1. Yves Paindaveine DG CONNECT, European Commission
Digitising European industry
Why is it important
What can we do about it?
Yves Paindaveine
DG CONNECT, European Commission

2. Outline Digital innovations: What is at stake?
Where does Europe stand?
Digital industry and digitisation of industry
What are we doing about it?
Concluding remarks

3. The 'digital inside' value chain
Critical Value chains
~40% of Added Value
Electronic Components
ICTdevices
~35% of Added Value
Product – processes – business models
~40% of Added Value
~50% of Added value

4. Outline Digital innovations: What is at stake?
Where does Europe stand?
Digital industry and digitisation of industry
What are we doing about it?
Concluding remarks

5. Digitisation readiness: disparities in Europe
Strong digitisation in high tech industries and in some MSs.
But:
Slowness and disparities in adopting digital solutions across industries and regions
Mainly SMEs and non tech sectors lagging behind
Less than 2% of SMEs use advanced digital technologies
New competition from non-EU digital platform owners
E.g. OS, Web and Data platform owners
Lack of standards and interoperable solutions
Skills and re-skilling of work force
Legislative and regulatory gaps
Fragmentation of effort in Europe
Roland Berger, 2015

6. Outline Digital innovations: What is at stake?
Where does Europe stand?
Digital industry and digitisation of industry
What are we doing about it?
Concluding remarks

7. Diversity of efforts across Europe
Spain:
- Connected industry 4.0
- Regional initiatives

8. The way forward: Proposal EU wide strategy
Speech of Commissioner Oettinger
at Hannover Fair 14 April 2015
Objective: Making sure that any industry in Europe, wherever it is located, can make the best use of digital technologies while adapting our workforce to the change
An EU wide strategy for digitisation, building on and complementing national initiatives, can ensure "scale", mobilise actors with value chains spreading across Europe and support interoperability and standardisation.
Two roundtables with Commissioner Oettinger so far:
Objectives: Share experience, gather input of what needs to be done in public policy and at which level
Regional, national, EU level?
Roundtable, June 2015: Representatives of national initiatives
Roundtable September: Industry + national initiatives
First findings:
Issues of importance: Access to technology for SMEs and non tech industries, Data ownership, Platforms ownership, security, standards, skills,..
Need to act fast at all levels, EU actions to build on and complement national initiatives
First Precondition for attracting industrial investment in digitisation: A real Digital Single Market

9. The four tracks for digitising industry
Wide-spread adoption and best use of digital technologies
In all industrial sectors
Steering a wave of "bottom up" innovations
Leadership in digital platforms for industry
Platforms on which value is created e.g. Cloud platforms, OSs, Data,..
Openness, Interoperability, security
Filling the skills gap and preparing the workforce for change
Essential!
Providing the best framework conditions
DSM: Data protection, Liability, safety
Access to finance: EIB, EIF, etc..

10. 1- Wide-spread adoption by all industries
Goal: Access to the digital "Must" technology for any business in Europe
Any sectors, whichever size and wherever situated
How: At least a "digital innovation hub" in every region
Reinforcing and networking of competence centres
Existing ones or new ones when needed
(e.g. RTOs like FhGs, CEA, TNOs, catapults,....)
Supporting pilot and testing, demonstrations, fab-labs, etc..
Networking of centres to ensure specialisation and excellence
A one stop shop for any industry to access the "must" technologies

11. +Demand led actions e.g. in EIPs
2- Platforms: Development in partnerships covering the whole digital value chain
+Demand led actions e.g. in EIPs
Industry - academia- EC- Public sector
Co-engagement to support roadmaps to reinforce/build leadership
More than 23 B€ of investments: ~5 B€ from ICT in LEIT

12. Example of digital platform : AUTOSAR
Standardized architecture for automotive software
Eases cooperation of automobile manufacturers, suppliers and tool developers
Facilitates innovation through open standards
"Cooperate on standards, compete on implementation"
standardized architecture for automotive software, jointly developed by automobile manufacturers, suppliers and tool developers.
It is a partnership of automotive OEMs, suppliers and tool vendors whose objective is to create and establish open standards for automotive E/E (Electrics/Electronics).
3 layers, known as Application software, Runtime Environment (RTE) and Basic Software (BSW). All the vehicle functions – i.e. the actual added value – are encapsulated in application software components

13. Action Line 3: Prepare our workforce
Goal: Concerted effort to adapt education & life-long learning schemes
What's new: Get commitment from Industry, MSs on a roadmap
EU added value: Act as catalyst across MSs and regions
New EU-level actions: Work as catalyst for "digital" education, reskilling and learning
Agree on a charter of actions across EU, MSs, regions
Promote exchange of Best Practices
Launch a new EIT-KIC
Starting Point: Grand coalition for digital jobs but should go further
Expected complementary actions:
MSs: Stimulate national and regional initiatives
Industry: identify essential components of a digital skills set

14. Action Line 4: Smart legislation for smart industry
Goal: Make regulation fit for the digital world
What's new: Explore further "emerging" regulatory issues
EU added value: Stimulate regulatory dialogue on smart digitisation issues towards a single EU-level playing field
New EU-level actions: Start dialogue with stakeholders on:
Liability issues for autonomously acting digital systems
Safety issues for autonomous cars, robots, … working with humans
Big data issues: ownership, data and IPR protection, innovative use
Starting Point:
Digital Single Market Package
EP working group on a legal framework for robotics and automation

15. Outline Digital innovations: What is at stake?
Where does Europe stand?
Digital industry and digitisation of industry
What are we doing about it?
Concluding remarks

16. Concluding Remarks Towards an EU-Wide digital industrial strategy
Develop the strategy in partnership with MSs, industry,..
E.g. Mobilise the PPPs: FoF, SPARC, …
Cover full value and innovation chains
Special emphasis on innovative SMEs and non-tech industries..
Capitalize on the size of EU markets & diversity of strengths
Smart specialization, co-operation, ...
Ensure complementarity and scale of actions
EU, Member States, Regions
Horizon 2020, ESIF, national and regional programmes
Implementation plan by March 2016
Series of interactions in the coming weeks

17. THANK YOU Digitising European Industry:
DG CONNECT (Communications Networks, Content and Technology):
Horizon 2020 on the web: