actyx. exploiting digital industry

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Exploiting Digital Industry

1.4.2

21/09/2015

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Why is it important?

Digital Industry


A backbone of the European economy

the highly-successful manufacturing Mittelstand

that through generations of continuous innovation

has developed the best processes and products and

kept the competition at bay on a global scale

is under threat by digitalization!

Retail:

Entertainment:

News:

Digitalization is a disruptive force:

New paradigm of intelligent intra-logistics

One of the most innovative cars in the world

© Niels de Wit from Lunteren

© Wired

It has already started in traditional European industries:


1) No disruption• The Mittelstand successfully innovates• European manufacturing remains competitive• Established technology suppliers (Siemens, SAP, etc.) thrive

2) Disruption• Is the Mittelstand taking enough initiative?• Will manufacturers prevail in a disruptively digital world?• Are technology suppliers providing digital base-technology?

Europe prepared

Challenge for Europe

The Digital Industry trend has two potential outcome scenarios. Is Europe prepared for a disruptive digital future?

• Strengthening of the “Mittelstand”• Manufacture new generation smart products• Grow market-share in globalized world• Develop key digital expertise• Ensure sustainable success in the digital world

Europe should become Digital Industry pioneer!


How can you become a Digital Industry pioneer?


Executive Summary


1 Digitalization is coming 2 How to exploit it 3 How Actyx helps

Marketpull

Technologypush

Product variety ↑Product lifecycle ↓→ Production

complexity

Cost of:• Software• Hardware• Communication

Value proposition of digital industry:

A Increasing operational efficiency[short-term]

B Business models innovation[long-term]

↑

↑

A Uncertainty in innovation

B Interdisciplinary talent

C Change management

Digitalization↳ Disruptive innovation↳ Uncertainty→ Leverage agile development in

order to control radical innovation

Digitalization → interdisciplinary talent1). Manufacturing talent2). Digital talent:

• Highly competitive market for digital talent

• Culture/workplace must be adapted to the idiosyncratic needs of this talent pool

Co-operative innovation projectswith Mittelstand manufacturers

- Interdisciplinary talent(connectivity, software, analytics)

- Agile development methodology- Change management process

- Manufacturing expertise- Application scenario- Desire to innovate

Manufacturer

↳ Value proposition:

1 Increase in operational efficiency

2 Business model innovation

3 Digital spill-over

4 Brand recognition

Develop a comprehensive change management strategy to successfully exploit digitalization


Reading information: audience, motivation, content and reading


The intended audience of this guide are manufacturers interested in developing a digital transformation strategy for their business.

The goal of this guide is to help you develop a strategy for exploiting the disruptive potential of digital technologies in manufacturing. Digitalization will change what products and services we deliver and how we make/deliver them. Broad changes are imminent. Successfully transitioning to a digital industrial company requires a multi-dimensional approach.

We present digitalization, its roots, its value proposition, its potential impact and the fact that it has already started changing manufacturing. We introduce the three main components necessary to exploit it: (1) an understanding of disruptive innovation, (2) a appreciation for highly contested digital talent, and (3) an awareness regarding the necessity for effective change management. Finally, we discuss what Actyx does and how Actyx could help you digitalize your manufacturing company.

This is not a traditional presentation but a stand-alone slide-deck meant for individual reading. It is dense and certain sections should be skipped if they are not of immediate interest.

Audience

Motivation

Content

Reading


1 Digitalization is coming

2 How to exploit it



C Change management

3 How Actyx helps

Contents


Technology pushMarket pull

Market pull and technology push

Average purchase price of individualized products: +28%

1/. “IoT basics: Getting started with Internet of Things”, Knud Lasse Lueth, IoT Analytics2/. “Mastering product complexity”, Roland Berger, November 20123/. “Making it personal: Rules for success in product customization”, Bain & Company 2013

1997-2012:

Product variety across all industries: +100%2

Product lifecycle: -50%2

Communicationcost of of bandwidth

Significantly reduced cost in digital technology enablers over the last 10 years:

