The future of our busines is digital

The term “Industry 4.0” was first used at the 2011 Hanover Trade Fair – it describes the smooth integration of the digital world into the physical world. What exactly is involved?

People, machines and industrial processes are to be intelligently networked by combining cyber-physical systems (CPS), the so-called “internet of things and services”, as well as big data. In this way, individual high-grade products customised to customer needs can be manufactured more cost-effectively.

The fourth industrial revolution is destined to see IT advance the networking of components, machines, tools and means of transportation, leading to more efficient workflows and innovative business models that offer new market opportunities to many corporations. However, first countless technological, legal and social preconditions need to be met.

Data to become trading assets

Today, society is already highly interconnected. Each day, we produce a gigantic volume of data. Using this information, we can develop innovative products and services, save resources and create new jobs. German corporations can exploit their technological expertise and know-how in corporate software to establish digital services “made in Germany” in the internet-based service sector, many experts conclude. In future, corporations will no longer need to independently calibrate the same data or compile programmes or raise themselves the considerable financial means required. (Presumably, they will no longer be able to cover the expenses, given the swiftly rising number of variants.) A market place through which technological data is offered as a service can therefore make an important contribution to increasing flexibility and cost efficiency. Companies could, for example, float the data they have collected themselves on such a platform, generating an additional revenue stream. To this end, they would need to know how to transfer the data safely and according to what criteria they could calculate the prices.

Digital transformation – new marketplaces must be created

A key role will be played by those digital platforms on which such products and services can be presented virtually, combined, upgraded to feature additional digital services and then offered as a smart service.

Service providers, such as exchanges, that have already garnered experience in platforms, transactions and price calculation, can act as intermediaries between the suppliers and customers of digital trading assets to ensure the right transparency and maintain security. In future, a number of sectors will benefit from this – from real estate and the trades to mobility and financial services providers.

Deutsche Börse with its finger on the pulse

In the context of the German Federal Government’s digital agenda and its high-tech strategy, Deutsche Börse is a member of the government’s Smart Service World working team, in which it is represented by the colleagues Andreas Brandt and Alexej Roytburg. They helped to develop firm recommendations how Germany can use its good starting point in the field of Industry 4.0 to position itself emphatically in the global competition.

The National Academy of Science and Engineering (acatech) working team is made up of renowned figures from the worlds of business and science and advises political institutions and ministries on their strategic approach to technological issues and fields of research. Hauke Stars, Executive Board member for Cash Market, Pre-IPO & Growth Financing, has been a member of the acatech senate since 2015. She comments: “Deutsche Börse can use its expertise to assist in shaping safe, transparent and fair market places for technology data in the ongoing evolution of Industry 4.0. Digital marketplaces offer completely new opportunities for structuring industrial processes and have an immense potential to create value added.”