the top interviews of 2014

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Dr. Rainer Mehl

Executive Vice President Automotive

The Top Interviews of 2014

Uwe Höhne

Vice President Business Intelligence & Big Data

Preface 3

Dear Reader,

For more than 100 years, the auto industry has been driven by the ongoing advance of engineering knowledge. Whether it is the in-vention and optimization of the internal com-bustion engine or the current emergence of higher-performance electric motors, the best engineers and developers have set the tone for the auto industry.

In coming years, it appears that data will be the oil that drives the industry. True diffe-rentiation is increasingly emerging through the interpretation and use of data volumes measured in terabytes. Among other things, they make possible the optimization of pro-duction and logistical flows, the validation of usage patterns, more exact sales forecasts, a quantum leap in after-sales with proactive maintenance, the capacity for autonomous driving, and the early identification of trends using social media monitoring. The current trend in the auto industry is viewed as the greatest upheaval since the transition from the horse-drawn carriage to the motorized ve-hicle. The research budgets of manufacturers and suppliers are continually rising. The focus is on:

• Connectivity as the link between an individual car and an individual smart phone, as well as with other vehicles’ sensors or the road infrastructure • Alternative drives, especially to reduce carbon dioxide emissions to the 95 grams of CO2 required by 2020/2021• Industry 4.0 or, alternatively, the “internet of things” including the networking of machines and systems that is changing production flows and the supply of materials • Responses to the changing values or men- talities that put mobility as opposed to vehicle ownership in the foreground.

IT plays a key role in all the issues. More and more, two tasks are emerging that could not be more different: first, the provision of stan-dardized services as efficiently as possible, allowing significant savings in IT budgets. Second, the use of the saved resources for future-oriented solutions, such as connecti-vity and the digitization of sales. The cross-industry cooperation between the auto and high-tech industries is the most pronounced in innovation-related fields. New techno-logies and significantly faster innovation cycles are leading to new collaborations as well as opportunities for new players, such as Google and Apple, in the automotive market. From the point of view of experts, revenues in the context of connected cars will rise to over 100 billion euros. The aspirations of the high-tech industry’s market leaders and the market’s relevance make it clear that the oil for continued development will be data.

There has rarely been a more exciting time to actively shape the development of our indus-try. In the process, a prominent role has fallen to IT and the parties managing it. The most important interviews of 2014 collected in this book show this emphatically. My thanks goes out to all the interviewees whose willingness to enter into a dialog made this book possible in the first place. Sincerely, Rainer Mehl

CONTENT

www.automotiveIT.com

In focus: Research and development, production, sales & marketing, after-sales

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Business Intelligence and Big Data Automotive

Sizable optimization potential through Business Intelligence 2.0 6


Michael GorrizCIO, Daimler AG 12

Andreas BunderlaCIO, Witte Automotive GmbH 30

Thomas WeberBoard Member, Development, Daimler AG 48

Christian LeyCIO, Brose

Michael DanielHead of HR, Brose 24

Karl-Thomas NeumannCEO, Adam Opel AG 54

Gerd FriedrichCIO, Robert Bosch GmbH 18

Klaus-Hardy MühleckCIO, ThyssenKrupp 42

Ulrich HackenbergBoard member, Technical Develop-ment, Audi AG 60

Executive Interviews

The auto industry talks to automotiveIT 12

Martin HofmannCIO, Volkswagen AG 36

6 Business Intelligence 2.0 · NTT DATA

automotiveIT 2014

_ Smarter Decisions by Big Data – Business Intelligence 2.0

The term business intelligence (BI), which became popular more than 30 years ago, is a generic term for applications, infrastruc-ture and best practices that permit access to information and allow its analysis. BI is mainly used to boost company perfor-mance and improve operational and strategic decision-making.

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NTT DATA · Business Intelligence 2.0 7

automotiveIT 2014

The term big data was coined about seven years ago. People mostly describe it with the three V’s – volume, velocity and varie-ty. The sheer volume of data that is avail-able is enormous today, as can be seen, for example, in social networks and the data volumes they generate. The speed aspect refers to the prompt processing of data within the system. The faster, the better. A wide range of data variation is another aspect. The range includes the structured, semi-structured and unstructured data that customers want to have processed. With this in mind, it is possible to talk about the trend toward Business Intelligence 2.0:

It goes far beyond the normal reporting of data within the company. It is proactive and real-time-driven as it ideally brings the user to his goal even without prior techni-cal knowledge.

The reporting, the analysis and the inter-pretation of data are of key importance to companies, permitting them to safeguard their competitiveness and to act quickly and appropriately in the market. The ma-trix has not changed in the era of big data. With the growing technical potential, the emphases of business intelligence applica-tions have merely shifted.

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Analyticcapabilities Changes

Businessoptimization

Prognosis,Real-Time,

Exploration,Streaming

Value chainintegration

and operatio-nal analytics

Planning and

simulation

Integrated planning,

reporting and risk manage-

ment

Aggregation and

data ware-housing

Efficiency analyses

and target customer

management

Monitoring and

reporting

Process automation

From pure reporting to BI 2.0

Strategic enterprisemanagement

(SEM, BPM, …)

Data warehousing(CRM, risk evaluation, …)

Reporting(POS, accounting, …)

BIGdata


automotiveIT 2014

Both the integrated platforms for cor-porate management that have emerged in the last 10 years and the current big data-driven optimization approaches have led to a situation where business in-telligence has become the world’s largest software market. A shift from the classic financial service industries to manufac-turing, especially the automotive sector, is particularly interesting. The focus is on approaches to optimize operations on the basis of comprehensive data analyses. The optimization includes the entire value creation chain, from vehicle development to production, all the way to marketing, sales and after-sales.

New opportunities for the operatio-nal optimization of automotive value creation chains through Business In-telligence 2.0 Concrete opportunities for optimization based on analytics especially lie in the areas of customer management, retail, after-sales, the supply chain and IT man-agement. The approaches, along with ab-breviated use cases, are described in the table below.

The trend toward the “networked automo-bile” is now emerging as the greatest driver of big data applications in the automotive area. Large data volumes have to be trans-

• Error identification Dependency analysis (Installation and use context)• Validation of user behavior and component design

• Connection of conditions of use with telemetry data

• Development

• Identification of in- complete sensor and order data

• Automakers

• Key data• Repair orders• Diagnostic and programming protocols

• Demand determination for parts supply in the field

• Wholesale• Automakers

• Customer data • Vehicle data • Repair orders • Telemetry data

• Reduction of quality costs through production process monitoring (e.g. engine casting)

• Automakers

• Process parameters (e.g. temperature courses, carbon materials, …)

Research and development Production

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Use cases from the automotive value chain


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mitted and prepared properly for analysis to depict, for example, the use cases presented in Table below in combination with the use of telemetry. The main drivers of the vehicle-related data volumes are con-trol units (about 60 to 80 devices per ve-hicle), functional software (about 800 MB to 1,000 MB per vehicle), customer func-tions (about 1,500 to 2,000 functions) and error memory (about 10,000 to 14,000 data sets within the vehicle diagnostic systems).

Special requirements and structures for the successful construction of Business Intelligence 2.0 architec-tures and capabilities at automakers

Big data is mainly driven by four techno-logies that allow the cost-effective storage and analysis of unstructured data volumes on one hand (for example, using Hadoop and streaming) and the faster, higher-performing processing of structured data volumes on the other (for example, using SQL appliances and In Memory).

The technologies of classic Business Intelligence (1.0) frequently run up against their limits as they process the data volumes and formats that arise. But users still value them a great deal, espe-cially for the preparation and presentation of results.

• Selections for marketing campaigns (new vehicles, after- sales)

• Marketing analysts• Service partners

• Customer data• Vehicle data• If needed, enrich with socio-demographics

• Evaluation of lead processes

• Retail• Wholesale

• Internet click-flows• Customer demographics• Historical customer transactions• Operator data• RFI, RFQ• Completions

• Follow-up of error correction• Benchmarking service sales activities

• Retail

• Telemetry data• Warranty data• Repair orders• Service marketing activities

• Early recognition of trends and opinions • Lead generation• Competition monitoring• Price optimization

• Marketing• CRM

• Social media (tweets, forums, blogs , …)• Product evaluation portals

Sales and marketing After-sales

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From a technical standpoint, a question comes up (see Figure below): Should the new approaches of data processing and storage based on big data be constructed on a “stand-alone” basis or integrated into the existing BI architecture? Compa-nies would rather turn to a “stand-alone” installation for a new, isolated field of application, such as “quality cost reduc-tion through production process moni-toring.” But they would prefer an integrated architecture scenario for existing or

cross-functional applications, such as the “assessment of demand for parts supplies in the field” or the “selection of marketing campaigns” (new cars, after-sales).

The conventional data warehouse (DWH) still has an important role to play. It supports companies in their operating business within the framework of Business Intelligence 1.0, especially on questions relating to corporate management and reporting.


automotiveIT 2014

Access layer

Reporting layer

Data Mart layer

Core DWH layer

ETL layer

Source

Integrated big data versus stand-alone big data

Integrated big data Stand-alone big data

Group/region/country level Single user

Margin

Functional Data Marts

Graphical information

BlogsForums

Non-SAP ERP SAP ERP Sensor

information

Process DWH

ExcelReporting tools Big data reportingReporting tools

Forecast

PlanningBIG DATA

BIG DATA

ETLtools

Sales

BI ETL tools

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Integrated solutions are on the rise, especially given the analysis of data from networked vehicles and Industry 4.0 sce-narios. Market analysts such as Gartner recommend the integration of big data so-lutions with the existing BI strategy. The goal is to ideally exploit the BI expertise built up over the years, in combination with big data within Business Intelligence 2.0 framework.

Along with the construction of state-of-the-art, technical data architectures, the question of data ownership emerges, es-pecially with regard to the processing and storage of content from new data sour-ces (e.g. the networked vehicle). In this regard, the role of the chief data officer (CDO) comes into play. The CDO guaran-tees the required governance while driving data-based innovation forward on techni-cal and professional levels. This gives the CDO a decisive impact on the automaker’s operational value chain and its competi-tiveness. In many organizations, this role is positioned quite close to the COO or CIO and nearly at the management board level.

Conclusion: Business Intelligence 2.0 allows automakers to undergo a transformation to greater competi-tiveness The use of big data technology allows wide-ranging improvements along the automo-


automotiveIT 2014

tive value chain through the use of nearly real-time analysis of wide-ranging data in a wide variety of formats. Until now, it has not been possible to analyze this informa-tion using classic Business Intelligence 1.0 approaches and technologies.

A deep understanding of existing data structures and process flows forms the basis for sound user cases that amortize and lead to direct competitive advantages after a short time. This holds true in par-ticular in customer management and after-sales.

The integration of big data into existing BI architectures leads to greater usability and acceptance since new information can be used with existing skills. This is an impor-tant basis for successful data-driven trans-formations.

Chief data officers often assume the role of the transformation driver, guaranteeing the necessary governance and safeguard-ing data-driven innovations at the profes-sional and technical levels. Their expertise and capacity to follow through will greatly affect the competitiveness of automakers in the future.