Customers are demanding more individualized products, increasing production complexity:

Hardwarecost of sensors -54%1

Softwarecost of processing -98%1

-97%1

Drivers of digitalization in industry


Coca-Cola’s #shareacoke campaign

Campaign: Approx. 800 million labels printed2

3000 different names in each country3

Results: Rise in sales (after 10 years of decline)4

+7% consumption among young Australians5

VW hit by complexity

Product variety has doubled in the 1997-2012 period8

Fast expansion in production capacity

Consequence: Hardly-manageable complexity9

Uncontrollable development costs9

Reaction: Certain models to be cut from portfolio10

All options sold with less than 5% of vehicles to be cut10

Two cases studies showcasing the limits of state-of-the-art manufacturing systems

Market pull: product variety is driving manufacturing complexity

”“More than one-third [of surveyed manufacturing executives] indicate that manufacturing operations are increasingly complex and almost 90% rate the need to address the challenges of complexity at three or above on a five point scale.”1

1/. “Five Factors in Optimizing Complex Manufacturing Operations”, M. Humphlett, IndustryWeek, February 20142/. “Coca-Cola gets personal with HP Indigo digital technology”, Hewlett-Packard, June 20133/. “Behind the scenes of ‘Share A Coke’”, Coca-Cola Enterprises, August 20144/. “’Share a Coke’ Campaign Grows Sales For First Time in 10 Years, WSJ Reports”, T. McQuilken, AdWeek, September 20145/. “’Share a Coke’ Credited With a Pop in Sales”, M. Esterl, WSJ, September 20146/. “Share a Coke push leaves a lasting legacy | Case study”, P. Chadwick, July 20137/. “Diet Coke Prints 2 Million Unique Labels in Latest Stroke of Packaging Genius”, T. Nudd, AdWeek, October 20148/. “Mastering product complexity”, Roland Berger, November 2012

9/. “Wie VW zehn Milliarden Euro sparen will”, N. Doll, Die Welt, November 201410/. “VW-Chef Winterkorn über sein Sparprogramm: "Vielleicht weniger Leiharbeiter", DER SPIEGEL, October 201411/. “New manufacturing platform headaches add to VW cost worries” (quoting Stefan Bratzel), A. Cremer, July 2014

Case Study

”“enormous production challenges”7

Case Study

”“The pitfalls of complexity are seemingly beginning to haunt VW.”11

Modern manufacturing systems and supply chains are highly complex systems involving large numbers of specialized and interacting components. Increasing product variance and, indeed, demand for mass-customized products are putting traditional production technology and methodology under strain.

More than 100 people involved3

One year of planning6


The value proposition of Digital Industry

Operational efficiency will increase and new business models enabled

Resources and processesImproved processes will increase productivity, reduce lead-times and resource usage

Different technologies will permit increasing efficiency along different dimensions. Some examples include:

Labor productivityLabor productivity will be increased by assistance systems and collaborative robotics

QualityAdaptive processes, digital traceability and information sharing in supply-networks will increase quality

Time-to-marketIntegrated and collaborative product development and real-time factory feedback will reduce time-to-market

Asset utilizationPredictive and remote maintenance and digital integration of equipment and material suppliers will increase utilization

InventoryIncreasing make-to-order and digitally integrated supply-chain management will reduce the need for inventory

Supply-demand matchVertical customer-to-factory connectivity and improved data-based forecasting will facilitate matching supply to demand

Service and aftersalesCustomer integration, asset transparency and traceability will enable better services and improve sales processes

Digital technologies will enable new business models for all stakeholders in manufacturing value-creation networks. These innovations will involve disruption (i.e. some KPIs may be lower). The current four main business model innovation trends:

Platforms

Examples: market for products, resource spot-markets, data-management and “app” platforms.

Data

Examples: real-time data sale, knowledge sharing through historical data sharing.

Intellectual property

Examples: IP licensing, design platforms.

