S1: Industry 4.0 as a service, concentration & resistance to uberization

Action plan

Grand-Est industries Threats Opportunities Challenges Actions
New technologies Only a few experts are able to track and  analyse the strong impacts of comparison tools on the user experience

Lack of data organisation within companies, owing to the very high influx 

Very high cost of new technologies (scarce resources)

Weakening of cybersecurity

Difficulty in making the right choices, putting the company at risk. (Requires strategic decisions under uncertainty and imperfect information)

Limited resources (HR, financial, time for networking, etc.), obligation to focus
 

Developing user-oriented programmes within companies 

Breaking the silo logic of business functions
Structuring company data and in particular customer knowledge, which is often scattered and varied (cf. the 4 Vs of big data)

Deeper understanding of the customer journey and anticipation of behavioural change.

Productivity gains brought by digitalisation and the optimisation of customer processes
Greater reliability on quality issues thanks to instant detection and risk anticipation.

National support on digital technology

An increasingly favourable Grand Est ecosystem

Agility in partnerships

Instilling a "digital reflex", notably within mid-caps and SMEs, through local collaboration

Developing a company-wide data management strategy (cf. big data)

Data reliability and protection for the consumer and for the company

Mobilising and training staff on technological change

Ability to access funding and support for the digital transition

 
Groupings of companies, with universities, laboratories and institutes at regional level (cluster type) in order to share information, pool training (digitalisation, digital retraining) and R&D (e.g. the CIVC Champagne committee), identify skills needs and carry out technology scanning (creation of an evangelist role) 

Creating an ecosystem between industrial players and digital innovation players: regional thematic communities of practice (for example blockchain, user experience, etc.), shared physical spaces (e.g. the Totem venues created in the region)

Building open data and data-sharing platforms (e.g. PIA Strasbourg)

Developing a patent culture in Grand Est companies, increasing patent filings, developing more proactive support (INPI or others)

Grand Est AI IoT big data plan  

Initial and continuing training, full or modular, on new technologies (e.g. the SIMPLON school, the AlsaceTech "disrupt" university diploma, etc.)

Collaboration with consultancies, local authorities, BPI

Schemes for joint reflection among SMEs on training of common interest
 
Financial aspects Necessary prioritisation of investment between different production sites

Little-known subject, the amounts of investment required still unclear

Difficulties in accessing funding, low use of venture capital
 
Tokenization of services and customers (easier for SMEs, which are more agile)

Low interest rates favourable to investment

More precise control of profitability thanks to AI (ROI estimation, consistency of pricing with profitability, etc.) 

Growing participation of large groups in financing start-ups

More openness to new financing methods (crowdfunding, crowdinvesting, crowdlending, customer financing, etc.)

A trend of inter-company lending

Development of funding aimed at micro-businesses and SMEs
 
Finding new means of financing in order to invest in new technologies and develop the service dimension 

Co-development and co-investment reducing companies' financing needs 
 
Extending the research tax credit to digital transformation (lobbying)

Developing grant applications relating to the themes promoted by the State (for example relating to IoT and the cloud, or to the service dimension)

A Grand Est virtual currency on the Swiss model (a local currency used between companies only) 

Developing lending between Grand Est companies

A crowdfunding platform specific to the Grand Est, with targeted themes (for example renewable energy, as in Occitanie), in order to increase the use of these resources
 
Business model Loss of influence in the value chain (being drained by platforms and refocusing on the core business)

Rising cost of services (scaling)

Possible counter-offensives from platforms in the face of start-ups and SMEs joining forces to bypass them

Commoditisation of services (price deterioration or escalation of offerings)
Development of new revenue streams (value-added services, in addition to manufactured products, rental of equipment and machinery, B2B2C 

Local refocusing, economies of scale between manufacturers (e.g. group purchasing, sharing/renting of talent)

Moving from partnership to co-development between manufacturers
in B2B, and even B2C with end consumers

