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Institute
Methods of machine learning (ML) are difficult for manufacturing companies to employ productively. Data science is not their core skill, and acquiring talent is expensive. Automated machine learning (Auto-ML) aims to alleviate this, democratizing machine learning by introducing elements such as low-code or no-code functionalities into its model creation process. Due to the dynamic vendor market of Auto-ML, it is difficult for manufacturing companies to successfully implement this technology. Different solutions as well as constantly changing requirements and functional scopes make a correct software selection difficult. This paper aims to alleviate said challenge by providing a longlist of requirements that companies should pay attention to when selecting a solution for their use case. The paper is part of a larger research effort, in which a structured selection process for Auto-ML solutions in manufacturing companies is designed. The longlist itself is the result of six case studies of different manufacturing companies, following the method of case study research by Eisenhardt. A total of 75 distinct requirements were identified, spanning the entire machine learning and modeling pipeline.
More and more manufacturing companies are starting to transform the transaction-based business model into a customer value-based subscription business to monetize the potential of digitization in times of saturated markets. However, historically evolved, linear acquisition processes, focusing the transactionoriented product sales, prevent this development substantially. Elemental features of the subscription business such as recurring payments, short-term release cycles, data-driven learning, and a focus on customer success are not considered in this approach. Since existing transactional-driven acquisition approaches are not successfully applicable to the subscription business, a systematic approach to an acquisition cycle of the subscription business in the manufacturing industry is presented, aiming at a long-term participative business. Applying a grounded theory approach, a task-oriented model for themanufacturing industry was developed.
The model consisting of five main tasks and 14 basis tasks serves as best practice to support manufacturing companies in adapting or redesigning acquisition activities for their subscription business models.
In the age of digitalization, manufacturing companies are under increased pressure to change due to product complexity, growing customer requirements and digital business models. The increasing digitization of processes and products is opening up numerous opportunities for mechanical engineering companies to exploit the resulting potential for value creation. Subscription business is a new form of business model in the mechanical engineering industry, which aims to continuously increase customer benefit to align the interests of both companies and customers. Characterized by a permanent data exchange, databased learning about customer behavior, and the transfer into continuous innovations to increase customer value, subscription business helps to make Industry 4.0 profitable. The fact that machines and plants are connected to the internet and exchange large amounts of data results in critical information security risks. In addition, the loss of knowledge and control, data misuse and espionage, as well as the manipulation of transaction or production data in the context of subscription transactions are particularly high risks. Complementary to direct and obvious consequences such as loss of production, the attacks are increasingly shifting to non-transparent and creeping impairments of production or product quality, which are only apparent at a late stage, or the influencing of payment flows. A transparent presentation of possible risks and their scope, as well as their interrelationships, does not exist. This paper shows a research approach in which the structure of subscription models and their different manifestations based on their risks and vulnerabilities are characterized. This allows suitable cyber security measures to be taken at an early stage. From this basis, companies can secure existing or planned subscription business models and thus strengthen the trust of business partners and customers.
Subscription business models provide an important component for monetizing the potential of Industrie 4.0. Subscription business is based on a long-term and participative business relationship between customer and provider. However, only digitalization offers the necessary framework conditions to realize the characteristic recurring and performance-based billing, and to ensure the necessary transparency about the usage phase of products as well as continuous performance improvements in the customer process. Against this background, companies must not only recognize the much-cited potential that lies in the total dedication to the success of individual subscription customers. Rather, the central obstacles must be addressed, examined, and subsequently overcome in a targeted manner in order to successfully establish subscription business models and place them on the market.
The digital transformation is changing the way companies think and design their manufacturing environment. Both due to the increasing number of connections between IoT-Devices, tooling machines, and production lines and the phenomenon of the convergence of IT and OT, systems are becoming more complex than years ago. Organizational and cultural changes within manufacturing companies strengthen this trend and form Industry 4.0 environments and cyber-physical production systems (CPPS). As these systems do not longer stay alone but are connected to each other and the company’s outside, the size of the potential attack surface is increasing as well. Besides that, manufacturing companies, small and medium-sized in particular, are facing complex challenges based on lack of knowledge, budget, and time to understand as well as to interpret their current situation and risk level and therefore to derive necessary counter-measures. Efficient as well as pragmatic tools and methods for these companies do not exist. This paper shows a research approach in which the company-specific set-up of Industry 4.0 environment and CPPS is characterized by its potential vulnerabilities. This enables companies to evaluate their risk potential before setting up this kind of environments and to undJo,erstand the potential consequences more precisely. By doing so, companies can derive and prioritize important counter-measures and so to strengthen their level of cyber-security efficiently. This will decrease the number of cyber-security attacks and increase the company’s competitiveness.
