The document discusses digital readiness in Germany. It begins by examining digitalization as a global opportunity, noting the growing importance of digital transformation worldwide. It then assesses Germany's current digital readiness, finding that while industries like manufacturing are increasingly digitalizing, adoption of Industry 4.0 technologies varies and opportunities exist to increase revenue and productivity through further investment and innovation. The document concludes by emphasizing that the future is digital and change is necessary to remain competitive globally.

1. October 11, 2017, Cologne
Dr Vera Demary
Digital Readiness for Global Opportunities

2. Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
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3. Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
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4. The importance of the digital transformation
Source: Google Trends, 2017
Google searches for “digital transformation” worldwide, relative to the highest number of
searches during the period
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5. The role of manufacturing
Source: OECD, 2017
Industry activity as a percentage of gross value added
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6. Digitalizing manufacturing
Consumer
demands
Scarce
resources
Frame-wor
k
Manufacturing
industry
Digitalization
Industry 4.0
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7. Source: Wikimedia Commons
World shipping routes, 2012 World airline travel, 2009
Business as we know it
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8. Business tomorrow?!
Source: CallFire
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9. Digitalization – An international perspective
Index from 0 (no digitalization) to 100 (high degree of digitalization), 2015
Source: WEF, 2015
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10. Digitalization – Where do we stand today?
Source: Wikipedia, 2017
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11. Opportunities Challenges
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Infrastructure
Legal and
regulatory
framework
Overall
acceptance
Facilitation
Efficiency
and
productivity
Flexibility
and
transparency
Digital
business
models
New
products and
services
Digitalization at the company level

12. Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
Page 12

13. Industry-4.0-Readiness
Percentage of surveyed companies, only companies with at least 20 employees in the
manufacturing sector
Source: IW Consult, 2015, 2016
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14. Opportunity versus risk in Industry 4.0
Percentage of the companies in the manufacturing industry, depending on the type of digital
transformation, 2015
Source: IW Köln/IW Consult, 2016
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15. What German companies expect from Industry 4.0 until 2020
Increase of revenue
• 12.5 % over 5 years
Necessary investment
• 40.1 bn. euro annually
Machinery and plant engineering, automotive, process industry, electrical and electronic
industry, ICT, 2015
Source: PWC, 2015
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16. Contents
► DIGITALIZATION AS A GLOBAL OPPORTUNITY
► DIGITAL READINESS IN GERMANY
► CONCLUSION
Digital Readiness for Global Opportunities
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17. Conclusion
The future is already here.
William Ford Gibson
You cannot step twice into the same stream.
Heraclitus of Ephesus
Change before you have to.
Jack Welch
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18. Contact
Dr Vera Demary
Head of the Research Unit “Structural
Change and Competition”
☎ +49 221 4981-749
• vera.demary@iwkoeln.de