digitising european industry: reaping the full benefits of a digital...

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Digitising European Industry: reaping the full benefits of a Digital Single Market

19 April 2016

• Khalil Rouhana, director DG CONNECT/A, European Commission

#DigitiseEU

The bigger picture Ten priorities for Europe

1. The investment plan: a new boost for jobs, growth and investment

2. A connected digital single market

3. A resilient energy union with a forward-looking climate change policy

4. A deeper and fairer internal market with stronger industries

5. A deeper and fairer economic and monetary union

6. A reasonable and balanced free trade agreement with the United States

7. An area of justice and fundamental rights based on mutual trust

8. A new policy on migration

9. Europe as a stronger global actor

10. A European Union of democratic change

EC Juncker Priorities (2014-2020)

2015

A New Boost for Jobs,

Growth and Investment #investEU

1 The 315 billion Investment Plan

2 …………. 3……………

A Connected #DigitalSingleMarket

#DSM

4 A Digital Single Market Package

The Road to the EU Digital Single Market

"Industrial package": Adoption on April 19, 2016

"DSM technologies and public sector modernisation" Package, adoption by the College on 19 April

4 Communications to outline measures:

• Digitising European Industry: reaping the full benefits of a Digital Single Market (Chapeau)

– Contributions of the various initiatives to the DSM

– response to the Council and EP specific demands for a clarification of the

DSM actions for industry

– Concrete EU-level actions supporting the digitisation of EU Industry

• A European Cloud initiative

– A world-class cloud and data infrastructure in Europe

• Priorities for ICT Standardisation

– Accelerating industry-driven development of ICT standards

• eGovernment Action Plan 2016-2020

– Boosting the public sector's role in stimulating demand for digital

solutions 4

• Three high-level roundtables over 2015 and January 2016

• CEOs level, + national initiatives, more than 200 partipations

• On-line consultations

• On digitisation, standards, cloud, dataflow, eGov,..

• Several workshops on specific topics

• National initiatives, data ownership, industrial platforms,.public sector modernisation…

• Informal Competitiveness Council 27 January

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• Digital innovations: What is at stake ?

• Where does Europe stand ?

• What to do about it?

• Prerequisites: DSM, Infrastructure, access to finance

• Stepping up our digital innovation capacity

• Standardisation

• Smart regulation for smart industry

• Preparing Europeans for the digital age

• Conclusions

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~40 % AV growth ~50% ~40% ~80%

Products Services

ICT sector

Products Services

ICT sector

The trend

Electronics, photonics

ICTdevices

~40% of Added Value

~50% of Added value

~40% of Added Value

~40% of Added Value

Digital value chains across all sectors

Critical Value chains

Some figures

• A potential 1 Trillion Euro added to GDP *

– in the next 10 years from digitisation

• Loss of 600 B€ of GDP per year if Europe lags behind *

– If Europe is slow in in digital transformation

• An annual 10 % increase in industry Added Value *

• Up to an additional 1.5 trillion $ to US GDP by 2025

– (Mc Kinsey)

• *(Roland Burger 2015)

DRAFT 9

Technologies driving the change

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Digital Transformation

Innovation in products,

processes and business models

AI (autonomus systems)

Robotics, automation, machine learning, self-

driving,..

IoT (physical meets digital)

Embedded software, sensors, connectivity, actuators, low

power ICT, …

Big data (value from

knowledge)

Analytics, storage, Cloud HPC,..

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• Standardisation



• Conclusions

− Slowness & disparities in adopting digital solutions

• SMEs & non-tech sectors lagging behind

• Less than 2% of SMEs use advanced digital technologies

− New competition from non-EU internet/web industry

• e.g. Web and Data platforms, Operating Systems,…

− Fragmented landscape of standards and lack of interoperability

• ~30 national initiatives: Industrie 4.0, Smart Industry, Industrie du Futur,..

− Need for digital skills and re-skilling of work force

− Legislative and regulatory issues

Gaps in innovation capacity

Digitisation readiness: disparities in Europe

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Courtesy: Roland Berger

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• Standardisation



• Conclusions

• A true Digital Single Market

• Commission Proposed strategy in May 2015

• World class digital infrastructure

• Telecom infrastructure

• Cloud and data infrastructure

• Easy access to finance

• EFSI, ESIF, H2020

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• Over 30 national and regional initiatives for digitising industry

• This shows timely interest and awareness

But

• Need to avoid of fragmentation

• when it comes to standards, regulation: DSM is a priority

Also

• Value chains increasingly distributed across Europe

• Great potential for:

• Experience sharing and addressing challenges collectively

• Pooling of resources: mobilising critical mass, aggregating risk,..