By Uwe Höhne, Vice President, Business

Intelligence & Big Data; Florian Preissinger,

consultant, Business Intelligence

12 Daimler · Michael Gorriz

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»Efficiency in our basic business enables us to invest in new IT solutions«Daimler-CIO Michael Gorriz wants to gradually get his company’s core systems into shape for the networked future. The cost will be in the hundreds of millions of euros.

Michael Gorriz · Daimler 13

automotiveIT 2014

_ Mr. Gorriz, the Daimler annual report says again and again that IT is taking on a central role in the shaping of business processes. Can you give us some exam-ples of this? In our company, digital tools are laying the foundation for practically all processes along the value chain, ranging from de-sign and development, to production, all the way to sales and service. IT only briefly moves into the background when potential customers enter the showroom. There they want to experience the car of their dreams physically and feel pure enthusiasm during a test drive. I do not believe anything will change in that regard. Nonetheless, the di-gital footprint will continue to grow because many customers wish to communicate with our brands via websites, social media or by e-mail. It is no longer crucial, especially for the upcoming generation, whether the first contact and product consultation takes place personally or via a digital channel. It is much more important that the requested information flows. The faster the better. To meet this requirement, we have to connect classic sales processes in the dealership even more firmly with today’s digital world.

_ What consequences does this have for the information technology of the future? One example is the fact that the knowledge

of customer preferences and purchase his-tories must no longer be located solely in the minds of the salesperson and in a va-riety of different systems. The information will only be visible throughout the sales organization when it is stored in a central location and made available for use – much as information is at online mailorder deal-ers. My core message is that a premium brand like Mercedes-Benz will take care of customers more and more individual-ly – whether conventionally in a personal conversation or online in the digital world. To provide this, we will gradually convert our large core systems – moving away from a purely process orientation and toward an online operation integrated from the ground up. It must be possible for Daimler employees and customers to access rele-vant customer data around the clock and in real time; customers may want to update their address data, for instance. No one appreciates an offer sent to an out-of-date address any more. And rightly so. That is why we are now working on a system to administer customer data company-wide solely in a central entity in the future. We call it the “Golden Record.”

_ How much are you investing in this system conversion and how long will it take?


automotiveIT 2014

The amount of time and the amount of money go hand in hand. It would be ex-pensive if we wanted to solve everything at once in one giant step. That is why we are using conventional software release cycles to reach the desired optimizations as part of an evolutionary and pragmatic approach. All in all it will certainly be an investment in the three-figure-millions. This includes the fact that we are equipping our German direct sales operation with the Autoline dealer management system with-in the next three years.

_ What is the share of IT at Daimler when it comes to trying out new busi-ness models? We are making available a wide variety of technological solutions that enable the company to work with innovative pro-cesses and develop new business fields. But we have deliberately decided not to transfer any operational responsibility to IT. In concrete terms, this means that we carry out a technical function, assemble the necessary expertise, make suggestions, and execute supporting systems. But we do not run the business. This division of labor

has been tried and tested at Daimler. Every department can access our resources and will be expertly supported. As in the case of Car2go: The modeling of business pro-cesses, the requirements for software and telematics hardware, as well as the devel-opment of technologically multifaceted front-end and server systems – our internal service provider Daimler TSS in Ulm did an excellent job getting everything rolling. Even today, more than five years after our successful launch, more than half of all the Car2go employees come from IT.

_ You have publicly committed yourself to linked open data. For example, the data of all mobility providers are supposed to be freely available on the inter-net. Why is this important to Daimler? When you would like to know the best pos-sible way to travel from point A to B, you need real-time information about all the transportation carriers available locally: local public transportation, car-sharing, taxis, etc. We are dismayed and amazed that many public bodies consider their schedule data to be their property. The German Rail-way, for example. If we are serious about


automotiveIT 2014

ecological, sustainable mobility in this country, we must create the basic condi-tions for innovative mobility concepts and inter-modality. The re-use of transportation information as open data on the inter-net without any conditions must be possible to integrate the available transporta-tion carriers into new concepts for use. Here I think it is clear that policymakers must take action.

_ The Daimler IT team has shown strong growth mainly in China, Turkey, India and Brazil recently. What capacity are you planning for the saturated markets of the US and Europe in 2014? We will maintain our staffing level in Ger-many and grow in other regions of the world. We have just reinforced this decision with the opening of shared service centers in India and Turkey. In this way, we have begun to consolidate the operations, main-tenance and further development of our SAP systems at these locations. In addition, our colleagues will support global rollouts or execute them on their own: data migra-tion, system tests, training. This allows us to relieve our team in Germany from time-

consuming, routine tasks. A great many German-speaking IT specialists are available to us in Turkey in particular. We can in-tegrate them into our organization quickly. We will employ nearly 200 IT employees in Istanbul by the end of 2015.

_ Your budget has grown since the crisis of 2009, in part because business re-quirements and volume have increased. Will costs continue to spiral in 2014? You’re right. The cost increases that we have recorded recently are due to the fact that Daimler has opened new production facilities globally and is involved with more sales channels than ever before. At the cur-rent rate of our company’s growth, our IT budget will certainly grow in coming years. That is why it is my stated goal to decouple revenue growth from the associated effects on our IT costs. To put it another way: We want to actively support the company in the achievement of its economic expansi-on. But the associated IT tasks should rise less than proportionally.

_ How do you intend to do this? By providing standard services in our basic

»We need about 100 million euros to realize our digital customer vision«


automotiveIT 2014

business as efficiently as possible and then shifting the resources saved into innova-tive solutions that will prove effective in the future. We want to free up the roughly 100 million euros that we will need to ful-ly carry out our “digital customer” vision, among other tasks, with an improved cost-benefit relationship. Every day we face the question of whether we are using the finan-cial means and resources made available to us in a way that we are advancing the company as a whole. The aforementioned shared service centers contribute to this goal as much as the further consolidation of our applications landscape. By 2015, we will reduce the number of programs in use by 40 percent. In absolute terms, that means 2,000 fewer applications. This streamlining incidentally has a clear posi-tive impact when we build new plants. We are now moving ahead with a standard modular kit that covers 95 percent of the required functionality and allows rapid, routine launches – whether they take place in Hungary, India or China.

_ You keep stressing that a high-per-formance IT landscape can increase Daimler’s appeal as an innovative employer. What is the effect on the employee’s workplace? That is a very important point. We have

_Michael Gorriz

Michael Gorriz has been CIO of Daimler AG

since 2008. As head of the company’s Infor-

mation Technology Management (ITM) divisi-

on, he is responsible for strategy, planning and

development of all of Daimler’s IT systems. He

also is in charge of Daimler’s data centers and

communication networks. Gorriz, who has an

advanced degree in physics, started his career

with aerospace group Messerschmitt-Boelkow

Blohm. From 1994 he ran Daimler-Benz Aero-

space in Mexico and subsequently was divisi-

onal manager at Nortel Dasa. Gorriz moved to

Daimler’s IT department in 2000 as vice pre-

sident IT-Business Systems. In 2005 he also

became CIO of Mercedes-Benz Cars and Vans.


automotiveIT 2014

made huge investments in the design of our modern workplaces and have created the basic conditions for seamless, companywide cooperation over the last two years. The global changeover to standard Micro-soft software for 200,000 PCs and note-books will be fully concluded by mid-year. Of course, online meetings, chats and video conferences have already become a fixed component of our working world without a major effort to highlight the new oppor-tunities. In some countries, employees can already either use their personal smart-phones with a business SIM card or use a device that Daimler has made available to them. E-mail, contacts, calendar, intranet access – everything is available over a se-cure, mobile connection. More than 6,000 Daimler employees throughout the world use their smartphones for business purposes. And the trend is rising rapidly.

_ Cyber criminals are very interested in car companies. How is Daimler facing up to the increasing number of targeted attacks? We take IT security very seriously. We want to both protect sensitive company data and our intellectual property as much as possi-ble while preventing attempted sabotage that can hinder our operations. It is in-cumbent on us to have a technically sound

foundation and to train our employees in-tensively. Since the end of 2012, we have been forcefully sensitizing our entire work-force worldwide to the issue of information security.

_ Doesn’t a sinking feeling come over you when you provide IT support for all the relevant processes for a plant expan-sion at Beijing Benz, for example, or carry out standardized IT landscapes for the joint venture with Foton? Daimler now has 3,000 employees in Chi-na. When I add the joint ventures, the total comes to nearly 20,000. They need daily access to data stored in our IT systems. Just like their coworkers in Sindelfingen. But reducing information protection to just IT security would be too simplistic – this is a comprehensive challenge that a global player like Daimler has to face in every market. We work with many suppliers suc-cessfully and share our knowledge so we can build the best cars in the world. And we trust in the fact that our partners will carefully handle the information that we make available to them. I consider thinking in terms of black-and-white lines along national political boundaries to be unreal-istic and out of step with the times.

Interview by Ralf Bretting und Hilmar Dunker

18 Robert Bosch · Gerd Friedrich

automotiveIT 2014

_ Mr. Friedrich, you have said that Bosch’s business success is determined by its capacity to innovate and by its edge in expertise. How much credit do you give to the central information processing area? For years, Bosch has been a driver of in-novation in many of its business fields, in-cluding the automotive sector, power tools and other areas. Still, we know that we are still not fully utilizing the innovative poten-tial of our employees worldwide to keep pace with global competition and continue to maintain the lead.

_ What has to happen? I see two approaches in this regard: on the one hand, improved IT tools for connec-ting our employees around the world; on the other, a change in mindsets. Until now, the capabilities and expertise of individu-al employees was front and center. Efforts

to share knowledge have not really been successful so far. But with our young work-ers, a generation is joining the company that lives according to a particular prin-ciple: “We believe in the power of a net-work.” Along with social media tools, this creates a new approach. That’s also why we launched our “Enterprise 2.0” project at Bosch two years ago.

_ Can you explain that? A key element is the global social media platform,“Bosch Connect,” which we rol-led out worldwide within this framework. More than 240,000 employees are now using this platform – 85,000 a day for communication, collaboration and idea generation. We are using this platform to optimize processes as well. For example, in IT we draft our current monthly reports interactively using Bosch Connect. Any-one can view the results online and make

»I had to learn something new«Bosch CIO Gerd Friedrich speaks about the automotive supplier’s ability to innovate, the challenges of workplace 2.0 and the willingness of the business divisions to recognize and use the IT knowhow available in the company.

Gerd Friedrich · Robert Bosch 19

automotiveIT 2014

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comments. We are explicitly betting on transparency. The crucial advantage for us: Each of the 3,500 IT employees has the same knowledge base at the end of the day and they no longer have to consolidate reports.

_ How tough is the adjustment personally if you are not a member of Generation Y? It is not very easy. I have to admit that. Young people deal with it more easily and write straightaway, so to speak. I think first and then ponder (laughs). I actually had to learn something new in this regard. The number of Bosch employees has risen in the recent past – but primarily outside Germany.