Service

Examples: power-by-the-hour, make-to-order, analytics on demand.

Digital industry will create value for manufacturers, for supply networks, for OEMs, for IPR-holders and all other involved stakeholders in two main ways:

And many more yet to be invented …

A Increases in operation efficiency [short-term] B Business model innovation [long-term]


ETALEX using UR collaborative robot

Problem: Repetitive manual press loading (8 hours/day)1

Significant accident risk2

Solution: Installation of Universal Robots’s UR10 robot Configured using intuitive teach-mode and

tablet2

Bosch Rexroth Industry 4.0 Assembly Line

Problem: Frequent manual reconfiguration necessary3

High product variance (hydraulic valves)

Solution: Autonomous auto-configuring workstations4

User-aware assistance system4

Initial pilot case-studies and roadmap

A Example for increasing operational efficiency

Case Study

40% increase in sales with same number of employees2

1/. “Etalex. Robot technology improves safety and increases job satisfaction”, CaseStudy, Universal Robots2/. “Collaborative Robot Helps Manufacturer Rack Up 40% Increase in Sales”, Tooling&Production, 20153/. “Sieger Industrie 4.0-Award 2014 Bosch Rexroth AG - Wie gelingt eine „Smart Automation“?”, ROI Management Consulting AG, February 20154/. “Industry 4.0 - Bosch Rexroth Multiproduktlinie”, Bosch Rexroth, May 20155/. “Gewinner des Industrie 4.0-Awards”, C. Wilk, Produktion, December 2014

The implementation of the Digital Industry vision is in its infancy (see conservativeroadmap on the right). However, a small number of pioneering companies are already pushing ahead and profiting. 10+ years

5-10 years

2-5 years

First pilots

First industrial systems

Widespread industrial use

Reality

Vision

Case Study

- 100% reduction of configuration time5

- 50% reduction of inventory5

- 11-20% productivity increase5


Examples from retail, entertainment and journalism

B Business model innovation in other industries

The retail industry is arguable that which has so far been most disrupted by digital technologies such as theinternet, mobile devices and ubiquitous connectivity. US physical retail store visits have dropped 48% in theperiod 2009-20131, US E-commerce sales as a percentage of total sales have grown with a CAGR of 15.6% from2000 to 20152. Traditional retailers such as Best Buy and Target are increasingly under pressure from E-commerce giant amazon.com when it comes to low-margin goods. Innovative retailers such as Nike orWalgreens are investing tremendous resources into redefining themselves are digital companies, able to meetthe modern digital consumer’s needs and behavior.

Digital technology is also disrupting the news and journalism business. Users can now easily filter suitablenews stories and check their authenticity by searching for original documents. Events like the Bostonmarathon, the killing of Osama bin Laden or the uprising of the Arab spring were first mentioned on Twitter,making it the fastest news channel in the world5. Traditional newspapers like the Washington Post havestruggled in making the transformation to the digital age, in this case finally leading to the (ironic) sale toAmazon founder Jeff Bezos.6 However, digital technology is only the beginning disrupt journalism. Whilst 30%of US adults receive news from Facebook, still only 4% say that it is their most important way to get news7.

The entertainment industry provides another example of the disruptive impact of digitalization. Blockbusters,which at its peak in 2004 had nearly 60’000 employees and more than 9’000 stores, went bankrupt in 2010and was auctioned off, in April 2011, for $233 million.3 This downfall was caused primarily by DVD-by-mailcompetition from internet-based Netflix and Redbox. Netflix has gone on to become the world’s biggest on-demand internet-streaming media company, with over 62 million subscribers in April 20154.

