Smart systems Integration
for a smart and digitised industry
Khalil Rouhana
DG CONNECT, European Commission
1
Outline
• Digital innovations: What is at stake?
• Where does Europe stand?
• Digital industry and digitisation of industry
• What are we doing about it?
• Our financial investments in SSI
• Concluding remarks
Value creation from digitisation:
Products, Processes and Business models
• "Digital inside": Innovations in all types of products
•
Smart connected objects (or IoT) powered by e.g.
•
•
Sensors and MEMs, wearables, CPS, Connectivity, Big data, Cloud …
Large opportunities in all sectors (Non-tech, high-tech, SMEs, etc)
• Digital transformations of processes
•
From logistics and product design to shop floor automations and CRM
•
•
Increasing resource efficiency, productivity, ..
Built on IoT, digital design, robotics, laser technologies, big data,..
• Radical/disruptive changes in business models
•
Blurring the boundaries (products-services), reshuffling value chains
•
•
XaaS, 3D Printing & customisation, CRMs, maintenance, A Value services
Built on access to real time information, data analytics, etc..
3
The 'digital inside' value chain
New
digital
value
chains
~40% of
>25%
of
AV
AV
>40% of
AV
> 33% of
Added
value
R&D investments in ICT by non ICT sectors
R&D
spending
B€
% on ICT
Aerospace and defence
150
37
Automotive
700
38
Electrical equipment
160
75
Healthcare
equipment/services
65
55
240
55
Industrial manufacturing
Digital process innovation: e.g. manufacturing
Modelling, Simulation, Analytics and big data
Robotics and automation
Cyber-physical systems for
process (chain) optimisation
Laser-based manufacturing
Transforming the business model
Blurring boundaries: products-services
Blurring of boundaries
Trends in business models
− "Reintegration" across the value chain
− Expansion to services
− Expansion to "systems of systems"
− "Sharing" economy
− Des-intermediation
Products
Services
ICT sector
Technology
- Sensors, µcontrollers, low power µprocessors, µactuators and MEMs.
- Embedded Operating systems, embedded applications software, control software
- Networking ( local, Internet,..)
- Applications on the Cloud ( Data analytics, CRM on Clouds, Maintenance software,..)7
Technology tracks and Opportunities ahead
• Five main converging innovation tracks
•
•
•
•
•
Big Data
Cloud
CPS, Smart connected objects, SSI and IOT
Robotics, Autonomous systems and automation
Hyper connectivity, BB and wireless
• Areas of business opportunities
• High growth "Smart X" and IoT markets
•
Mobility, society (smart homes, smart cities, wearables,..),
manufacturing, health, energy, etc..
• High growth of vertical markets!!
•
Automotive, energy, security, etc.
• Next digital champions may come from "non-digital" industries
•
And vice versa!!
Outline
• Digital innovations: What is at stake?
• Where does Europe stand?
• Digital industry and digitisation of industry
• What are we doing about it?
• Our financial investments in SSI
• Concluding remarks
Digital industry: Where does Europe stand?
• Strengths
• Professional and vertical markets (products and services)
•
•
Components, MEMs, software, systems (robotics, engineering),
Top two world leaders in sensor technologies and MEMs
• World class R&D hubs
• Good infrastructure
• Size of EU market (~27% of world ICT market)
• Weaknesses
• Consumer markets, Internet and web products and services
•
From components to applications, Data platforms' ownership
• Structural weaknesses
•
•
No DSM yet (substantial impact on attractiveness to investment
including VCs, BAs, etc..)
Lagging in investment in R&D
– Already paying the price
10
EU strengths: SSI and embedded systems
30 % of world
production
11 % of world production
> 20 % of world production
Demand side: What is the situation?
• Strong digitisation in high tech industries and in some MSs.
• But:
• Slowness and disparities in adopting digital solutions across
industries and regions
•
Mainly SMEs and non tech sectors lagging behind
• New competition from non-EU digital platform owners
•
E.g. OS, Web and Data platform owners
• Lack of standards and interoperable solutions
• Skills and re-skilling of work force
• Legislative and regulatory gaps
12
Digitisation readiness: disparities in Europe
13
Outline
• Digital innovations: What is at stake?
• Where does Europe stand?
