Digital twins, customizable products, the current status of an order: digitalization creates important advantages for companies - including sme sector. However, the "engine of the German economy" is still lagging behind when it comes to digitalization. Yet future concepts such as shopfloor 4.0 have already been developed.
Many SMEs have been drivers of innovation for the rest of the world for decades. In Germany alone, almost 60 percent of all workers are employed in small and medium-sized enterprises (SMEs). Their turnover accounts for over 35% of Germany's total economic output, according to figures from the Institut für Mittelstandsforschung Bonn (IfM Bonn). Linguistically, sme sector has even made it into English and Spanish as a loan word. However, it is not just the innovative strength of SMEs that makes them stand out. It is above all the quality of its products that is emulated worldwide.
EY SME Barometer 2019: Only one in six SMEs develop digital products
Despite all the praise for sme sector , there is still a lot of catching up to do in one area: the digital transformation in Germany is generally making slow progress. 99% of those surveyed for the latest ELITE Panel of the Allensbach Institute for Public Opinion Research, around 500 top executives from business, politics and administration, believe it is important or very important that Germany plays a leading role in digitalization. However, according to the same study, 89% of respondents believe that Germany is lagging behind in terms of digitalization.
According to the results of Ernst & Young's SME Barometer 2019, this means that only one in two companies uses more automated production (Industrial Internet of Things, IIoT) or a more integrated supply chain as a digital technology at sme sector . In contrast, only two in five companies use analytical tools for personalized customer contact (analytics). Products that are fully or partially digital in nature are only available in one in six companies in Germany sme sector .
The digital twin in shopfloor 4.0: the future model of service-based production
Quality is still important for customers today, but it is no longer the knock-out criterion. Customers want to be "picked up" by the product and the manufacturer. They want to associate an experience with the product. This applies to the individualization of the product down to batch size 1 as well as the customer's interest in information, for example on the current status of their order. In order to accomplish this task, manufacturers need to network their production (store floor) with the orders (office floor). This connection is created by shopfloor 4.0: products or production tools are stored in shopfloor as digital twins. The digital and real worlds can thus access each other via event control.
The digital twin is the representation of a real object in the IT system world. These objects can be production tools, materials or finished products. The digital twin also enables comprehensive and comprehensive data exchange between production and administration. Another advantage: various predefined or freely definable services can access the digital twins and influence the object. The digital twin also makes production more transparent for everyone: For example, customers can track the current status of their order or the quality manager can access production data in real time.
The digitalization of production in the form of service-based manufacturing and the associated reduction in set-up times will enable even small orders to be processed profitably in the future. This means that innovations can also be produced in small series.
Innovations: Keeping China at a distance
In the future, innovative strength will determine success or failure more than ever. This is because sme sector must abandon the idea that innovations can only be created in this country. China in particular, the "Middle Kingdom", is catching up in leaps and bounds. Example: education at universities. In China, 4.7 million students completed a STEM degree in 2017. Almost four times as many students as in Europe and more than 50 times as many as in Germany studied technical subjects (mathematics, computer science, natural sciences or technology) in China.
What is the particular strength of medium-sized companies in Germany? Thanks to the ownership structure, the companies can shine with authenticity. This in turn rubs off on the work of their employees because they identify with the company and thus fully exploit its value-adding potential. What China still lacks is the power to innovate, which is why it is crucial to advance digitalization in SMEs in Germany. Thanks to their agility and short decision-making processes, our SMEs are ideally placed to be and remain pioneers in this area too. But one thing should not be forgotten: China is following suit!