• Opening up new opportunities for start-ups and SMEs in a fully DSM

For that

• EU actions need to build on & complement nat/reg initiatives

• Address the whole value chains spreading across Europe

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• Efficient articulation and scaling-up of national initiatives

• Mainstream Digital Innovations across all sectors

• Access to technology, know-how for any business

• Partnerships for leadership in digital value chains

• PPPs as aggregators, focus on industrial platforms

• Standardisation

• prioritisation, Accelerating industry-driven standardisation

• Eliminate barriers for wide deployment of digital innovations

• Upskilling of the workforce, rethinking the workplace

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Digitising European

Industry Action

Plan

• A framework for coordination

• Wide spread digital innovation in all industries

• Leadership in digital technologies value chains



Linking up and coordinating EU, national and regional initiatives

Boosting EU Innovation Capacity

Widespread digital innovations in all industries: a pan-EU network

of Digital Innovation Hubs

Strengthening Leadership through Partnerships & Platforms

ICT standards and Interoperability Testbeds

Smart Regulations for Industry

Preparing Europeans

for the Digital Age

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Digitising European

Industry Action

Plan













Preparing Europeans

for the Digital Age

• first half of 2016, a coordination framework to

• facilitate the coordination of EU and national initiatives

• mobilise stakeholders, and resources across the value chain,

• exchange best practices

• High-level roundtables

• Annual stakeholder forum

• Specific working groups

• Catalogue of national and regional initiatives and priorities.

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Digitising European

Industry Action

Plan













Preparing Europeans

for the Digital Age

• Access to digital technologies and expertise

• within "working distance"

• for any industry in Europe

• with a focus on: SMEs, mid-caps, non-tech

• "Digital Innovation Hubs" across Europe :

• provide industry with access to technology, expertise, testing,.. based on world-class specialised competence centre

• Networking DIH to ensure a one-stop-shop for industry

• Public procurement of innovations

• sharing innovation risk with industry

• Thematic smart specialisation platform

• industrial modernisation (June 2016)

• Establish/reinforce competence centres

• Across Europe – specific support for regions without DIH

• Implement relevant activities if needed (incentives, …)

• Collaborate with digital innovation hubs of other regions

• to fill gaps and facilitate specialisation and excellence

• Support pan-European networking of Digital Innovation Hubs

• Share best practices, success stories, training

• Develop catalogue of Hubs, competences, etc

• Promote use of EU and other funds (ESIF, EFSI)

• Engage with competence centres, help set priorities,..

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Building on, and expanding successful actions

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un

de

r th

e F

acto

rie

s o

f th

e F

utu

re Sm

art An

ythin

g Everyw

he

re u

nd

er C

om

po

ne

nts &

System

s

Status (EU support so far): • ~150 M€ (2013-14)– 14 projects – 80 centres – 400 experiments • ~75 M€ in 2015 (in contracting phase)

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Digitising European

Industry Action

Plan













Preparing Europeans

for the Digital Age

• Alignment of EU-wide R&I effort, national initiatives and industrial strategies and

• Focus investments on

• Key technologies and their integration across all sectors

• Cross-sector digital platforms

• Reference implementations, experimentation, testing

• Develop and implement EU-wide industrial strategies:

• Key strategic industrial priorities: data platforms, ref. architectures, 5G,

• Mobilising private, EU and national investments

• Building on strengths in vertical markets

• Develop Europe's presence in cross sector platforms

• (IoT, Data, web, consumer,..)

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Big Data

High Performance Computing

Photonics:

5G Robotics

Factorie

s of th

e Fu

ture

, Pro

cess In

du

stry:

ECSEL: m

icro e

lectro

nics an

d

cybe

r ph

ysical systems

:

focus areas (e.g. IoT): Connecting the tracks

+Security

700 M€/year

100 M€/year

100 M€/year

Can mobilise additional 20 B€ from MSss

• Focus, up-scale and further pool R&D&I on core technologies

• EU, MSs, Industry including start-up and SMEs

• Today's effort is heavily fragmented

• PPPs to play a key role in setting EU-wide industrial strategies

• Whole innovation chain: R&D&I, pilot lines, testing, etc..