• Digital industry and digitisation of industry
• What are we doing about it?
• Our financial investments in SSI
• Concluding remarks
What are we doing about it? (1)
• Build on strengths and seize opportunities
• Maintain leadership in stronghold as they move mainstream
• MEMs, SSI, CPS, robotics, strong user industry
• Combine policies to achieve clear goals
• Financial support, regulatory issues, Skills
• E.g. maintain leadership in MEMs
• Work in partnerships
• Leverage investment, focus and strategy
• Address the whole value chain and innovation chain
• Supply-demand interaction, multiple stakeholders, SMEs
• Connect to national and regional actions
• Links to hubs of excellence and regional clusters
15
What are we doing about it? (2)
• Wide-spread adoption and best use of digital technologies
•
•
In all industrial sectors
Focus on key digital technologies ("The musts")
•
SSI, CPS and IoT, robotics, 3D printing, data analytics
• Leadership in digital platforms for industry
•
Platforms on which value is created
• E.g. embedded OSs, Cloud platforms, data, security
• Openness, Interoperability, security
• Filling the skills gap and preparing the workforce for change
•
Essential!
• Providing the best framework conditions
• Regulation: DSM, Data protection, Liability, safety
• Access to finance: EIB, EIF, etc..
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Role of the partnerships
PPPs across the Digital Value Chain
Big Data, Maximising
value from data
FoF, ICT innovations in
manufacturing processes
HPC, Mastering next generation
and high end computing
5G PPP, Leadership in
Telecom equip. & services
Robotics: Capturing opportunities in
robotics, boosting competitiveness
Photonics: Leadership and wider use
ECSEL: Doubling production of chips,
Leadership in embedded software
Key Enabling Technologies
+ Demand led actions e.g. in EIPs (smart cities, AHA, etc..)
+ PPPs in EGVI, EEB, ..
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Addressing all industries: Example
Existing and emerging EU networks of competence centres
Acting as Digital Innovation Hubs
Regional Satellite
Nodes/Projects
•
•
•
•
•
Feasibility studies
Best practice experiments
Local dissemination
Skills development
Infrastructure provisioning
• H2020 Funding augmented through
 regional/structural funds, e.g. ESIF
 Juncker package (EFIP)
• Focus on regional strengths/smart specialisation
• Flexibility/little synchronisation needs
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+ access to finance
for SMEs and Mid-Caps
Leadership in digital platforms for industry
• Platforms on which value is created – on and across levels:
•
•
Wearables, home, cars, factories,…
From component to Systems Integration, devices, CPS & application
• Scale-up our efforts by collaboration
•
•
ICT PPPs: ICT Platforms + large scale demonstrators (IoT, ECSEL, …)
Platforms for the manufacturing sector – from cradle to grave
• Platform interoperability and standards within Digital Single
Market
•
Platforms supported and adopted across MSs and regions
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Outline
• Digital innovations: What is at stake?
• Where does Europe stand?
• Digital industry and digitisation of industry
• What are we doing about it?
• Our financial investments in SSI
• Concluding remarks
Our financial instruments
• R&D&I instrument toolbox (Horizon 2020)
• Research projects, innovation actions, pilot lines, large-scale
demonstrators, SME scheme, …
• ICT a main priority in H2020: ~14 B€ of investment
• European Structural and Investment Funds (ESIF)
• 320 B€ of investment in 2014-20
• Innovation and digital technologies: Two key priorities out of 4
•
E.g. foster the emergence of industrial clusters through regional
smart specialisation strategies
• New investment package (315 B€)
• Support to innovation, infrastructure & also industrial projects
• SMEs and mid caps (75 B€ in equity and loans)
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From components to IoT
Nanoelectronics
Smart Systems
Integration
"IoTification"
(Smart Anything Everywhere)
Integration chain
Specific
Technologies
Si
Bio-electronics, MNBS
Bio-on-Si
Ge, III-V, Comp. SC Spintronics
µ-Fluidics
Single e- Transistors
µ-Mechanics
MEMs
Nanotubes,
Thin electronics
Graphene
NEMs
Power electronics
RF
Microrobots
Photonic ICs
3D-integration, TSV
3-D
transistors
CMOS
22 nm
Economic
Moore's law
ending
Diversification
3-D
stacking
Sub-THz
Telecom
(iPHOS)
Lab-on-Chip
(PYTHIA)
Smart
Complex
Systems
RF-com
Endosopic capsule
Neural probes
(VECTOR, NEUROPROBES)
Integrated Smart
Systems
Enabling &
Pervasive
Autonomous
Connectable
EC funding 2007-2013
(FP7, ENIAC,
Some countries more decentralised
than others
Sensors and MEMS devices
Connected sensors
IoT-ready systems
(FP7 only)
Smart System Integration in FP7…
…
some
successes
ICT project
PLACE-IT
NEUWALK
OPENER
technological
breakthroughs
Technology
Heterogeneous Integration
of technologies
Electrical stimulation of
spinal cord
Vehicle
ICT and
energy
controls
Lab-on-Foil
laboratories on chips (LOC)
COWIN
Innovation actions
and
industrial
Application
On-body health and wellness
applications;
Thin, lightweight and free-form
optoelectronic systems
Brain and spinal cord to
adapt and recover from
injury
Short term implementation
in hybrids
Point of care systems
Labcards for health and
environment monitoring
Co-development contracts signed
Sales of products
Transfer of IP under negotiation
New companies set-up
…
MEMS and Sensors in
FP7…
some
successes
technological
breakthroughs
and
industrial
H2020 – LEIT – ICT,
SSI
LEIT - ICT
Societal Challenges
Componen
ts &
Systems:
SSI, CPS
…
ESCEL
JTI
Advanced
Computin
g
Future
Internet
PPP
Content
Techs
Robotics &
Smart
Spaces
Robotics
PPP
ICT KETs
–
Micro/Nan
o
Electronic
s
Photonics
ECSEL
JTI
Photonics
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PPP
ICT for
Manuf.
Factories
of the
Future
PPP
Cross cutting actions: Open Disruptive Innovation, IoT, CyberSecurity, Horizontal Support to Innovation
Excellent Science/ FET ("Graphene Flagship)
Smart System Integration in
HORIZON 2020: first call results
…
First call results
Upcoming funding
opportunities…
ICT WorkProgramme 2016-17
A
• new generation of components and systems
• Smart Systems Integration – SSI
•
Multidisciplinary approaches to challenges (multifunctional
systems)
• Smart Anything Everywhere Initiative
•
Innovation by smartness integration
• Smart Cyber-Physical Systems
•
Science of Systems Integration
• Thin, Organic and Large Area Electronics (TOLAE)
•
Hybrid integration (conformable, stretchable, flexible)
Upcoming funding
opportunities…
• ICT WorkProgramme 2016-17 (Draft)
• Micro and nanoelectronics technologies
•
•
Ultra-low power/high performance, 3D integration
• Photonics KET
•
Bio-photonics, SSL components and systems, optoelectronics
sensing
• Cross-cutting KETs for Health
•
Novel integrated platforms for diagnosis, monitoring and
treatment (clinical validation)
But also: IoT pilots and core technologies: A big cross cutting
theme in 2016-17
Combining efforts: Essential role of ECSEL
• Strategic roadmap for R&I supported jointly
• Critical mass, Clear industrial commitment
• Align strategies
• Cutting across the digital value chain
• Essential to serve all three stakeholders
• Necessary resources to finance high TRL actions
• Large scale federating projects and demonstrators
• But also actions to build world reference industrial hubs
• Focus on hubs of excellence
• Value chains spreading across Europe (upstream, downstream)
Concluding Remarks
• Large digital opportunities are ahead of us in areas where
Europe is strong!
• IoT, Big data, CPS, autonomous systems,..
• Europe cannot miss these opportunities
• What is at stake is its whole economy!
• Our strategy has to cover the whole value chain
• A strong digital industry and a strong digitised industry
• SSI and CPS have a central role!
THANK YOU
DG CONNECT (Communications Networks, Content and Technology):
http://ec.europa.eu/dgs/connect/index_en.htm
Cyber-Physical Systems
http://ec.europa.eu/digital-agenda/en/cyber-physical-systems
Horizon 2020 on the web:
http://ec.europa.eu/research/horizon2020/index_en.cfm
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