Automotive IT Interviewbook

Transcription

Uwe Höhne
Executive Vice President
Automotive
Vice President Business
Intelligence & Big Data
Business & IT
Dr. Rainer Mehl
Top Interviews - 2014
The Top Interviews of 2014
Preface 3
Dear Reader,
For more than 100 years, the auto industry
has been driven by the ongoing advance of
engineering knowledge. Whether it is the invention and optimization of the internal combustion engine or the current emergence of
higher-performance electric motors, the best
engineers and developers have set the tone
for the auto industry.
In coming years, it appears that data will be
the oil that drives the industry. True differentiation is increasingly emerging through
the interpretation and use of data volumes
measured in terabytes. Among other things,
they make possible the optimization of production and logistical flows, the validation of
usage patterns, more exact sales forecasts,
a quantum leap in after-sales with proactive
maintenance, the capacity for autonomous
driving, and the early identification of trends
using social media monitoring. The current
trend in the auto industry is viewed as the
greatest upheaval since the transition from
the horse-drawn carriage to the motorized vehicle. The research budgets of manufacturers
and suppliers are continually rising. The focus
is on:
•Connectivity
as the link between an indivi dual car and an individual smart phone, as
well as with other vehicles’ sensors or the
road infrastructure
•Alternative drives, especially to reduce car bon dioxide emissions to the 95 grams of
CO2 required by 2020/2021
•Industry 4.0 or, alternatively, the “internet of
things” including the networking of ma chines and systems that is changing pro duction flows and the supply of materials
•Responses to the changing values or men talities that put mobility as opposed to vehi cle ownership in the foreground.
IT plays a key role in all the issues. More and
more, two tasks are emerging that could not
be more different: first, the provision of standardized services as efficiently as possible,
allowing significant savings in IT budgets.
Second, the use of the saved resources for
future-oriented solutions, such as connectivity and the digitization of sales. The crossindustry cooperation between the auto and
high-tech industries is the most pronounced
in innovation-related fields. New technologies and significantly faster innovation
cycles are leading to new collaborations as
well as opportunities for new players, such as
Google and Apple, in the automotive market.
From the point of view of experts, revenues
in the context of connected cars will rise to
over 100 billion euros. The aspirations of the
high-tech industry’s market leaders and the
market’s relevance make it clear that the oil
for continued development will be data.
There has rarely been a more exciting time to
actively shape the development of our industry. In the process, a prominent role has fallen
to IT and the parties managing it. The most
important interviews of 2014 collected in this
book show this emphatically. My thanks goes
out to all the interviewees whose willingness
to enter into a dialog made this book possible
in the first place.
Sincerely,
Rainer Mehl
CONTENT
Business Intelligence and Big Data Automotive
Photos: Claus Dick, Opel, Audi
Illustration: Sabina Vogel
Sizable optimization potential through Business Intelligence 2.0 6
In focus: Research and development, production, sales & marketing, after-sales
 www.automotiveIT.com
Executive Interviews
The auto industry talks to automotiveIT 12
Michael Gorriz
Gerd Friedrich
Christian Ley
CIO, Daimler AG 12
CIO, Robert Bosch GmbH 18
CIO, Brose
Michael Daniel
Head of HR, Brose 24
Andreas Bunderla
Martin Hofmann
Klaus-Hardy Mühleck
CIO, Witte Automotive GmbH 30
CIO, Volkswagen AG 36
CIO, ThyssenKrupp 42
Thomas Weber
Karl-Thomas Neumann
Ulrich Hackenberg
Board Member, Development,
Daimler AG 48
CEO,
Adam Opel AG 54
Board member, Technical Development, Audi AG 60
6 Business Intelligence 2.0 · NTT DATA
_Smarter Decisions
by Big Data –
Business Intelligence 2.0
Illustrations: Sabina Vogel, Sabine Werner
The term business intelligence (BI), which became popular more
than 30 years ago, is a generic term for applications, infrastructure and best practices that permit access to information and
allow its analysis. BI is mainly used to boost company performance and improve operational and strategic decision-making.
automotiveIT 2014
NTT DATA · Business Intelligence 2.0 7
The term big data was coined about seven
years ago. People mostly describe it with
the three V’s – volume, velocity and variety. The sheer volume of data that is available is enormous today, as can be seen, for
example, in social networks and the data
volumes they generate. The speed aspect
refers to the prompt processing of data
within the system. The faster, the better.
A wide range of data variation is another
aspect. The range includes the structured,
semi-structured and unstructured data
that customers want to have processed.
With this in mind, it is possible to talk about
the trend toward Business Intelligence 2.0:
It goes far beyond the normal reporting of
data within the company. It is proactive
and real-time-driven as it ideally brings the
user to his goal even without prior technical knowledge.
The reporting, the analysis and the interpretation of data are of key importance to
companies, permitting them to safeguard
their competitiveness and to act quickly
and appropriately in the market. The matrix has not changed in the era of big data.
With the growing technical potential, the
emphases of business intelligence applications have merely shifted.
Analytic
capabilities
Business
Changes optimization
Prognosis,
Real-Time,
Exploration,
Streaming
Value chain
integration
and operational analytics
Planning
and
simulation
Strategic enterprise
management
(SEM, BPM, …)
Integrated
planning,
reporting and
risk management
1990 - 2000
BIG
data
Aggregation
and
data warehousing
Data warehousing
(CRM, risk evaluation, …)
Efficiency
analyses
and target
customer
management
Pre - 1990
2000 - 2008 2008 - present
From pure reporting to BI 2.0
Monitoring
and
reporting
Reporting
(POS, accounting, …)
Process
automation
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Both the integrated platforms for corporate management that have emerged
in the last 10 years and the current big
data-driven optimization approaches
have led to a situation where business intelligence has become the world’s largest
software market. A shift from the classic
financial service industries to manufacturing, especially the automotive sector,
is particularly interesting. The focus is on
approaches to optimize operations on the
basis of comprehensive data analyses. The
optimization includes the entire value
creation chain, from vehicle development
to production, all the way to marketing,
sales and after-sales.
New opportunities for the operational optimization of automotive value
creation chains through Business Intelligence 2.0
Concrete opportunities for optimization
based on analytics especially lie in the
areas of customer management, retail,
after-sales, the supply chain and IT management. The approaches, along with abbreviated use cases, are described in the
table below.
The trend toward the “networked automobile” is now emerging as the greatest driver
of big data applications in the automotive
area. Large data volumes have to be trans-
Use cases from the automotive value chain
Use case
Research and development Data
prerequisites
User
groups
Production •Error identification
Dependency analysis
(Installation and use
context)
•Validation of user be havior and component
design
•Identification of in complete sensor and
order data
•Demand determination •Reduction of quality
for parts supply in the costs through produc field
tion process monitoring
(e.g. engine casting)
•Development
•Automakers
•Wholesale
•Automakers
•Automakers
•Connection of condi tions of use with tele metry data
•Key data
•Repair orders
•Diagnostic and pro gramming protocols
•Customer data
•Vehicle data
•Repair orders
•Telemetry data
•Process parameters
(e.g. temperature
courses, carbon mate rials, …)
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mitted and prepared properly for analysis
to depict, for example, the use cases presented in Table below in combination with
the use of telemetry. The main drivers of
the vehicle-related data volumes are control units (about 60 to 80 devices per vehicle), functional software (about 800 MB
to 1,000 MB per vehicle), customer functions (about 1,500 to 2,000 functions) and
error memory (about 10,000 to 14,000 data
sets within the vehicle diagnostic systems).
Special requirements and structures
for the successful construction of
Business Intelligence 2.0 architectures and capabilities at automakers
The technologies of classic Business
Intelligence (1.0) frequently run up
against their limits as they process the
data volumes and formats that arise. But
users still value them a great deal, especially for the preparation and presentation
of results.
After-sales
•Selections for mar keting campaigns
(new vehicles, after sales)
•Evaluation of lead
processes
•Follow-up of error
correction
•Benchmarking service
sales activities
•Early recognition of
trends and opinions
•Lead generation
•Competition moni toring
•Price optimization
•Marketing analysts
•Service partners
•Retail
•Wholesale
•Retail
•Marketing
•CRM
•Customer data
•Vehicle data
•If needed, enrich with
socio-demographics
•Internet click-flows
•Customer demographics
•Historical customer
transactions
•Operator data
•RFI, RFQ
•Completions
•Telemetry data
•Warranty data
•Repair orders
•Service marketing
activities
•Social media (tweets,
forums, blogs , …)
•Product evaluation
portals
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Source: NTT DATA 2014
Sales and marketing
Big data is mainly driven by four technologies that allow the cost-effective storage
and analysis of unstructured data volumes
on one hand (for example, using Hadoop
and streaming) and the faster, higherperforming processing of structured data
volumes on the other (for example, using
SQL appliances and In Memory).
From a technical standpoint, a question
comes up (see Figure below): Should the
new approaches of data processing and
storage based on big data be constructed
on a “stand-alone” basis or integrated
into the existing BI architecture? Companies would rather turn to a “stand-alone”
installation for a new, isolated field of
application, such as “quality cost reduction through production process monitoring.” But they would prefer an integrated architecture scenario for existing or
cross-functional applications, such as the
“assessment of demand for parts supplies
in the field” or the “selection of marketing
campaigns” (new cars, after-sales).
The conventional data warehouse (DWH)
still has an important role to play. It
supports companies in their operating
business within the framework of Business
Intelligence 1.0, especially on questions
relating to corporate management and
reporting.
Integrated big data versus stand-alone big data
Integrated big data Access layer
Reporting layer
Stand-alone big data
Group/region/country level
Reporting tools
Excel
Reporting tools
Single user
Big data reporting
Functional Data Marts
Sales
Margin
Forecast
Source: NTT DATA 2014
Data Mart layer
BIG
DATA
Core DWH layer
BIG
DATA
Process DWH
ETL layer
Source
ETL
tools
Planning
BI ETL tools
Graphical
information
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Blogs
Forums
NonSAP ERP
SAP ERP
Sensor
information
Integrated solutions are on the rise,
especially given the analysis of data from
networked vehicles and Industry 4.0 scenarios. Market analysts such as Gartner
recommend the integration of big data solutions with the existing BI strategy. The
goal is to ideally exploit the BI expertise
built up over the years, in combination
with big data within Business Intelligence
2.0 framework.
Along with the construction of state-ofthe-art, technical data architectures, the
question of data ownership emerges, especially with regard to the processing and
storage of content from new data sources (e.g. the networked vehicle). In this
regard, the role of the chief data officer
(CDO) comes into play. The CDO guarantees the required governance while driving
data-based innovation forward on technical and professional levels. This gives the
CDO a decisive impact on the automaker’s
operational value chain and its competitiveness. In many organizations, this role
is positioned quite close to the COO or CIO
and nearly at the management board level.
Conclusion: Business Intelligence
2.0 allows automakers to undergo a
transformation to greater competitiveness
The use of big data technology allows wideranging improvements along the automo-
tive value chain through the use of nearly
real-time analysis of wide-ranging data in
a wide variety of formats. Until now, it has
not been possible to analyze this information using classic Business Intelligence 1.0
approaches and technologies.
A deep understanding of existing data
structures and process flows forms the
basis for sound user cases that amortize
and lead to direct competitive advantages
after a short time. This holds true in particular in customer management and aftersales.
The integration of big data into existing BI
architectures leads to greater usability and
acceptance since new information can be
used with existing skills. This is an important basis for successful data-driven transformations.