_ What consequences do you see this having for IT? In IT, we are currently not growing region-ally as fast as the company is in individu-al markets, especially in China. And we are getting by with local providers even in fields that we will occupy ourselves at some point. Our goal in the first step is “local for local.” That means the implementation of projects in the regions with local resources. In a second step, we will take more advan-tage of our regional expertise worldwide.

_ Where do you want to take IT in 2014? What is high on your agenda? Our IT strategy is geared to the long-term. We do not think in year-to-year terms. For

example, the usability of our IT solutions is the focus right now – we have to improve them significantly. Our younger employees especially expect this. We have specifically assembled experts to work on this. Further-more, we are continually talking to provid-ers such as SAP about improving the usa-bility of purchased software. Consulting is another topic we are focusing on. We have strong expertise in IT, which allows us to support the business areas as they imple-ment new business ideas. In the future, we want to integrate our IT knowledge into the business areas much more proactively.

_ And the individual business areas are actually showing an interest in this? Yes, and that was not always the case. It has changed in the past few years due to the greater mutual penetration of IT and Bosch products and services. There is also the greater awareness of IT security on the part of management. This increases the readiness for cooperation and the interest in it. In many cases, business areas can no longer do this by themselves. So your work not only supports processes in a classic sense. IT expertise also increasingly flows into the development of new products and services? As a matter of fact, we support the business areas in the implementation of new business ideas. But let us be quite clear about this: That is a process too and it is not always smooth. It has been said that Bosch IT in the past has spent a great deal


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of time on the analysis of problems instead of providing solutions.

_ Does IT need to become faster? I can’t confirm this perception. The fact that large companies are generally not as agile as small startups is no evidence for the conclusion. I wouldn’t subscribe to it generally because our internal operating figures don’t reflect it. But it is certainly the case in individual situations. At our compa-ny, new topics in particular are discussed more exhaustively to bring all the partici-pants on board. This greatly accelerates the process later. _ You execute a great deal in-house with your employees. You introduce new SAP systems, develop software, and operate your own computing centers. Is this a strategic approach? IT’s future orientation and special topics for the next few years are presented and coordinated at an annual strategy mee-ting with management. This includes our

sourcing strategy. Our philosophy is gener-ally oriented to keeping our core capabili-ties in-house. Core capabilities are highly relevant to Bosch’s competitiveness.

_ Is the operation of a data center, which many companies outsource, one of your core capabilities? Curently, yes. It’s not only the operation-critical application systems that we are running in our data centers. The data that are worth protecting are located there as well. IT security and flexibility thus play an important role. We are convinced that we have the critical mass to run our data centers efficiently. The potential savings from outsourcing are offset by increased security risks and greater dependency. In Europe, we even run data centers in special buildings at Bosch locations.

_ So you don’t consider cloud compu-ting to be an important topic? Certainly, but in a private cloud. We have two public cloud systems in use. Other-wise, we use the cloud technologies in our data centers. They make it possible to give our employees around the world uncompli-cated access to applications.

_ You recently concentrated Bosch’s entire data traffic in a few strategic compu-ting centers such as Stuttgart. What will the network strategy look like in future? At an early stage, management generally

»Management recognized at a very early stage how important IT would one day be«


automotiveIT 2014

recognized the importance that IT would one day hold for the company. We began consolidating IT twenty years ago. After the attacks of September 11, 2001, we had to acknowledge that the threats were dif-ferent from those we had assessed until that point. Relatively serious attacks on in-frastructure are possible just like that, and they can have consequences. That is why we adjusted our data center strategy. It has four elements. In each region, we ope-rate two “hot standby” computing centers with a highly redundant infrastructure. The data centers between the regions run in the “warm standby” mode. We ensure the smooth exchange of data with a dual global network that specifically links our research centers. We guarantee the service on all weekdays around the clock using our global competency center. In this way, we can cushion regional risks like breakdowns or attacks. The advantage: Even with seri-ous regional emergencies, we can re-estab-lish regular business operations within 24 hours at most. This is especially important for the automotive area.

_ Most employees still experience IT at their desk or in the plant where they work. What workplace strategy are you pursuing right now? Security is the top priority at Bosch. That is why we settled on a dual end-device strategy. We differentiate between two types: “fully managed devices” and “par-tially managed devices.” Fully managed

_Gerd Friedrich

Gerd Friedrich, CIO of Robert Bosch GmbH,

has more than 30 years of professional expe-

rience. He started his career in 1978 in the R&D

department of Germany’s Siemens Group. He

then moved to Nixdorf Computer in 1984 and

stayed there for seven years. In 1991, Friedrich

joined Bosch Telecom GmbH in Frankfurt as de-

partment head and project leader. He has been

CIO of the Bosch Group in Stuttgart since 2000.


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devices are based on Intel platforms and Windows applications. These devices have transparent BCN (Bosch Corporate Net-work) access to all data within the Bosch Group, depending on the employee’s parti-cular authorization. We merely install Mo-bile Device Management on partially ma-naged devices. We control the MDM, and it imposes certain device settings. In partially managed devices, hardened services are provided for the synchronization of Office data, the access to document management and ERP systems as well as to Bosch Con-nect, our social media platform; the data are maintained in the computing center.

_ In February, Bosch won the VDA Logistics Award. It was honored for its “companywide product memory,” You virtualized the flow of goods using RFID at the Homburg plant. Can you tell us more about this? In Homburg in 2008, IT and the divisi-on began to evaluate RFID’s potential for manufacturing, mainly with the idea of im-proving Bosch’s logistical processes. As a first step, we converted the manual kanban card system to RFID technology. The result: If you unload a container, a signal is sent to the storage area and it is refilled on the next “milk run.” So you no longer have a delay. And lost kanban cards are a thing of the past. This also allows us to reduce the supplies at the machines. You control much more precisely. We received the award be-cause we equipped the product itself with

an RFID memory. So you can follow the en-tire throughput of the product: in the fac-tory, between factories, all the way to the manufacturer. You no longer need to man-ually determine where the component is. The chain is automated. In the future, you will even be able to identify components installed in a vehicle. The scope and oppor-tunities are nearly limitless.

_ In conclusion, another topic: How is the networking of the vehicle shaping up and how are you exploiting it for coming Bosch products? The internet will revolutionize vehicles and their driving. We are convinced of that. On one hand, the vehicle will become a part of the internet. The networked vehicle will actively use information from the internet to make driving safer and more comfor-table. Think about the possibilities for na-vigation, to cite just one example. On the other hand, cars themselves will become part of the internet as sensors. Vehicles pro-vide masses of information that can be for- warded to other vehicles, to warn drivers about hazards, for example. And thirdly, we see the networking of the internet of things with the vehicle. Bosch has just re-cently been working on a pilot project in Monaco, where we are developing a net-work structure incorporating the automo-bile as one element. This is seriously chan-ging the world.


24 Brose · Christian Ley, Michael Daniel

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»We are not galloping blindly after new IT trends«

At automotive supplier Brose, IT is deliberately looking for a close meshing with the company’s departments. In an interview, CIO Christian Ley and Michael Daniel , the head of Human Resources, explain the advantages of the strategy, citing a new material flow concept at the Brose plant in Ostrava in the Czech Republic as an example. They also talk about the freedom that new workplace concepts bring for employees.

Christian Ley, Michael Daniel · Brose 25

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_ Mr. Ley and Mr. Daniel: During the summer of 2014, Brose put a high-rack storage area into operation at its Ostrava facility. People are talking about an inno-vative material flow concept. What dis-tinguishes this solution and what share of its implementation did IT handle?Daniel: Our Czech factory has grown signifi-cantly in the last 10 years and was already working with three external storage areas recently. Additional orders from Daimler and BMW in seat manufacturing made it necessary to realign the production sup-ply system and handling of raw materials, purchased parts and empty containers with a state-of-the-art logistical concept. The starting point and the stated goal were to only handle material feeding containers when they reach employees on the line. That made it necessary to link the automa-ted high-rack storage and the small-part sto-reroom using synchronized tugger trains. From the receiving department to storage, de-palletizing and repacking, all the way to provisioning and tugger-train loading – all these steps today take place fully automati-cally, without the worker having to handle anything.Ley: In 2011, our management board gave us the task of working out a future-orien-ted solution with the Technical University Munich. The production logistics were na-turally supposed to become more efficient and reduce classic operating costs. But we above all wanted to clean up the production spaces. Material that moved frequently was no longer supposed to be stored temporari-ly near the production lines to buffer supp-

ly delays. From an information technology standpoint, the path to this goal was preor-dained. Within the Brose Group, we work with a single, centralized ERP system. Un-der no circumstances was a foreign body, with its own stores of data, multiple inter-faces and specific terminology, allowed to grow within the company’s IT architecture as a result of the new logistics system.

_ So it was easy for you to make the decision on the applications side?Ley: Yes, our ERP landscape planning con-tinues to rely on the central system, so the new SAP eWM was the first choice for a new storage logistics system. The burning question was: How seamlessly could the in-tegration be configured into the Brose ERP and what the impact would be on system performance and operational security. After all, we’re talking about nearly 10,000 sto-ring positions for pallets and pallets cages in the high-rack storage area and more than 23,500 storing positions in the small-parts storage area with a high turnover. With our throughput, we could not tolerate a slow-down in the production supply speed in any area as a result of the new solution. That is why we first had to improve the compu-ting power. Compared to our planning, we noticed that the CPUs were operating at much higher capacity than planned due to the new tugger train calculations. So we started out by activating capacity from our virtualization buffer and then we put our heads together to optimize the load distri-bution. After six weeks, we found during a performance audit the ways and means to


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reduce the use of resources. An unchecked replacement of hardware would increase operating costs and reduces economies of scale. Incidentally, we look critically at how release changes often come with increas-ed hardware requirements as a matter of course, without any perceptible additions of new functions.

_ What are the biggest advantages for Ostrava?Daniel: With the new system, we have intro-duced a noticeable calm into the manufac-turing area – no more lift truck traffic, no more fork lifts. Only tugger trains depar-ting on their tours at defined intervals. A great deal of work is done in the manufac-turing cells, but the pace is not hectic at all. This is tied to the improved transparency in the factory areas: The pallets cages that blocked the view of the line in the past are gone. This provides an increase in safety as a by-product.

_ What contribution is IT making beyond Ostrava to synchronize Brose’s business processes and supply chain worldwide? Ley: Due to the high degree of automation at Ostrava, new solutions have emerged that we are now transferring to other locations. One example is a tugger train controller that configures supply logistics significant-ly more efficiently. In the design of the pro-cess, we made sure from the outset that we could use selected functions even in plants where there was no automatic storage sys-tem. Whether in Brazil, Mexico, the U.S.,

or China – since the central SAP system lays the foundation of our business process throughout the Brose world, we can easily transfer encapsulated elements – a concept that has already drawn interest from BMW, Volvo and ZF. The project has once again clearly shown that our colleagues working on the IT teams „know the ropes“ from practical experience and had even worked as schedulers in logistics themselves in some cases. They know the processes in-side and out, can discuss matters as equals, and worked out the blueprint with the de-partments.

