Josef Kammermeier

Head of the Competence Centre ERP

DPS Software GmbH

The boost to Industry 4.0 in German SMEs

Establishment 1997

Employees 360

Customers 7,000

Sites 28

Sales 2016 €58m.

Management

Manfred Gravius

Detlef Jessulat

Dr. Marcus Knieps

DPS Software GmbH

the largest independent

SolidWorks reseller in Europe…

…and one of the Top 5

SolidWorks reseller worldwide

DPS Software is

the exclusive distributor of RPS…

…and a development partner of

Ibermática in Germany, Austria and

Switzerland.

75% of our clients are SMEs from the following branches

- mechanical engineering

- special machine design

- metal, automotive and electrical industry

- technical service providers

*) Definition according to the EU Commission.

Up to 250 employees

Annual turnover up to €50m

Our customers

Industry 4.0 in Germany

• INDUSTRIE 4.0 is the name given to the German strategic initiative to establish Germany as a lead market and provider of advanced

manufacturing solutions

• Germany offers the ideal conditions to become a global leader in innovative, internet-based production technology and service provision.

Technology leadership and vision in the fields of manufacturing, automation and software-based embedded systems, as well as historically strong

industrial networks, are the cornerstone for the long-term success of the INDUSTRIE 4.0 project

• Germany’s leadership in embedded systems technology gives birth to enabling cyber-physical system (CPS) technologies which ingeniously

match the digital virtual world with the real world. Cyber-physical production systems (CPPS), composed by smart machines, logistics systems

and production facilities, allow peerless ICT-based integration for vertically integrated and networked manufacturing.

• Germany has set itself the goal of becoming an integrated industry lead market and provider by 2020

The High-Tech Strategy 2020

How is Industry 4.0 Revolution Impacting

SMEs (Small and Medium Enterprises) in

Germany?

Expected Impact in Germany

The Industry 4.0 wave is expected to bring benefits to manufacturing in four main

areas:

• Productivity: During the next 5-10 years, productivity across all German

manufacturing sectors will boost by 90 to 150 billion EUR, 10-20% of productivity

improvements.

• Revenue growth: I4.0 will drive a revenue growth of about 30 billion EUR per

year, roughly 1% of Germany‘s GDP

• Employment: 6% increase in employment during the next 10 years. Different

new skills will be required in the short term. The growing use of software,

connectivity and analytics will increase the demand for employees with

competencies in software development and IT.

• Investment: Adapting production processes to I4.0 will require German

manufacturers to invest about 250 billion EUR in the next 10 years, about 1,5%

of revenue.

Boston Consulting Group. The Future of Productivity and Growth in Manufacturing. 2016

German medium-sized enterprises can strongly build up their digitalisation

level yet.

Some latecomers even lack of a basic digital infrastructure, such as their

own web page or a Enterprise Resource Planning (ERP) Software. This

group is mainly composed by small enterprises with less than 50

employees.

Medium-sized enterprises typically use a digital network, at least in their

own departments, in order to achieve a higher flexibility and interactivity as

well as a practical connection to more complex informations.

In the companies identified as pioneers by this study, digital products or

services are an important part of their business model; they offer their

clients apps for certain products or services or carry out Industry 4.0-

Projects.

Study by the Centre for European Economic Research (ZEW) ordered by the banking

syndicate KfW Bankengruppe

32%

49%

19%

Latecomers SMEs Pioneers

Digitalisation Status in Medium-sized Enterprises

Present Obstacles for SMEs

Many enterprises work with obsolete IT-systems or manage their business

processes fully without any system support.

Their implementation in the operational practice is often slowed down or even dismissed due to a lack

of

efficient ERP systems.

There is a large shortage of widespread offers for broadband connection.

Many business also face considerable financial and staff difficulties to manage the investment and the

development workload necessary to implement new digital systems and business models.

How Are They Dealing With It?

• Approx. 90% of the enterprises in Germany are SMEs; they are also responsible for the creation of most jobs and apprenticeships in the country.

• The German Federal Government is decisively committed to make these enterprises aware of the opportunities, potential and challenges offered

by this development and to help them find solutions and practical applications.

National Support Programmes

will prospectively assist SMEs, craft and trades in the development and implementation of comprehensive IT business concepts and

organisational measures in the areas of IT security, digital opening-up of markets and digitalised business processes.