1/. “Total Retail 2015: Retailers and the Age of Disruption”, PwC, February 20152/. “E-Commerce Retail Sales as a Percent of Total Sales, Percent, Quarterly, Seasonally Adjusted”, Economic Research Division, Federal Reserve Bank of St. Louis3/. "Dish Network wins bidding for assets of bankrupt Blockbuster", B. Fritz, Los Angeles Times, April 2011

4/. “Netflix Inc. Earnings: Crushing Milestones”, R. Munarriz, The Motley Fool, April 20155/. “Twitter is becoming the first and quickest news source of investement news”, The gurdian, April 20136/. “Washington Post closes sale to Amazon founder Jeff Bezos”, The Washington Post, October 20137/. “The Role of News on Facebook”, PewResearch Center, October 2013

See BCG's "The Digital Imperative, Animated"

Journalism:

Entertainment:

Retail:

https://www.bcgperspectives.com/content/videos/technology-strategy-digital-economy-digital-advantage-animated/?linkId=16442754&linkId=16471736


”Forecasts regarding industrial digitalization’s impact on German and global GDP

The impact digitalization will have on manufacturing is enormous

$23

$1,279

$-

$250

$500

$750

$1,000

$1,250

$1,500

2012 2020

Bill

ion

s

Projected value delivered by the Industrial Internet 2012-20202

0% 10% 20% 30% 40%

Other

Wind

Machinery

Mechanical Components

Food and Beverage

Automotive

Additional productivity on conversion costs*1

10-20

20-30

20-30

20-30

25-35

10-15

1/. “Industry 4.0: The Future of Productivity and Growth in Manufacturing Industries”, BCG2/. “Defining and Sizing the Industrial Internet”, David Foyer, Wikibon* Conversion costs are manufacturing costs excluding material costs

“The impact of Industry 4.0 will be significant. Our research shows that in Germany alone it will contribute about 1 percent per year to GDP over ten years, create as many as 390,000 jobs, and add €250 billion to manufacturing investment (or 1 to 1.5 percent of manufacturers’ revenues).” The Boston Consulting Group1


”Political push, big investments, rising interest

Digital Industry: it is happening now

Political and industrial initiatives in EU, USA, PRC:

Search trend:“Industrie 4.0”4

Plattform Industrie 4.0 – Major initiative in the German government’s Digital Agenda. More than 100 million Euro have been invested for research and innovation in the field. A strong focus lies on providing the “Mittelstand” (SMEs that drive the German economy to some extent) with the necessary tools for the next industrial revolution1.

1/. “Industrie 4.0: The Digitisation of the Economy”, Federal Ministry for Economic Affairs and Energy, Accessed August 20152/. “The Industrial Internet Consortium®: A Global Nonprofit Partnership Of Industry, Government And Academia”, IIC, Accessed August 20153/. “Chinese cabinet unveils ‘Made in China 2025’ master plan”, W. Liwei,

MarketWatch, May 20154/. Google Search Trends (“Industrie 4.0”), Google, Accessed August 20155/. “Industrial Internet of Things: Unleashing the Potential of Connected Products and Services”, World Economic Forum, January 2015

Industrial Internet Consortium – Industry-driven initiative in the United States bringing together industrial companies (worldwide), university and government institutions. The goal is to accelerate growth of the Industrial Internet by identifying, assembling and promoting best practices. The IIC is very much focused on industrial use-cases, following a more bottom-up approach than Germany’s top-down approach2.

Made in China 2025 – ”Made in China 2025” is an initiative by the People’s Republic of Chinaœ. Not much is know yet, except that the goal seems to be to “give China an edge in innovation, green development and quality goods.”3

Big players are investing (headlines 2014-2015):

Search trend:“Industrial Internet”4

72% of respondents believe that the development ofthe Industrial Internet will be disruptive to theirbusinesses and industries, and more (79% ofrespondents) think those disruptions will occur withinthe next five years.”5



2 How to exploit it



C Change management

3 How Actyx helps

Contents


LCD as exampleBeginning: 1968: Developed by RCA Corporation, USA Primarily used in low power & low energy

consumption applications like watches or calculators

Resolution considerably lower than conventional CRT screens

Breakthrough: Japanese firms didn’t have experience with CRT

screens and thus focused heavily on LCD 1988: Sharp presented 14’’ screen, (1/13 of

thickness of conventional screens, 75% less weight)

