TÜV Rheinland Survey Evaluation on Digital Transformation

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Content

2

Chapter

Theme

1

Statistics

2

Management summary

3

Main digitization topics for the companies

4

Core digitization challenges for the companies

5

Current status of digitization in the companies

6

Digitization projects and implementation

Hannover Trade Fair 2017 – Survey on Digitization by TĂœV Rheinland

1. Statistics Structured survey via NETIGATE Qualified online interviews in German and English (24.04.2017 – 28.04.2017) During the International Fair in Hannover 2017

Statistics Basis of the analysis: 247 completed interviews (average answering time: 10min 17sec) LANGUAGE

INTERVIEWS/DAY 70

English (n=26); 10,53% 60

Deutsch (n=221); 89,47%

50 40

62

30

56

52 44

20 33 10 0 24.04.2017

4

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

25.04.2017

26.04.2017

27.04.2017

28.04.2017

Statistics Most of the respondents (about 60%) come from small and medium-sized enterprises PLEASE CLASSIFY THE SIZE OF YOUR COMPANY 100%

59,11% 50%

15,38%

14,17%

Large enterprise (n=38)

Corporate group/group of companies (n=35)

8,10% 3,24% 0%

Start-up (n=8)

5

Micro-enterprise (n=20)

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

SME (Small/medium sized enterprise) (n=146)

Statistics The vast majority of interviewed persons come from companies based in Europe, mainly from Germany COMPANY’S HEADQUARTER; N >1 0

20

40

60

80

100

120

140

160

Germany

161

USA

13

Switzerland

12

Austria

10

Netherlands

8

Italy

7

France

6

6

China

5

Japan

5

Sweden

180

4

Further countries (n = 1) Denmark

South Korea Spain Taiwan

Belgium

3

UK

3

Finland

3

Israel

Turkey

3

Russia

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Czech Republic

Statistics More than half of the companies are primarily part of the production sector WHICH INDUSTRY DOES YOUR COMPANY BELONG TO? 100%

56,68% 50%

21,46% 12,96%

8,91%

0%

Production (n=140)

7

Automation (n=32)

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

IT (n=22)

Others (n=53)

Statistics The surveyed persons are predominantly from the sales and marketing sector, of which a large number have a leading position (Page 1/2) RESPONDENT’S FUNCTION/POSITION; TOP 11 0

10

20

30

40

Sales / Sales force (manager, director) 33

CEO / General manager / managing director

29

Engineering / Automation / Technical (manager, director)

27

Research / Development (manager)

13

(Wholesale) trade dealer

8

(Key) Account manager

7

Consultant

7

Communications (manager, director)

7

Energy manager

6

Product manager

6

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

60

70

80

90

100 94

Marketing (manager, director)

8

50

Statistics Even some engineering and design specialists are among them (Page 2/2) RESPONDENT’S FUNCTION/POSITION; REST N >1 0

9

1

2

3

4

5

6

(Customer) Services (manager, director)

5

Project manager / coordinator

5

Business field manager

5

Foreign / European trade / Export (director)

4

Business development (manager)

4

Others (n = 1)

IT

4

Vice president

Application (manager)

3

Product development (manager)

3

Electronic engineering / planning

3

Management assistant Automation/Production (manager) COO/factory manager Customer support

Measuring technique

2

CEO

2

Quality manager

Department / Division manager

2

Foreman

Design engineer

2

Business administration manager

Controlling / Analyst

2

Certification

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

3D-specialist

2. Management summary

Management summary

11

1

DIGITIZATION TOPICS

The network idea is the most important issue in the context of digitization. In addition to digital production, the management of (large) data is becoming increasingly important.

Networking is no longer focused on the own company. Suppliers, customers and employees are increasingly part of this process. Market requirements such as flexibility, dynamics and speed are as well a main topic as a real challenge for the surveyed companies.

2

DIGITIZATION CHALLENGES

The most important challenges of digital transformation are data/IT security, as well as know-how/training and again networking. The strategic impact of digitalization has been recognized. Companies tend to seek for new business models and the changing of processes. The costs associated with digitization are a major challenge for companies, but at the same time the benefits are also questioned.

3

DIGITIZATION STATUS

The number of respondents whose companies are already organized in digitization committees is almost as high as those who do not participate and do not plan to do so (about 40%). Almost 60% of respondents stated an “average” current state of digitalization in their companies.

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Management summary

4

12

DIGITIZATION PROJECTS & IMPLEMENTATION

While the production area is ranked first with regard to its implementation, it is also at the forefront when asking for the less advanced areas, followed by “Office/Administration/DMS”.