Chief data officers often assume the role
of the transformation driver, guaranteeing
the necessary governance and safeguarding data-driven innovations at the professional and technical levels. Their expertise
and capacity to follow through will greatly
affect the competitiveness of automakers in
the future.
By Uwe Höhne, Vice President, Business
Intelligence & Big Data; Florian Preissinger,
consultant, Business Intelligence
automotiveIT 2014
12 Daimler · Michael Gorriz
»Efficiency in our basic business enables us to invest in new
IT solutions«
Photos: Claus Dick
Daimler-CIO Michael Gorriz wants to gradually get his company’s core
systems into shape for the networked future. The cost will be in the hundreds
of millions of euros.
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Michael Gorriz · Daimler 13
_ Mr. Gorriz, the Daimler annual report
says again and again that IT is taking on
a central role in the shaping of business
processes. Can you give us some examples of this?
In our company, digital tools are laying
the foundation for practically all processes
along the value chain, ranging from design and development, to production, all
the way to sales and service. IT only briefly
moves into the background when potential
customers enter the showroom. There they
want to experience the car of their dreams
physically and feel pure enthusiasm during
a test drive. I do not believe anything will
change in that regard. Nonetheless, the digital footprint will continue to grow because
many customers wish to communicate with
our brands via websites, social media or
by e-mail. It is no longer crucial, especially
for the upcoming generation, whether the
first contact and product consultation takes
place personally or via a digital channel. It
is much more important that the requested
information flows. The faster the better. To
meet this requirement, we have to connect
classic sales processes in the dealership
even more firmly with today’s digital world.
_ What consequences does this have for
the information technology of the future?
One example is the fact that the knowledge
of customer preferences and purchase histories must no longer be located solely in
the minds of the salesperson and in a variety of different systems. The information
will only be visible throughout the sales
organization when it is stored in a central
location and made available for use – much
as information is at online mailorder dealers. My core message is that a premium
brand like Mercedes-Benz will take care
of customers more and more individually – whether conventionally in a personal
conversation or online in the digital world.
To provide this, we will gradually convert
our large core systems – moving away from
a purely process orientation and toward
an online operation integrated from the
ground up. It must be possible for Daimler
employees and customers to access relevant customer data around the clock and
in real time; customers may want to update
their address data, for instance. No one
appreciates an offer sent to an out-of-date
address any more. And rightly so. That is
why we are now working on a system to
administer customer data company-wide
solely in a central entity in the future. We
call it the “Golden Record.”
_ How much are you investing in this
system conversion and how long will it
take?
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The amount of time and the amount of
money go hand in hand. It would be expensive if we wanted to solve everything
at once in one giant step. That is why we
are using conventional software release
cycles to reach the desired optimizations
as part of an evolutionary and pragmatic
approach. All in all it will certainly be an
investment in the three-figure-millions.
This includes the fact that we are equipping
our German direct sales operation with the
Autoline dealer management system within the next three years.
has been tried and tested at Daimler. Every
department can access our resources and
will be expertly supported. As in the case
of Car2go: The modeling of business processes, the requirements for software and
telematics hardware, as well as the development of technologically multifaceted
front-end and server systems – our internal
service provider Daimler TSS in Ulm did
an excellent job getting everything rolling.
Even today, more than five years after our
successful launch, more than half of all the
Car2go employees come from IT.
_ What is the share of IT at Daimler
when it comes to trying out new business models?
_ You have publicly committed yourself
to linked open data. For example, the
data of all mobility providers are supposed to be freely available on the internet. Why is this important to Daimler?
We are making available a wide variety
of technological solutions that enable the
company to work with innovative processes and develop new business fields.
But we have deliberately decided not to
transfer any operational responsibility to
IT. In concrete terms, this means that we
carry out a technical function, assemble
the necessary expertise, make suggestions,
and execute supporting systems. But we do
not run the business. This division of labor
automotiveIT 2014
When you would like to know the best possible way to travel from point A to B, you
need real-time information about all the
transportation carriers available locally:
local public transportation, car-sharing,
taxis, etc. We are dismayed and amazed that
many public bodies consider their schedule
data to be their property. The German Railway, for example. If we are serious about
»We need about 100 million euros to realize our digital customer vision«
ecological, sustainable mobility in this
country, we must create the basic conditions for innovative mobility concepts and
inter-modality. The re-use of transportation information as open data on the internet without any conditions must be possible to integrate the available transportation carriers into new concepts for use.
Here I think it is clear that policymakers
must take action.
_ The Daimler IT team has shown strong
growth mainly in China, Turkey, India
and Brazil recently. What capacity are
you planning for the saturated markets
of the US and Europe in 2014?
We will maintain our staffing level in Germany and grow in other regions of the
world. We have just reinforced this decision
with the opening of shared service centers
in India and Turkey. In this way, we have
begun to consolidate the operations, maintenance and further development of our
SAP systems at these locations. In addition,
our colleagues will support global rollouts
or execute them on their own: data migration, system tests, training. This allows us
to relieve our team in Germany from time-
consuming, routine tasks. A great many
German-speaking IT specialists are available to us in Turkey in particular. We can integrate them into our organization quickly.
We will employ nearly 200 IT employees in
Istanbul by the end of 2015.
_ Your budget has grown since the crisis
of 2009, in part because business requirements and volume have increased.
Will costs continue to spiral in 2014?
You’re right. The cost increases that we
have recorded recently are due to the fact
that Daimler has opened new production
facilities globally and is involved with more
sales channels than ever before. At the current rate of our company’s growth, our IT
budget will certainly grow in coming years.
That is why it is my stated goal to decouple
revenue growth from the associated effects
on our IT costs. To put it another way: We
want to actively support the company in
the achievement of its economic expansion. But the associated IT tasks should rise
less than proportionally.
_ How do you intend to do this?
By providing standard services in our basic
automotiveIT 2014
_Michael Gorriz
Michael Gorriz has been CIO of Daimler AG
since 2008. As head of the company’s Information Technology Management (ITM) division, he is responsible for strategy, planning and
development of all of Daimler’s IT systems. He
also is in charge of Daimler’s data centers and
communication networks. Gorriz, who has an
advanced degree in physics, started his career
with aerospace group Messerschmitt-Boelkow
Blohm. From 1994 he ran Daimler-Benz Aerospace in Mexico and subsequently was divisional manager at Nortel Dasa. Gorriz moved to
Daimler’s IT department in 2000 as vice president IT-Business Systems. In 2005 he also
business as efficiently as possible and then
shifting the resources saved into innovative solutions that will prove effective in
the future. We want to free up the roughly
100 million euros that we will need to fully carry out our “digital customer” vision,
among other tasks, with an improved costbenefit relationship. Every day we face the
question of whether we are using the financial means and resources made available
to us in a way that we are advancing the
company as a whole. The aforementioned
shared service centers contribute to this
goal as much as the further consolidation
of our applications landscape. By 2015,
we will reduce the number of programs
in use by 40 percent. In absolute terms,
that means 2,000 fewer applications. This
streamlining incidentally has a clear positive impact when we build new plants. We
are now moving ahead with a standard
modular kit that covers 95 percent of the
required functionality and allows rapid,
routine launches – whether they take place
in Hungary, India or China.
became CIO of Mercedes-Benz Cars and Vans.
_ You keep stressing that a high-performance IT landscape can increase
Daimler’s appeal as an innovative
employer. What is the effect on the
employee’s workplace?
That is a very important point. We have
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made huge investments in the design of our
modern workplaces and have created the
basic conditions for seamless, companywide cooperation over the last two years.
The global changeover to standard Microsoft software for 200,000 PCs and notebooks will be fully concluded by mid-year.
Of course, online meetings, chats and video
conferences have already become a fixed
component of our working world without
a major effort to highlight the new opportunities. In some countries, employees can
already either use their personal smartphones with a business SIM card or use a
device that Daimler has made available to
them. E-mail, contacts, calendar, intranet
access – everything is available over a secure, mobile connection. More than 6,000
Daimler employees throughout the world
use their smartphones for business purposes. And the trend is rising rapidly.
_ Cyber criminals are very interested in
car companies. How is Daimler facing
up to the increasing number of targeted
attacks?
We take IT security very seriously. We want
to both protect sensitive company data and
our intellectual property as much as possible while preventing attempted sabotage
that can hinder our operations. It is incumbent on us to have a technically sound
foundation and to train our employees intensively. Since the end of 2012, we have
been forcefully sensitizing our entire workforce worldwide to the issue of information
security.
_ Doesn’t a sinking feeling come over
you when you provide IT support for all
the relevant processes for a plant expansion at Beijing Benz, for example, or
carry out standardized IT landscapes for
the joint venture with Foton?
Daimler now has 3,000 employees in China. When I add the joint ventures, the total
comes to nearly 20,000. They need daily
access to data stored in our IT systems. Just
like their coworkers in Sindelfingen. But
reducing information protection to just IT
security would be too simplistic – this is
a comprehensive challenge that a global
player like Daimler has to face in every
market. We work with many suppliers successfully and share our knowledge so we
can build the best cars in the world. And
we trust in the fact that our partners will
carefully handle the information that we
make available to them. I consider thinking
in terms of black-and-white lines along
national political boundaries to be unrealistic and out of step with the times.
Interview by Ralf Bretting und Hilmar Dunker
automotiveIT 2014
18 Robert Bosch · Gerd Friedrich
»I had to learn something new«
Bosch CIO Gerd Friedrich speaks about the automotive supplier’s ability to
innovate, the challenges of workplace 2.0 and the willingness of the business
divisions to recognize and use the IT knowhow available in the company.
_ Mr. Friedrich, you have said that
Bosch’s business success is determined
by its capacity to innovate and by its
edge in expertise. How much credit do
you give to the central information
processing area?
For years, Bosch has been a driver of innovation in many of its business fields, including the automotive sector, power tools
and other areas. Still, we know that we are
still not fully utilizing the innovative potential of our employees worldwide to keep
pace with global competition and continue
to maintain the lead.
_ What has to happen?
I see two approaches in this regard: on the
one hand, improved IT tools for connecting our employees around the world; on
the other, a change in mindsets. Until now,
the capabilities and expertise of individual employees was front and center. Efforts
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to share knowledge have not really been
successful so far. But with our young workers, a generation is joining the company
that lives according to a particular principle: “We believe in the power of a network.” Along with social media tools, this
creates a new approach. That’s also why we
launched our “Enterprise 2.0” project at
Bosch two years ago.
_ Can you explain that?
A key element is the global social media
platform,“Bosch Connect,” which we rolled out worldwide within this framework.
More than 240,000 employees are now
using this platform – 85,000 a day for
communication, collaboration and idea
generation. We are using this platform to
optimize processes as well. For example,
in IT we draft our current monthly reports
interactively using Bosch Connect. Anyone can view the results online and make
Photos: Claus Dick
Gerd Friedrich · Robert Bosch 19
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comments. We are explicitly betting on
transparency. The crucial advantage for
us: Each of the 3,500 IT employees has
the same knowledge base at the end of the
day and they no longer have to consolidate
reports.
_ How tough is the adjustment personally
if you are not a member of Generation Y?
It is not very easy. I have to admit that.
Young people deal with it more easily and
write straightaway, so to speak. I think
first and then ponder (laughs). I actually
had to learn something new in this regard.
The number of Bosch employees has risen
in the recent past – but primarily outside
Germany.
_ What consequences do you see this
having for IT?