2005: More LCD screens sold than CRT2

Radical innovation has higher rewards with higher risk

Disruptive innovation is associated with uncertainty

Radical innovation

15 80 40

Product modification

8 60 20

Market development

4 40 20

Market penetration

1 30 1

Management effort (%)

Probability of failure (%)

Profitability (%)

Radical innovation is challenging but rewarding1

1/. “Managing the “Unmanageable”: Radical Innovation”, BCG, September 20132/. Clayton Christensen, 20153/. “LCD - a Disruptive Technology”, C. Sandström, Slideshare 2009

Disruptive/radical innovation

Initially a simple/primitive application at the bottom of the market. but relentlessly moving up the market, eventually displacing established competitors.2

Case Study

LCD initially had poor performance, but once performance was good enough disruption happened at a furious pace.


Rigid waterfall product development

Manufacturing traditionally does not deal well with uncertainty

73% state that they are still using the classical (waterfall) approach in product development of non IT-products1

1/. “Status Quo Agile”, Prof. Dr. Ayelt Komus, University of Applied Science Koblenz, 20142/. “Managing the “Unmanageable”: Radical Innovation”, BCG, September 2013

After-the-fact changes are costly, as each phase starts upon completion of the last phase. This technique is only suitable for stable and predictable environments

Root causes of failure for radical innovation projects:

Values

Aiming to predict the unpredictable

Avoiding risk rather than controlling it

Processes and tools

Rigidly following a gate-focused, sequential management process

Applying highly structured tools developed for incremental innovation

Emphasizing KPIs for near-term gains and process efficiency over

learning

Extrapolating existing data rather than thinking out of the box

Interaction

Little collaboration with colleagues beyond the product team

Little exchange with outsiders to learn about markets and technology

No attention on acquiring advance commitments from stakeholders to

reduce risk

Requirements

Design

Maintenance

Verification

Implementation

Waterfall development… …and its inability to deal with disruptive innovation.

Quoted verbatim from “Managing the “Unmanageable”: Radical Innovation”, BCG, September 2013


Salesforce introducing agile

Problem: 1999: 3 people in R&D: 4 major product releases per year 2006: 200+ people in R&D -> 1 major product release per

year1

Solution: Major enterprise-wide agile transformation2

Agile development allows for control through fast product iteration

Leverage agile project management to deal with uncertainty

Disruptive innovation can not be predicted, but it can be governed to minimize risk. It needs an open, patient, andcreative mindset in the company. Radically innovative products need to be constantly iterated and tested to ensurethat customer needs are still met. This lies at the heart of the agile development methodology. Prototypes are built,tested and refined in short, iterative cycles. Constant product review and validation by project stakeholders enablegovernance and minimizes risks in a fast changing environment.

1/. “Scrum: Gemeinsam schneller zum Erfolg”, Produktion, August 20152/.” Agile transformation best practices”, A. Chiarini, Slideshare 20123/. “The fast track to success with agile product development”, Bosch Presse, June 20154/. “Salesforce.com Agile Transformation”, S. Green Agile conference 20075/. Wikiinvest

”“With the help of new and unconventionalmethods, we are able to respond even betterthan before to new customer requirementsand increasingly volatile markets”

Dr. Volkmar Denner, CEO Bosch3

Build

Measure

Learn

Time to market: -50%Cost efficiency: +10%Quality: + 10%2

Case Study

• 60+ critical features delivered in <9 months4

• 2200% revenue increase since introduction5

More on agile development in the appendix



2 How to exploit it



C Change management

3 How Actyx helps

Contents


Necessary talent and where that talent currently is

Digitalization of industry requires manufacturing and digital talent

Digital industry

Digital

Industry

Manufacturing Processes

Big-data

Wirelessconnectivity

Virtual andaugmented reality

AppliedArtificial Intelligence

User ExperienceDesignScalable software

architectures

Cloud technologies

Dev Ops

Unstructureddata

Data exploration

Internetsecurity

Internet-of-Things

Socialmedia

Continuous Integration

Physical design

Quality Assurance

Supply-Chain Management Product-Lifecycle

Management

Resource optimization

Real-time communications

Robotics

Materials

Precision Engineering

Labor Relations

Procurement

Complexity Management

Where is manufacturing talent?What talent is required?

