1. Applications are our Future Dennis Tsichritzis Fraunhofer-Gesellschaft INTEROP-ESA Geneva Feb 23, 2005

2. Page 2  Times are changing in IT  How shall we respond?  Applications as Impulse for Restructurings in German IT Research Landscape  What should we do? Applications are our Future

3. Page 3 Times are changing Technology / Products / Services / Markets / Investors  Is it a tremor or an earthquake?  10 +1 Signals

4. Page 4 Margins are razor thin Hardware: From key technology to commodity Software: From golden goose to quasi free From importing experts to outsourcing jobs

5. Page 5 Markets From corporate driven To consumer driven From rational to modish

6. Page 6 Investment in IT From strategic investment To normal capital investment From productivity engine to a cost factor

7. Page 7 Companies From start-ups and growth companies To Mergers and Acquisitions From Births to Funerals

8. Page 8 Venture Capitalists From chasing ideas To looking at markets and profits From vapor to bucks

9. Page 9 Marketing From selling products To selling services From telling to listening

10. Page 10 Outsourcing From „They build, we collect“ To „Oops! They are moving up the chain“ Production and R&D have no natural barrier

11. Page 11 Software From proprietary To open source Ho do you profit by giving something away?

12. Page 12 Technology Innovation From technology push To market pull People want holes not drills

13. Page 13 Research directions From peer vision To application needs From Prophets to Bishops

14. Page 14 10+1/ Originality and Novelty From big bang To intellectual closure Concepts static, ontology dynamic

15. Page 15 We are becoming middle aged Rich, fat and slow to move There is nothing wrong but stop behaving like teenagers!!

16. Page 16  Times are changing in IT  How shall we respond?  Applications as Impulse for Restructurings in German IT Research Landscape  What should we do? Applications are our Future

17. Page 17 Move up and get involved in: Health, Transport, Energy, Materials, Entertainment, Education, etc. Get 10% of all the action

18. Page 18 PC Energy gauge Sockets Audio/Video Household appliances water heating Light Security Phone Wireless Remote Control(s) Service Gateway & System- Manager SmartHouse Example Copper Coax Optical Satellite RF Applications: Internet Shopping Home delivery Remote metering Tele-Security Remote maintenance … External devices: Phones, Notebooks, Cars, Wearables … According to Fraunhofer IMS Sanitary facilities thermoset

19. Page 19 Materials: Adaptronics Materials with integrated actors and sensors can change their structure and adapt to external conditions. Reduction of vibrations, adaptive regulation of safety belts, active suspension of the motor Reduction of vibrations for more precise positioning of robots Adaptive artificial limbs Vibration and noise reduction of diagnosis systems as MRT Automotive Robots Medicine

20. Page 20  Innovative storage and transport system  Transport of cases / bins  Wide range of application due to combination of storage and transport  Energy supply via rail  Autonomous operating, low price vehicles  Scalable performance (up to 500 dual cycles/hr)  Storage capacity and throughput adjustable  Suitable for unfavorable building sites Logistics: Innovative material flow system MultiShuttle

21. Page 21 Health: Rapid Development of Medication The impact and the toxicity of new pharmaceuticals will be detected by genome- and protein-expression tests. The individual reaction of patients to pharmaceuticals can be demonstrated. Quick identification of pharmaceutical targets by a high- throughput screening New pharmaceuticals will be applied to cells or cell-systems in order to get knowledge about their effect on the human body faster Impact profiles In-vitro test

22. Page 22 Health: Regenerative Medicine - Project Cellprom  Main task: Nanoscapes  Development of procedures and devices to create nanoscale macromolecular landscape  Principle: Cellforming  Surface imprinting of cells by nanoscapes  Development of Cell Programming Devices  Result: NanoLandscaper New generation of nanobiotechnological equipment

23. Page 23 Security: Estimated European Market

24. Page 24 Life Sciences: Patent Mining for investment with long-term impact („freedom to operate“) -CH3 -CH2-CH3 -CH2-CNHS -COOH -CH3 -CH2-CH3 -CH2-CNHS -COOH Image Analysis / Structure Reconstruction Text Analysis / Entity Recognition Reconstruction of Published ChemSpace including PatentSpace

25. Page 25 Strategic Planning: Geographic Data Mining Integration of geographic and economic parameter Revenues Competition Assortment Customers Topology Geographic distribution Where is the customer living? How is the purchasing power distributed? How is the product affinity?