Digitalization has already been implemented especially in the area of production and manufacturing. The issue of “Networking”, which has been identified as the most important topic of digitization before, only plays a minor role when talking about implementation.

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

3. Main digitization topics for the companies

Main digitization topics for the companies The networking idea is still the most important issue in the context of digitization. In addition to digital production, the management of (large) data sets is also becoming increasingly important (Page 1/4) MAIN TOPICS OF DIGITIZATION (OVERALL EVALUATION); TOP 10 0

10

20

30

40

50

60

Networking (machines, customers, employees)

55

(Digital) manufacturing / automation / machine control

53

Data management (acquisition, integration, transfer, traceability)

46

Processes (monitoring, documentation, controlling, optimization)

29

ERP (planning, control)

27

(Digital) communication (horizontal, vertical, internal, external)

24

Digital data / document management / storage

24

Development / Design of products Digital products (information, catalogue) Website / Homepage

14

Hannover Trade Fair 2017 – Survey on Digitization by TĂœV Rheinland

23

20 19

Main digitization topics for the companies But marketing and sales aspects as well as CRM are gradually being penetrated by digitalization (Page 2/4) MAIN TOPICS OF DIGITIZATION (OVERALL EVALUATION); REST N >10 0

5

10

15

20

(Digital) Marketing / Advertising

18

Sales and Service

17

CRM / customer management / customer satisfaction Soft-/Hardware / IT

15

Predictive Analytics / Maintenance

15

Internet connection / connectivity

15

(Digitized) Logistics / Purchasing

13

Industry 4.0

13

Internet portal / shop solutions (B2B, B2C)

13

Effectivity / Efficiency

12

Cloud / Edge Computing

12

Paperless office

15

16

Hannover Trade Fair 2017 – Survey on Digitization by TĂœV Rheinland

11

Main digitization topics for the companies Market requirements such as flexibility, dynamics and speed are a main topic on the one hand and a real challenge for the surveyed companies on the other hand (Page 3/4) MAIN TOPICS OF DIGITIZATION (OVERALL EVALUATION); REST N >5 0

2

4

6

8

10

Sensor technology / IO-Link

10

(Company) Data collection

10

Flexibility / Dynamics / Speed

10

(Process) Data analysis

9

3D / (E)CAD (print, formats, scan)

8

(Automated) quotation / order / invoice processing

8

(Remote) maintenance / bug management…

Big data

7

(Data / IT) security

7

EDI / EDIFACT / ETIM

7

(User) interfaces / MMI

16

8

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

6

12

Main digitization topics for the companies Overview of the large number of additionally mentioned main topics linked with digitization (Page 4/4) Further comments (n <6)

Further comments (n <4)

Further comments (n <2)

(Single) Data base

5

Augmented reality

3

ABB Ability

1

Change in the working environment (Perception, Collaboration, Human focus)

5

Localization (RFID, GPS)

3

Working with whiteboards

1

Bus system/Plug & play

5

Availability/Implementation/Development

3

Legal framework

1

Internet of things

5

Intranet

3

Applicants

1

Social Media

5

CMS

3

Fire protection

1

Standards/protocols

5

Foreign/Worldwide trade

3

Costs/investments

1

New business models/fields

5

Drawing (capture, archiving)

3

Ecosystems

1

Awareness/Openness/Acceptance (customers, employees)

5

Virtual Reality

3

Special solutions for SMEs

1

Training/Education (employees, customers)

4

Work time tracking

2

Digitized employee survey

1

CRD

4

Cyber-physical system/Festo motion terminal

2

Discrete industries

1

(Data) transparency/data access

4

Data-based services/customer-specific production

2

Drone technology

1

Quality assurance

4

Digital transformation

2

Data privacy

1

Smart Home

4

Globalization

2

Step by step

1

Development of Apps

4

Knowledge (lead)

2

Company presentations

1

Digital twin

4

Necessity (“Just start”, future viability)

2

Gesture control

1

SAP system

4

Expert opinion

1

Comprehensibility/Simplification/Functionality

4

17

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Main digitization topics for the companies Comparison 2017 – 2016 – 2015 (Top 10) 2015

2016

2017

1

Networking/ Intelligent Systems

77

1

Networking/ Intelligent Systems

16

1

Networking (machines, customers, employees)

55

2

Transparency/Intelligent (quality) control

25

2

Digital (intelligent) factory

15

2

(Digital) manufacturing/automation/machine control

53

3

Automation processes/ technology

25

3

Autonomous/Smart communication

9

3

Data management (acquisition, integration, transfer, traceability)