Where is digital talent?

Hidden-champions/Mittelstand/SMEs:

Big players:

Big players:

Startups:


The market for digital talent and initial approaches

Digital talent is in high demand, you need to change and fight for it

”

1/. “The Digital Talent Gap. Developing Skills for Today’s Digital Organizations”, Capgemini Consulting, 20132/. “In Deutschland fehlen 41.000 IT-Experten”, bitkom, November 2014 (translated)3/. “Unemployed in Europe Stymied by Lack of Technology Skills”, L. Alderman, The New York Times, January 2014 (*=projected)4/. “Internet Trends”, D11 Conference, M. Meeker et al., Kleiner Perkins Caufield Byers, May 2013

„The rising demand for software developers in application-industries shows that Digitalization is accelerating in the entire [German] economy.“ - Bitkom-President

Prof. Dieter Kempf 2”

“77% of companies considered missing digital skills as the key hurdle to their digital transformation.”1

77%

Digital talent shortage is real and growing:

Combined 10’000 job openings in US (2013)40

100

200

300

400

500

600

700

800

900

1000

'11 '12 '13* '14* '15*

Th

ou

sa

nd

s

New IT graduates

IT job vacancies

EU IT skill shortage3:

Companies must change and fight for it:

Source: CapgeminiConsulting

InnovativeRecruitment

Methods

TargetedCompany

Acquisitions

Partnerships

Incubatingfor theFuture

TrainingPrograms

Gamified their recruitment process

Made several acquisitions of mobile, social and technology firms

Partnered with Kaggle, a platform for data prediction competitions

Partnered with Techstars for an incubator program

Examples of Best Practices:

Launchedan employee exchange program with Google


Compensation is not everything

What digital talent is looking for

Digital talent won’t work at a company where:1

1/. “Why digital talent doesn’t want to work at your company”, A. Shaprio, Fastcompany

Work is pored over by layers of bureaucracy. Digital talent wants to create new products within short time-frames and doesn’t want to be held back by bureaucracy

Mediocre is good enough. Digital talent wants to be challenged and expected to do something great and not have to leave at 5 p.m.

Trial and error is condemned. Digital talent needs freedom to take initiative, make decisions and learn from their mistakes

Promotion is based on years spent, not on merit. Digital talent needs to see a long-term perspective in your company

Offices are isolated, communicating power among individuals. Digital talent wants to work in an open, friendly and collaborative environments



2 How to exploit it



C Change management

3 How Actyx helps

Contents


Change strategy supporting introduction of SAP module in large multinational manufacturer1

Problem: System reaching 500 internal users and 2’700

geographically dispersed dealers Highly complex and important processes: “dealer

warranty operations, supplier collaboration, warranty analytics and intelligence”; customer satisfaction directly related to performance

Compliance and regulatory issues

Solution:All-encompassing change management program: Three-month communication plan (225 unique

communication events with messages tailored to specific groups of employees)

“Change Management Advisory Board” (weekly meetings involving all stakeholders)

Web-based interactive trainings at 47 different training locations

Likely affected areas in the manufacturing domain and exemplary case study

Change will be necessary to exploit digitalization

The introduction of digital technologies in established companies naturally leads to change, especially radical innovation initiatives such as those associated with the introduction of new business models. In the manufacturing domain required changes may concern:

Customers – Actual product and service features and pricing, marketing methods and channels, user experience management, co-creation and integration, …

It all comes down to the workforce general company culture required skills knowledge and processes workforce size and composition location and mobility tooling and assistance safety and regulatory requirements