In IT, we are currently not growing regionally as fast as the company is in individual markets, especially in China. And we
are getting by with local providers even in
fields that we will occupy ourselves at some
point. Our goal in the first step is “local for
local.” That means the implementation of
projects in the regions with local resources.
In a second step, we will take more advantage of our regional expertise worldwide.
_ Where do you want to take IT in 2014?
What is high on your agenda?
Our IT strategy is geared to the long-term.
We do not think in year-to-year terms. For
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example, the usability of our IT solutions is
the focus right now – we have to improve
them significantly. Our younger employees
especially expect this. We have specifically
assembled experts to work on this. Furthermore, we are continually talking to providers such as SAP about improving the usability of purchased software. Consulting is
another topic we are focusing on. We have
strong expertise in IT, which allows us to
support the business areas as they implement new business ideas. In the future, we
want to integrate our IT knowledge into the
business areas much more proactively.
_ And the individual business areas are
actually showing an interest in this?
Yes, and that was not always the case. It
has changed in the past few years due to
the greater mutual penetration of IT and
Bosch products and services. There is also
the greater awareness of IT security on the
part of management. This increases the
readiness for cooperation and the interest
in it. In many cases, business areas can no
longer do this by themselves. So your work
not only supports processes in a classic
sense. IT expertise also increasingly flows
into the development of new products and
services? As a matter of fact, we support
the business areas in the implementation
of new business ideas. But let us be quite
clear about this: That is a process too and it
is not always smooth. It has been said that
Bosch IT in the past has spent a great deal
»Management recognized at a very
early stage how important IT would
one day be«
sourcing strategy. Our philosophy is generally oriented to keeping our core capabilities in-house. Core capabilities are highly
relevant to Bosch’s competitiveness.
_ Is the operation of a data center,
which many companies outsource, one
of your core capabilities?
of time on the analysis of problems instead
of providing solutions.
_ Does IT need to become faster?
I can’t confirm this perception. The fact
that large companies are generally not as
agile as small startups is no evidence for
the conclusion. I wouldn’t subscribe to it
generally because our internal operating
figures don’t reflect it. But it is certainly the
case in individual situations. At our company, new topics in particular are discussed
more exhaustively to bring all the participants on board. This greatly accelerates the
process later.
_ You execute a great deal in-house with
your employees. You introduce new SAP
systems, develop software, and operate
your own computing centers. Is this a
strategic approach?
IT’s future orientation and special topics
for the next few years are presented and
coordinated at an annual strategy meeting with management. This includes our
Curently, yes. It’s not only the operationcritical application systems that we are
running in our data centers. The data that
are worth protecting are located there as
well. IT security and flexibility thus play
an important role. We are convinced that
we have the critical mass to run our data
centers efficiently. The potential savings
from outsourcing are offset by increased
security risks and greater dependency. In
Europe, we even run data centers in special
buildings at Bosch locations.
_ So you don’t consider cloud computing to be an important topic?
Certainly, but in a private cloud. We have
two public cloud systems in use. Otherwise, we use the cloud technologies in our
data centers. They make it possible to give
our employees around the world uncomplicated access to applications.
_ You recently concentrated Bosch’s entire data traffic in a few strategic computing centers such as Stuttgart. What will
the network strategy look like in future?
At an early stage, management generally
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recognized the importance that IT would
one day hold for the company. We began
consolidating IT twenty years ago. After
the attacks of September 11, 2001, we had
to acknowledge that the threats were different from those we had assessed until
that point. Relatively serious attacks on infrastructure are possible just like that, and
they can have consequences. That is why
we adjusted our data center strategy. It
has four elements. In each region, we operate two “hot standby” computing centers
with a highly redundant infrastructure.
The data centers between the regions run
in the “warm standby” mode. We ensure
the smooth exchange of data with a dual
global network that specifically links our
research centers. We guarantee the service
on all weekdays around the clock using our
global competency center. In this way, we
can cushion regional risks like breakdowns
or attacks. The advantage: Even with serious regional emergencies, we can re-establish regular business operations within 24
hours at most. This is especially important
for the automotive area.
_ Most employees still experience IT at
their desk or in the plant where they
work. What workplace strategy are you
pursuing right now?
Security is the top priority at Bosch. That
is why we settled on a dual end-device
strategy. We differentiate between two
types: “fully managed devices” and “partially managed devices.” Fully managed
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_Gerd Friedrich
Gerd Friedrich, CIO of Robert Bosch GmbH,
has more than 30 years of professional experience. He started his career in 1978 in the R&D
department of Germany’s Siemens Group. He
then moved to Nixdorf Computer in 1984 and
stayed there for seven years. In 1991, Friedrich
joined Bosch Telecom GmbH in Frankfurt as department head and project leader. He has been
CIO of the Bosch Group in Stuttgart since 2000.
devices are based on Intel platforms and
Windows applications. These devices have
transparent BCN (Bosch Corporate Network) access to all data within the Bosch
Group, depending on the employee’s particular authorization. We merely install Mobile Device Management on partially managed devices. We control the MDM, and it
imposes certain device settings. In partially
managed devices, hardened services are
provided for the synchronization of Office
data, the access to document management
and ERP systems as well as to Bosch Connect, our social media platform; the data
are maintained in the computing center.
_ In February, Bosch won the VDA
Logistics Award. It was honored for its
“companywide product memory,” You
virtualized the flow of goods using RFID
at the Homburg plant. Can you tell us
more about this?
In Homburg in 2008, IT and the division began to evaluate RFID’s potential for
manufacturing, mainly with the idea of improving Bosch’s logistical processes. As a
first step, we converted the manual kanban
card system to RFID technology. The result:
If you unload a container, a signal is sent
to the storage area and it is refilled on the
next “milk run.” So you no longer have a
delay. And lost kanban cards are a thing of
the past. This also allows us to reduce the
supplies at the machines. You control much
more precisely. We received the award because we equipped the product itself with
an RFID memory. So you can follow the entire throughput of the product: in the factory, between factories, all the way to the
manufacturer. You no longer need to manually determine where the component is.
The chain is automated. In the future, you
will even be able to identify components
installed in a vehicle. The scope and opportunities are nearly limitless.
_ In conclusion, another topic: How is
the networking of the vehicle shaping
up and how are you exploiting it for
coming Bosch products?
The internet will revolutionize vehicles and
their driving. We are convinced of that. On
one hand, the vehicle will become a part
of the internet. The networked vehicle will
actively use information from the internet
to make driving safer and more comfortable. Think about the possibilities for navigation, to cite just one example. On the
other hand, cars themselves will become
part of the internet as sensors. Vehicles provide masses of information that can be forwarded to other vehicles, to warn drivers
about hazards, for example. And thirdly,
we see the networking of the internet of
things with the vehicle. Bosch has just recently been working on a pilot project in
Monaco, where we are developing a network structure incorporating the automobile as one element. This is seriously changing the world.
automotiveIT 2014
24 Brose · Christian Ley, Michael Daniel
»We are not galloping blindly after
new IT trends«
Photos: Claus Dick
At automotive supplier Brose, IT is deliberately looking for a close meshing
with the company’s departments. In an interview, CIO Christian Ley and
Michael Daniel , the head of Human Resources, explain the advantages of the
strategy, citing a new material flow concept at the Brose plant in Ostrava in
the Czech Republic as an example. They also talk about the freedom that new
workplace concepts bring for employees.
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Christian Ley, Michael Daniel · Brose 25
_ Mr. Ley and Mr. Daniel: During the
summer of 2014, Brose put a high-rack
storage area into operation at its Ostrava
facility. People are talking about an innovative material flow concept. What distinguishes this solution and what share
of its implementation did IT handle?
Daniel: Our Czech factory has grown significantly in the last 10 years and was already
working with three external storage areas
recently. Additional orders from Daimler
and BMW in seat manufacturing made it
necessary to realign the production supply system and handling of raw materials,
purchased parts and empty containers with
a state-of-the-art logistical concept. The
starting point and the stated goal were to
only handle material feeding containers
when they reach employees on the line.
That made it necessary to link the automated high-rack storage and the small-part storeroom using synchronized tugger trains.
From the receiving department to storage,
de-palletizing and repacking, all the way to
provisioning and tugger-train loading – all
these steps today take place fully automatically, without the worker having to handle
anything.
Ley: In 2011, our management board gave
us the task of working out a future-oriented solution with the Technical University
Munich. The production logistics were naturally supposed to become more efficient
and reduce classic operating costs. But we
above all wanted to clean up the production
spaces. Material that moved frequently was
no longer supposed to be stored temporarily near the production lines to buffer supp-
ly delays. From an information technology
standpoint, the path to this goal was preordained. Within the Brose Group, we work
with a single, centralized ERP system. Under no circumstances was a foreign body,
with its own stores of data, multiple interfaces and specific terminology, allowed to
grow within the company’s IT architecture
as a result of the new logistics system.
_ So it was easy for you to make the
decision on the applications side?
Ley: Yes, our ERP landscape planning continues to rely on the central system, so the
new SAP eWM was the first choice for a
new storage logistics system. The burning
question was: How seamlessly could the integration be configured into the Brose ERP
and what the impact would be on system
performance and operational security. After
all, we’re talking about nearly 10,000 storing positions for pallets and pallets cages
in the high-rack storage area and more than
23,500 storing positions in the small-parts
storage area with a high turnover. With our
throughput, we could not tolerate a slowdown in the production supply speed in any
area as a result of the new solution. That
is why we first had to improve the computing power. Compared to our planning, we
noticed that the CPUs were operating at
much higher capacity than planned due to
the new tugger train calculations. So we
started out by activating capacity from our
virtualization buffer and then we put our
heads together to optimize the load distribution. After six weeks, we found during a
performance audit the ways and means to
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reduce the use of resources. An unchecked
replacement of hardware would increase
operating costs and reduces economies of
scale. Incidentally, we look critically at how
release changes often come with increased hardware requirements as a matter of
course, without any perceptible additions
of new functions.
_ What are the biggest advantages for
Ostrava?
Daniel: With the new system, we have introduced a noticeable calm into the manufacturing area – no more lift truck traffic, no
more fork lifts. Only tugger trains departing on their tours at defined intervals. A
great deal of work is done in the manufacturing cells, but the pace is not hectic at all.
This is tied to the improved transparency
in the factory areas: The pallets cages that
blocked the view of the line in the past are
gone. This provides an increase in safety as
a by-product.
_ What contribution is IT making beyond
Ostrava to synchronize Brose’s business
processes and supply chain worldwide?
Ley: Due to the high degree of automation at
Ostrava, new solutions have emerged that
we are now transferring to other locations.
One example is a tugger train controller
that configures supply logistics significantly more efficiently. In the design of the process, we made sure from the outset that we
could use selected functions even in plants
where there was no automatic storage system. Whether in Brazil, Mexico, the U.S.,
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or China – since the central SAP system
lays the foundation of our business process
throughout the Brose world, we can easily
transfer encapsulated elements – a concept
that has already drawn interest from BMW,
Volvo and ZF. The project has once again
clearly shown that our colleagues working
on the IT teams „know the ropes“ from
practical experience and had even worked
as schedulers in logistics themselves in
some cases. They know the processes inside and out, can discuss matters as equals,
and worked out the blueprint with the departments.
_ A minimum of 300 new jobs are supposed to be created in Ostrava by 2018.
What special expertise is especially in
demand in job candidates?