46

4

Integration of manpower, components, processes

24

4

Innovation/Future/ Challenge

6

4

Processes (monitoring, documentation, controlling, optimization)

29

5

Optimized production process/ Workflow

18

5

Internet/ “Internet of things”

5

5

ERP (planning, control)

27

6

Autonomous/ Smart communication

16

6

Individual production for customers

5

6

(Digital) communication (horizontal, vertical, internal, external)

24

7

Digital (intelligent) factory

15

7

Software and automation process

4

7

Digital data/ document management/storage

24

8

Integrated/Faster communication

14

8

Smart devices/ Sensor technology

3

8

Development/ Design of products

23

9

Flexible/Mobile/New manufacturing technology

12

9

Customer integration

3

9

Digital products (information, catalogue)

20

10

Predictive Machine care and maintenance

11

10

(Industrial) Decentralization

3

10

Website/ Homepage

19

18

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Main digitization topics for the companies Comparison 2017 – 2016 – 2015 (Core impressions)

1

NETWORKING

The networking aspect is regarded as the most important issue of digitization in all three years.

In addition to networking with regard to their own production, suppliers, customers and employees are also increasingly seen as part of this process.

2

MANUFACTURING

Digital support for production is also of central importance. In this context, not only the M2M integration, but also the human-machine interface are discussed.

It is striking that the issue of manufacturing is often combined to the aspect of “monitoring” and “controlling”.

3

FUTURE

The digitalization has reached the companies in many different ways. While this theme was often characterized by terms such as “innovation”, “challenge” or “future” in the previous year, it is now a fact.

The main focus today is the actual implementation.

4

5

DATA MANAGEMENT

PRODUCTS

The handling of digital data has become a central question. “Big data” is no longer a catchword.

The companies are specifically concerned with what information they need, how it needs to be filtered and integrated, how it is transmitted, how and by whom it is used and stored.

The “product itself” was not associated with the digitization in prior years despite aspects of modularization.

In 2017 it becomes concrete. In addition to the electronic catalogue for already manufactured products, the development and design of new products is becoming increasingly important for companies.

19

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

4. Core digitization challenges for the companies

Core digitization challenges for the companies The most important challenges of digital transformation are data/IT security, as well as know-how/training and again networking (Page 1/4) CORE CHALLENGES RELATED TO DIGITIZATION (OVERALL EVALUATION); TOP 10 0

5

10

15

20

25

30

35

40

(Data / IT) security

43

Training / Know how necessary (employees, customers)

40

Networking (machines, customers, employees)

35

(Lack of) Standards / compatibility

26

(Adjusting / Updating) Soft-/Hardware / IT

25

Awareness / Acceptance (customers, employees)

25

Data management (acquisition, integration, transfer, traceability)

23

(Calculation of) Costs / investment / budget

23

(User) interfaces / MMI Aquisition of (expert) staff / new applicants

21

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

45

21 15

50

Core digitization challenges for the companies Also the strategic impact of digitalization is reflected in clusters such as “new business models”, “market challenges” or the changing of processes (Page 2/4) CORE CHALLENGES RELATED TO DIGITIZATION (OVERALL EVALUATION); REST N >8 0

2

4

6

8

10

12

Use of Technology / technical Development

13

New business models / fields / innovation

12

(Digital) manufacturing / automation / machine control

11

Process changes / Definition of (new) Processes (monitoring, optimization)

11

Flexibility / Dynamics / Speed ( Being up to date)

11

Market challenges / Strategic impact

11

CRM / customer management / customer satisfaction

22

10

(Internet) Portal / Shop solutions (B2B, B2C)

9

Big data

9

(Data) transparency / data access

9

Digital transformation (adaptation, infrastructure)

9

Data privacy / Data ownership

9

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

14

Core digitization challenges for the companies The costs associated with digitization are a major challenge for companies, but at the same time the benefits are also questioned (Page 3/4) CORE CHALLENGES RELATED TO DIGITIZATION (OVERALL EVALUATION); REST N >3 0

1

2

3

4

5

6

7

8

(Digital) communication (horizontal, vertical, internal, external)

8 8 8 8

Data analysis / Controlling

Digital products (information, catalogue)

7 7 7 7 7

Fast internet / connectivity (Question of) Benefits 6 6 6 6 6 6 6

(Digitized) Logistics / Purchasing Human focus / Manpower Corporate identity / Corporate culture (changes) 3D / (E)CAD (print, formats, scan)

5 5 5 5

Cooperation Development / Design of products Industry 4.0 Availability / Implementation / Development

23

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

9

4 4 4 4 4

Core digitization challenges for the companies Overview of the large number of additionally mentioned challenges linked with digitization (Page 4/4) Further comments (n = 3)

