Leading the Transformation together: The first Sino-German Association for Industry 4.0
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1 Leading the Transformation together: The first Sino-German Association for Industry 4.0 Dr. J. F. LUO Executive Board Member (Vorstandsmitglied) Sino-German Association for Industry 4.0 (Deutsch-Chinesische Allianz für Industrie 4.0 e.v. (i.g.)) 1
2 Agenda Industry 4.0 in Germany and in China Background for Industry 4.0 Chance and Risk Successful Example for Sino-German Cooperation The First Sino-German Association for Industry 4.0 2
3 Industry 4.0 in Germany and in China Internet entries of Industry 4.0 Internet entries of Siemens 5,4Mio. 14Mio. 5,0Mio. 195Mio. China, 工业 4.0 Germany, Industrie 4.0 China, 西门子 Germany, Siemens In China, Industry 4.0 (existing first since 2011) has as many entries as Siemens, a global company, which has been in China since 1872 In China, Industry 4.0 is also the hottest topic in the recent years, is being discussed almost as intensely as in Germany, triggered by both Government and private companies. Source: google.de,
4 The motivations and starting point about Industry 4.0 Germany Starting point: Industrialization 3.x Target: remain leading supplier of products and production systems Approach: Industry 4.0 (High-Tech Strategy) China Starting point: Industrialization 2.x Target: transformation and competitiveness, and not make the same mistake 200 years ago during the 1 st Industrialization Approach: "Made in China 2025" Transformation of the industry is considered as necessary in both China and Germany, supported by government strategy, although starting point and target are different! 4
5 The Background in general Our society: more individual Our industry: more internet of things in the classical industry through internet companies Our society and our industry are undergoing a transformation which has been identified by the German Forschungsunion, a government organization which first initiated the future project Industry 4.0 in Germany 5
6 The Background in Germany and in China The demand is similar: growing demand on new and individual products with ever shorter product life cycles The problem is also similar: aging population of the society increasing labor costs (especially in China) limitation of natural resources and increasing need on environmental regulations mass production with huge numbers of workers and without consideration of natural resources and environment is not standard anymore (especially in China)! also huge competition of information technology from the US! But the situation is different: Germany: more production technology but less market (Industrialization 3.x) China: more market but less production technology (Industrialization 2.x) higher impact of automation on existing labor force 6
7 The Chance and risk: The Chance: Germany: China: The Risk: needs a big market needs experience to enable classical industry using new IT tools 1.3 billion means huge market for all products of quality 5 million manufacturing companies need to be upgraded from industry 2.0 to industry 3.x, even to industry 4.0, to solve problems of resource limitation and environmental pollution Kuka is making huge business in China now! Next big player in China? Competition?! Germany China?! Or more Germany - USA?! Or both?! Preparation of huge work force for the transformation 7
8 Successful Example for Sino-German cooperation in the last 30 years: Automotive Industry The Chance: Germany: needs a big market China: needs more technological supports The Results: Chinese car market of 20 million per Year is now bigger than the whole European market German car manufacturers still dominate in China, leaving little room for Japanese and American car manufacturers German car component suppliers established in China help also Chinese manufacturers 8
9 The close link and successful cooperation of both industries in the past 30 years are the best basis for another win-win cooperation in the era of Industry 4.0! The Chance and risk in the era of Industry 4.0: Leading the Transformation Together! Guiding the Sino-German Cooperation! Creating More Chances for Both Industries! Establishing the First Sino-German Association! 9
10 The First Sino-German Association for Industry 4.0 Name: Registration Place: Deutsch-Chinesische Allianz für Industrie 4.0 e.v. (DCAI4.0) Düsseldorf, Germany Registration Date: March 2015 Properties: A nonprofit platform for Sino-German business network of Industry
11 Special properties of DCAI4.0: The initiators and supporters are German and Chinese experts for Sino-German economic and technological cooperation connecting two business worlds Example: Chairman of DCAI4.0 (Vorstandsvorsitzender von DCAI4.0): Dr.-Ing. X.Q. Zhou German education: Dr.-Ing. at RWTH Aachen, Post Doc. at Max-Planck-Institute Engagement in Sino-German Cooperation over 30 years Co-Founder of more than 9 technology companies in Germany and China Further activities: Accompanying the delegation of governor of Baden-Würtemberg and that of then German Chancellor Helmut Kohl to China Set-up of the first joint-venture bank in China Founder of German Innovation Center in China Co-Founder of stem cell technology start-up in Germany 11
12 Special properties of DCAI4.0: The initiators and supporters are German and Chinese experts Example: positive supports from former politicians of both countries Former German foreign minister Mr. Joschka Fischer The Sino-German Association for Industry 4.0 is a positive idea at a right time Industry 4.0 is also a challenge for China dealing with increase of productivity on the one hand, restructuring the huge labor force on the other hand 12
13 Special properties of DCAI4.0: The initiators and supporters are German and Chinese experts Example: positive supports from former politicians of both countries Former Chinese Ambassador to Germany Mr. Zhaorong MEI Former Chief Engineer of Chinese construction ministry Dr. Tiehong WANG The Sino-German Association for Industry 4.0 has a good chance to become a important player in this field Clear interest from Chinese and German government (2014: Aktionsrahmen für die deutsch-chinesische Zusammenarbeit: Innovation gemeinsam gestalten! ) 13
14 Special properties of DCAI4.0: The key members and the leader of DCAI4.0 will come from representative institutions of both countries Germany German initiators and experts of industry 4.0 German (former) politicians at minister level and state level High ranking (former) managers/manufacturers (e.g. SAP/Siemens) Academically prestigious German research institutes German business associations China Chinese experts for digitalization and information technology Chinese (former) politicians at minister level and province level High ranking Chinese manufacture companies (e.g. Jinfeng) Academically prestigious Chinese research institutes Chinese business associations 14
15 Special properties of DCAI4.0: DCAI4.0 concentrates on industrial manufacturers in Germany and in China, as well as on research institutes and their cooperation projects on both sides DCAI4.0 supports Chinese companies and institutes in understanding Industry 4.0 DCAI4.0 supports German companies and institutes in understanding Chinese Made in China 2025 DCAI4.0 brings German companies and the huge Chinese market together DCAI4.0 brings business to German/Chinese manufacturing companies 15
16 Special properties of DCAI4.0: Ongoing activities: Ongoing dialog between DCAI4.0 and Chinese local governments and local manufacturing companies about establishing projects similar to BMBF /BMWi industry 4.0 projects and Spitzencluster Organization of visits of German 4.0 experts from Fraunhofer Institutes, German Industry and politics to China, to bring Industry 4.0 and Made in China 2025 together Ongoing know-how transfer based on German experience in terms of Industry 4.0 and its challenge on technology, organization and human being We have already started leading transformation together! 16
17 Thank you very much! 谢谢! Deutsch-Chinesische Allianz für Industrie 4.0 e.v. (Sino-German Association for Industry 4.0) Germany: Grafenberger Allee Düsseldorf Germany Tel.: China: 北京市朝阳区新源里 16 号琨沙中心 1 座 1606 室邮编 : Tel.: info@dcai4.de
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