Equipment and IT – Re-configured, re-furbished, upgraded or new assets and IT systems, new tools and processes for user assistance and automation, infrastructure upgrades or changes, …

Supply network – Changing or new upstream/downstream relationships, product, service or co-operation changes (new pricing, pay-for-use, etc), IT integration and knowledge-sharing, …

Case Study

• First week of use: more than 7000 claims successfully submitted

• Enhanced business competitiveness through aligned warranty process

and more …


Engaging every level leads to higher value creation

Change management can increase impact of innovation

Companies need to change in order to stay ahead of their competitors. However, 75% of company transformations fail in terms of value generated, timing or both.1 A strategic change management approach is thus necessary to ensure successful change and maximize positive impact.

The following McKinsey study shows the importance of change management:

1/. “Transformation: The Imperative to Change”, BCG, 20142/. “Helping employees embrace change”, McKinsey, 2002

Quality of engagement is used here as an indicator for the efficiency of change management

3 of 3 143

129

68

35

2 of 3

1 of 3

0 of 3

100% = expected value of initiative

Worst

Best

Percentage of expected value of initiative captured by company

Factors for successful change:2

Senior managers Commitment Communication Financial incentive Nonfinancial incentives Leadership Stretch targets

Middle managers Decision authority Skills in managing

people Skills in managing

projects

Frontline staff Skills Tools Motivation

Quality of engagement

See an examplary change management methodology



2 How to exploit it



C Change management

3 How Actyx helps

Contents


Actyx: a digital industry pioneer

1 Interdisciplinarity

Actyx believes in interdisciplinarity. Digital industry brings together four main domains: manufacturing, connectivity, software and analytics.

2 Exploration

Actyx follows a lean and agile development approach, enabling efficient and manageable radical innovation under uncertainty.

3 Hands-on

Actyx believes in demonstrated value, not ivory-tower research. We develop on-site and work hand-in-hand with experienced local personnel.

Actyx is a young startup company aiming to contribute to the digital industry vision. We believe in a resource-efficient, customer-centric and human-supportive manufacturing future. We are contributing to the development of the (global) factory of the future.

Actyx was started with serious financing by two ETH engineers in June 2015. Through university and company relationships, Actyx has access to a large pool of digital talent and is supported by a network of mentors, advisors and experts from the manufacturing, technology, strategy, finance and startup domains.

Actyx’s founding principles: Meet the founders


Win-win partnership proposal for manufacturers

How Actyx can help: co-operative innovation project

Actyx brings together a world-class interdisciplinary team of junior developers and senior experts with expertise in digital technologies (connectivity, software and analytics).

Actyx enables on-site disruptive innovation by introducing an agile development process and supporting associated change processes.

Innovation partner provides an application scenario, manufacturing expertise and a desire to disruptively innovate (ex: rethink your business model).

Perform a data-centric analysis of the status quo in order to identify potential innovation focus areas.

Develop radically innovate concepts enabled by digital technology such as the Internet-of-Things or big-data analytics.

Together we will:

Validate and implement these concepts as prototypes andindustrial solutions.

Value propositionnext slide


Improve OE, business model innovation, digital spill-over & brand recognition

How Actyx can help: co-operative innovation project

1 Increase in operational efficiencyOperational efficiency can be increased in a manufacturing companies along the eight key value-drivers mentioned in partone. Maximizing the operational-efficiency impact of digital innovation in your company will involve identifying keyimprovement areas in the different fields. Following an agile and data-centric approach digital enablers will be identified andtheir potential evaluated and demonstrated through prototypes and, finally, industrial digital solutions. [see part 1]

4 Brand recognitionIf you wish, developing and implementing digital industry applications can position you as a high-tech innovative company.Industry and media attention can be leveraged to help you acquire high quality talent and could be exploited to increase sales.