Further comments (n = 2)

Further comments (n = 1)

(Decision for) Cloud/Edge Computing

3

(Technical) reliability

2

Predictive Analytics/Maintenance

1

Sensor technology

3

Social Media

2

EDI/EDIFACT/ETIM

1

(Lack of) Resources

3

Development of Apps

2

Earnings (prognosis)

1

Structural/Organizational changes

3

New ways to go/rigid processes

2

Augmented reality

1

Automatic accounting

3

Foreign/Worldwide trade

2

Localization (RFID, GPS)

1

Licence management/Know how protection

3

Labor time saving/Staff rationalization

2

Travelling

1

Data-based services/customer-specific production

2

Globalization

1

Loss of personal conversation/human identity

2

Legal framework

1

Vendor validation

2

Necessity

1

24

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

5. Current status of digitization in the companies

Current status of digitization in the companies The number of respondents whose companies are already organized in digitization committees is almost as high as those who do not participate and do not plan to do so (about 40%) IS YOUR COMPANY REPRESENTED IN COMMITTEES, ASSOCIATIONS OR COLLABORATIONS RELATING TO DIGITIZATION? 100%

50% 40,08%

39,27%

13,36% 7,29% 0% No, and not yet planned (n=99)

26

No, but already considered (n=18)

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Yes (n=97)

Don't know (n=33)

Current status of digitization in the companies The organization for digitization, which is by far the most frequently mentioned, is VDMA (Page 1/2) COMMITTEES, ASSOCIATIONS AND COOPERATIONS RELATING TO DIGITIZATION; N>1 0 VDMA ZVEI VDI Plattform Industrie 4.0 Hochschulen (allg.)

It's OWL Uni Paderborn Fraunhofer IIC Industrial Internet Consortium VDE OPC foundation Industrial Data Space e.V. Kooperation bei Forschungsprojekten (allg.)

ETIM Bitkom

27

5

10

15

20

25

30 27

10 5 4 3 3 3 3 2 2 2 2 2 2 2

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Current status of digitization in the companies Overview of the large number of additionally mentioned organizations linked with digitization (Page 2/2) Further comments (n = 1, A – E)

Further comments (n = 1, F – M)

Further comments (n = 1, N – Z)

acatech

Fachverband Werkzeugindustrie

Namur

Ama Verband

FGSV Sensorik

Netzwerk smart production

Amec

FH Lemgo

OMAC

Automotive Nordwest Cluster

Forschungsprojekt FORobotics

PNO

Bga Arbeitskreis Digitalisierung

Foster

Projetktgruppe mit Kunden

Bosch

Gremium intelligente Werkzeuge

RWTH Aachen

BSP Uni Osnabrück

Handelskammer Hamburg Arbeitskreis Digitalisierung

SDIL

Bundeswirtschaftsministerium

IBT Aachen

Siemens

Cosmoplat

IHK Hannover

SmartFactory KL

Cysis

Industrie 4.0 Österreich

Uni Lippstadt

DAA 360 Grad

Io-Link Konsortium

UVDI

Deneff

Kooperation mit ABB

VDB

Deutsches Forschungsnetzwerk

Land NRW

VDW

DFG

Longren group

wvib

DLR

MES Dachverband

Zukunftsrat der Bayerischen Wirtschaft

EFB

Mit uns digital (Zentrum für Niedersachsen und Bremen)

ETG

28

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Current status of digitization in the companies Almost 60% of respondents stated an “average” current state of digitalization in their companies HOW WOULD YOU DESCRIBE THE CURRENT STATUS OF DIGITIZATION FOR YOUR COMPANY? 100%

59,51% 50%

22,67% 17,41%

0,40% 0%

Below average (n=43)

29

Average (n=147)

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

Highly developed (n=56)

N/A (n=1)

6. Digitization projects and implementation

Digitization projects and implementation According to the interviewees, digitalization has already been implemented especially in the area of production and manufacturing (Page 1/3) COMPANY DIVISION OR PROJECTS WHERE DIGITIZATION HAS MAINLY BEEN IMPLEMENTED; TOP 10 0

10

20

30

Production / Manufacturing / Machinery Sales & Service

23

Research & Development (of products)