Low-priced mass consumption possible (in part)

The advantage of start-ups' agility and speed of action in incorporating new trends and technologies 

New business models based on start-up/SME collaboration 

SMEs and small industrial firms offer networked solutions
 
Not merely incorporating digital technology into industry, but changing business models and creating new ones 

Developing open innovation
Differentiating on platforms in order to avoid the "commoditization trap" (augmented product: value-added service + brand

Developing a customer culture among all the company's employees 

Being profitable in a context of refocusing on the core business 

Maintaining SMEs' head start regarding these rapid changes

Making it easier for large companies to express their needs to SMEs
 
Start-up/large group meetings in Alsace, and the setting up of joint projects: 

Clusters, an Alsace mini Silicon Valley

Creating differentiating value-added services in order to meet and anticipate customer challenges (starting from customer challenges rather than production challenges). 

Developing brand ambassador roles, customer orientation of support/back-office functions

Introducing service process optimisation approaches on the same footing as production process optimisation 

Introductions through institutional players (chambers of commerce, the Region, etc.)

Creating evangelist roles within groupings

Making benchmarking widespread
 
Production processes Delivering very fast and producing fast can cause quality and flow management problems (e.g. the bullwhip effect) and generate problems in personalising products and services (the standardisation/personalisation dilemma)

Digitalisation in silos within companies (only certain departments or individuals)

Difficulty with the production costs of large companies linked to robotisation (premium or low-cost positioning generating very high costs)

Lack of skills to carry out the digital transformation (automation, etc.)
 
Large companies can come to resemble networks of small structures

The development of IoT has a positive impact on the entire value chain

Development of digital twins

Ability to be pioneers on new technologies, thanks to their flexibility

Ability to pursue hyper-specialisation thanks to agility
Strengths of mid-caps: short decision-making chain, horizontal organisation, regional roots, etc., unlike large groups
 
Increasing the agility of large groups, particularly the most traditional ones 

Accelerating digitalisation within the company

Ability to use new, more agile distribution methods

Need to optimise available machine time (in connection with new markets)

Segmenting models for SMEs (hyper-adaptation, mass hyper-specialisation)
Industrialisation of services
 
Training in agile logistics

Training in agile management (notably for large groups)

Recruiting talent trained in agility and agile management

Applying for national and European subsidies relating to digital technology

Developing a service-profit chain
 
HR Strong pressure: shortened deadlines, contradictory expectations (reliability/speed), changes to and disappearance of occupations

Difficulties in supporting staff with obsolete skills and in covering the need for new skills

Employee turnover, a new phenomenon in Alsace (a "zapping" mindset) 

Threats to recruitment 

Export of talent to Germany (more synergy)

An ageing industry and the recruitment of young people

Insularity, with difficulty in attracting profiles from outside Alsace

Rare new occupations (data scientists for example), with very strong competition

Lack of career prospects in SMEs

The risks set out above heightened for SMEs and small industrial firms
 
Development of human-to-human: listening to employees' experience and listening to customers' experience in the emotional sense

Acceleration of à la carte e-learning

Empowerment of teams (e.g. maintenance teams)

National support on employment

Development of intrapreneurship

De-siloing easier to achieve because structures are leaner, organisational responses simpler to roll out

Younger generations focus less on a career plan than on professional opportunities to seize.

Employee participation through shareholding and profit-sharing.
 
Familiarisation with new technologies by companies, and a customer culture to be pursued in parallel

Maintaining and developing employees' skills (training capacity, retention capacity)

Developing talent able to build the service dimension around production and logistics

Attractiveness challenges in finding and keeping talent in the region, particularly for SMEs
Developing training plans around new technologies and the customer culture

Extending the research tax credit to skills development (lobbying) 

Regular assessments and psychological support for employees regarding stress, pressure and retraining 

Calling on manager-coaches, lead users, reference persons, etc. to support the potential digital transition of their skills
Identifying Grand Est "technology champions"
 

 

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