Daniel: The specialized requirements have
not changed as a result of the new material
flow system in manufacturing. A sufficient
number of specialized workers are happily still available to us in the Czech Republic. Thanks to our excellent contacts with
schools and universities, we are acquiring
well-qualified mechatronic technicians as
well as engineers for machine-building, design or quality testing.
_ And now the keyword, Industry 4.0:
How is Brose positioned when it comes
to machine-to-machine (M2M) communication?
Ley: The buzzword Industry 4.0 may be new
to the Brose world, but the basic principles employed in M2M communication are
not. For example, we have been taking advantage of the ability to receive automated
vehicle-synchronized release orders directly from automakers in our just-in-sequence
plants for many years and then pass them
on to the assembly units. If you look at the
respective end points, this is pure, unadulterated M2M. Nonetheless, teaming up
with our manufacturing managers, we are
deeply involved with the issue of Industry
4.0 because the number of potential scenarios for use has grown with advances in
technology. We are initially focusing on the
areas of material flow, maintenance and
shop floor IT – here the intensity of use will
grow significantly in the next few years.
»We are deeply involved with
implementation scenarios for
Industry 4.0«
_Christian Ley
_ To meet the requirements of digitization, companies are no longer filling
specific roles. Instead, they are hiring
based on special capabilities. Is this conceivable at Brose?
Christian Ley (47) is in charge of Information
Daniel: Yes, we are already doing that. We
are mixing the classic approach, where the
required technical qualifications are derived directly from a particular work task,
with the search for candidates that bring
a set of important core competencies with
them. So we are building up a workforce
that allows us to quickly fill positions with
suitable employees. Incidentally, we see
the biggest changes in the industrial area
where interlinked production facilities and
complex electronics controls require a high
degree of technological understanding.
started his career in 1995 as a Brose trainee and
Systems at the Brose Group. In this role he
manages the consistent development of IT solutions, in line with company strategy. With a
graduate degree in business administration, Ley
soon moved to the central application development group as IT coordinator. In 1999, he took
over as team leader for PPS and QM systems
and subsequently became head of Brose’s central department for logistics applications. In this
role, Ley was, responsible for numerous SAP
implementation projects worldwide and played
a key role in shaping Brose’s centralized application landscape. Following the groupwide
introduction of SAP in 2006, Ley assumed his
current management position.
_ Is Brose ready for Generation Y, whose
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members grew up with the internet and
mobile communication, maintain virtual
friendships, and prefer to work in shortlived project teams?
»In the future, many Brose employees
will be able to work from home«
_Michael Daniel
Michael Daniel (61) heads the Human Resources department of the Brose Group. He is responsible for the international HR activities of
the company, which employs more than 22,000
people at 57 locations in 23 countries. Daniel
joined Brose in 1991, after military service and
management roles at supplier Keiper Recaro. He ran the logistics side of the company’s
seating adjustment operations until 1995. He
then temporarily managed the Braas roofing
systems plant and in 2003 began a new assignment to integrate Brose’s locking systems operations. One year later, Daniel became head of
Brose’s plant in Ostrava, Czech Republic. He expanded the factory to become Brose’s biggest
factory with 2,500 workers. Daniel took on his
current management role April 1, 2014.
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Daniel: Our human resources strategy for
2025 explicitly takes various approaches
to communication and work into account,
as well as demographic developments and
global trends such as urbanism. We are implementing completely new, highly flexible
office concepts and are moving away from
the classic desk with a personal computer
and stationary telephone. This is being
carried out at our new company facility in
Bamberg, where central offices for purchasing, development and IT are being established at the end of 2015. In the future,
many Brose employees will also have the
opportunity to work from home. It is important that we offer these kinds of incentives to retain young people in the company
long-term.
Ley: With our Next Generation Workplace,
we have delivered an important milestone
in the further development of the Brose world of work. In this IT project as in
others, we have been very careful to avoid
introducing new features on an isolated
basis within the company, instead taking
applications that improve employees’ interactive cooperation and mobility and
consolidating them into an overall concept.
Above all, we have implemented computer
telephony worldwide. The system not only
chooses the lowest-cost connection but gives employees a high level of mobility at
the same time. All users always have their
direct-dial number on hand -- at all Brose
facilities and even using their notebooks.
An HD video conferencing system allows
connections using iPads from any location
and, with the My Desk system, they can log
on to their personal user surface regardless
of the end device, even with tablets -- at
the airport, at the hotel or even at home.
We want to take advantage of the technical foundation that we now have to build
up additional services, for example, selfservices for management and new cloudbased HR platforms. We are not going to
stand still.
multaneously highly efficient electric bicycle power unit in Berlin. This startup drew
on templates that have been used successfully within the Brose Group and that we
adjusted to distinct logistics processes,
seasonal distribution, and market forces
unlike those in the auto industry. Here IT is
at work as a classic enabler.
_ Innovation is high on the agendas of
manufacturers and suppliers. What is
Brose IT currently doing to support product and process innovations or perhaps
even new business models?
Ley: IT security cannot be reduced to just
the relationship between the automaker
and the supplier. But I basically share the
view that we cannot solely consider security within the four walls of our company.
The Brose Group also works with numerous
suppliers and business partners. Apart
from our regular workforce, external consultants, students working on theses and
temporary workers regularly come into the
company – they are all IT users and constantly come into contact with information
that they need to do their work. As a result,
differentiated, role-based authorization
processes are the be-all and end-all for us.
Daniel: We also considered it essential to
pay continual attention to the responsible
handling of data and documents and sensitize employees regularly to the issue of
security in training and e-Learning.
Ley: It is a Brose IT principle to always look
for a close meshing with our departments.
We neither gallop after new trends nor do
we develop things that our business partners really do not need. Nor do we jump
into the breach just when some part of our
information technology no longer functions. From my experience at Brose, I know
that complex IT innovations are generally
tied to specific processes and that they alter processes in the value chain. We have
already talked about the example of logistics at the Ostrava plant. As a value-added
contribution to innovation, I also consider
it important that we are supporting Brose’s
new drive technology division, which has
produced a lightweight, compact, and si-
_ In one of our most recent CIO interviews, we learned from an automaker
that the theft of sensitive information is
increasingly occurring through suppliers
and partner companies. Do you share
this assessment?
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30 Witte Automotive · Andreas Bunderla
»We are preparing our entry into
Industry 4.0«
Photos: Claus Dick
Witte Automotive, a German maker of locking and latching systems for the auto
industry, relies heavily on the latest technologies to grow its business and remain
competitive. In an interview with automotiveIT, CIO Andreas Bunderla explains
how IT supports and drives the major changes that are taking place in the area of
industrial manufacturing.
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Andreas Bunderla · Witte Automotive 31
_ Mr. Bunderla, Witte Automotive has
again achieved record revenues in
latching and locking technology during
fiscal year 2013. What is IT’s share in
this success?
As the head of information technology, I
can say that we have done a great deal in
recent years to consistently generate added value for the company with our projects. To make this happen, not only was a
re-organization needed with direct reporting paths to top management. A cultural
change was also necessary longterm. At
Witte, IT has always had a strong technical image, but less the image of a process
designer. We were responsible for keeping
the infrastructure running and providing
the departments with the best possible
work devices. In the meantime, our clout
has grown significantly. Today, the employees in my area can hold discussions on an
equal level with their business colleagues
and together get new solutions underway.
For important decisions, we sit down at
the same table. That is why the IT agenda
follows company strategy very closely. This
is a crucial building block for success as
well. It certainly has a positive effect on the
financial development of the company.
_ Can you cite a current example of the
cooperation between a department
and IT?
There are many of them. One of the most
important was the startup of our new
central warehousing approach here at
our headquarters in Velbert, Germany. To
optimize material flow, production, logistics and IT worked together to provide
extreme-ly lean processes. The before- and
after-comparison is significant. We have
brought stock availability at the production
lines to nearly 100 percent while lowering
costs.
_ So if we were to ask you whether IT
drives business at Witte or the departments drive IT, what is your answer?
A close solidarity makes it possible for both
sides to serve the needs of business operations. In the past, we were certainly driven
by the departments. Today the relationship
is the reverse. We create a great deal of
new impetus and bring projects to the de-
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partments. This naturally requires suitably
qualified IT staff and good integration with
the departments.
Witte Automotive is an SAP power user...
That’s right. We map practically every work
step in SAP in both the new parts and regular production processes and go to the very
limit of functionality in doing so. Previously each location used its own ERP systems.
Now, everything runs centrally.
_ And what are the advantages of this
centralization?
Our IT employees have built up a great
deal of SAP know-how because they plan
and guide the rollouts in different countries. Our international growth is an example. When I arrived at Witte in 2007,
we would’ve had a hard time with the
construction and launch of new production facilities abroad. These jobs have now
become routine because we have systematically invested in the training and expertise of our 45 employees.
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_ Can you give an example?
Consider Ruse, Bulgaria. We launched a
new SAP system there in barely five months
in 2010. The standards that we created
with a globally uniform IT architecture
have given us the traction to do this. Today
we no longer need to worry about issues
such as system consolidations or user training. Instead, we can concentrate wholly
on growth. Over time, a process-oriented
approach to our work has grown up from a
specialization in modules. This do-it-yourself strategy took time at the outset. Now it
has paid off due to the incredible technical
knowledge that we have in our own ranks.
_ Describe your vision to us. Where
should IT be in the medium term? What
goals and aspirations has your senior
management formulated?
I am firmly convinced that information
technology will play an even more important role for Witte in the future. Witte
Automotive is oriented to strong growth
with innovative product solutions. We
»This year we are planning the
largest IT investments in our
company history«
must support this technically on the process side and drive it forward proactively.
That is our main task. In both Production
4.0 and the development of new parts,
we are going to use numerous IT levers to
move the company forward. Its agility will
improve overall, and the awareness of the
business fields where Witte is on the move
can change.
_ What vertical integration are you planning?
In IT, we traditionally develop a great many
products and solutions ourselves. One development hub is Witte’s biggest facility,
Nejdek, in the Bohemian portion of the
Ore Mountains. On various projects, we
reinforce our staff with external consultants with automotive-specific expertise.
At present, we are deliberately building
up our programmer capacity so we can act
even more independently and rapidly. We
are concentrating on our core business. We
have long separated ourselves from peripheral issues such as travel management,
telephone systems, and printer support.
We leave that to our service partners.
_ How is the Witte Automotive IT budget expected to develop?
As far as costs go, we have managed a sideways movement over the last few years.
Today, in direct comparisons with our competitors, we are in the upper third in terms
of our cost-benefit ratio. That should continue to be the case. I would like to see IT’s
share of additional expenditures stay significantly below the company’s increase in revenues over the next few years. Thanks to
our technically strong team, we can largely
shoulder the expanded scope of services
ourselves. The investment picture is different: This year we are actually planning
the largest IT investments in our company
history.
_ What exactly are you spending this
money on?
In early May of this year, we completed the
replacement of our total backend infra-
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structure with servers and storage. More
storage space was required to further expand our system virtualization. Currently,
31 terabytes are allocated groupwide and
the forecast is that this will continue to
grow in coming years. To deal comfortably with big data, we have now ramped up
overall capacity to 81 terabytes. I am confident that should be enough for the next
three years.
_ Many suppliers have to use various IT
solutions for one and the same business
problem, because they are connected to
the systems of several automakers. That
puts pressure on efficiency. Is this true
at Witte Automotive?