"SME 4.0 Expertise Centres And Agencies"

The initiative "SME 4.0 - Digital" supports the digitalisation, network connection and implementation of Industry 4.0 applications in

medium-sized businesses and handicraft establishments. To this end, SME 4.0 Agencies are working on extensive digitalisation

topics like cloud computing, communication, retail and processes and using multipliers to spread them.

The present 11 SME 4.0 Expertise Centres shall raise awareness, inform and train enterprises and offer them practical and specific

demonstration and testing possibilities.

Measures By The Federal Government

It is the aim of the Expertise Centres to gather and develop

present, practical knowledge on digitalisation, use of Industry 4.0

and networking of operational processes and translate it "into the

SME language".

SME 4.0 Expertise Centres

The SME 4.0 Expertise Centre Darmstadt As An Example

The training factories of the Technical University Darmstadt portray the processes of standard industrial SMEs with real products. Here, business

representatives receive direct information and training on the digitalisation of their processes. The following support is offered:

• First information, i.e. through demonstrators or successful solutions already implemented in practice,

• Training events in training factories and centres, especially on the five focus areas: "Efficient Added Value Processes", "Work 4.0", "IT-

Security", "New Business Models", "Energy Management",

• ICC-certified course "Train the Trainer 4.0" for Chamber instructors, business consultants and teachers of Association's ongoing formation

programs, and

• E-Learning-Programme, workshops and conferences

During the project, the numerous and diverse meeting and training formats should reach over 3,000 representatives of enterprises, consultancies

and works council members.

According to their thematic focus, agencies should analyse in depth the comprehensive questions regarding digitalisation and Industry 4.0 that arise in

the whole country with regard to SMEs; they should also disseminate guides and case examples in their training offer.

CLOUD

led by the Fraunhofer Institute for Industrial Engineering in Stuttgart, it offers support for questions related to the implementation and widening of

Cloud-Computing-Technologies;

PROCESSES

led by the FTK e.V. Research Institute for Telecommunications and Cooperation in Dortmund, it offers support for the implementation of digital

process and resource management;

COMMUNICATION

led by the BSP Business School Berlin, it contributes to spread digital communication processes, knowledge management, e-learning and innovation

management;

RETAIL

led by the ifH GmbH, Institute for Retail Research in Cologne, it should answer questions related to new technologies in digital retail such as, i.e., e-

invoicing and production-related trade.

SME 4.0 Agencies

SME 4.0 Agencies process insights and experiences of

successful business users and offer them to small and medium-

sized enterprises using business-oriented example processes.

To this end, agencies study in depth the demands and processes

of the area "Production and Provision of Services" as well as the

downstream processes of the area "Technical Support and

Maintenance".

The results of the project are passed on to multipliers in training

and instruction formats and transferred to enterprises through

lectures and publications.

One Support Example

Development, introduction or improvement of products, processes and services by

means of information and communication technologies (software and hardware) as

well as migration and portage of IT-systems and IT-applications in enterprises

Introduction or improvement of the IT security in enterprises

Funding is allocated to cover expenditure on work carried out by outsourcing

providers and on the hardware and software needed to implement the programme

measures.

Supported Services

up to €10,000 DIGITALBONUS STANDARD

Grants for digitalisation measures

and IT security

up to €50,000 DIGITALBONUS STANDARD

Grants for digitalisation measures with a special focus on

innovation

and/or

up to €2m. DIGITAL CREDIT

Low-interest loan additional or alternative

to Digitalbonus grants

In this I4.0 environment, why and how did DPS

decide to build a new business line based on

RPS?

The Product

RPS allows industrial enterprises and technical outsourcing providers to build

a whole added value network without any gaps.

The Product

RPS meets the requirements of Industry 4.0 and ERP

Integrated information flow between CAD, ERP and MES without interfaces

central data warehouse with unified data formats

cross-sectoral analysis through Business Intelligence (BigData, Analytics)

Accessible, flexible and transparent process management (BPM, Workflow)

mobility, connectivity and usability (VDMA study on the topic ERP 2020)

DPS is today in the position to offer the clients not more but all:

The DPS Big Picture - one platform for every process.

The Software Manufacturer

One main feature of Ibermatica is its strong focus on the needs of

medium-sized industrial enterprises taking into account the requirements of

Industry 4.0.

Ibermatica is one of the most successful SOLIDWORKS resellers in Europe. Therefore, they

optimally incorporate the practical experiences gained in their own projects to the further

development of the software.

The direct communication with the manufactures through the Innovation Circle I2T allows the

implementation of specific client requests and general developments coming from local

markets into the standard.

Product innovation in their own research centre i3B

Thanks for your attention