26. Page 26  Times are changing in IT  How shall we respond?  Applications as Impulse for Restructurings in German IT Research Landscape  What can we expect? Applications are our Future

27. Page 27  Founded in 1968  Federal Computer Center  Focus on Basic Research in Information- and Communication Technology  1200 Employees  Budget DM 180 Mio  Percentage of Third Party- Revenues: 30%  Percentage of Industry Revenues: 7% GMD´s pre-merger Profile

28. Page 28 2001Integration of 8 GMD Institutes 2002 Integration of the Heinrich-Hertz- Institute into Fraunhofer- Gesellschaft Fraunhofer´s Takeover and Transfer of Institutes

29. Page 29 Joseph von Fraunhofer (1787 - 1826) Researcher discovery of “Fraunhofer Lines“ in the sun spectrum Inventor new methods of lens processing Entrepreneur head of royal glass factory

30. Page 30 Fraunhofer Profile in 2004 57 institutes 12 700 employees € 1 billion research budget 7 Alliances Microelectronics Production Information and Communication Technology Materials and Components Life Sciences Surface Technology and Photonics Defense and Security Research

31. Page 31 Information and Communication Technology (founded in 2000) AIS St. Augustin FIRSTBerlin FITSt. Augustin FOKUSBerlin IAOStuttgart IDMTIlmenau IESEKaiserslautern IGDDarmstadt IITBKarlsruhe IISBErlangen IMS Duisburg IPMSDresden ISITItzehoe IZMBerlin IMK St. Augustin IPSI Darmstadt ISST Berlin ITWM Kaiserslautern SCAI St. Augustin SIT Darmstadt IIS Erlangen BIOMIP St. Augustin FEP Dresden ILTAachen IOFJena Microelectronics (founded in 1996) ESKMünchen HHIBerlin IAFFreiburg IDMT Ilmenau (Guest) IISErlangen Surface Technology and Photonics (founded in 1998) Materials and Components (founded in 1997) EMIFreiburg IAPGolm ICTPfinztal IFAMBremen IKTSDresden ISCWürzburg ISEFreiburg IWMFreiburg IZFPSaarbrücken LBFDarmstadt WKIBraunschweig ITWMKaiserslautern (Guest) IPMFreiburg ISTBraunschweig IWSDresden IPTAachen UMSICHT Oberhausen IWUChemnitz TEGStuttgart Life Sciences (founded in 2000) IBMTSt. Ingbert IGBStuttgart IME Schmallenberg ITEMHannover Defense and Security (founded in 2002) EMIFreiburg IAFFreiburg ICTPfinztal Research for ministerial departments IITBKarlsruhe INTEuskirchen Production (founded in 1998) IFF Magdeburg IMLDortmund IPAStuttgart IPK Berlin Fraunhofer Institutes and Reseach Alliances

32. Page 32 Revenue Distribution of all Fraunhofer Information and Communication Technology Institutes 2004: Est. 2005: Budget Actual 2003 Est. Microelectronics IC-Group Materials Production SurfaceTech+Optics Life Sciences 0 10 20 30 40 50 60 70 80 0102030405060708090100 Percentage of Public Funding % Percentage of Rev from industry % Percentage of Revenues % IC-Group 2003 IC-Group 2004 IC-Group 2005 0 10 20 30 40 50 60 70 80 0102030405060708090100 Percentage of Public Funding % Percentage of Rev from industry % Percentage of Revenues %

33. Page 33  Times are changing in IT  How shall we respond?  Applications as Impulse for Restructurings in German IT Research Landscape  What should we do? Applications are our Future

34. Page 34 What should we do? ITWM Go seriously for applications! Example: Frauhofer ITWM Institute for Business and Technical Mathematics in Kaiserslautern Optimal Rev Distribution Development of ITWM

35. Page 35 If we are not there, They will be here