• Connect to national and regional efforts, access to finance

• Address technology development +legislation, standardisation, skills

• Learning from experience: e.g. ECSEL, HPC, FoF,..

• Further integration into platforms and end products

• integrating IoT, Data analytics AI into full products and platforms

• Stakeholders across value chains

• Intensify support on cross sectorial platforms

• Across value chains and vertical silos (e.g. Data platforms)

• Link to standardisation

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• Prioritisation

• 5G, Cloud, Data, IoT, cybersecurity,

• European reference architectures

• From national initiatives to EU-wide and international leadership

• Experimentation environments

• reference implementation, test-beds, large-scale demonstrators

• Leading to standards (including de-facto) for industry

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• Sharing and opening scientific data

• Re- building our computing and data handling technology capacities

• Offering new opportunities for investments in HPC to happen in Europe

• No one Member State would undertake solely such an endeavour: A total of around 5 B€ of investments.

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• Assume leadership role in defining and implementing EU-wide strategies

• Collaborate in PPPs to align EU, MSs, regional initiatives

• Intensify strategic alliances and cooperation

• e.g. in standardisation bodies and in international co-operation

• Focus support for the remainder of H2020

• In the PPPs

• Work across "silos": ECSEL, FoF, Focus Areas, EEB, IMI, EGVI,

• Support PPPs effort

• Support scaling up initiatives up to a European level

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EU (planned) MS (A digital focus) Industry

DIH

€500m

€5bn

(ESIF, regional budgets)

(matching funds already

accounted for in the industry

PPP contribution)

PPP's

(including ECSEL &

focus area IoT)

mentioned in DEI

Close to €4bn

(from H2020)

Close to €1bn

(ECSEL contribution)

Close to €17bn

(industry to invest

at least 4x more)

Focus of

national policies on

strategic priorities

€15bn

(national programmes

foreseen on digitisation)

(matching funds already

accounted for in the industry

PPP contribution)

IPCEI

on electronics

€300m in ECSEL

€1bn –

From a number of MS, of

which FR, DE, NL, AT, IT –

full list still to be confirmed

at the time of project

submission to DG COMP

€5bn

TOTAL Close to ~€ 5bn Close to 22bn Close to 22bn

Pooling resources: about 50 B€ over 5 years

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Digitising European

Industry Action

Plan













Preparing Europeans

for the Digital Age

Smart regulation for Smart Industry

• Personal data governed by General Data Protection Regulation (fundamental right)

• for autonomous and AI-based systems

• for the Internet of Things

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Adapting regulation to eliminate barriers for digitisation

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Digitising European

Industry Action

Plan













Preparing Europeans

for the Digital Age

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• 90% of jobs require some level of digital skills whatever the sector; all jobs will change and many will disappear.

• One third of the EU workforce has insufficient digital skills

• 40% of enterprises trying to recruit ICT professionals have difficulty doing so (800,000 vacancies in the EU by 2020).

What has been done so far to address the gap?

Grand Coalition for Digital Jobs (March 2013) multi-stakeholder partnership (education, business and employment) to tackle the digital skills gap through:

• Concrete local actions on the ground

• Job placement programmes and ICT trainings

• Alignment of degrees and curricula with labour/job market needs

• Motivating young people to study ICT and pursue related careers

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13 National Coalitions for Digital Jobs

Actions

• Organise dialogue on the impact of digitisation on work

• Reinforce the role of industry and research organisations in the Grand Coalition

• stimulate further commitment from industry to take action

• Improve the understanding of skills requirements for new technologies, including within H2020

• Using digital innovation hubs for skills development

• Further actions in the New Skills Agenda for Europe

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Member States and Regions to play the key role, EU to act as a facilitator

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• Standardisation



• Conclusion

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Dem

an

d

Su

pp

ly

Digital Innovation

Hubs

Preparing Europeans

for the Digital Age

Smart Regulations

for Industry

Leadership through

Partnerships & Platforms

Linking Up National

Initiatives

ICT Standards &

Interoperability Testbeds

THANK YOU

Digitising European Industry http://ec.europa.eu/digital-agenda/en/digitising-european-industry Twitter: #DigitiseEU

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http://ec.europa.eu/digital-agenda/en/digitising-european-industry









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