_ A minimum of 300 new jobs are sup-posed to be created in Ostrava by 2018. What special expertise is especially in demand in job candidates?Daniel: The specialized requirements have not changed as a result of the new material flow system in manufacturing. A sufficient number of specialized workers are happi-ly still available to us in the Czech Repu-blic. Thanks to our excellent contacts with schools and universities, we are acquiring well-qualified mechatronic technicians as well as engineers for machine-building, de-sign or quality testing.

_ And now the keyword, Industry 4.0: How is Brose positioned when it comes to machine-to-machine (M2M) commu-nication?Ley: The buzzword Industry 4.0 may be new to the Brose world, but the basic princip-les employed in M2M communication are


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not. For example, we have been taking ad-vantage of the ability to receive automated vehicle-synchronized release orders direct-ly from automakers in our just-in-sequence plants for many years and then pass them on to the assembly units. If you look at the respective end points, this is pure, unadul-terated M2M. Nonetheless, teaming up with our manufacturing managers, we are deeply involved with the issue of Industry 4.0 because the number of potential sce-narios for use has grown with advances in technology. We are initially focusing on the areas of material flow, maintenance and shop floor IT – here the intensity of use will grow significantly in the next few years.

_ To meet the requirements of digiti-zation, companies are no longer filling specific roles. Instead, they are hiring based on special capabilities. Is this con-ceivable at Brose? Daniel: Yes, we are already doing that. We are mixing the classic approach, where the required technical qualifications are de-rived directly from a particular work task, with the search for candidates that bring a set of important core competencies with them. So we are building up a workforce that allows us to quickly fill positions with suitable employees. Incidentally, we see the biggest changes in the industrial area where interlinked production facilities and complex electronics controls require a high degree of technological understanding.

_ Is Brose ready for Generation Y, whose

»We are deeply involved with implementation scenarios for Industry 4.0«

_Christian Ley

Christian Ley (47) is in charge of Information

Systems at the Brose Group. In this role he

manages the consistent development of IT so-

lutions, in line with company strategy. With a

graduate degree in business administration, Ley

started his career in 1995 as a Brose trainee and

soon moved to the central application develop-

ment group as IT coordinator. In 1999, he took

over as team leader for PPS and QM systems

and subsequently became head of Brose’s cen-

tral department for logistics applications. In this

role, Ley was, responsible for numerous SAP

implementation projects worldwide and played

a key role in shaping Brose’s centralized ap-

plication landscape. Following the groupwide

introduction of SAP in 2006, Ley assumed his

current management position.


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members grew up with the internet and mobile communication, maintain virtual friendships, and prefer to work in short-lived project teams?Daniel: Our human resources strategy for 2025 explicitly takes various approaches to communication and work into account, as well as demographic developments and global trends such as urbanism. We are im-plementing completely new, highly flexible office concepts and are moving away from the classic desk with a personal computer and stationary telephone. This is being carried out at our new company facility in Bamberg, where central offices for purcha-sing, development and IT are being esta-blished at the end of 2015. In the future, many Brose employees will also have the opportunity to work from home. It is im-portant that we offer these kinds of incen-tives to retain young people in the company long-term.Ley: With our Next Generation Workplace, we have delivered an important milestone in the further development of the Bro-se world of work. In this IT project as in others, we have been very careful to avoid introducing new features on an isolated basis within the company, instead taking applications that improve employees’ in-teractive cooperation and mobility and consolidating them into an overall concept. Above all, we have implemented computer telephony worldwide. The system not only chooses the lowest-cost connection but gi-ves employees a high level of mobility at the same time. All users always have their

»In the future, many Brose employees will be able to work from home«

_Michael Daniel

Michael Daniel (61) heads the Human Resour-

ces department of the Brose Group. He is re-

sponsible for the international HR activities of

the company, which employs more than 22,000

people at 57 locations in 23 countries. Daniel

joined Brose in 1991, after military service and

management roles at supplier Keiper Reca-

ro. He ran the logistics side of the company’s

seating adjustment operations until 1995. He

then temporarily managed the Braas roofing

systems plant and in 2003 began a new assign-

ment to integrate Brose’s locking systems ope-

rations. One year later, Daniel became head of

Brose’s plant in Ostrava, Czech Republic. He ex-

panded the factory to become Brose’s biggest

factory with 2,500 workers. Daniel took on his

current management role April 1, 2014.


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direct-dial number on hand -- at all Brose facilities and even using their notebooks. An HD video conferencing system allows connections using iPads from any location and, with the My Desk system, they can log on to their personal user surface regardless of the end device, even with tablets -- at the airport, at the hotel or even at home. We want to take advantage of the techni-cal foundation that we now have to build up additional services, for example, self-services for management and new cloud-based HR platforms. We are not going to stand still.

_ Innovation is high on the agendas of manufacturers and suppliers. What is Brose IT currently doing to support pro-duct and process innovations or perhaps even new business models?Ley: It is a Brose IT principle to always look for a close meshing with our departments. We neither gallop after new trends nor do we develop things that our business part-ners really do not need. Nor do we jump into the breach just when some part of our information technology no longer func-tions. From my experience at Brose, I know that complex IT innovations are generally tied to specific processes and that they al-ter processes in the value chain. We have already talked about the example of logi-stics at the Ostrava plant. As a value-added contribution to innovation, I also consider it important that we are supporting Brose’s new drive technology division, which has produced a lightweight, compact, and si-

multaneously highly efficient electric bicy-cle power unit in Berlin. This startup drew on templates that have been used success-fully within the Brose Group and that we adjusted to distinct logistics processes, seasonal distribution, and market forces unlike those in the auto industry. Here IT is at work as a classic enabler.

_ In one of our most recent CIO inter-views, we learned from an automaker that the theft of sensitive information is increasingly occurring through suppliers and partner companies. Do you share this assessment?Ley: IT security cannot be reduced to just the relationship between the automaker and the supplier. But I basically share the view that we cannot solely consider secu-rity within the four walls of our company. The Brose Group also works with numerous suppliers and business partners. Apart from our regular workforce, external con-sultants, students working on theses and temporary workers regularly come into the company – they are all IT users and con-stantly come into contact with information that they need to do their work. As a result, differentiated, role-based authorization processes are the be-all and end-all for us.Daniel: We also considered it essential to pay continual attention to the responsible handling of data and documents and sen-sitize employees regularly to the issue of security in training and e-Learning.


30 Witte Automotive · Andreas Bunderla

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»We are preparing our entry into Industry 4.0«

Witte Automotive, a German maker of locking and latching systems for the auto industry, relies heavily on the latest technologies to grow its business and remain competitive. In an interview with automotiveIT, CIO Andreas Bunderla explains how IT supports and drives the major changes that are taking place in the area of industrial manufacturing.

Andreas Bunderla · Witte Automotive 31

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_ Mr. Bunderla, Witte Automotive has again achieved record revenues in latching and locking technology during fiscal year 2013. What is IT’s share in this success? As the head of information technology, I can say that we have done a great deal in recent years to consistently generate ad-ded value for the company with our pro-jects. To make this happen, not only was a re-organization needed with direct repor-ting paths to top management. A cultural change was also necessary longterm. At Witte, IT has always had a strong techni-cal image, but less the image of a process designer. We were responsible for keeping the infrastructure running and providing the departments with the best possible work devices. In the meantime, our clout has grown significantly. Today, the employ-ees in my area can hold discussions on an equal level with their business colleagues and together get new solutions underway. For important decisions, we sit down at the same table. That is why the IT agenda follows company strategy very closely. This is a crucial building block for success as

well. It certainly has a positive effect on the financial development of the company.

_ Can you cite a current example of the cooperation between a department and IT? There are many of them. One of the most important was the startup of our new central warehousing approach here at our headquarters in Velbert, Germany. To optimize material flow, production, logis-tics and IT worked together to provide extreme-ly lean processes. The before- and after-comparison is significant. We have brought stock availability at the production lines to nearly 100 percent while lowering costs.

_ So if we were to ask you whether IT drives business at Witte or the depart-ments drive IT, what is your answer? A close solidarity makes it possible for both sides to serve the needs of business opera-tions. In the past, we were certainly driven by the departments. Today the relationship is the reverse. We create a great deal of new impetus and bring projects to the de-


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partments. This naturally requires suitably qualified IT staff and good integration with the departments.

Witte Automotive is an SAP power user...That’s right. We map practically every work step in SAP in both the new parts and regu-lar production processes and go to the very limit of functionality in doing so. Previous-ly each location used its own ERP systems. Now, everything runs centrally.

_ And what are the advantages of this centralization? Our IT employees have built up a great deal of SAP know-how because they plan and guide the rollouts in different coun-tries. Our international growth is an ex-ample. When I arrived at Witte in 2007, we would’ve had a hard time with the construction and launch of new produc-tion facilities abroad. These jobs have now become routine because we have systema-tically invested in the training and exper-tise of our 45 employees.

_ Can you give an example? Consider Ruse, Bulgaria. We launched a new SAP system there in barely five months in 2010. The standards that we created with a globally uniform IT architecture have given us the traction to do this. Today we no longer need to worry about issues such as system consolidations or user trai-ning. Instead, we can concentrate wholly on growth. Over time, a process-oriented approach to our work has grown up from a specialization in modules. This do-it-your-self strategy took time at the outset. Now it has paid off due to the incredible technical knowledge that we have in our own ranks.

_ Describe your vision to us. Where should IT be in the medium term? What goals and aspirations has your senior management formulated? I am firmly convinced that information technology will play an even more im-portant role for Witte in the future. Witte Automotive is oriented to strong growth with innovative product solutions. We


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must support this technically on the pro-cess side and drive it forward proactively. That is our main task. In both Production 4.0 and the development of new parts, we are going to use numerous IT levers to move the company forward. Its agility will improve overall, and the awareness of the business fields where Witte is on the move can change.

_ What vertical integration are you plan-ning? In IT, we traditionally develop a great many products and solutions ourselves. One de-velopment hub is Witte’s biggest facility, Nejdek, in the Bohemian portion of the Ore Mountains. On various projects, we reinforce our staff with external consul-tants with automotive-specific expertise. At present, we are deliberately building up our programmer capacity so we can act even more independently and rapidly. We are concentrating on our core business. We have long separated ourselves from peri-pheral issues such as travel management,

telephone systems, and printer support. We leave that to our service partners.

_ How is the Witte Automotive IT bud-get expected to develop? As far as costs go, we have managed a si-deways movement over the last few years. Today, in direct comparisons with our com-petitors, we are in the upper third in terms of our cost-benefit ratio. That should con-tinue to be the case. I would like to see IT’s share of additional expenditures stay signi-ficantly below the company’s increase in re-venues over the next few years. Thanks to our technically strong team, we can largely shoulder the expanded scope of services ourselves. The investment picture is dif-ferent: This year we are actually planning the largest IT investments in our company history.

_ What exactly are you spending this money on? In early May of this year, we completed the replacement of our total backend infra-

»This year we are planning the largest IT investments in our company history«


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structure with servers and storage. More storage space was required to further ex-pand our system virtualization. Currently, 31 terabytes are allocated groupwide and the forecast is that this will continue to grow in coming years. To deal comfortab-ly with big data, we have now ramped up overall capacity to 81 terabytes. I am con-fident that should be enough for the next three years.

