Munich, DusseldorfWith the help of the networking of their machines and factories, carmakers could save billions according to experts. Alone at Volkswagen could the new alliance with Amazon and Siemens for the Internet of things lead to annual cost reductions in the middle three-digit million range, the Handelsblatt learned from group circles.
Volkswagen intends to digitally network its 122 factories and, in the future, to include its suppliers as well. VW builds an industrial cloud with the help of the US online retailer Amazon On, the networking of machines should be over the SiemensPlatform Mindsphere.
By networking machines, carmakers could detect and fix bugs faster, better utilize capacity, and get products to market faster, said Ferdinand Dudenhoeffer, automotive professor at the University of Duisburg-Essen, Handelsblatt. “That will bring significant cost improvements to the industry over the next few years.”
Siemens head of industry Klaus Helmrich sees the industry at the beginning of a new era. Many steps have now been digitized in production. “Now the next phase after Industry 4.0 begins“Said Helmrich in conversation with the Handelsblatt.
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It’s all about evaluating the data pools that are gained through edge computing directly on the machine and in the cloud. “Data pools are the gold of the future, a completely new resource in the industrial value chain.”
Comment: The car makers are no alternative to cooperation with IT groups
In the Hannover tradefairwhich opens its doors on Monday, will therefore play a key role in the software platforms that connect machines to the Internet of Things. They form a kind of operating system for the Internet of Things. Siemens has brought to Mindsphere 3.0, a truly marketable product on the market, says the head of an IT company.
Now the roll-out has begun, the Munich-based technology company a good starting point. Siemens has compared to the main competitor Microsoft the advantage that the company has a deep knowledge of automation and the industries. In return, have Microsoft a lot of experience with partnerships and could draw on a large fund of developers.
With Volkswagen, Siemens has now gained a key customer. “This will increase the data traffic on Mindsphere enormously,” it says in industrial circles. The auto industry is traditionally a pioneer in the automation of manufacturing. It could play a similar role in networking through the Internet of Things.
“Firms that do not stay competitive”
With the new cloud in the production area, Volkswagen claims to be creating a basis for the continuous digitization of its production and logistics. A few days earlier, VW had already introduced Amazon as a partner for the industrial cloud. External partners should also be involved in networking. By evaluating the machine data, the efficiency of the systems can be significantly increased.
An example: the connection of the machines to the cloud enables predictive maintenance. So there is a timely alarm before a part needs to be replaced. “This prevents downtime,” says a Siemens expert. A group like Volkswagen could also collect and compare data from machines that form the same production lines in different factories around the world. Then you can find the reason why individual lines are more productive.
VW even wants to go beyond its own factory boundaries. The long-term goal is to integrate Volkswagen’s global supply chain at more than 30,000 locations with 1,500 suppliers and partner companies, according to Volkswagen in Wolfsburg. The cloud could be opened as a shopping platform in perspective for other car manufacturers. The VW Group has announced that productivity in all factories should increase by a total of 30 percent by 2025.
The big ones show how the evaluation of machine data enables more efficiency and new business models. For the latter, IDC experts still see some catching up to many other companies. According to a new study, only about one third of companies are currently moving towards digital business models. “Firms that resist this development will be unable to remain competitive in the medium term,” warn the experts.
According to Siemens CEO Helmrich, who will lead the division “Digital Industries” in the new corporate structure, more than 1000 customers are already connected to Mindsphere, more than 250 applications have been developed. “The product is in high demand.”
Experts are convinced that multiple platforms can hold their own. Companies are not interested in becoming dependent on an ecosystem. Crucial for the attractiveness of platforms will be how many apps there are based on.
For example, a mechanical engineer can develop an app for his mobile phone, where an assembly manager can see at a glance whether all the machines are running properly and where there is a need for maintenance soon. According to industry experts, the major project at VW should lead to the development of many new apps on Mindsphere.
Cloud cooperation: Amazon accelerates production at VW
In order to advance the subject of apps, Siemens had acquired Mendix for 600 million euros, with whose “low code” platforms apps can be programmed faster and cheaper. “What used to take 20 days takes only 48 hours,” said Helmrich. Users, such as the mechanical engineer Heller, have already developed their own apps for customers of their machines. The integration of Mendix is making good progress. Siemens has a lot of experience. “Colleagues in the US understand how to integrate intellectually, humanly, and technologically.”
The Siemens digital division sees itself thus prepared for economically difficult times. “If our engineering customers receive fewer orders, they will order less equipment from us,” says Helmrich. The growth rates would be flatter. But there is no reason to “switch to crisis mode”. It was time to reposition oneself through innovations. “We will also gain new customers in this phase.”
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