Manufacturing companies are constantly increasing their efforts in the subscription business, also known as product-as-a-service business, offering usage and outcome based solutions (value-in-use) instead of transactional services and products (value-in-exchange). Customers are becoming contractual subscribers of the solution in return for recurring, performance-related payments. To address arising, inevitable challenges like (1) reducing customer churn, (2) increasing usage intensity and outcome quality, (3) ensuring the adoption of product and software releases as well as (4) fostering customer loyalty, leading manufacturing companies are setting up a new organizational, customer-facing unit, called Customer Success Management (CSM). This unit has its origins in the software-as-a-service business, operating next to established entities like sales, key account management and customer service. Since there are currently no holistic models for an end-to-end description of CSM-tasks in the manufacturing industry, this paper contributes to a taskoriented reference model, using a grounded theory approach, examining both manufacturing and software companies. Containing a reference framework with 8 main tasks, 17 basic tasks and 76 elementary tasks, the reference model supports manufacturing companies in adapting and customizing a company-specific CSM concept.
Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.
The Impact Of Manufacturing Execution Systems On The Digital Transformation Of Production Systems
(2021)
With the focus of manufacturing companies on the digital transformation, Manufacturing Execution Systems are market-ready, modular software solutions for manufacturing companies to integrate the value-adding and supporting processes horizontal and vertical in the company. Companies, especially small and mediumsized companies, face high internal and external costs for the implementation of the MES modules. An advantage of MES is the possibility to implement the systems in a continually, module-by-module approach, with the benefit of timely distributed investments. By realizing fast improvements, companies can use the benefits for further module implementations. This paper proposes a maturity model to measure the impact of an MES on the digital transformation of the company’s production systems. The model fulfils two purposes. The first, companies can measure the impact based on the difference between its current maturity index and the potential index of an implemented MES. The second is, the user can identify what impact an MES has in general on the digital transformation since the developed maturity model is derived from an established industry 4.0 maturity model. The development of the maturity model is based on the methodologies of AKKASOGLU and focuses on the further development of an established model. As an outlook, the application of the model will be described briefly. The proposed maturity model can directly be used by practitioners and offers implications for further development of MES functionalities.
Industrial practice shows a strong trend towards digitalization. It is not only economic crises, such as those triggered by Covid-19, that are reinforcing this trend. It is also the entrepreneurial urge to fulfill customer wishes in the best possible way and to adapt to new requirements as quickly as possible. Due to the advancing digitalization, the role of business application systems in manufacturing companies is therefore becoming increasingly important. The data processed in IT-Systems represent a great potential, especially for the evaluation of change requests in production. Through efficient change management, companies can record and process changes quickly. However, the necessary data basis to decide on existing change requests is still hardly used. Existing IT-Systems for change management coordinate the processing of change requests, but do not relate to data of operational application systems such as Enterprise-Resource-Planning. Therefore, a conceptual approach is required for the evaluation of change requests. This approach is based on an objective recording system that enables the transformation from the change description to an evaluation space. The paper presents an approach for the systematic transfer of requirement characteristics into the world of operational IT-Systems.
A large number of product-accompanying services in the machinery and plant engineering industry is based on the cross-company exchange of data and information. By providing services, additional sales potential on the manufacturer side as well as far-reaching product and process advantages for appliers can be reached. However, the necessary cross-company exchange of information is nowadays limited due to a lack of trust in the interacting partner and the applicable existing technologies, which results in significant losses in the terms of business potential. The uncovering of this potential now seems to be made possible by the use of the Blockchain technology. Through the key factors security, immutability, transparency and decentralisation, it serves as an enabler for cross-company communication and product-accompanying services. The technological implementation of a Blockchain can take on a broad spectrum of attributes, which can lead to decisive restrictions for the execution of services. This justifies the necessity for a qualified and context-related assessment of service-types-individual specifications and the resulting requirements on the system. Within the scope of this paper, different types of product-accompanying services are identified and analysed regarding their requirements for a Blockchain-based machinery and plant connection. This can serve as a basis for a qualified and goal-oriented configuration of the Blockchain.
The planning and implementation of migration projects in global production networks is a complex planning task that is confronted with a dynamic global environment with highly complex interdependencies. Today's migration approaches are either large projects or isolated local
investments. As such, they are not suitable for simultaneously addressing interdependencies and continuity. This paper illustrates a holistic and continuous methodology for rolling migration planning and implementation in global production networks. Seven steps enable the transformation from the current state of the production network into a target state regarding internal as well as external dynamics and interactions.
Manufacturing companies face the challenge of selecting digitalization measures that fit their strategy. Measures that are initiated and not aligned with the company’s strategy carry the risk of failing due to lack of relevance. This leads to an ineffective use of scarce human and financial resources. This paper presents a target system to help companies select relevant digitalization measures compliant with their strategy for IT-OT-integration projects. The target system was developed based on literature research and expert interviews, and later validated in two use cases. The target system considers the goals of production companies and combines them with digitalization measures. The measures are classified by different maturity levels required for their realization. Thus, the target system enables manufacturing companies to evaluate digitalization measures with regards to their strategic relevance and the required Industrie 4.0 maturity level for their realization. This ensures an effective use of resources.