_ Many suppliers have to use various IT solutions for one and the same business problem, because they are connected to the systems of several automakers. That puts pressure on efficiency. Is this true at Witte Automotive? Yes, it weighs heavily on efficiency in the development or new parts process. Diffe-rent CAD systems such as Catia, Siemens NX and Unigraphics create complexity. They also push up maintenance costs, in-crease the need for training, and so on. By contrast, in the regular-production pro-cess, we can head off some of the problems because we have a uniform ERP system. The differences in the process start with our customers’ individual requirements for shipping. There won’t be a way around that in the future, I think. Nonetheless, our cost-benefit ratio for IT is in the benchmark range.

_Andreas Bunderla

After high-school and military service, Andreas

Bunderla trained to become an industrial mana-

ger. In 1992, he joined Ruetgers Automotive as

an SAP coordinator in the German supplier’s IT

department. At Ruetgers he later assumed the

role of head of IT coordination. Next, Bunderla

spent five years as group IT manager at an inter-

national maker of brake linings before moving

to Witte Automotive as CIO in 2007.


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_ With about 3,500 employees currently, Witte has its largest workforce in com-pany history. What requirements does this entail for IT? We are betting on service quality. When new employees arrive at our company, the departments where they work open tickets at our central service desk. The clock is ticking. From then on, we want to make tools, telephone numbers, identities, ac-cess rights, and so on available promptly. To achieve that, we are turning to the ex-tremely standardized and automated deli-very processes familiar to people in major corporations.

_ What do you think of trends such as BYOD and mobile computing? We’re just now doing tests to see whether and how we can integrate end devices into Witte IT and add value. We know that the up-and-coming generation has require-ments that we have not yet fully outlined. Our senior management has become ac-tively immersed in the dialog because em-ployer appeal is a high priority at Witte.

_ And why is that? Mobile computing is helping to give us ready access to business information all over the world. But for security reasons, we are imposing a strict requirement that

no data be stored on mobile end devices. The separation between company and per-sonal data represents a challenge in any case. The next stage of expansion will in-volve cross-facility, interactive work, but we have to clear a few technical hurdles for that phase.

_ The German government is concerned that small and medium-sized manufac-turing companies have too little IT ex-pertise to meet the requirements for the transition to Industry 4.0. Where does Witte Automotive stand with regard to the networking of production? No question. The issue concerns us. We have just identified an Industry 4.0 process in the form of a basic concept that we would like to establish very quickly at Witte. If I said that we would be working with one in 18 months, I would not be going too far out on a limb.

_ Can you tell us what it involves? Only this much: it is an ingenious entry sce-nario that only a few people probably have on their radar and that Witte Automotive can use to improve its competitiveness. In-cidentally, one of our creative IT employees came up with the idea.

Interview by Ralf Bretting and Hilmar Dunker

36 Volkswagen · Martin Hofmann

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_ Mr. Hofmann, you want to continue to build up the company’s IT expertise. How do you precisely envision future roles and the division of labor? The Volkswagen Group has wide-ranging IT expertise. But over the last few years, we have focused especially on project manage-ment and placed the technical execution into the hands of service partners, inclu-ding the development of new applications and support issues. In the future, we will increasingly direct our expertise toward technical implementation. When it comes to technologies such as cloud computing, data analytics, the internet of things and mobility, we cannot and will not be satis-fied with a control function. As Volkswagen IT, we want to retain the core competency

over the entire lifecycle of a solution. That begins with seeking out innovative techno-logies, continues through the evaluation of their relevance, and covers their seamless integration into our business processes. We are shaping and acting instead of just reac-ting. That does not mean, however, that we will do everything ourselves.

_ What are the consequences of this approach? They are positive, without exception. Our highly trained IT team is going through another powerful training initiative. At pre-sent, we are training our third-generation IT security specialists. Our cross-brand IT Academy will shortly train 150 enterprise architects and is currently preparing the

»We are shaping and acting instead of just reacting«

Group IT at Volkswagen is reactivating its old strengths and wants to take matters in its own hands on issues such as the cloud, big data and mobility. That’s why CIO Martin Hofmann has been pushing new specialized staff training. He’s also testing joint projects and startups, and is consolidating IT employees into their own office complex at VW’s Wolfsburg headquarters in late 2016.


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first 30 pilot project participants. Another example: We are going to offer Java boot camps – all to further expand, deepen, and spread our IT expertise.

_ So less outsourcing in the future? Precisely. It is a matter of taking what is se-curity-relevant and confidential and hand-ling it ourselves. For example, this includes the operation of our FIS, which is our pro-duction, information and control system. In 2013, we consolidated all the services of a number of IT providers. At the moment, a software development center is going up in India. We will expand our programming capacity there, and maintain and further develop the systems ourselves. Yet another example: Skoda’s brand IT department will take over SAP-related application support for the entire Group. In this way, we are working through all the sections step-by-step and by mutual agreement with our IT partners. We assume that we will complete the insourcing in a little more than three years.

_ If you support FIS from India, the sup-port processes will also change … That is correct. The service provider is no longer just a few streets away. It is working in another time zone and its employees speak English. Everything is becoming more international.

_ Does the internal build-up of IT exper-tise go hand-in-hand with a growing number of IT employees? We use the group’s 9,300 IT employees more effectively if we exploit synergies and avoid double work. We will naturally bring new IT specialists on board in the future. In 2012 and 2013, we hired more than 400 IT specialists at just Wolfsburg and at Audi headquarters in Ingolstadt. In addition, we have taken on IT-oriented employees from other areas since last year. This is a true success story. The new co-workers re-ceive custom-fit training. They think and act extremely pragmatically and are user-oriented. Everyone involved sees this as a positive step.

_ Group IT had a presence at CeBIT 2014 with a large stand for the first time, and it aggressively went after young, qualified talent. What did this campaign accomplish? It was a total success. We could hardly handle all the applications. Two months after CeBIT we no longer had any open po-sitions. I am sure that this was no transitory impression tied to the trade fair. In the cur-rent European Graduate Barometer publis-hed by market researchers trendence, the Volkswagen Group holds the second spot in the Engineering/IT area. That puts us significantly ahead of our rivals in the au-


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tomotive sector. A few years ago, we were not even in the top 10. Through CeBIT, we had contact with 25,000 students and 120 professors – an ideal starting point to strengthen and expand our connection to the university world.

_ What is your main focus this year and in 2015? There are three that should be emphasized. First, the close cooperation of Group IT and technology development on networking and connectivity; second, our work on a di-gital mobility platform to facilitate the net-working of vehicles with the environment and objects in the internet of things; third, new IT initiatives in artificial intelligence and robotics.

_ Does the new data lab in Munich play a role in this? Of course. In the data lab, our employees

develop ideas, identify trends and test new technologies. In doing so, they work with the support of external partners such as Google and Intel as well as startups from Germany and Silicon Valley. The environ-ment is inspiring and very dynamic, and the approach to work is highly creative. There is experimentation and, as a result, mistakes are allowed. Nonetheless, no one loses sight of the mission. In this way, ex-tremely interesting results emerge within several weeks. If they work out, they be-come the basis for ongoing projects.

_ How do you manage relations with the startup scene? We make full use of our partnership with the German Accelerator promoted by the Federal Economics Ministry. Through this organization, we are in contact with more than 150 young companies in the informa-tion and communication technology fields.

»When it’s security-relevant or confidential, we want to handle it ourselves«


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This new form of cooperation is bringing a breath of fresh air and many ideas into our software development. We are already benefiting from it.

_ Automotive and classic IT are coming together. What does this mean to Volks-wagen? The integration of network services in a vehicle like the new Golf is extremely complex. In this area, technology develop-ment and IT work together closely under a clear division of labor. Our devel-opment co-workers hold the responsibility for the car’s technology. Corporate IT handles everything from the air interface to the backend. It is a matter of bringing infor-mation from the Internet to the driver in such a way that he is informed but not dis-tracted.

_ Vehicles and software are developed at different paces. How do you achieve pinpoint synchronization? We have adapted our software develop-ment process to the product development process. The same logic, the same terms, the same milestones. This promotes a mu-tual understanding of the work.

_Martin Hofmann

Martin Hofmann has worked at the Volkswagen

Group for 13 years. Before joining Europe’s big-

gest car group, he worked at IT services provi-

der Electronic Data Systems Corporation (EDS),

handling international duties, and later as the

head of Digital Markets Solutions Consulting

in the US. Between 2001 and 2003, Hofmann

managed e-procurement and supply chain in-

tegration at the Volkswagen Group. Thereafter

he assumed responsibility for process and in-

formation management in corporate procure-

ment. Starting in 2008, Hofmann took charge of

VW organizational development. He has been

Group CIO since December 2011.


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_ Industry 4.0 will be a megatrend in coming years. Where does Volkswagen stand in the networking of the produc-tion process? Volkswagen has long worked with network-ed production facilities. This is the only way large production volumes are possible. Industry 4.0 will, for example, offer the op-portunity to identify possible malfunctions and improve supply flows into factories. In pilot projects, we are now evaluating large data quantities – the requirement for an even more pro-active maintenance.

_ You are the head of Group IT, and every brand has its own IT. How difficult is it to walk the tightrope between pre-serving the independence of the brands and bundling capabilities group-wide? Strong brands such as Porsche, Audi and Volkswagen are the foundation for compa-ny success. In the world of bits and bytes it doesn’t matter what logo is on the com-puting center. The important factor is that our IT solutions contribute to the success of the brands and to the success of the Group. Hardware infrastructure, network and operating systems are all important for successful business activities and can

be the same for all the brands. That is why we standardize processes in the IT area wherever the change is technically feasible and make sense.

_ You want to make IT resources avail-able to the operating departments more quickly in the future. That is why you have acquired experience with a private cloud architecture in a major project. How will this strategy evolve? We have established a private cloud for the connected car. At the same time, we are ex-amining where we can take advantage of public cloud infrastructures. The volume of storage in the group is growing enor-mously because developers use storage-intensive simulation technologies, large quantities of machine data are collected from production, and we are networking new vehicle generations. But we will not and cannot build one computing center af-ter another. So we are going to store non-critical data such as relatively old archival data in public clouds – naturally in dedica-ted hardware environments that are clear-ly recognizable as Volkswagen IT.


42 ThyssenKrupp AG · Klaus-Hardy Mühleck

automotiveIT 2014

_ Mr. Mühleck, you became CIO at ThyssenKrupp in late 2012. May we ask somewhat flippantly why you did that to yourself? Quite simply, ThyssenKrupp is an icon of German industry. The company stands for first-class engineering competence in me-chanics, equipment manufacture and mate-rials. It has unique products in its portfolio and is active in nearly 80 countries world-wide. But ThyssenKrupp recently faced a difficult turnaround. The new orientation is not yet in full swing, but our EBIT margin is again pointing upward. As CIO, I can ac-tively contribute to this positive trend. That is a task that involves an enormously wide range of issues. It especially appeals to me.

