CSE-E4670 Introduction to Industrial Internet Policy Issues of Industrial Internet 31 March 2016 Dr. Nomi Byström Department of Computer Science nomi.bystrom@aalto.fi

http://www.strategyand.pwc.com/media/file/Industry-4-0.pdf

Industrial Internet -> <- Society An upward or downward spiral?

-Employment (v. mass unemployment?) -Economic growth and Competitiveness (e.g. by means of multiplied revenue streams through new products and services) -Employment (v. mass unemployment?) -Education, training, skilled workers -Regulation/deregulation -Infrastructure: investment and development -Interoperability, common standards

-Cybersecurity -Digital Privacy/Data Protection -R&D: “Innovation is the Silver Bullet” -Broadband policies, spectrum management - Revitalization of environment (cities, industries, built environment, improved sustainability, etc.)

Policymaking in context: -Finland: the domestic arena - Other countries - Organizational impact, e.g. Industrial Internet Consortium -The European Union -Global dimension

Finland

The Strategic Programme of Prime Minister Juha Sipilä’s Government, 29 May 2015

http://valtioneuvosto.fi/documents/10184/1427398/Ratkaisujen+Suomi_EN_YHDISTETTY_netti.pdf/8d2e1a66-e24a-4073-8303-ee3127fbfcac p. 9

Finland: -economic recovery -improving employment

Key projects   The government follows through reforms in five focus areas: -Employment and competitiveness -Knowledge and education -Wellbeing and healthcare -Bioeconomy and clean technologies -Digitalization and deregulation The Government's strategic objectives include 26 spearhead projects.

A growth environment for digital business operations “Innovation and service platforms to be promoted in sectors where the public administration plays a role in terms of the functioning of the markets, such as mobility as a service, health care, learning and the Industrial Internet. “

On legal provisions: -deregulation and the reduction of the administrative burden. -”No further national regulatory measures will be taken in connection with the implementation of EU regulations. One of the key themes of exercising influence within the EU will be less but, better and lighter regulation.”

Building growth environment for digital business (A spearhead project): - IoT Programme - Data security strategy -Advancing the development and utilization of robotics

The European Union

DIGITAL SINGLE MARKET: “time to make the EU's single market fit for the digital age – tearing down regulatory walls and moving from 28 national markets to a single one. This could contribute €415 billion per year to our economy and create hundreds of thousands of new jobs.”

European Parliament’s Research Centre: -industrial transformation faces major obstacles in Europe. “The need for investment, changing business models, data issues, legal questions of liability and intellectual property, standards, and skills mismatches are among the challenges that must be met if benefits are to be gained from new manufacturing and industrial technologies.”

Strategy for a Digital Single Market for Europe:

1. Legislative proposals for simple and effective cross-border contract rules for consumers and businesses 2. Review of the Regulation on Consumer Protection Cooperation 3. Affordable high-quality cross-border parcel delivery 4. Wide ranging review to prepare legislative proposals to tackle unjustified geo-blocking 5. Competition sector inquiry into e-commerce, relating to the online trade of goods and the online provision of services 6. Legislative proposals for a reform of the copyright regime 7. Review of the Satellite and Cable Directive 8. Legislative proposals to reduce the administrative burden on businesses arising from different VAT regimes 9. Legislative proposals to reform the current telecoms rules 10. Review the Audiovisual Media Services Directive (AVMD Directive) 11. Comprehensive analysis of the role of platforms in the market 12. Combatting illegal content on the Internet 13. Establishment of a Public-Private Partnership on cybersecurity 14. Initiatives on data ownership, free flow of data and a European Cloud 15. Adoption of a Priority ICT Standards Plan 16. Extension of the European Interoperability Framework for public services 17. New e-Government Action Plan including an initiative on the ‚Once-Only‘ principle and an initiative on building up the interconnection of business registers

Digital as a driver for growth: The European Commission’s action plan for Digitizing European Industry builds on a vision outlined by Günter Oettinger, the EU commissioner for the Digital Agenda, at the Hannover Fair in April 2015. .

The European Commission is preparing an action plan to mobilize €25 billion to harness the potential of Industry 4.0

https://www.mapi.net/forecasts-data/internet-things-industrie-40-vs-industrial-internet

http://www.iiconsortium.org/about-us.htm

The Obama Administration’s effort to revitalize US manufacturing

Cf. Jeff Immelt, GE’s CEO: “If you went to bed last night as an industrial company, you’re going to wake up in the morning as a software and analytics company.”

https://www. whitehouse https://www.whitehouse.gov/the-press-office/2014/12/11/fact-sheet-president-obama-launches-competitions-new-manufacturing-innov

http://www.lvm.fi/en/-/robotics-expand-into-the-services-sector http://www.zdnet.com/article/uk-looks-at-impact-of-ai-and-robotics-on-jobs-and-society/

Digitalization of Industry: “digitalization will lead to a thorough overhaul of how an industrial firm engages with its customers, partners, competitors, and other stakeholders, resulting in new institutional patterns of roles, relationships, responsibilities, and expected forms of behaviour.” Professor Martti Mäntylä, Three Narratives on Digitalization Disruption Brief No. 1 – 15.3.2016

Sources: http://ec. europa