3 Digital spill-overActyx will bring in a team of digital experts, who will work hand-in hand with your on-site personnel to advance digitalization inyour company. Knowledge transfer across company borders will empower your employees to innovate within your companyeven outside the scope of this project. This digital spill-over will provide you with the talent necessary to win in the Digital Age.[see part 2]

2 Business model innovationWhilst digitalization offers enormous potential in terms of improving operational efficiency, it will have an even greater impactby enabling the implementation of innovative business models. Business model innovation allows capturing new value-poolsand gaining market share. Potential concepts for innovation in this area will be explored throughout the project. [see part 1]


Get in touch!

Oliver [email protected]

www.actyx.io

mailto:[email protected]?subject=Getting in touch regarding your slide deck

mailto:[email protected]?subject=Getting in touch regarding your slide deck

http://www.actyx.io/

http://www.actyx.io/


Appendix A - Basics of agile project management

Agile management is an iterative and incremental projectmanagement method allowing for fast and flexible productdevelopment. It requires are capable team with inputsfrom business, technology and customer needs and highengagement of involved project stakeholders. It is basedon short, iterative development cycles at which end’sstands a deployable prototype.

The agile cycle is based on three steps: (1) build, (2)measure and (3) learn. At the beginning ideas aredeveloped, followed by their implementation asprototypes, which are then used to validate the ideasthrough measurements. Based on the results,improvements or changes will be implemented in a newcycle unless they show no promise in which case the ideawill be discarded and new ideas developed. The focus lieson minimizing the total time through this feedback loop inorder to allow many of these build-measure-learniterations.

LEARN BUILD

MEASURE

IDEAS

CODEDATA


The eight steps necessary for successful change

Appendix B - Kotter’s 8-step process

Prof. John Kotter observed change projects in organizations and synthesized 8 necessary steps for a successful company transformation1:

Build a guiding coalition:A coalition coming from the own company’s rank is necessary to guide, coordinate and communicate change

Form a strategic vision:The whole company needs to be aligned and focused on the same goal

Enlist a volunteer army:Large-scale change can only occur when very significant numbers of employees amass under a common opportunity and drive in the same direction

Create a sense of urgency: Employees need to be aware of the upcoming digital revolution and sense the need for digital innovation

Enable action by removing barriers:Removing inefficient processes or hierarchies provides the employees with freedom to work across boundaries and create impact

Generate short-term wins:Short-term wins need to be clearly communicated to track progress and energize your employees

Sustain acceleration:Management needs to search relentlessly for ways to promote change to assure that the vision will be achieved

Institute change:Successes need to be visible and well communicated, demonstrating clear benefit and leading to sustainable change

1/. “Leading change”, J. Kotter, 1996


Appendix C - Actyx: meet the founders

Oliver Stollmann (Vision)

Before co-founding Actyx, Oliver was a research fellow at the Fraunhofer Application Center Industrial Automation (IOSB-INA) where he developed a decentralized control system for industrial transportation systems.

Previously, Oliver designed an AI-based manufacturing planning and scheduling system at the Palo Alto Research Center and developed an intelligent assistant for demand forecasting and production optimization of waste-to-energy plants at the ETH’s Institute of Machine Tools and Manufacturing and ABB’s Power Systems division.

Oliver holds a Bachelor and a Master of Science in Mechanical Engineering from the ETH Zurich.

Maximilian Fischer (Operations)

Before co-founding Actyx, Max was a research fellow at the ETH Zurich working on basic research in physical chemistry. He investigated doping effects on the electrical and optical properties of semiconductor quantum dots.

Max was also a research assistant at Caltech, Duke University and the EPF Lausanne. He holds a patent for developing a method to produce structure cellulose patches, enabling faster and scar free healing.

During his time in Zurich, Max co-founded HackZurich, the largest hackathon in Europe and is still a member of the committee.

Max holds a Bachelor and a Master of Science in Mechanical Engineering from the ETH Zurich.

Actyx also has access to a pool of manufacturing and digital talent and a large network of advisors, mentors, business angels and supporters from industry, academia, business and the start-up world.