_ At Volkswagen, you had your hands full keeping up with the company’s growth. At ThyssenKrupp, the elevator was ini-tially going in the other direction. What demands on IT emerged from this? In the last year and a half, we have comple-tely repositioned the content and structure of corporate IT. Thanks to the restructuring program, the result was a strong centrali-zation of the CIO units in our five business areas. We did not leave anything out: ar-chitecture, management, planning and control, application and process design, all the way down to the regional control level. Parallel to this, a broadly based infra-structure consolidation is underway across 2,300 locations, along with the establish-

»The ThyssenKrupp IT budget will be able to shrink in the medium term« Klaus-Hardy Mühleck, CIO of ThyssenKrupp AG, explains the new IT strategy of the diversified German steelmaker. In an interview with automotiveIT, Mühleck also talks about the role that his central supervision unit plays in the company’s change process and the economic advantages that outsourcing and cloud computing are expected to bring.

Klaus-Hardy Mühleck · ThyssenKrupp AG 43

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ment of a shared services organization. To clarify this further: In the past, Thyssen-Krupp had 500 decentralized IT organiza-tions. In the future, we will get along with five CIOs in the business areas and centra-lized IT governance.

_ Are you running into resistance?Of course. And we have only been able to overcome it by bringing the new matrix or-ganization deeply into the company Thys-senKrupp-wide with the help of CEO Hein-rich Hiesinger and his leadership team. The leadership lives and breathes this matrix, as we do in the Corporate Center for Informa-tion Technology Management. Nonethel-ess, it will still take time for this overall shift toward an integrated industrial company to take hold. In the future, the product folio will be balanced out in such a way that we can do business profitably irrespective of steel cycles. It is already certain that we’re heading in the right direction. The strategy is working and our operational measures are showing a clear effect. You can see that in our latest business figures.

_ You have always championed a strong IT orientation in the core processes of the company. Are you still adhering to that? Even more. At ThyssenKrupp, IT is an inte-gral component of the corporate program’s

impact and supports the company’s further strategic development. I would even go so far as to say that information technology is basically the central front in our effort to effectively bundle individual initiatives and measures in the business areas.

_ There have been rumors that you, as part of the strategic reorganization, were supposed to get corporate IT in shape for a sale, in part or as a whole? Is there anything to that? No, at no time have we discussed this op-tion. In 2004, Thyssen-Krupp had an early experience with a comprehensive spinoff – at that time, we sold our IT subsidiary Triaton to HP. Subsequently, a small IT unit with about 400 employees emerged; in the future, it would focus on important management tasks centrally. And there are, of course, about 1,800 IT employees in the business areas supporting the operational business.

_ But are you now going to reduce IT’s vertical integration further? Yes. We are poised to award major outsour-cing contracts amounting to nearly 1 billion euros, and we have invited bids on current jobs such as wide-area networks, research center consolidation and standardized IT workplaces, including support for mobile


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devices. In standard services, we are stri-ving for a vertical integration between 25 and 30 percent long-term. But when it co-mes to end-to-end processes of our applica-tions, we are investing in technical experti-se and building it up in our own ranks.

_ How closely do the Corporate Center for IT, IT in the business areas and the departments coordinate with one another? Is there a clear, binding division of labor?Definitely. We have established a hands-hake process promoting intensive coopera-tion between IT and the departments. All the programs work with dual leadership, which involves two project managers: one comes from the department, the other from IT. ThyssenKrupp’s top management understands how to mediate between the business and the operating units very har-moniously, and not just in IT. The company lives and breathes this collaborative ap-proach. It is one of its major assets and it has left its mark on the organization. I have rarely seen such pronounced teamwork in my professional life.

_ Which would you say is true: Is the roadmap spelling out corporate IT’s direction and goals still a rough free-hand sketch? Or is it now an elaborate, detailed study?

We drew up the roadmap in early 2013 in a very detailed form and initially establis-hed the roles of the IT areas in the indivi-dual business areas. Then the governance models were worked out. The goal was to integrate the IT strategy into the company’s new matrix organization. We are now brea-thing life into this plan step-by-step. The specific milestones that are part of our orientation have also been defined. For example, IT’s restructuring was due to be completed during the third quarter of 2014.

_ How much money has your CEO Hein-rich Hiesinger approved to flesh out the integrative role in the execution of the corporate strategy?ThyssenKrupp’s entire IT budget is very lean. We currently spend 580 million euros a year, and we are trying to pay for indivi-dual restructuring measures with it, insofar as we can. It is of course clear to everyone

»If we make greater use of cloud computing, we will get our costs under control«


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that we have to make a one-time invest-ment of between 15 and 18 million euros in additional resources on the infrastruc-ture side to achieve our outsourcing goals. But our budget will be able to shrink in the medium term.

_ How do you intend to do that?If we make greater use of technologies such as cloud computing, we will get our costs under control. In July, we concluded a co-operative venture with Microsoft in the ele-vator segment to improve our service and maintenance business. We are using net-worked sensors in the elevators that send data directly to the cloud. This informati-on is processed intelligently and provided to our service technicians in a centralized, clearly organized fashion. This not only in-creases the uptime for ThyssenKrupp ele-vators, but reduces IT costs. We are in the process of implementing a companywide CRM program with Microsoft Dynamics in the cloud. And with SAP HANA and Suc-cessFactors, we are moving toward a pri-vate cloud. That will reduce our expenses by at least 20 percent – or even more.

_ Is the SAP landscape at Thyssen-Krupp mature enough to migrate into the cloud?Not yet. As part of our data and process harmonization, we are ramping up central

SAP instances, in finance and controlling, for example, and bringing them into the business areas. The goal is to consolidate all the applications in our new computing centers by 2017. So the move to the cloud will not take place overnight, but in a step-by-step process. The reorganization, of course, must also be harmonized with our

_Klaus-Hardy Mühleck

Klaus-Hardy Mühleck has been CIO of

steel and technology group Thyssenkrupp

since 2013. In that role, he also manages the

Corporate Center Information Technology

Management in Essen, Germany. He reports

to ThyssenKrupp CFO Guido Kerkhoff. Earlier

Mühleck was head of corporate IT at car-

maker Volkswagen Group. He studied design

and automation engineering in Stuttgart, is

married and has three children.


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network capacities – our sourcing partner has the task of ensuring the availability of data lines from the research centers to our locations as well as the last mile to the workplaces, backed up by performance agreements defined with absolute clarity. We will operate our own IT management center so we can measure performance continuously and stringently.

_ On the IT side, are you dealing with solutions for Industry 4.0? That’s nothing new for ThyssenKrupp. Our modern steel plants are intensive users of WebSphere applications from IBM in the production environment. And if you go to Leipzig, you will find highly networked solu-tions in the plants that serve BMW and Por-sche. Our components area uses them to de-liver pre-mounted axles and chassis right to the assembly line. The release order reaches us just two hours before installation.

_ So is ThyssenKrupp now a digital company? It depends on how you define it. Compared to Google, certainly not, because we only earn our money with physical products and components. But to cooperate successfully with innovative industries such as the auto-motive sector, ThyssenKrupp has to master highly networked processes. Digitization helps us with this.

_ ThyssenKrupp’s growing networking naturally has a flip side – IT security. When was the company last the victim of a targeted cyber attack?Every major company is attacked multi-ple times a day. In the last two years at ThyssenKrupp, we have launched many preventive security measures. More will follow as part of the pending infrastruc-ture consolidation. For example, we plan to work in four security levels that are alrea-dy installed in Essen and are being spread out across the ThyssenKrupp world. As far as security technology goes, we have eve-rything available that you can buy on the market. We are also in a position to gather relevant information about data attacks, user behavior and traffic volume in our company network centrally and analyze everything in real time. That helps us recognize and defend against threat scenari-os early. Last but not least, we’re sensiti-zing our employees continually with train-ing, newsletters and expert forums.

_ In conclusion, please finish the follow-ing sentence for us: ThyssenKrupp IT will be successful when…… the business sees IT as an integral com-ponent of its value creation chain and per-ceives us as an equal partner in innovation.


48 Daimler AG · Thomas Weber

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»We will join the alliance«Thomas Weber is board member of Daimler in charge of group research. He is also responsible for development at Mercedes-Benz Cars. Weber spoke to carIT about Google in the car, data security and autonomous driving at the 2014 Las Vegas CES.

Thomas Weber · Daimler AG 49

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_ Dr. Weber, why does Daimler have such a big presence at the CES in Las Vegas this year? Consumer electronics is giving a major boost to the car and automotive innova-tion is massively influenced by electronics today. That’s why we’re here. You also see that everyone here is interested in the au-tomotive business. It can be a win-win for both industries.

_ Several automotive companies here announced the establishment of an “Open Automotive Alliance“ together with Google? You were not among the founding members. We’re not a founding member, mostly be-cause the current timing didn’t really fit us. But we will, of course, also join the alliance; this year already. It’s completely clear that we are positioning ourselves flexibly and don’t just want to concentrate on Apple’s iOS. Android and Google-based systems are equally important.

_ So you don’t have any operating-system preference when it comes to smartphone integration in the car?

That’s right. It’s not our decision which mo-bile phone the customer wants to use. And when you look at the massive unit sales of Android devices or the innovation spirit of Apple, it’s clear you cannot ignore either. It is expected of us that we support the whole spectrum of mobile phones. To provide the maximum flexibility for our customers, we also need to discuss how we can get wire-less charging of mobile phones in the car. That’s a very logical next step.

_ Please describe to us how you work with companies such as Apple and Google? We have good and intensive cooperations with both companies. Top Google people are regular visitors at our research center in Palo Alto, but we are open to cooperation with all of Silicon Valley. Our partnerships are based on mutual attractiveness. We’re not in an exclusive arrangement with an-yone, but want to use the innovative power of the whole region, which includes com-panies such as Google, Intel, Apple, eBay, Facebook and others.

_ Given the importance of connected cars for the future of the industry, don’t


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you need a special relationship with one of these high-tech companies? We cultivate particularly intensive relation-ships with certain partners, but we are not necessarily looking for exclusive partner-ships. Every new partner focuses on a new area and we appreciate the competition between different concepts.

_ The different development cycles of the automotive and consumer elec-tronics industries have long been a problem. Are you finally bringing these cycles more in sync? We have a very consistent modular stra-tegy. That means that we develop components and systems independent of a parti-cular model. A developer of brakes, steer-ing or telematics is only concerned with the development of his particular component. Telematics, for example, is driven by the innovation speed of electronics. We’re to-day already planning the next generation of telematics, but those components are developed separately from the overall car. With our modular building-block system, I’m developing the next generation of our Comand Online HMI. When it’s ready, all I have to do is put it into whatever model is being released. In that manner, we’ve all but solved the different speeds issue.

_ That’s the case today already? Look at everything we have achieved with the modular interlinkage in the S, E and C-Class models. Which other brand has the kind of autonomous driving features of the S-Class and has the ability to make the same technologies available in the E-Class and C-Class? You can only do that by app-lying this modular approach.