_Andreas Bunderla
After high-school and military service, Andreas
Bunderla trained to become an industrial manager. In 1992, he joined Ruetgers Automotive as
an SAP coordinator in the German supplier’s IT
department. At Ruetgers he later assumed the
role of head of IT coordination. Next, Bunderla
spent five years as group IT manager at an international maker of brake linings before moving
to Witte Automotive as CIO in 2007.
automotiveIT 2014
Yes, it weighs heavily on efficiency in the
development or new parts process. Different CAD systems such as Catia, Siemens
NX and Unigraphics create complexity.
They also push up maintenance costs, increase the need for training, and so on. By
contrast, in the regular-production process, we can head off some of the problems
because we have a uniform ERP system.
The differences in the process start with
our customers’ individual requirements
for shipping. There won’t be a way around
that in the future, I think. Nonetheless, our
cost-benefit ratio for IT is in the benchmark
range.
_ With about 3,500 employees currently,
Witte has its largest workforce in company history. What requirements does
this entail for IT?
We are betting on service quality. When
new employees arrive at our company, the
departments where they work open tickets
at our central service desk. The clock is
ticking. From then on, we want to make
tools, telephone numbers, identities, access rights, and so on available promptly.
To achieve that, we are turning to the extremely standardized and automated delivery processes familiar to people in major
corporations.
_ What do you think of trends such as
BYOD and mobile computing?
We’re just now doing tests to see whether
and how we can integrate end devices into
Witte IT and add value. We know that the
up-and-coming generation has requirements that we have not yet fully outlined.
Our senior management has become actively immersed in the dialog because employer appeal is a high priority at Witte.
_ And why is that?
Mobile computing is helping to give us
ready access to business information all
over the world. But for security reasons,
we are imposing a strict requirement that
no data be stored on mobile end devices.
The separation between company and personal data represents a challenge in any
case. The next stage of expansion will involve cross-facility, interactive work, but
we have to clear a few technical hurdles for
that phase.
_ The German government is concerned
that small and medium-sized manufacturing companies have too little IT expertise to meet the requirements for the
transition to Industry 4.0. Where does
Witte Automotive stand with regard to
the networking of production?
No question. The issue concerns us. We
have just identified an Industry 4.0 process
in the form of a basic concept that we would
like to establish very quickly at Witte. If I
said that we would be working with one in
18 months, I would not be going too far out
on a limb.
_ Can you tell us what it involves?
Only this much: it is an ingenious entry scenario that only a few people probably have
on their radar and that Witte Automotive
can use to improve its competitiveness. Incidentally, one of our creative IT employees
came up with the idea.
Interview by Ralf Bretting and Hilmar Dunker
automotiveIT 2014
Photos: Claus Dick
36 Volkswagen · Martin Hofmann
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Martin Hofmann · Volkswagen 37
»We are shaping and acting
instead of just reacting«
Group IT at Volkswagen is reactivating its old strengths and wants to take
matters in its own hands on issues such as the cloud, big data and mobility.
That’s why CIO Martin Hofmann has been pushing new specialized staff
training. He’s also testing joint projects and startups, and is consolidating IT
employees into their own office complex at VW’s Wolfsburg headquarters
in late 2016.
_ Mr. Hofmann, you want to continue
to build up the company’s IT expertise.
How do you precisely envision future
roles and the division of labor?
The Volkswagen Group has wide-ranging
IT expertise. But over the last few years, we
have focused especially on project management and placed the technical execution
into the hands of service partners, including the development of new applications
and support issues. In the future, we will
increasingly direct our expertise toward
technical implementation. When it comes
to technologies such as cloud computing,
data analytics, the internet of things and
mobility, we cannot and will not be satisfied with a control function. As Volkswagen
IT, we want to retain the core competency
over the entire lifecycle of a solution. That
begins with seeking out innovative technologies, continues through the evaluation of
their relevance, and covers their seamless
integration into our business processes. We
are shaping and acting instead of just reacting. That does not mean, however, that we
will do everything ourselves.
_ What are the consequences of this
approach?
They are positive, without exception. Our
highly trained IT team is going through
another powerful training initiative. At present, we are training our third-generation
IT security specialists. Our cross-brand IT
Academy will shortly train 150 enterprise
architects and is currently preparing the
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first 30 pilot project participants. Another
example: We are going to offer Java boot
camps – all to further expand, deepen, and
spread our IT expertise.
_ So less outsourcing in the future?
Precisely. It is a matter of taking what is security-relevant and confidential and handling it ourselves. For example, this includes
the operation of our FIS, which is our production, information and control system.
In 2013, we consolidated all the services of
a number of IT providers. At the moment,
a software development center is going up
in India. We will expand our programming
capacity there, and maintain and further
develop the systems ourselves. Yet another
example: Skoda’s brand IT department will
take over SAP-related application support
for the entire Group. In this way, we are
working through all the sections step-bystep and by mutual agreement with our IT
partners. We assume that we will complete
the insourcing in a little more than three
years.
_ If you support FIS from India, the support processes will also change …
That is correct. The service provider is no
longer just a few streets away. It is working
in another time zone and its employees
speak English. Everything is becoming
more international.
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_ Does the internal build-up of IT expertise go hand-in-hand with a growing
number of IT employees?
We use the group’s 9,300 IT employees
more effectively if we exploit synergies and
avoid double work. We will naturally bring
new IT specialists on board in the future.
In 2012 and 2013, we hired more than 400
IT specialists at just Wolfsburg and at Audi
headquarters in Ingolstadt. In addition,
we have taken on IT-oriented employees
from other areas since last year. This is a
true success story. The new co-workers receive custom-fit training. They think and
act extremely pragmatically and are useroriented. Everyone involved sees this as a
positive step.
_ Group IT had a presence at CeBIT
2014 with a large stand for the first
time, and it aggressively went after
young, qualified talent. What did this
campaign accomplish?
It was a total success. We could hardly
handle all the applications. Two months
after CeBIT we no longer had any open positions. I am sure that this was no transitory
impression tied to the trade fair. In the current European Graduate Barometer published by market researchers trendence, the
Volkswagen Group holds the second spot
in the Engineering/IT area. That puts us
significantly ahead of our rivals in the au-
»When it’s security-relevant or confidential, we want to handle it ourselves«
tomotive sector. A few years ago, we were
not even in the top 10. Through CeBIT,
we had contact with 25,000 students and
120 professors – an ideal starting point to
strengthen and expand our connection to
the university world.
_ What is your main focus this year and
in 2015?
There are three that should be emphasized.
First, the close cooperation of Group IT and
technology development on networking
and connectivity; second, our work on a digital mobility platform to facilitate the networking of vehicles with the environment
and objects in the internet of things; third,
new IT initiatives in artificial intelligence
and robotics.
_ Does the new data lab in Munich play
a role in this?
Of course. In the data lab, our employees
develop ideas, identify trends and test new
technologies. In doing so, they work with
the support of external partners such as
Google and Intel as well as startups from
Germany and Silicon Valley. The environment is inspiring and very dynamic, and
the approach to work is highly creative.
There is experimentation and, as a result,
mistakes are allowed. Nonetheless, no one
loses sight of the mission. In this way, extremely interesting results emerge within
several weeks. If they work out, they become the basis for ongoing projects.
_ How do you manage relations with the
startup scene?
We make full use of our partnership with
the German Accelerator promoted by the
Federal Economics Ministry. Through this
organization, we are in contact with more
than 150 young companies in the information and communication technology fields.
automotiveIT 2014
_Martin Hofmann
Martin Hofmann has worked at the Volkswagen
Group for 13 years. Before joining Europe’s biggest car group, he worked at IT services provider Electronic Data Systems Corporation (EDS),
handling international duties, and later as the
head of Digital Markets Solutions Consulting
in the US. Between 2001 and 2003, Hofmann
managed e-procurement and supply chain integration at the Volkswagen Group. Thereafter
he assumed responsibility for process and information management in corporate procurement. Starting in 2008, Hofmann took charge of
VW organizational development. He has been
Group CIO since December 2011.
This new form of cooperation is bringing
a breath of fresh air and many ideas into
our software development. We are already
benefiting from it.
_ Automotive and classic IT are coming
together. What does this mean to Volkswagen?
The integration of network services in
a vehicle like the new Golf is extremely
complex. In this area, technology development and IT work together closely under a
clear division of labor. Our devel-opment
co-workers hold the responsibility for the
car’s technology. Corporate IT handles
everything from the air interface to the
backend. It is a matter of bringing information from the Internet to the driver in
such a way that he is informed but not distracted.
_ Vehicles and software are developed
at different paces. How do you achieve
pinpoint synchronization?
We have adapted our software development process to the product development
process. The same logic, the same terms,
the same milestones. This promotes a mutual understanding of the work.
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_ Industry 4.0 will be a megatrend in
coming years. Where does Volkswagen
stand in the networking of the production process?
Volkswagen has long worked with networked production facilities. This is the only
way large production volumes are possible.
Industry 4.0 will, for example, offer the opportunity to identify possible malfunctions
and improve supply flows into factories. In
pilot projects, we are now evaluating large
data quantities – the requirement for an
even more pro-active maintenance.
_ You are the head of Group IT, and
every brand has its own IT. How difficult
is it to walk the tightrope between preserving the independence of the brands
and bundling capabilities group-wide?
Strong brands such as Porsche, Audi and
Volkswagen are the foundation for company success. In the world of bits and bytes
it doesn’t matter what logo is on the computing center. The important factor is that
our IT solutions contribute to the success
of the brands and to the success of the
Group. Hardware infrastructure, network
and operating systems are all important
for successful business activities and can
be the same for all the brands. That is why
we standardize processes in the IT area
wherever the change is technically feasible
and make sense.
_ You want to make IT resources available to the operating departments more
quickly in the future. That is why you
have acquired experience with a private
cloud architecture in a major project.
How will this strategy evolve?
We have established a private cloud for the
connected car. At the same time, we are examining where we can take advantage of
public cloud infrastructures. The volume
of storage in the group is growing enormously because developers use storageintensive simulation technologies, large
quantities of machine data are collected
from production, and we are networking
new vehicle generations. But we will not
and cannot build one computing center after another. So we are going to store noncritical data such as relatively old archival
data in public clouds – naturally in dedicated hardware environments that are clearly recognizable as Volkswagen IT.
automotiveIT 2014
42 ThyssenKrupp AG · Klaus-Hardy Mühleck
»The ThyssenKrupp IT budget will
be able to shrink in the medium
term«
Klaus-Hardy Mühleck, CIO of ThyssenKrupp AG, explains the new IT strategy of the diversified German steelmaker. In an interview with automotiveIT,
Mühleck also talks about the role that his central supervision unit plays in the
company’s change process and the economic advantages that outsourcing and
cloud computing are expected to bring.
_ Mr. Mühleck, you became CIO at
ThyssenKrupp in late 2012. May we ask
somewhat flippantly why you did that to
yourself?
Quite simply, ThyssenKrupp is an icon of
German industry. The company stands for
first-class engineering competence in mechanics, equipment manufacture and materials. It has unique products in its portfolio
and is active in nearly 80 countries worldwide. But ThyssenKrupp recently faced a
difficult turnaround. The new orientation
is not yet in full swing, but our EBIT margin
is again pointing upward. As CIO, I can actively contribute to this positive trend. That
is a task that involves an enormously wide
range of issues. It especially appeals to me.
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_ At Volkswagen, you had your hands full
keeping up with the company’s growth.
At ThyssenKrupp, the elevator was initially going in the other direction. What
demands on IT emerged from this?
