The future of industry: transformation instead of standstill!

The future of industry: transformation instead of standstill!

Industrial production is facing a fundamental change. Professor Thomas Bauernhansl, head of the Institute for Industrial Manufacturing and Factory Operations (IFF) at the University of Stuttgart, emphasizes the urgency of transformation in a recent podcast. He emphasizes that the future must not only be designed digitally, but also biologically. Sustainability plays a key role and is recognized as a necessary driver of innovation, while efficiency alone is no longer sufficient to meet the challenges of our time. This was also made clear in the discussions about circular economic models and new materials. Bauernhansl appeals to systemic thinking, which is seen as an essential basis for effective change.

As part of current developments, the “Industrial Transformation” study by the Fraunhofer Institute for Industrial Engineering and Organization IAO describes that industrial value creation is under pressure due to global crises, technological upheavals and increasing demands for sustainability. The aim of the study is to offer companies orientation and methodological approaches for sustainable value creation. The focus is on the concept of Industrial Transformation Governance, which serves as a structural framework to systematically plan and control change processes.

Governance as the key to transformation

Dr. Moritz Hämmerle, head of the “Cognitive Engineering and Production” research area at Fraunhofer IAO, explains that transformation should not only be understood as a step towards new technology, but as a fundamental realignment of the organizations themselves. Governance proves to be a planning-relevant instrument that takes all resources, processes and strategies into account. It ensures that existing value creation patterns are replaced by innovative operating models and new business strategies.

The need for these approaches becomes even clearer when one considers the economic potential of the circular economy, which has become increasingly important in recent years. This includes aspects such as resource reduction, expansion of use and recycling. The definition of the so-called “ten R’s” (Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, Recycle, Recover) offers a targeted approach to implementing these principles in companies. According to the Deloitte and Circle Economy Global Circularity Gap Report 2023, the circular economy's share of the global economy is just 7.2 percent, down from 9.1 percent in 2018.

The role of universities and start-ups

Bauernhansl also emphasizes the central role of universities and start-ups in shaping this transformation. These institutions are not only carriers of innovative ideas and technologies, but also pioneers in the educational reform necessary to prepare the next generation for the challenges of industrialization. In today's fast-moving times, it is crucial for companies to find out how they can motivate people to actively shape change - because courage and the ability to deal with complexity are fundamental prerequisites for success.

Overall, industrial transformation requires a rethinking of the way companies design economic processes. It is essential to pursue long-term resilient, efficient and sustainable value creation. All actors – companies, governments, investors and consumers – are called upon to recognize the potential of the circular economy and to actively shape the trend.