_ With the current increased focus on data security, what are you doing at Daimler to make sure customer data are safe? Security and privacy are among the big-gest issues we face. We’re addressing these issues in many projects now underway. By using our own servers, it’s clear that we can offer a high degree of security and privacy. But it’s also clear that much needs to be done in this area.

_ So no data on US servers? We guarantee Mercedes customers safe and secure storage of their data on a Mercedes-Benz server that’s located in Germany.

_ Are automakers offering too many connected services already? In the past we would have first constructed the business case for a particular new ser-


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vice. But today I’m advocating that we bring some features into the car even be-fore we know exactly what consumers will do with them. With much of the functiona-lity we offer in the car today it isn’t crystal clear what drivers will use it for, but we still have to do it. I may not need a particular service, but many customers expect that we offer it.

_ How do you make those decisions? You have to keep in mind that markets often differ radically from one another. If you’re talking about a typical S-Class customer, you forget that the same S-Class customer in China is 10-to-15 years younger than in Europe. For the Chinese S-Class buyer, the IT in the car is a decisive purchasing criteri-on. You have to be careful that your own assessment isn’t the only one that matters.

_ You’re showing major advances in autonomous driving, but full implemen-tation will be a while. In the meantime you’re putting some of the technologies in Mercedes-Benz vehicles today. But what will be “the next best thing“ coming into cars? The next best thing is surely that we offer some of those autonomous-driving func-tions to our customers soon. We feel we

»Security and privacy are among the biggest issues we face«

have a leading position in autonomous dri-ving and are working very hard to maintain this. I can imagine that in the next five ye¬ars we will have selected autonomous parking features available. Another big development is the ability of the car to learn and predict. The next big thing is the car that recognizes who is getting in in the morning, automatically makes navigation proposals, preconfigures the seats, selects the right music. And we want to establish a seamless connection between the car and wearable devices such as Google Glass or the Pebble smart watch.

_ Despite all the progress, many of the new in-car functions still distract the driver from his core driving role. That’s a permanent issue that will provide


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a huge push in the direction of autonomous driving. The customer wants to have in the car what he is used to having in his daily life. Many of those things aren’t necessari-ly helpful in the area of driver distraction. Customers don’t like restrictions that we impose, but we also don’t want to compro-mise our safety rules. We offer head-up dis-plays as an option. Maybe new technologies such as Google Glass will provide an option to deal more effectively with distractions. We’re taking the issue extremely seriously and have various big research projects un-derway. The aim is to offer as much as we can and be within the regulator’s demands. The ideal is obviously autonomous driving, where you can watch a movie or do some-thing else nice while the car takes over the driving function. That’s a huge megatrend.

_ Do you look at test comparisons of your infotainment and HMI in business and consumer publications? We take all of those tests extremely seri-ously and want to permanently learn and improve. But we’re also very aware that, es-pecially in the area of electronics in the car, a lot will change in coming years. That’s why we’re making a big push to connect the consumer electronics and automotive industries.

_Thomas Weber

Thomas Weber has been a management board

member of Daimler AG since 2003. He has been

responsible for Group R&D and development at

Mercedes-Benz Cars since May 1, 2004. Ear-

lier, the mechanical engineer served as deputy

management board member for R&D at Daim-

lerChrysler; project manager for the Mercedes A-

Class and head of the carmaker’s plant in Rastatt,

Germany.


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_ Is gesture control on your agenda? We showed a demo of gesture control at the CES two years ago. The main problem is still how to make it automotive grade. In the automotive environment, with its many reflecting surfaces, it’s difficult to make gestures clearly recognizable. But we’re working on it because we realize that gestures are, in a sense, a more normal way to bring something about than flicking a switch or pushing a button. I think it’s pos-

sible that we’ll have the first gesture-con-trolled processes in five years.

_ How important is 4G/LTE for the con-nected car? The biggest construction site when it comes to connectivity is the infrastructure. It’s a near-permanent irritation that in some areas you get your emails at lightning speed, while in others you’re dealing with 1G or 2G speeds. Our problem is that the customers almost always blame the car and not the network. It’s my dream to quickly get a high-performance LTE network up and running and we’re definitely suppor-ting that effort.

_ Can you quantify how much the elec-tronics in a car cost today? I wouldn’t want to be specific here. An ever bigger part of the car is affected by electronics, but it’s increasingly difficult to separate this out. What part of the car isn’t to some extent electronic today? The structural parts aren’t, but all others have electronics in them and that includes, sus-pension, lighting, engine, powertrain and many other parts of the car.

Interview by Arjen Bongard (automotiveIT

international)

»Driver distraction is a permanent issue. But customers often don’t like the restrictions we impose«

54 Opel · Karl-Thomas Neumann

automotiveIT 2014

_ Mr. Neumann, everyone is talking about the networked automobile. In the future, will it no longer be the classic themes that determine the purchase of a model but rather the degree of digitization? Classic themes such as design will continue to play an important role in every purchase decision. But we are trying to combine the-se themes with new aspects such as digiti-zation. Styling speaks to the heart. It is the emotional side. On the other hand, we at Opel have the art of German engineering with values such as technology, precision, structure and quality. This is where you find our unique selling proposition. We want to be the emotional German brand.

_ At the Geneva Motor Show this year, you announced the introduction of GM’s OnStar network service in Europe and characterized this as a major step on the path to connectivity. Can you define the milestones on this path for us? I considered the Opel Adam to be an impor-tant milestone. With IntelliLink (GM’s info-tainment system) and Siri speech control, it is the best-networked small car on the market. More than half of all Adam models delivered in Europe are ordered with Intel-li- Link. We have taken another major step forward with our intuitive infotainment system in the new Insignia. Three out of four new Insignias in Europe have Intelli-

»We will adhere to all applicable European data privacy rules«

automotiveIT spoke with Opel CEO Karl-Thomas Neumann about the brand’s improved prospects, the recent announcement that GM’s Onstar telematics service is coming to Europe and his vision for new mobility and the connected car.

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Link. As of this year, the IntellilLink system with smartphone integration, a seven-inch color monitor and audio streaming is also available in the Astra, Ampera, Cascada, Meriva, Zafira Tourer and Mokka models.

_ And in the future? The Opel Monza concept car, which caused a sensation at the last IAA in Frankfurt, shows where things are heading long-term. It is the model for future HMI systems, that is, the interface between the human being and the machine, as its interior configura-tion is based on the latest research findings in this area.

_ OnStar is not new – General Motors introduced the system as far back as the mid-1990s. Was the “breakthrough” only possible with digitization or was it before its time? The market for telematics services has grown in the meantime and people’s awa-reness has changed. In any case, the ser-vices that we are now planning are much more targeted than they were in the past. OnStar includes services such as emergen-

cy aid and break-down assistance. This re-quires a data transfer from the car.

_ Where does Opel stand on the hotly debated issue of data ownership? OnStar is there to improve the protection and safety of our customers. This is pre-cisely the reason that data privacy and the protection of the private sphere are parti-cularly important. _ In concrete terms, this means … We will naturally adhere to all applicable European data privacy rules and make it possible for our customers to select pre-cisely the service they would like. The data will only be used for the purposes that were agreed upon with the customer beforehand and he can naturally prevent the collection of location data in the car at any time.

_ Is the next step with OnStar conceiv-ably a link with the workshop, which can then make service appointments on the basis of Onstar’s remote-diagnostics capability? Yes, that is conceivable. But the data will


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only be used for purposes that the cus-tomer agrees to in advance. With the help of apps, you can listen to internet radio or even navigate in the Adam, for example.

_ Is this low-cost form of infotainment integration Opel’s future – a kind of entry-level solution? Is it possible that customers really don’t want more? With IntelliLink we are offering the latest generation of Opel infotainment systems -- and in different variations. We will conti-nue to develop the system so we are able to offer a tailored product to many customer groups in a variety of different price ranges.

_ General Motors is a member of the Open Automotive Alliance, which is sup-posed to help integrate Android systems sensibly into the vehicle. What are you generally expecting from the Alliance with regard to integration and driver distraction? We would like to achieve the best possible integration of smartphones from all manu-facturers and all popular systems into our infotainment systems.

_ Everyone wants that. Dealing with our control elements should be as intuitive as possible, no matter what accessory the customer uses in the vehicle. Of course, we continue to work on enabling the problem-free integration of future sys-tems and new smartphone generations.

_ A major problem in the development of “ new technologies” relates to the diffe-rent development cycles. VW is dealing with the problem with a modular info-tainment kit. How is Opel proceeding? By using standards such as Autosar and standardized interfaces such as Bluetooth and USB, we are facing up to this challen-ge. In doing so, we are increasingly trans-ferring functions into clouds or apps.

_ You appear to prefer an open solution that allows outside apps in the fully integrated systems in the Astra and In-signia. Is that really the right way if you think about the risk of driver distraction? Opel’s uppermost goal is to configure our apps and infotainment systems in such a user-friendly and clearly arranged way that

»Dealing with our control elements should be as intuitive as possible, no matter what accessory the customer uses in the vehicle«


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it never occurs to customers to pick up their mobile phone inside the car. In our Intelli-Link infotainment systems, core functions, such as the activation of speech recogni-tion, take place with remote controls from the steering wheel. Some functions are also restricted so that you can only read SMS messages or look at videos while stationary. But you can have incoming SMS messages read aloud or draft them using Siri speech control. In the medium term, progress to-ward some form of automated driving can unburden the driver even more.

_ What do you think of the cloud? Services based on HTML5 can in fact be loaded into the vehicle – relatively – in-dependently of the infotainment system.Functions are increasingly being shifted to the cloud or to apps. As a result, Opel in-fotainment systems can be brought to the most current state with software updates. Once purchased, the functions of the info-tainment systems do not stay at the techni-cal level during the delivery stage over the vehicle’s entire life. The owner can even update them.

_Karl-Thomas Neumann

Karl Thomas Neumann became CEO of Adam

Opel AG and president of General Motors Europe

on March 1, 2013. In addition, he is a GM vice

president and a member of the US carmaker’s

Executive Committee. Earlier in his career,

Neumann worked for the Volkswagen Group,

where he ran the company’s China operations

from 2010 until 2012. Neumann, who has a de-

gree in electronics, was a management board

member of Continental from 2004 til 2009, du-

ring which period he was in charge of the Ger-

man supplier’s Automotive Systems division. He

served as CEO of Continental from August, 2008,

until September, 2009.


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_ Mercedes and BMW are accelerating new mobility concepts such as car- sharing. You also plan to enter the segment. Can you tell us about those plans? Our dealers are already involved in car ren-tals through Opel Rent. We are offering the cars through Tamyca, a new car-sharing company. And as Opel, we will announce new car-sharing projects in at least one European metropolitan region between now and the end of the year.

_ Car ownership has become a substan-tial cost factor. Won’t growing numbers of people choose to do without a car or be forced to do without one? Opel has always made driving affordable for broad strata of the population. We are committed to this tradition. Even today we offer great value for money in all our mo-del lines. Mobility means freedom. People want to be mobile at any time. And in most cases, only your own car can guarantee this. We’re naturally seeing a certain trend where people in large cities would rather do without a car of their own. This will in-crease the importance of car-sharing.