In the last year and a half, we have completely repositioned the content and structure
of corporate IT. Thanks to the restructuring
program, the result was a strong centralization of the CIO units in our five business
areas. We did not leave anything out: architecture, management, planning and
control, application and process design,
all the way down to the regional control
level. Parallel to this, a broadly based infrastructure consolidation is underway across
2,300 locations, along with the establish-
Photos: Claus Dick
Klaus-Hardy Mühleck · ThyssenKrupp AG 43
automotiveIT 2014
ment of a shared services organization. To
clarify this further: In the past, ThyssenKrupp had 500 decentralized IT organizations. In the future, we will get along with
five CIOs in the business areas and centralized IT governance.
impact and supports the company’s further
strategic development. I would even go so
far as to say that information technology is
basically the central front in our effort to
effectively bundle individual initiatives and
measures in the business areas.
_ Are you running into resistance?
_ There have been rumors that you, as
part of the strategic reorganization, were
supposed to get corporate IT in shape
for a sale, in part or as a whole? Is there
anything to that?
Of course. And we have only been able to
overcome it by bringing the new matrix organization deeply into the company ThyssenKrupp-wide with the help of CEO Heinrich Hiesinger and his leadership team. The
leadership lives and breathes this matrix, as
we do in the Corporate Center for Information Technology Management. Nonetheless, it will still take time for this overall shift
toward an integrated industrial company
to take hold. In the future, the product folio
will be balanced out in such a way that we
can do business profitably irrespective of
steel cycles. It is already certain that we’re
heading in the right direction. The strategy
is working and our operational measures
are showing a clear effect. You can see that
in our latest business figures.
_ You have always championed a strong
IT orientation in the core processes of the
company. Are you still adhering to that?
Even more. At ThyssenKrupp, IT is an integral component of the corporate program’s
automotiveIT 2014
No, at no time have we discussed this option. In 2004, Thyssen-Krupp had an early
experience with a comprehensive spinoff
– at that time, we sold our IT subsidiary
Triaton to HP. Subsequently, a small IT
unit with about 400 employees emerged;
in the future, it would focus on important
management tasks centrally. And there are,
of course, about 1,800 IT employees in the
business areas supporting the operational
business.
_ But are you now going to reduce IT’s
vertical integration further?
Yes. We are poised to award major outsourcing contracts amounting to nearly 1 billion
euros, and we have invited bids on current
jobs such as wide-area networks, research
center consolidation and standardized IT
workplaces, including support for mobile
»If we make greater use of cloud
computing, we will get our costs
under control«
devices. In standard services, we are striving for a vertical integration between 25
and 30 percent long-term. But when it comes to end-to-end processes of our applications, we are investing in technical expertise and building it up in our own ranks.
_ How closely do the Corporate Center
for IT, IT in the business areas and the departments coordinate with one another?
Is there a clear, binding division of labor?
Definitely. We have established a handshake process promoting intensive cooperation between IT and the departments. All
the programs work with dual leadership,
which involves two project managers: one
comes from the department, the other
from IT. ThyssenKrupp’s top management
understands how to mediate between the
business and the operating units very harmoniously, and not just in IT. The company
lives and breathes this collaborative approach. It is one of its major assets and it
has left its mark on the organization. I have
rarely seen such pronounced teamwork in
my professional life.
_ Which would you say is true: Is the
roadmap spelling out corporate IT’s
direction and goals still a rough freehand sketch? Or is it now an elaborate,
detailed study?
We drew up the roadmap in early 2013 in
a very detailed form and initially established the roles of the IT areas in the individual business areas. Then the governance
models were worked out. The goal was to
integrate the IT strategy into the company’s
new matrix organization. We are now breathing life into this plan step-by-step. The
specific milestones that are part of our
orientation have also been defined. For
example, IT’s restructuring was due to be
completed during the third quarter of 2014.
_ How much money has your CEO Heinrich Hiesinger approved to flesh out the
integrative role in the execution of the
corporate strategy?
ThyssenKrupp’s entire IT budget is very
lean. We currently spend 580 million euros
a year, and we are trying to pay for individual restructuring measures with it, insofar
as we can. It is of course clear to everyone
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that we have to make a one-time investment of between 15 and 18 million euros
in additional resources on the infrastructure side to achieve our outsourcing goals.
But our budget will be able to shrink in the
medium term.
_ How do you intend to do that?
If we make greater use of technologies such
as cloud computing, we will get our costs
under control. In July, we concluded a cooperative venture with Microsoft in the elevator segment to improve our service and
maintenance business. We are using networked sensors in the elevators that send
data directly to the cloud. This information is processed intelligently and provided
to our service technicians in a centralized,
clearly organized fashion. This not only increases the uptime for ThyssenKrupp elevators, but reduces IT costs. We are in the
process of implementing a companywide
CRM program with Microsoft Dynamics in
the cloud. And with SAP HANA and SuccessFactors, we are moving toward a private cloud. That will reduce our expenses
by at least 20 percent – or even more.
SAP instances, in finance and controlling,
for example, and bringing them into the
business areas. The goal is to consolidate
all the applications in our new computing
centers by 2017. So the move to the cloud
will not take place overnight, but in a stepby-step process. The reorganization, of
course, must also be harmonized with our
_Klaus-Hardy Mühleck
Klaus-Hardy Mühleck has been CIO of
steel and technology group Thyssenkrupp
since 2013. In that role, he also manages the
Corporate Center Information Technology
Management in Essen, Germany. He reports
_ Is the SAP landscape at ThyssenKrupp mature enough to migrate into
the cloud?
to ThyssenKrupp CFO Guido Kerkhoff. Earlier
Not yet. As part of our data and process
harmonization, we are ramping up central
and automation engineering in Stuttgart, is
automotiveIT 2014
Mühleck was head of corporate IT at carmaker Volkswagen Group. He studied design
married and has three children.
network capacities – our sourcing partner
has the task of ensuring the availability
of data lines from the research centers to
our locations as well as the last mile to the
workplaces, backed up by performance
agreements defined with absolute clarity.
We will operate our own IT management
center so we can measure performance
continuously and stringently.
_ On the IT side, are you dealing with
solutions for Industry 4.0?
That’s nothing new for ThyssenKrupp. Our
modern steel plants are intensive users of
WebSphere applications from IBM in the
production environment. And if you go to
Leipzig, you will find highly networked solutions in the plants that serve BMW and Porsche. Our components area uses them to deliver pre-mounted axles and chassis right to
the assembly line. The release order reaches
us just two hours before installation.
_ So is ThyssenKrupp now a digital
company?
It depends on how you define it. Compared
to Google, certainly not, because we only
earn our money with physical products and
components. But to cooperate successfully
with innovative industries such as the automotive sector, ThyssenKrupp has to master
highly networked processes. Digitization
helps us with this.
_ ThyssenKrupp’s growing networking
naturally has a flip side – IT security.
When was the company last the victim
of a targeted cyber attack?
Every major company is attacked multiple times a day. In the last two years at
ThyssenKrupp, we have launched many
preventive security measures. More will
follow as part of the pending infrastructure consolidation. For example, we plan to
work in four security levels that are already installed in Essen and are being spread
out across the ThyssenKrupp world. As far
as security technology goes, we have everything available that you can buy on the
market. We are also in a position to gather
relevant information about data attacks,
user behavior and traffic volume in our
company network centrally and analyze
everything in real time. That helps us recognize and defend against threat scenarios early. Last but not least, we’re sensitizing our employees continually with training, newsletters and expert forums.
_ In conclusion, please finish the following sentence for us: ThyssenKrupp IT
will be successful when…
… the business sees IT as an integral component of its value creation chain and perceives us as an equal partner in innovation.
automotiveIT 2014
48 Daimler AG · Thomas Weber
»We will join the alliance«
Photos: Claus Dick
Thomas Weber is board member of Daimler in charge of group research. He is
also responsible for development at Mercedes-Benz Cars. Weber spoke to carIT
about Google in the car, data security and autonomous driving at the 2014 Las
Vegas CES.
automotiveIT 2014
Thomas Weber · Daimler AG 49
_ Dr. Weber, why does Daimler have
such a big presence at the CES in Las
Vegas this year?
Consumer electronics is giving a major
boost to the car and automotive innovation is massively influenced by electronics
today. That’s why we’re here. You also see
that everyone here is interested in the automotive business. It can be a win-win for
both industries.
_ Several automotive companies here
announced the establishment of an
“Open Automotive Alliance“ together
with Google? You were not among the
founding members.
We’re not a founding member, mostly because the current timing didn’t really fit us.
But we will, of course, also join the alliance;
this year already. It’s completely clear that
we are positioning ourselves flexibly and
don’t just want to concentrate on Apple’s
iOS. Android and Google-based systems
are equally important.
_ So you don’t have any operatingsystem preference when it comes to
smartphone integration in the car?
That’s right. It’s not our decision which mobile phone the customer wants to use. And
when you look at the massive unit sales of
Android devices or the innovation spirit of
Apple, it’s clear you cannot ignore either. It
is expected of us that we support the whole
spectrum of mobile phones. To provide the
maximum flexibility for our customers, we
also need to discuss how we can get wireless charging of mobile phones in the car.
That’s a very logical next step.
_ Please describe to us how you work with
companies such as Apple and Google?
We have good and intensive cooperations
with both companies. Top Google people
are regular visitors at our research center in
Palo Alto, but we are open to cooperation
with all of Silicon Valley. Our partnerships
are based on mutual attractiveness. We’re
not in an exclusive arrangement with anyone, but want to use the innovative power
of the whole region, which includes companies such as Google, Intel, Apple, eBay,
Facebook and others.
_ Given the importance of connected
cars for the future of the industry, don’t
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you need a special relationship with one
of these high-tech companies?
We cultivate particularly intensive relationships with certain partners, but we are not
necessarily looking for exclusive partnerships. Every new partner focuses on a new
area and we appreciate the competition
between different concepts.
_ The different development cycles of
the automotive and consumer electronics industries have long been a
problem. Are you finally bringing these
cycles more in sync?
We have a very consistent modular strategy. That means that we develop components and systems independent of a particular model. A developer of brakes, steering or telematics is only concerned with the
development of his particular component.
Telematics, for example, is driven by the
innovation speed of electronics. We’re today already planning the next generation
of telematics, but those components are
developed separately from the overall car.
With our modular building-block system,
I’m developing the next generation of our
Comand Online HMI. When it’s ready, all
I have to do is put it into whatever model
is being released. In that manner, we’ve all
but solved the different speeds issue.
automotiveIT 2014
_ That’s the case today already?
Look at everything we have achieved with
the modular interlinkage in the S, E and CClass models. Which other brand has the
kind of autonomous driving features of
the S-Class and has the ability to make the
same technologies available in the E-Class
and C-Class? You can only do that by applying this modular approach.
_ With the current increased focus on
data security, what are you doing at
Daimler to make sure customer data are
safe?
Security and privacy are among the biggest issues we face. We’re addressing these
issues in many projects now underway. By
using our own servers, it’s clear that we can
offer a high degree of security and privacy.
But it’s also clear that much needs to be
done in this area.
_ So no data on US servers?
We guarantee Mercedes customers safe and
secure storage of their data on a MercedesBenz server that’s located in Germany.
_ Are automakers offering too many
connected services already?
In the past we would have first constructed
the business case for a particular new ser-
vice. But today I’m advocating that we
bring some features into the car even before we know exactly what consumers will
do with them. With much of the functionality we offer in the car today it isn’t crystal
clear what drivers will use it for, but we still
have to do it. I may not need a particular
service, but many customers expect that we
offer it.
