PECM Issue 36 2019 | Page 18

EDITOR’S CHOICE JOHANNES STEMMER INTERVIEW BEUMER GROUP WE HAVE ALL THE OPPORTUNITIES IN THE WORLD THE NAME “DIGITAL TRANSFORMATION” ALREADY IMPLIES THAT THERE IS AN IMPORTANT CHANGE INVOLVED. WHAT DOES THIS MEAN FOR THE BUSINESS WORLD AND FOR THE INDIVIDUAL, WHAT WILL BE THE CHALLENGES? Digital transformation is inevitable. Industry, economy and society are already there. How can a medium-sized mechanical engineering company and leading global systems supplier of intralogistics solutions face these changes and get the most value out of it? Johannes Stemmer, Director Digital Transformation at BEUMER Group, is here to give us answers. MR STEMMER, HOW DO YOU UNDERSTAND DIGITAL TRANSFORMATION WITHIN THE CONTEXT OF YOUR COMPANY? Stemmer: First of all we have to include the people in this, at an acceptable pace. We at BEUMER Group have a large group of different experts. Some of the colleagues work on innovation and software every day, other areas are less affected by this. It is important to make all employees more aware of this topic. Digital transformation is inevitable and it will change our entire business environment. So we should avoid alarmism and find quick and consistent answers instead. Stemmer: It basically comes down to the safeguarding of our future sustainability. We are combining 80 years of experience, which made us one of the leading global systems suppliers in the intralogistics industry, with innovation that is driven by today’s challenges from digitization. WHAT IS IMPORTANT FOR A SUCCESSFUL DIGITAL TRANSFORMATION? Stemmer: We are already experiencing digital transformation, not only in our business, but also in our private lives. Almost everybody owns a smartphone, streaming services are taking over and digital platforms are continuously growing. Many of the companies that are active in this field have no relation to standard business models which have existed previously. In August this year, Apple became the first company in the world to have a net worth of more than one trillion US dollars. That is more than the 15 largest DAX-listed companies combined. This switch to mobile end devices also affects the buying behaviour in our society. E-commerce is picking up speed, and we are expecting double-digit growth per year in this area. It is an important business field for BEUMER Group. We have to be fast and flexible in adapting new technologies. Property rights are an important topic that we will need to examine thoroughly. A traditional technical innovation can be patented, but when it comes to software, things get a littler more difficult, and for business models it becomes almost impossible. For any digital innovation, data plays an increasingly important role. Their 18 PECM Issue 36 value tends to be underestimated in the industrial context. Data, and the resulting efficiency gains, are beneficial for customers and companies and the use of this data can be transferred into new business models. In this regard, other countries are way ahead of us, which has to make us rethink our strategy. WHERE IS GERMANY IN THIS PROCESS AT THE MOMENT? Stemmer: I think that German companies are generally in a better position than it is often portrayed in the media. We have many hidden champions who are global leaders with their products and systems. That is a very good starting position to acquire the necessary digital literacy needed to ensure future sustainability. In my opinion it is easier for a company to adapt the digitization technologies instead of trying to catch up on the know-how lead in the manufacturing sector from a software perspective. The goal is to complement the capacity of the machines and systems, including the required software and controls, with digital innovation. Especially the B2B environment offers us every chance to play a leading role. HOW CAN YOU MAKE PEOPLE MORE AWARE OF THIS TOPIC? Stemmer: One good example are streaming services. Everybody knows Spotify, Apple Music or Netflix. What is new is that we have to look at them as our competitors. Not because they offer the traditional products in the intralogistics field like we do, but because streaming services have changed the entire market mechanisms. Our sortation systems were used for sorting and distributing CDs for the music industry, for example. Within only a few months this entire market was cancelled out, almost no one went to a record store anymore because now there were streaming services. With these business models, the services contributed, within a very short period of time, to the disruption of a market segment that we are active in. This can happen in other segments too. WHAT ARE THE REACTIONS AMONG THE EMPLOYEES? Stemmer: They can see that there is a lot happening right now. They also see the opportunities, if we respond quickly and efficiently.