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From Industry 4.0 to Industry X.0: How Russian Enterprises Can Grow a Business or Disrupt the Market with Smart Assets, Products, and Services
25 May 2018
10:15—11:30
KEY CONCLUSIONS
Russia actively develops smart technologies

When it comes to car sharing, Moscow is generally number one among other capitals. The Internet’s expansion in Russia is also among highest. <...> We last year did a research on the number of people, who are willing to buy cars through the Marketplace. Back then it was zero, this year <...> it’s 17% — Vadim Shvetsov, Director General, PJSC Sollers.

If we look at what SAP did to Severstal over a short time, we will see that they have already reached 30% of sales through online platforms — Matthias Schepp, Chairman of the Russian-German Chamber of Commerce.

For modern companies survival takes transition to new technological mode

If you do not start digitalization, you will soon – sooner or later – go out of business — Eberhard A. Veit, Doctor of Engineering Sciences; Entrepreneur; Chief Executive Officer, Chairman of the Supervisory Board, 4.0-Veit GbR.

Traditional companies are unable to adapt, and most of them either have already disappeared, or will disappear — Matthias Schepp, Chairman of the Russian-German Chamber of Commerce.

ISSUES
Archaic and passive corporate culture

We are facing big problems, because this is a highly ossified industry. And of course, it is difficult to change people’s attitude towards their profession, to think out of the box — Vadim Shvetsov, Director General, PJSC Sollers.

High logistics cost in Russia

What percentage of GDP is represented by logistics? In Europe it’s 8%, in Russia it’s 20%, in China it’s 18%, in the US it’s 10%. There is a lot to be done here, if we work together — Martin Lundstedt, President and CEO of Volvo AB; Co-Chairman of the Russian-Sweden Business Council (RSBC). .

General trend towards customization raises standards

Any product will soon be customized, and one will to present unique properties of the product, because everyone needs their own experience — Vadim Shvetsov, Director General, PJSC Sollers.

Difficult path from innovation to end product

One of the problems is withdrawing ideas from innovative laboratories and putting them in production. And how can one improve productivity at the same time? — Mark Spelman, Board Member of The Future Cities Catapult.

Insufficient investment in human capital

I want to complain about some governments, and above all, the German one. It seems to me that we do not invest enough money in human resources, in people needed for these new technologies. And the actual numbers tell that 20 billion Euros are invested in technology and only 2 billion went towards education and training — Eberhard A. Veit, Doctor of Engineering Sciences; Entrepreneur; Chief Executive Officer, Chairman of the Supervisory Board, 4.0-Veit GbR.

SOLUTIONS
Bringing innovation to life faster takes intertwining it with operations

From the very beginning we decided that we would separate innovative laboratories from production. <...> All innovations should be closely related to the practical demand from the business and always aim to ensure that the business customer learns to work in the same team with those who create the product — Andrey Belevtsev, Director of Digital Transformation Direction, PJSC Gazprom Neft.

Transition to industry X.0 requires new business models

First of all, you must make your products smarter.<...> Secondly, you should not think just about the product, you need to think about the product and the services — Frank Riemensperger, Senior Managing Director, Head of Germany, Switzerland, Austria, Russia at Accenture.

Promises to our customers are not universal. Because they depend on the products that we make — Martin Lundstedt, President and CEO of Volvo AB; Co-Chairman of the Russian-Sweden Business Council (RSBC). .

Transformation of the industry, transformation of enterprises and industry is not a question of introducing technologies. Changes business models should be the main driver — Andrey Zimenkov, Managing Director Corporate Sales, Rostelecom.

Cyber-physical systems to drive new business models

Digital models that precede the actual product allow you to accelerate the work, starting with R&D. It means the model gives you chance to take a look at what the end product <...> should look in real life and to see its economic digital model — Eberhard A. Veit, Doctor of Engineering Sciences; Entrepreneur; Chief Executive Officer, Chairman of the Supervisory Board, 4.0-Veit GbR.

They (the digital twins – Editor’s note) offer a fundamentally different model for making management decisions. <...> This is an opportunity to combine decentralization of management decisions and the speed of managing a company with a digital twin of the whole company — Andrey Belevtsev, Director of Digital Transformation Direction, PJSC Gazprom Neft.

Once I heard the following phrase: “Automation is not to be confused with digitalization." The large data system that we collected and historically accumulated allows to make the whole system perform at its best by combining all of it. And then just imagine that leap in productivity and the change in relations with suppliers — Andrey Varichev, Chief Executive Officer, Management Company METALLOINVEST LLC.

Large companies to decentralize management

Companies must transform and get decentralized. <...> You cannot monitor all your functional areas. You need to delegate it to regional offices — Martin Lundstedt, President and CEO of Volvo AB; Co-Chairman of the Russian-Sweden Business Council (RSBC). .

Investment in infrastructure require partner ecosystem

For example, if we take 5G generation networks, in order to make them spread in Russia, we will need to invest about 1 trillion roubles. No player alone can afford this kind of investment — Andrey Zimenkov, Managing Director Corporate Sales, Rostelecom.

Smart industry needs new corporate culture

The main thing here is to keep developing our employees so give them the systems mindset and the ability to use technology — Martin Lundstedt, President and CEO of Volvo AB; Co-Chairman of the Russian-Sweden Business Council (RSBC). .

The material was prepared by the Russian news agency TASS