_ A final question: Opel has had numerous problems in recent decades. What makes you so sure that the brand has a future? We are now systematically carrying out “Drive!2022,” our comprehensive 10-year plan. And we are enjoying the backing of our parent General Motors. We are inves-ting about 4 billion euros solely as part of our model offensive. And are you seeing re-sults in the market? Or, in other words, are Opels selling better than they have done in the past? Our model offensive is going down extremely well with our European customers. For the first time in 14 years, we are gaining market share and are success-fully occupying new segments. The Mok-ka, with more than 215,000 orders, is the current top-seller among the new models, and orders for the lifestyle mini-car Adam have surpassed the 80,000 mark. Opel is on the attack again. You can really see that in our many innovations. And we will have a few more arrows in our quiver in coming months, for example, the Adam Rocks. You’re in for a surprise.

Interview by Hilmar Dunker

60 Audi · Ulrich Hackenberg

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»You won’t see electronic gimmickry for its own sake at Audi«

Ulrich Hackenberg says Audi’s newest technologies are proof that the brand’s slogan – Staying ahead through technology - is as valid as ever. The R&D boss plans a range of new measures to reduce complexity in the cockpit and he pledges to provide the highest possible protection against hacker attacks.

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_ Mr. Hackenberg, Audi critics say the company is not as innovative as it was in recent decades. What is your response? I invite the critics to take a look at Audi, cer-tainly a hotbed of innovation, so they can see how the company’s more than 10,000 engineers live and breathe this slogan eve-ry day. For years, our team has made it pos-sible for the brand to take a leadership role in numerous technologies.

_ Can you cite some examples? Starting with Quattro drive, through our lightweight construction expertise, all the way to our TFSI and TDI engines, ligh-ting technologies and groundbreaking assistance and infotainment systems. And the list goes on, whether it’s autonomous driving, alternative powertrains or vehi-cle networking. We are bringing the future into series production.

_ Let’s talk about the future. How will the new A4 highlight advancement through technology – especially with regard to connectivity. Can you give us a couple of examples? The Audi A4 will be the new benchmark. That is our claim and our customers’ expec-tation. The new generation is arriving with a virtual cockpit with a large main monitor. In addition, it has a simplified navigation control system with intelligent free text

and online searches. We are also bringing out an intuitive voice input system, which increasingly responds to naturally spoken inputs instead of predefined commands, along with a social media connection and online media streaming. That is just a taste of the next Audi A4.

_ Mercedes has turned to a stereo camera and other assistance systems to capture the environment. Will the new A4 also employ these technologies? The coming A4 generation will be equipped with innovative assistance systems for par-king, active security and self-piloted dri-ving. We are not revealing more than that, but you can assume that we are pulling out all the stops. _ In the new TT, you are introducing a fully digital instrument cluster – and are dispensing with the main screen in the center console. Is this a special sports car solution? We are offering customers a revolutionary layout in our virtual cockpit in the Audi TT. The instrument cluster and the MMI screen melt into a central digital unit. It also offers dynamic animation and precise graphics. This is a technological highlight through and through. For the TT, we are deliberate-ly focusing on the driver. This is the philo-sophy that best fits our compact sports car.


automotiveIT 2014

_ That still leaves the question about the co-pilot.Thanks to high readability, the co-pilot de-finitely has the opportunity to use the dis-plays. We basically take all the passengers into account in the development of info-tainment. That is why we integrated a WiFi hotspot very early on and why we are deve-loping the Audi tablet – a tablet computer especially suited to the automobile, with complete vehicle integration.

_ Starting in 2015, Audi will integrate both Apple’s CarPlay and Google’s Android Auto into the vehicle. Will this allow drivers to use all the functions of their smartphones? The respective smartphones will be inte-grated seamlessly into the vehicle’s control architecture. That also means that smart-phone apps are transferred in accordance with a special programming guide to make them extremely user-friendly and satisfy driver distraction guidelines. Apps that meet these criteria can be used in the ve-hicle. But appropriate peripherals are also part of smartphone integration. With the Audi phone box and the fully integrated LTE broadband connection, we are alrea-dy offering our customers a very good ap-proach today.

_ Your company is a founding member of Google’s Open Automotive Alliance. Can you tell us what is happening there now?We founded the Open Automotive Alliance along with other automakers, Nvidia and

Google. The goal is to integrate Android applications into the automobile and to support the development of products and services better suited for use in vehicles. Through this cooperation, the consumer and automotive technologies have moved closer than ever to one another. They are smoothing the way for the more rapid de-velopment of innovations and above all for the optimal integration of the customers’ mobile devices. Parallel to this effort, we are also working closely with Apple to offer users of its products the highest possible integration.

_ The need for connectivity is increasing the complexity of controls – that is what our HMI tests have shown in recent ye-ars. What steps must be taken to make operation more intuitive? You are absolutely right. Complexity is growing dramatically. That is why it takes the complete bundling of measures to make the systems easy for the driver to manage. This includes the optimum integration of smartphones. Otherwise, many customers will be operating them while they drive, which is the worst and most dangerous al-ternative.

_ You mentioned the “bundling of measures.“ What exactly does that mean and can you give some specifics? We consider optimal voice control oper-ability to be important because it causes the least distraction. Another requirement is uncluttered cockpits with clear control


automotiveIT 2014

structures and high-quality display systems that allow extremely good legibility in all lighting situations. There are situations where the driver is overwhelmed with traf-fic-related events or even underwhelmed in monotonous situations, and he cannot respond competently. As a result, reliable assistance systems are needed as support. The awards we have received show we are on the right track.

_ The voice control system that you mentioned is seen as an important solution. But there is no system on the market right now that functions extre-mely well. Especially if you have noise, dialects or several people on board, most automakers’ systems fail miserab-ly. What do we need to see in the next stages of development? Or has voice control simply reached its limit? We have achieved significant progress with voice control and we continue to improve the quality of speech processing and filte-ring of disruptive background noise. We have been able to offer the input of com-plete navigation destinations with just one speech command. Now in the Audi TT, we’re bringing out a completely new gene-ration configured for the processing of na-turally spoken commands. In this process, it is sufficient to activate the voice control system and, for example, just say “I have to speak with Peter” or “I would like to call Peter” to call the contact. That is major pro-gress. It makes voice control even more ap-pealing to the customer.

_ Augmented reality is one of the new trends in the realm of controls – at Jaguar, people are even talking about a virtual windscreen. What is Audi doing in this area? The idea of overlaying augmented reality content definitely has its charms. We can provide the driver with information more precisely and more individually. That is why we presented our early ideas on this at the Consumers Electronics Show and at CeBIT as far back as 2012, in the form of a contact analog head-up display. At pre-sent, we are exploring the possibilities for series development. But we are taking a very rigorous approach. The benefit to the customer and a low level of distraction are important criteria. You won’t see electronic gimmickry for its own sake at Audi.

_ You have introduced a modular info-tainment kit (MIB), based on the current A3, to align the different development cycles of the consumer and automotive worlds with one another. What is the system’s release status today and what new features does it offer? With the MIB, we have managed to boost our computing performance virtually at an annual clip. That already puts us very close to the consumer world. Although we pre-sented the first MIB on the A3, we are alrea-dy underway with the second generation on the TT and the reworked A7 Sportback.

_ What can we still expect? An Audi tablet will follow with even high-


automotiveIT 2014

er performance. And, compared with the 2012 system, the MIB will feature a fivefold increase in computing power in 2016.

_ Connectivity will help control traffic in the future. Traffic-light info online is an Audi technology to help provide this. What are you still cooking up – and when will these technologies be heading into series production? We have a great interest in better traffic flow control because it ultimately saves the customer time and money. You need reliable partners for these projects and se-cure access to traffic control centers. In our demonstration tests, the cooperation and the technical implementation function tre-mendously well. So the signs are very pro-mising. But we still have a number of steps to take for a broadly based or international service, even if the technology in our vehic-les is already functioning reliably.

_ At this year’s CeBIT, VW CEO Martin Winterkorn warned that the automobile must not become a data octopus. How do you intend to prevent that? As a start, by maintaining the information as the property of the customer, just as it is now. Naturally, we offer the customer indi-vidual services if he would like them. This is similar to the way you approve certain data when you activate a smartphone app. This would also be the case for a car. But in these situations, the customer information is handled sensitively or in anonymized form. We also protect the cars against un-authorized access with the highest possible

_Ulrich Hackenberg

Ulrich Hackenberg was born in 1950 in Herne,

Germany. Following his studies in mechanical

engineering he joined the Institute of Automo-

tive Engineering at Aachen University and worked

there from 1978 until 1985. He then joined Audi

and worked there until 1998, when he moved to

parent company Volkswagen. At VW, he took

responsibility for concept development. From

2002 til 2007 Hackenberg was back at Audi, but

in February of 2007 he became VW Group board

member in charge of development. In July, 2013,

Hackenberg returned to Audi as head of technical

development.


automotiveIT 2014

security standards. In any case, there will still be infotainment functions relying on remote access – such as vehicle status in-quiries from a smartphone – that are sepa-rated from security related control systems. But the fact is that energetic hackers with criminal intentions are a risk, and we must provide protection against them.

_ In the media, scenarios keep cropping up in which hackers are able to remotely steer or even brake a vehicle. How realis-tic is that really? We use recognized and tested embedded-security measures and standards. More-over, we are already expanding our securi-ty measures as we develop new functions to guarantee the greatest possible degree of data security and protection against hacker attacks on the vehicle.

_ Martin Winterkorn has ordered a cost-cutting initiative for all brands within the VW Group. How will that affect Audi in coming years? In a technology-oriented company like ours, pressing ahead with innovative tech-nologies is of existential importance for the continued expansion of our competi-tive position. But we have always worked systematically to make our development activities efficient and goal-oriented. That will be the case in the future as well. We’re doing this from a position of strength to orient the company for the future. And we fundamentally have the advantage of the Group’s modular strategy, which is a source of synergy.

_ Google has built a piloted vehicle on its own. Has the IT company joined the ranks of automakers? We definitely take Google’s efforts seri-ously. Google is addressing a subcategory of mobility that I would assign to public mobility in urban scenarios. This mobility scenario does not correspond to our cur-rent company orientation. From a technical standpoint, the Google approach is interes-ting, but it does not cover the self-piloted approach that we’re pursuing with regard to information and decision-making com-plexity. Time will tell whether robot vehic-les have a future. In any case, we at Audi have a different philosophy.

_ In conclusion: In your view, what will the automobile look like in 2025? Our customers want to be flexible in the future as well. They want to be comfortab-le and use their time efficiently when they travel. Especially in large cities. To ensure this, the automobile of the future will be intensively networked. It will communicate with other vehicles, with the infrastructure and with their owners’ homes. The auto-mobile is becoming a mobile device par excellence. And we will experience critical upheavals in powertrain technologies as well. For us, as an automaker, this also me-ans that we will make a variety of models available to customers, depending on their purposes and requirements. There will al-ways be a market for premium mobility that is both individualized and fun.

Interview by Hilmar Dunker

66 Impressum

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