»Security and privacy are among
the biggest issues we face«
_ How do you make those decisions?
You have to keep in mind that markets often
differ radically from one another. If you’re
talking about a typical S-Class customer,
you forget that the same S-Class customer
in China is 10-to-15 years younger than in
Europe. For the Chinese S-Class buyer, the
IT in the car is a decisive purchasing criterion. You have to be careful that your own
assessment isn’t the only one that matters.
_ You’re showing major advances in
autonomous driving, but full implementation will be a while. In the meantime
you’re putting some of the technologies
in Mercedes-Benz vehicles today. But
what will be “the next best thing“
coming into cars?
The next best thing is surely that we offer
some of those autonomous-driving functions to our customers soon. We feel we
have a leading position in autonomous driving and are working very hard to maintain
this. I can imagine that in the next five
ye¬ars we will have selected autonomous
parking features available. Another big
development is the ability of the car to
learn and predict. The next big thing is the
car that recognizes who is getting in in the
morning, automatically makes navigation
proposals, preconfigures the seats, selects
the right music. And we want to establish
a seamless connection between the car and
wearable devices such as Google Glass or
the Pebble smart watch.
_ Despite all the progress, many of the
new in-car functions still distract the
driver from his core driving role.
That’s a permanent issue that will provide
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_Thomas Weber
Thomas Weber has been a management board
member of Daimler AG since 2003. He has been
responsible for Group R&D and development at
Mercedes-Benz Cars since May 1, 2004. Earlier, the mechanical engineer served as deputy
management board member for R&D at DaimlerChrysler; project manager for the Mercedes AClass and head of the carmaker’s plant in Rastatt,
Germany.
a huge push in the direction of autonomous
driving. The customer wants to have in the
car what he is used to having in his daily
life. Many of those things aren’t necessarily helpful in the area of driver distraction.
Customers don’t like restrictions that we
impose, but we also don’t want to compromise our safety rules. We offer head-up displays as an option. Maybe new technologies
such as Google Glass will provide an option
to deal more effectively with distractions.
We’re taking the issue extremely seriously
and have various big research projects underway. The aim is to offer as much as we
can and be within the regulator’s demands.
The ideal is obviously autonomous driving,
where you can watch a movie or do something else nice while the car takes over the
driving function. That’s a huge megatrend.
_ Do you look at test comparisons of
your infotainment and HMI in business
and consumer publications?
We take all of those tests extremely seriously and want to permanently learn and
improve. But we’re also very aware that, especially in the area of electronics in the car,
a lot will change in coming years. That’s
why we’re making a big push to connect
the consumer electronics and automotive
industries.
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_ Is gesture control on your agenda?
We showed a demo of gesture control at
the CES two years ago. The main problem
is still how to make it automotive grade. In
the automotive environment, with its many
reflecting surfaces, it’s difficult to make
gestures clearly recognizable. But we’re
working on it because we realize that
gestures are, in a sense, a more normal way
to bring something about than flicking a
switch or pushing a button. I think it’s pos-
»Driver distraction is a permanent
issue. But customers often don’t like
the restrictions we impose«
sible that we’ll have the first gesture-controlled processes in five years.
_ How important is 4G/LTE for the connected car?
The biggest construction site when it
comes to connectivity is the infrastructure.
It’s a near-permanent irritation that in
some areas you get your emails at lightning
speed, while in others you’re dealing with
1G or 2G speeds. Our problem is that the
customers almost always blame the car and
not the network. It’s my dream to quickly
get a high-performance LTE network up
and running and we’re definitely supporting that effort.
_ Can you quantify how much the electronics in a car cost today?
I wouldn’t want to be specific here. An
ever bigger part of the car is affected by
electronics, but it’s increasingly difficult
to separate this out. What part of the car
isn’t to some extent electronic today? The
structural parts aren’t, but all others have
electronics in them and that includes, suspension, lighting, engine, powertrain and
many other parts of the car.
Interview by Arjen Bongard (automotiveIT
international)
automotiveIT 2014
54 Opel · Karl-Thomas Neumann
»We will adhere to all applicable
European data privacy rules«
automotiveIT spoke with Opel CEO Karl-Thomas Neumann about the brand’s
improved prospects, the recent announcement that GM’s Onstar telematics service
is coming to Europe and his vision for new mobility and the connected car.
_ Mr. Neumann, everyone is talking about
the networked automobile. In the future,
will it no longer be the classic themes
that determine the purchase of a model
but rather the degree of digitization?
Classic themes such as design will continue
to play an important role in every purchase
decision. But we are trying to combine these themes with new aspects such as digitization. Styling speaks to the heart. It is the
emotional side. On the other hand, we at
Opel have the art of German engineering
with values such as technology, precision,
structure and quality. This is where you
find our unique selling proposition. We
want to be the emotional German brand.
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_ At the Geneva Motor Show this year,
you announced the introduction of GM’s
OnStar network service in Europe and
characterized this as a major step on the
path to connectivity. Can you define the
milestones on this path for us?
I considered the Opel Adam to be an important milestone. With IntelliLink (GM’s infotainment system) and Siri speech control,
it is the best-networked small car on the
market. More than half of all Adam models
delivered in Europe are ordered with Intelli- Link. We have taken another major step
forward with our intuitive infotainment
system in the new Insignia. Three out of
four new Insignias in Europe have Intelli-
Photos: Opel
Karl-Thomas Neumann · Opel 55
automotiveIT 2014
Link. As of this year, the IntellilLink system
with smartphone integration, a seven-inch
color monitor and audio streaming is also
available in the Astra, Ampera, Cascada,
Meriva, Zafira Tourer and Mokka models.
_ And in the future?
The Opel Monza concept car, which caused
a sensation at the last IAA in Frankfurt,
shows where things are heading long-term.
It is the model for future HMI systems, that
is, the interface between the human being
and the machine, as its interior configuration is based on the latest research findings
in this area.
_ OnStar is not new – General Motors
introduced the system as far back as
the mid-1990s. Was the “breakthrough”
only possible with digitization or was it
before its time?
The market for telematics services has
grown in the meantime and people’s awareness has changed. In any case, the services that we are now planning are much
more targeted than they were in the past.
OnStar includes services such as emergen-
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cy aid and break-down assistance. This requires a data transfer from the car.
_ Where does Opel stand on the hotly
debated issue of data ownership?
OnStar is there to improve the protection
and safety of our customers. This is precisely the reason that data privacy and the
protection of the private sphere are particularly important.
_ In concrete terms, this means …
We will naturally adhere to all applicable
European data privacy rules and make it
possible for our customers to select precisely the service they would like. The data
will only be used for the purposes that were
agreed upon with the customer beforehand
and he can naturally prevent the collection
of location data in the car at any time.
_ Is the next step with OnStar conceivably a link with the workshop, which
can then make service appointments on
the basis of Onstar’s remote-diagnostics
capability?
Yes, that is conceivable. But the data will
»Dealing with our control elements should be as intuitive as possible, no matter
what accessory the customer uses in the vehicle«
only be used for purposes that the customer agrees to in advance. With the help
of apps, you can listen to internet radio or
even navigate in the Adam, for example.
_ Is this low-cost form of infotainment
integration Opel’s future – a kind of
entry-level solution? Is it possible that
customers really don’t want more?
With IntelliLink we are offering the latest
generation of Opel infotainment systems
-- and in different variations. We will continue to develop the system so we are able to
offer a tailored product to many customer
groups in a variety of different price ranges.
_ General Motors is a member of the
Open Automotive Alliance, which is supposed to help integrate Android systems
sensibly into the vehicle. What are you
generally expecting from the Alliance
with regard to integration and driver
distraction?
We would like to achieve the best possible
integration of smartphones from all manufacturers and all popular systems into our
infotainment systems.
_ Everyone wants that.
Dealing with our control elements should
be as intuitive as possible, no matter what
accessory the customer uses in the vehicle.
Of course, we continue to work on enabling
the problem-free integration of future systems and new smartphone generations.
_ A major problem in the development of “
new technologies” relates to the different development cycles. VW is dealing
with the problem with a modular infotainment kit. How is Opel proceeding?
By using standards such as Autosar and
standardized interfaces such as Bluetooth
and USB, we are facing up to this challenge. In doing so, we are increasingly transferring functions into clouds or apps.
_ You appear to prefer an open solution
that allows outside apps in the fully
integrated systems in the Astra and Insignia. Is that really the right way if you
think about the risk of driver distraction?
Opel’s uppermost goal is to configure our
apps and infotainment systems in such a
user-friendly and clearly arranged way that
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_Karl-Thomas Neumann
Karl Thomas Neumann became CEO of Adam
Opel AG and president of General Motors Europe
on March 1, 2013. In addition, he is a GM vice
president and a member of the US carmaker’s
Executive Committee. Earlier in his career,
Neumann worked for the Volkswagen Group,
where he ran the company’s China operations
from 2010 until 2012. Neumann, who has a degree in electronics, was a management board
member of Continental from 2004 til 2009, during which period he was in charge of the German supplier’s Automotive Systems division. He
served as CEO of Continental from August, 2008,
until September, 2009.
it never occurs to customers to pick up their
mobile phone inside the car. In our IntelliLink infotainment systems, core functions,
such as the activation of speech recognition, take place with remote controls from
the steering wheel. Some functions are also
restricted so that you can only read SMS
messages or look at videos while stationary.
But you can have incoming SMS messages
read aloud or draft them using Siri speech
control. In the medium term, progress toward some form of automated driving can
unburden the driver even more.
_ What do you think of the cloud?
Services based on HTML5 can in fact be
loaded into the vehicle – relatively – independently of the infotainment system.
Functions are increasingly being shifted to
the cloud or to apps. As a result, Opel infotainment systems can be brought to the
most current state with software updates.
Once purchased, the functions of the infotainment systems do not stay at the technical level during the delivery stage over the
vehicle’s entire life. The owner can even
update them.
automotiveIT 2014
_ Mercedes and BMW are accelerating
new mobility concepts such as carsharing. You also plan to enter the segment. Can you tell us about those plans?
Our dealers are already involved in car rentals through Opel Rent. We are offering the
cars through Tamyca, a new car-sharing
company. And as Opel, we will announce
new car-sharing projects in at least one
European metropolitan region between
now and the end of the year.
_ Car ownership has become a substantial cost factor. Won’t growing numbers
of people choose to do without a car or
be forced to do without one?
Opel has always made driving affordable
for broad strata of the population. We are
committed to this tradition. Even today we
offer great value for money in all our model lines. Mobility means freedom. People
want to be mobile at any time. And in most
cases, only your own car can guarantee
this. We’re naturally seeing a certain trend
where people in large cities would rather
do without a car of their own. This will increase the importance of car-sharing.
_ A final question: Opel has had numerous
problems in recent decades. What makes
you so sure that the brand has a future?
We are now systematically carrying out
“Drive!2022,” our comprehensive 10-year
plan. And we are enjoying the backing of
our parent General Motors. We are investing about 4 billion euros solely as part of
our model offensive. And are you seeing results in the market? Or, in other words, are
Opels selling better than they have done
in the past? Our model offensive is going
down extremely well with our European
customers. For the first time in 14 years, we
are gaining market share and are successfully occupying new segments. The Mokka, with more than 215,000 orders, is the
current top-seller among the new models,
and orders for the lifestyle mini-car Adam
have surpassed the 80,000 mark. Opel is
on the attack again. You can really see that
in our many innovations. And we will have
a few more arrows in our quiver in coming
months, for example, the Adam Rocks.
