Willmann: Industry 4.0 stands in the context of digitalization. It means exploiting existing automation potential, minimizing manual interactions in business processes, flexibility for change, managing large amounts of data in real time, communication between customers, suppliers and partner companies, i.e. supply chain management, open interface standards and, in particular, data management on a central basis. So the question of what Industry 4.0 is is not just a single concept.

That is indeed a very broad term. What do you think of the term?

Willmann: I'm a bit bothered by these buzzwords in general, especially in connection with production. "Industry 4.0","smart factory", "M2M", i.e. machine-to-machine communication. The buzzwords associated with Industry 4.0 certainly sound good. However, they are not meaningful in themselves and do not explain what significance they have for individual companies. It is possible that everyone interprets this a little differently.

And how do you interpret them?

Willmann: For me, all of these terms stand for flexible and standardized process technology in companies!

What would a perfect example of an Industry 4.0 company look like for you?

Willmann: In the complex value chain of a manufacturing company, there are many examples that have potential for digital process technology. I can still remember the revolutionary idea of the "paperless office" from a few years ago. When I say today that quotations are no longer sent by post or by e-mail with an attached PDF document, but as a so-called "deep link" - i.e. an individual, secure link to a quotation website - then this is no longer a revolution, but already a reality of the future. In my opinion, this is a handy example that can be implemented easily and with added value in companies at any time.

If you look at the relevant studies, you can see that although many companies are on the road to digitalization, the use of smart technologies is only taking off slowly. Why do you think that is?

Willmann: In my opinion, you have to take a differentiated view. I think that production started digitizing long before the buzzword Industry 4.0 emerged.

The use of CNC-controlled machines, PDM/CAD systems in design or similar has long been common practice. I personally believe that many companies simply struggle with these terms/key words. Companies need practical and feasible examples: How can the value chain in the company be optimized or supported with processes? My experience shows that the manufacturing industry in particular has never been opposed to new developments and innovations.

So is Industry 4.0 a matter of attitude or what is the basis for these studies?

Willmann: No. Certainly, one or two companies may be more cautious and critical of innovations or perhaps take the view that they don't have to chase after every hype. But German manufacturing SMEs have always played a pioneering role and this will also be the case with digitalization.

As already mentioned, digitalization and Industry 4.0 have long since arrived in manufacturing companies. What accelerates the thinking and actions of decision-makers, or increases the pressure to act, are primarily the company's customers and suppliers. This is where needs and requirements arise that must be accepted in order to be successful. Just think of the entire supply chain, for example the connection of web stores or order tracking. How is this possible without digitized processes?

What role does the individualization of products - keyword: batch size 1 - actually play today?

Willmann: I remember a managing director saying: "We used to supply our products in ten colors. More than our competitors. Today, the customer wants the paint finish in purple-green stripes and tomorrow only the front in blue, but with two handles in stainless steel. The question of batch size 1 doesn't arise for us!"

Basically, this statement also confirms the recognizable trend in manufacturing companies towards batch size 1, i.e. custom-made products. Customers want more and more individualized products. Thanks to modern production processes supported by digitalization, this can also be represented in comparison to the costs of series production.

What role do ERP systems play in the digitalization of production?

Willmann: Enterprise resource planning systems will retain their function as control systems in the context of Industry 4.0, but will be more closely integrated into production software systems. And there will be a shift towards smart software solutions with a manageable range of functions.

Can you give an example of this with godesys ERP?

Willmann: Sure, the multifunctional industrial tablet (e.g. for production data acquisition or processes in warehousing/logistics and order picking) or mobile apps for smartphones or tablets (e.g. service management, sales, time recording) will increasingly find their way into companies and replace proprietary systems. This is already firmly integrated in godesys ERP.

What tips can you give companies that want to drive digitalization forward?

Willmann: I know from experience that it is easy to describe a (digital) process, but this process must also be able to be lived by the team or each individual employee. In my view, companies find it easier not to create a process with all-encompassing complexity and maximum automation from the outset, but to move from the simple to the more complex. After all, processes are not static entities, but are subject to a constant need for optimization as the company's requirements grow or change. Then Industry 4.0 will also work.