Industry 4.0 at Börse Stuttgart TV

The future is shaped by new, intelligent products and changed production processes - the extent to which companies benefit from the fourth Industrial Revolution depends on their adaptability

TODAY WE ARE TALKING ABOUT A REVOLUTION. More specifically, about an industrial revolution. Today's topic is Industry 4.0 and we want to clarify exactly what this is about with Lars Härle, Managing Director at IEG - Investment Banking Group from Berlin.

Mr Härle, what does Industry 4.0 actually mean in a nutshell?

As you said earlier, Industry 4.0 is a revolution. This is the fourth industrial revolution. We have already had three revolutions in the past with very large leaps in time, which shows that the term is handled with great care. The fourth industrial revolution is the digitization of value chains, products, service and business models. This means Internet of Things is at the center of the entire industrial revolution, as are machines and machine communication and self-organized processes. I have an important comment to make: Industry 4.0 is a German term; however, there are quite different initiatives, also abroad. In the USA, for example, it is called Smart Manufacturing Leadership Coalition and in China it is called "Made in China 2025". So you see the whole world working on the subject.

Why is this topic of such social relevance in general and relevant for investors in particular?

In general, it means that there will be new products, intelligent products and that the production process will once again change significantly. This includes the entire value chain, brainstorming and prototyping. In addition, production, integration of suppliers into my value chain and logistical processes will also be digitally networked. Ultimately, this also includes sales, after-sales measures and recycling. The information of the products is simply very comprehensive. For the investor it is particularly interesting to look: "Who is in front?" "Who's involved in all the development?" "Who's pushing this?" - there are some international players who are also involved in the various consortia and can increase efficiency. You can see that very clearly.

How will this new industrial revolution change our world?

Increasing efficiency is certainly very important. Germany will remain competitive; in the individual sectors we are talking about efficiency increases of up to 30 % over the next 10 years. If successfully implemented, Germany will be a global export hit. And that is certainly an important message for the investor, and ultimately for all of us.

Which sectors and sectors do you think will benefit most from this development?

We see electronics as one of the big winners - that is clear. Chips are needed. Software on the chip is needed to control and store all this data. IT must provide the appropriate infrastructure. Mechanical engineering, which already deals with it very intelligently and is already 50% on the road in the software sector, will benefit. And not too good last the automotive sector.