You’re in for a surprise.
Interview by Hilmar Dunker
automotiveIT 2014
60 Audi · Ulrich Hackenberg
»You won’t see electronic gimmickry
for its own sake at Audi«
Photos: Audi
Ulrich Hackenberg says Audi’s newest technologies are proof that the brand’s
slogan – Staying ahead through technology - is as valid as ever. The R&D boss
plans a range of new measures to reduce complexity in the cockpit and he pledges
to provide the highest possible protection against hacker attacks.
automotiveIT 2014
Ulrich Hackenberg · Audi 61
_ Mr. Hackenberg, Audi critics say the
company is not as innovative as it was in
recent decades. What is your response?
I invite the critics to take a look at Audi, certainly a hotbed of innovation, so they can
see how the company’s more than 10,000
engineers live and breathe this slogan every day. For years, our team has made it possible for the brand to take a leadership role
in numerous technologies.
_ Can you cite some examples?
Starting with Quattro drive, through our
lightweight construction expertise, all the
way to our TFSI and TDI engines, lighting technologies and groundbreaking
assistance and infotainment systems. And
the list goes on, whether it’s autonomous
driving, alternative powertrains or vehicle networking. We are bringing the future
into series production.
_ Let’s talk about the future. How will
the new A4 highlight advancement
through technology – especially with
regard to connectivity. Can you give us
a couple of examples?
The Audi A4 will be the new benchmark.
That is our claim and our customers’ expectation. The new generation is arriving with
a virtual cockpit with a large main monitor.
In addition, it has a simplified navigation
control system with intelligent free text
and online searches. We are also bringing
out an intuitive voice input system, which
increasingly responds to naturally spoken
inputs instead of predefined commands,
along with a social media connection and
online media streaming. That is just a taste
of the next Audi A4.
_ Mercedes has turned to a stereo
camera and other assistance systems to
capture the environment. Will the new
A4 also employ these technologies?
The coming A4 generation will be equipped
with innovative assistance systems for parking, active security and self-piloted driving. We are not revealing more than that,
but you can assume that we are pulling out
all the stops.
_ In the new TT, you are introducing a
fully digital instrument cluster – and are
dispensing with the main screen in the
center console. Is this a special sports
car solution?
We are offering customers a revolutionary
layout in our virtual cockpit in the Audi TT.
The instrument cluster and the MMI screen
melt into a central digital unit. It also offers
dynamic animation and precise graphics.
This is a technological highlight through
and through. For the TT, we are deliberately focusing on the driver. This is the philosophy that best fits our compact sports car.
automotiveIT 2014
_ That still leaves the question about the
co-pilot.
Thanks to high readability, the co-pilot definitely has the opportunity to use the displays. We basically take all the passengers
into account in the development of infotainment. That is why we integrated a WiFi
hotspot very early on and why we are developing the Audi tablet – a tablet computer
especially suited to the automobile, with
complete vehicle integration.
_ Starting in 2015, Audi will integrate
both Apple’s CarPlay and Google’s
Android Auto into the vehicle. Will this
allow drivers to use all the functions of
their smartphones?
The respective smartphones will be integrated seamlessly into the vehicle’s control
architecture. That also means that smartphone apps are transferred in accordance
with a special programming guide to make
them extremely user-friendly and satisfy
driver distraction guidelines. Apps that
meet these criteria can be used in the vehicle. But appropriate peripherals are also
part of smartphone integration. With the
Audi phone box and the fully integrated
LTE broadband connection, we are already offering our customers a very good approach today.
_ Your company is a founding member of
Google’s Open Automotive Alliance. Can
you tell us what is happening there now?
We founded the Open Automotive Alliance
along with other automakers, Nvidia and
automotiveIT 2014
Google. The goal is to integrate Android
applications into the automobile and to
support the development of products and
services better suited for use in vehicles.
Through this cooperation, the consumer
and automotive technologies have moved
closer than ever to one another. They are
smoothing the way for the more rapid development of innovations and above all for
the optimal integration of the customers’
mobile devices. Parallel to this effort, we
are also working closely with Apple to offer
users of its products the highest possible
integration.
_ The need for connectivity is increasing
the complexity of controls – that is what
our HMI tests have shown in recent years. What steps must be taken to make
operation more intuitive?
You are absolutely right. Complexity is
growing dramatically. That is why it takes
the complete bundling of measures to make
the systems easy for the driver to manage.
This includes the optimum integration of
smartphones. Otherwise, many customers
will be operating them while they drive,
which is the worst and most dangerous alternative.
_ You mentioned the “bundling of
measures.“ What exactly does that
mean and can you give some specifics?
We consider optimal voice control operability to be important because it causes
the least distraction. Another requirement
is uncluttered cockpits with clear control
structures and high-quality display systems
that allow extremely good legibility in all
lighting situations. There are situations
where the driver is overwhelmed with traffic-related events or even underwhelmed
in monotonous situations, and he cannot
respond competently. As a result, reliable
assistance systems are needed as support.
The awards we have received show we are
on the right track.
_ The voice control system that you
mentioned is seen as an important
solution. But there is no system on the
market right now that functions extremely well. Especially if you have noise,
dialects or several people on board,
most automakers’ systems fail miserably. What do we need to see in the next
stages of development? Or has voice
control simply reached its limit?
We have achieved significant progress with
voice control and we continue to improve
the quality of speech processing and filtering of disruptive background noise. We
have been able to offer the input of complete navigation destinations with just one
speech command. Now in the Audi TT,
we’re bringing out a completely new generation configured for the processing of naturally spoken commands. In this process,
it is sufficient to activate the voice control
system and, for example, just say “I have
to speak with Peter” or “I would like to call
Peter” to call the contact. That is major progress. It makes voice control even more appealing to the customer.
_ Augmented reality is one of the new
trends in the realm of controls – at
Jaguar, people are even talking about a
virtual windscreen. What is Audi doing
in this area?
The idea of overlaying augmented reality
content definitely has its charms. We can
provide the driver with information more
precisely and more individually. That is
why we presented our early ideas on this
at the Consumers Electronics Show and at
CeBIT as far back as 2012, in the form of
a contact analog head-up display. At present, we are exploring the possibilities for
series development. But we are taking a
very rigorous approach. The benefit to the
customer and a low level of distraction are
important criteria. You won’t see electronic
gimmickry for its own sake at Audi.
_ You have introduced a modular infotainment kit (MIB), based on the current
A3, to align the different development
cycles of the consumer and automotive
worlds with one another. What is the
system’s release status today and what
new features does it offer?
With the MIB, we have managed to boost
our computing performance virtually at an
annual clip. That already puts us very close
to the consumer world. Although we presented the first MIB on the A3, we are already underway with the second generation
on the TT and the reworked A7 Sportback.
_ What can we still expect?
An Audi tablet will follow with even high-
automotiveIT 2014
er performance. And, compared with the
2012 system, the MIB will feature a fivefold
increase in computing power in 2016.
_ Connectivity will help control traffic in
the future. Traffic-light info online is an
Audi technology to help provide this.
What are you still cooking up – and when
will these technologies be heading into
series production?
We have a great interest in better traffic
flow control because it ultimately saves
the customer time and money. You need
reliable partners for these projects and secure access to traffic control centers. In our
demonstration tests, the cooperation and
the technical implementation function tremendously well. So the signs are very promising. But we still have a number of steps
to take for a broadly based or international
service, even if the technology in our vehicles is already functioning reliably.
_Ulrich Hackenberg
Ulrich Hackenberg was born in 1950 in Herne,
Germany. Following his studies in mechanical
engineering he joined the Institute of Automotive Engineering at Aachen University and worked
there from 1978 until 1985. He then joined Audi
and worked there until 1998, when he moved to
parent company Volkswagen. At VW, he took
responsibility for concept development. From
2002 til 2007 Hackenberg was back at Audi, but
in February of 2007 he became VW Group board
member in charge of development. In July, 2013,
Hackenberg returned to Audi as head of technical
development.
automotiveIT 2014
_ At this year’s CeBIT, VW CEO Martin
Winterkorn warned that the automobile
must not become a data octopus. How
do you intend to prevent that?
As a start, by maintaining the information
as the property of the customer, just as it is
now. Naturally, we offer the customer individual services if he would like them. This
is similar to the way you approve certain
data when you activate a smartphone app.
This would also be the case for a car. But
in these situations, the customer information is handled sensitively or in anonymized
form. We also protect the cars against unauthorized access with the highest possible
security standards. In any case, there will
still be infotainment functions relying on
remote access – such as vehicle status inquiries from a smartphone – that are separated from security related control systems.
But the fact is that energetic hackers with
criminal intentions are a risk, and we must
provide protection against them.
_ In the media, scenarios keep cropping
up in which hackers are able to remotely
steer or even brake a vehicle. How realistic is that really?
We use recognized and tested embeddedsecurity measures and standards. Moreover, we are already expanding our security measures as we develop new functions to
guarantee the greatest possible degree of
data security and protection against hacker
attacks on the vehicle.
_ Martin Winterkorn has ordered a costcutting initiative for all brands within the
VW Group. How will that affect Audi in
coming years?
In a technology-oriented company like
ours, pressing ahead with innovative technologies is of existential importance for
the continued expansion of our competitive position. But we have always worked
systematically to make our development
activities efficient and goal-oriented. That
will be the case in the future as well. We’re
doing this from a position of strength to
orient the company for the future. And
we fundamentally have the advantage of
the Group’s modular strategy, which is a
source of synergy.
_ Google has built a piloted vehicle on
its own. Has the IT company joined the
ranks of automakers?
We definitely take Google’s efforts seriously. Google is addressing a subcategory
of mobility that I would assign to public
mobility in urban scenarios. This mobility
scenario does not correspond to our current company orientation. From a technical
standpoint, the Google approach is interesting, but it does not cover the self-piloted
approach that we’re pursuing with regard
to information and decision-making complexity. Time will tell whether robot vehicles have a future. In any case, we at Audi
have a different philosophy.
_ In conclusion: In your view, what will
the automobile look like in 2025?
Our customers want to be flexible in the
future as well. They want to be comfortable and use their time efficiently when they
travel. Especially in large cities. To ensure
this, the automobile of the future will be
intensively networked. It will communicate
with other vehicles, with the infrastructure
and with their owners’ homes. The automobile is becoming a mobile device par
excellence. And we will experience critical
upheavals in powertrain technologies as
well. For us, as an automaker, this also means that we will make a variety of models
available to customers, depending on their
purposes and requirements. There will always be a market for premium mobility
that is both individualized and fun.
Interview by Hilmar Dunker
automotiveIT 2014
66 Impressum
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Art Direction
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Tanja Burmeister
Tel: +49 (05) 101 / 99 0 39-98
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Editor-in-chief
Hilmar Dunker
dunker@automotiveIT.eu
Editor, automotiveIT International
Arjen Bongard
abongard@automotiveIT.com
Lithography
Bernhard Kuehne
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Single copy price: €22,90
ISBN: 978-3-9816360-2-4
A special edition, in cooperation
with NTT DATA, Munich.
automotiveIT 2014
Uwe Höhne
Executive Vice President
Automotive
Vice President Business
Intelligence & Big Data
Business & IT
Dr. Rainer Mehl
Top Interviews - 2014

Automotive IT Interviewbook

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