23 22

IT / Software / Hardware

18

Marketing

15

Office / Administration

13

Digital communication

12

Project-/Processmanagement

10

Logistics

10

In all areas

10

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

50

60 51

Digital products

31

40

Digitization projects and implementation The issue of “Networking”, which has been identified as the most important issue of digitization before, only plays a minor role when talking about implementation (Page 2/3) COMPANY DIVISION OR PROJECTS WHERE DIGITIZATION HAS MAINLY BEEN IMPLEMENTED; REST N>2 0 Controlling / monitoring systems Accounting CRM Website / Homepage (Company) Data collection Intelligent products / systems (Predictive) Maintenance ERP systems / ETIM Simulation / Testing / VR Networking Order processing Procurement / Purchasing Data storage / management Data base Clouds (3D) Scan / Print Production planning Data analysis

32

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

1

2

3

4

5

6

7

8

9 8

7 7 7 6 5 5 5 4 4 4 4 3 3 3 3 3 3

Digitization projects and implementation Overview of the number of additionally mentioned projects linked with digitization (Page 3/3) Further comments (n = 2)

Further comments (n = 1)

QRS

2

CRD

1

CAD

2

Intelligent sensor technology

1

Documentation

2

PIN system

1

Smart home

2

Industry 4.0

1

Internet connection

2

Social Media

1

B2B systems

2

Asset management

1

Interfaces

2

Electronic pressure measurement

1

Calculation

2

Executive management

1

Staff (Acquisition/Training)

2

E-Mobility

1

Apps

1

Shop solutions

1

Energy efficiency

1

Fire protection container

1

IMS systems

1

33

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

Digitization projects and implementation While the production area is ranked first with regard to its implementation, it is also at the forefront when asking for the less advanced areas, followed by “Office/Administration/DMS” (Page 1/2) COMPANY AREAS WHERE THE IMPLEMENTATION OF DIGITIZATION IS NOT ADVANCED; N>5 0

5

10

15

20

25

Production / Manufacturing / Machinery 24

Sales & Service

21

None (= almost fully digitized)

21

In all areas (= non-existent digitization)

16

Digital products

9

IT / Software / Hardware

7

Digital communication

6

Project-/Processmanagement

6

Logistics

6

Networking

6

Order processing

6

Staff (Acquisition / Training / HRM)

6

Hannover Trade Fair 2017 – Survey on Digitization by TÜV Rheinland

35

40

45

50 46

Office / Administration / DMS

34

30

Digitization projects and implementation Overview of the number of additionally mentioned areas where digitization is not yet advanced (Page 2/2) COMPANY AREAS WHERE THE IMPLEMENTATION OF DIGITIZATION IS NOT ADVANCED; REST N >2 0 Marketing Accounting (Company) Data collection Interfaces / MMI Measuring CRM Procurement / Purchasing Clouds Shop solutions (New) Business models / ideas Research & Development (of products) Production planning (Big) Data analysis / Reporting Documentation Work groups / Conferences Facilities Technology department

35

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

1

2

3

4

5

6 5

4 4 4 4 3 3 3 3 3 2 2 2 2 2 2 2

Further comments (n = 1) Tax consultancy Invoicing Website/Homepage Smart home Internet connection Centralization Mechanical engineering Transformers International trade Finance Augmented reality Automotive Dangerous areas Plasterboards Traditional components Devices Marine/Offshore Foundry process

Digitization projects and implementation Three quarters of the participants said that they use interlinked processes/products as digital solution, followed by cloud based applications (60%) WHICH OF THE FOLLOWING DIGITAL SOLUTIONS ARE USED IN YOUR COMPANY? 100% 75,71% 59,92% 43,32%

50%

40,08%

45,34%

38,46%

2,83%

4,45%

Serious games (n=7)

Gamification (n=11)

15,38%

11,74%

8,91%

36

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

Others, please specify (n=22)

3D printing (n=112)

Artificial intelligence (n=29)

Big data analytics (n=95)

E-learning (n=99)

VR/AR applications (n=38)

Interlinked processes/ products (n=187)

Webshops (n=107)

Cloud based applications (n=148)

0%

Digitization projects and implementation

grabcad (1)

networks (1) mmi (1) edi (1)

production (1) sap (1)

37

(2)

Hannover Trade Fair 2017 â&#x20AC;&#x201C; Survey on Digitization by TĂ&#x153;V Rheinland

none

(3)

erp (1)

trello (1)

company (1)

internet (1) research (1)

community

intranet (1)

apps

analysis (1) collection (1) spot (1) sensors (1)

(2)

simulation (1)

advertising (1)

smart

pipedrive (1)

development (1)

system (1)

archiving (1)

Overview of other used digital solutions in the companies surveyed (Word cloud)

base (1) vr (1)

iot (1)

Thank you for your participation at our survey!

TĂ&#x153;V Rheinland Am Grauen Stein 51105 Cologne Germany

www.tuv.cdom www.tuv.com