The number of available technologies is constantly rising. Be it additive manufacturing, artificial intelligence (AI) or distributed ledger technologies. The choice of the right technologies may decide the fate of a company. Due to the overwhelming amount of information sources, regular technology market research becomes increasingly challenging, especially for SMEs. In order to assist the technology management process, the authors will introduce the architecture of an automated, AI-based technology radar. The architecture will automatically collect data from relevant sources, assess the relevance of the respective technology (i.e. their maturity level) and then visualize it on the radar map.
Auf Basis einer systematischen Literaturanalyse wurden insgesamt 11 Kennzahlen identifiziert, welche die Grundlage zur Beschreibung der operativen Leistungsfähigkeit von Unternehmen bilden. Die Kennzahlen wurden in die vier Leistungsdimensionen Effizienz, Qualität, Zeit und Flexibilität eingeteilt.
Subscription business transforms traditional business models of machinery and plant engineering. Many manufacturing companies struggle to pull out the potential created by Industry 4.0 and make it economically usable. In addition to technological innovations, it is necessary to transform the business model. This leads to a shift from ownership-based and product-centric business models to outcome-based business models, which focus on the customer's value and thus realize a unique value proposition and competitive advantage – the outcome economy. Based on a case study analysis among manufacturing companies, this paper provides further clarification including a definition and constituent characteristics of subscription business models in machinery and plant engineering.
In an increasingly changing market environment, the long-term survival of companies depends on their ability to reduce latencies in adapting to new market conditions. One strategy to meet this challenge is the anchoring of data-driven decision making, which leads to an increasing use of advanced information technologies and, subsequently, to an increase in the amount of data stored. The complexity of processing these data spurred the demand for advanced statistical methods and functions called Business Analytics. Companies are, despite all promised benefits, overwhelmed with the implementation of Business Analytics as indicated by a failure rate of 65 to 80 %. This paper provides an empirically validated, multi-dimensional model that takes an integrative look at critical success factors for the implementation
of Business Analytics and based on which management recommendations can be generated. For this purpose, constructs of the model are conceptualized, before a structural equation model is developed. This model is then validated with data from 69 industrial partners in the food industry. It is shown amongst others, that the three success factors top management support, IT infrastructure and system quality are pivotal to increase the company performance.
This paper contributes to an assessment framework for valuing data as an asset. Particularly industrial manufacturers developing and delivering Smart Product Service Systems (Smart PSS) are comprehensively depended on the business value derived by processing data. However, there is a lack in a framework for capturing and comparing the Smart PSS data value with the purpose of increasing the accountability of data initiatives. Therefore a qualitative data value assessment approach was developed and specified on Smart PSS, based on an industrial case study research. [https://link.springer.com/chapter/10.1007/978-3-030-57997-5_39]
Reliability-centered maintenance for production assets is a well-established concept for the most effective and efficient disposition of maintenance resources. Unfortunately, the approach takes a lot of effort and relies heavily on the knowledge of individuals. Reliability data in Computerized Maintenance Management System (CMMS) is scarce and almost never used well. An automated risk assessment system would have the potential to contribute to the dissemination and effective use of risk information and analysis. The individuality of production setting, however, prevents current systems from being practically relevant for most industries. The presented approach combines ontologies to store and link knowledge, an information logistics model displaying the various information streams, and the Internet of production to take the different user systems and infrastructure layers into account. The provided model of a reference digital shadow for risk information and a detailed information logistics model will help software companies to improve reliability software, standardize and enable assets owners to establish a customized digital shadow for their production networks. [https://link.springer.com/chapter/10.1007/978-3-030-57993-7_2]
Digital networking via the company and as well, the overall supply chain, can only succeed if digital planning reflects reality as accurately as possible and if production control can react to deviations in real time. In essence, this leads to a development of process control towards process regulation. While longterm production and resource planning is usually mapped by Enterprise Resource Planning (ERP) systems, detailed planning, including short-term deviations and real-time data at the production level, is increasingly supported by Manufacturing Execution Systems (MES) at the production control level. However, in order to bring the underlying system concepts into line with Industry 4.0 efforts in a standardized manner, mutual functional integration within the framework of interoperable production planning and control is of crucial importance. For this purpose, studies were carried out in particular into cause-effect relationships. Thus, the overarching research objective is a valid design model to increase the controllability of production planning and control systems (PPC) in the context of Industry 4.0.
Smartification and digital refinement of products to enable the design of smart ones is a pivotal challenge in the manufacturing industry. Companies fail to design smart products due to missing knowledge of digital technologies and their integral part in product development processes. This paper presents a methodology that enables the derivation of digital functions for smart products through selected cases in manufacturing usage. We develop a morphology that consists of digital functions for smartification. In this context, we explained and derived characteristics by a set of examples regarding smart products in the manufacturing industry. Our methodology reduces the time spent initiating a development project with the focus on smartification.