The Industrial Metaverse and digital transformation: The digital lighthouse project – Siemens Gerätewerk Erlangen (GWE)

The digital transformation of GWE: A pioneering role in the industry

The Siemens Gerätewerk Erlangen (GWE) is considered an outstanding example of how traditional production facilities can be transformed into “digital lighthouse factories” through the use of state-of-the-art technologies. In a world in which Industry 4.0 is no longer just a buzzword but is becoming a fundamental reality, GWE is taking on a pioneering role. Through the consistent use of technologies such as digital twins, artificial intelligence and automation, the real and digital worlds merge in GWE. This union creates added value that not only increases efficiency and productivity, but also ensures sustainability while paving the way for new business models.

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• Siemens is investing one billion euros in the Industrial Metaverse

Benchmark for the industry: digitalization as a necessity

“Digitalization is no longer a trend, but a necessity.” With this insight, companies like GWE are setting standards from which the entire industry can benefit. What is special about GWE is not just the mere application of these technologies, but rather the way in which they are integrated into a seamless overall solution. This comprehensive approach makes the GWE a source of inspiration for other companies that also want to set out to optimize their processes and make them future-proof.

The digital lighthouse factory: networking the value chain

The idea of ​​a “digital lighthouse factory” involves much more than the use of individual tools. Rather, it is about digitizing and networking the entire value chain. This includes development and construction, logistics, production, quality control and human resources. In each of these phases, data is collected and combined to create a comprehensive picture of the current situation. “Only those who understand the overall process can really optimize it” – this guiding principle is at the heart of all digitalization efforts at GWE.

The digital twin: key technology for efficiency and prevention

A crucial element in this process is the so-called digital twin. A digital twin is a virtual representation of a real object, a system or even an entire production system that is as accurate as possible. Not only geometric information is taken into account, but also functional data such as load behavior, temperature, wear and energy consumption. In this way, tests, simulations and analyzes can be carried out in the digital space that would involve considerable effort or even risk in the real world. “In the digital twin, possible weak points are discovered at an early stage” – and this is exactly the key to increasing efficiency and preventing errors.

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• Industrial Metaverse factory planning from BMW iFactory: Digital Twin & Virtual Factory & Planning with the NVIDIA Omniverse

Autonomous production through artificial intelligence

One of the major goals of the GWE is to develop increasingly autonomous production using these digital technologies. Advanced artificial intelligence systems enable predictive maintenance, in which machines use sensor and production data to independently recognize when an inspection or replacement of wear parts is necessary. “Avoid failures before they occur” – this maxim describes the philosophy through which AI applications help to minimize downtimes in production and increase machine availability.

Automation: relief for people

In addition, the GWE is introducing new standards in production with automation technologies. Robots and cobots (collaborative robots) are increasingly being used to take on monotonous, strenuous or dangerous tasks. Efficient and safe interaction between humans and machines is always guaranteed. “Humans remain indispensable” – this is a principle of the GWE, which emphasizes that automation should not replace employees, but rather relieve and support them. In this understanding of modern industrial work, technology expands human capabilities rather than displacing them.

Sustainability as a central objective

While many companies focus on purely increasing productivity, GWE puts sustainability at the center of its efforts. Through networked sensors and AI analysis tools, energy consumption can be recorded and optimized in real time. “Transparency leads to responsibility” – and responsibility in this context means taking measures that reduce resource consumption and emissions. This not only includes more efficient production processes, but also concepts such as reusing and recycling materials and an intelligent circular economy. With these strategies, GWE actively contributes to climate protection and at the same time positions itself as an attractive employer that meets the requirements of modern skilled workers for a sustainable working environment.

Infrastructures for the Industrial Metaverse

The infrastructures that create the foundation for the industrial metaverse also deserve special attention. This includes fast and stable networks such as 5G, highly available cloud services and powerful edge computing solutions that can process data in real time. “Speed ​​is the key to success” – and this applies not only to process flows, but especially to the transmission and analysis of large amounts of data. By consistently investing in these technologies, GWE creates the basis for opening up new business areas and continuing to grow.

Networked supply chains and agility as a competitive advantage

An example of efficient networking in GWE could be completely digitally controlled supply chains in which suppliers, customers and partners communicate with each other in real time. If a raw material is running low, the system immediately recognizes the impending shortage and automatically triggers a reorder, while the production plans are adjusted in parallel. Such responsiveness, “being agile and seizing opportunities immediately,” is becoming a critical competitive advantage in an increasingly volatile global economy.

Quality management: development through technological innovation

In addition, quality management also benefits from technical innovations. Digitally supported quality controls make it possible to quickly identify deviations in production and eliminate their causes efficiently. This allows the GWE to respond to challenges before they develop into costly problems. “Quality is the driver of customer satisfaction” – and thanks to GWE’s digital technologies, this quality can be maintained and continuously improved in all production steps.

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The interaction of digital twins, AI and advanced robotics represents a milestone in the industrial metaverse of the GWE. The term “industrial metaverse” stands for a high level of networking of virtual and physical realities. Particularly in the planning and development phases, this means that systems, processes and entire factory halls can first be designed, simulated and evaluated completely digitally before they are implemented in reality. “Mistakes that never occur cost nothing” – and that is exactly the enormous benefit that simulations bring to the industrial metaverse.

People in digital change

In addition to all the technical aspects, people must not fade into the background. At GWE, extensive investments are made in the further training and development of employees. New technologies and production methods require new skills, so that “lifelong learning” does not remain an abstract slogan but is actively promoted. Training in virtual reality environments, interactive learning modules and knowledge transfer through mentoring programs are just a few examples of how GWE is making its workforce fit for the future. The aim is to involve every employee in the digital transformation in such a way that the company's know-how grows on a broad basis.

Advantages of the personnel development strategy

This personnel development strategy pays off in several ways. On the one hand, it strengthens the company's innovative strength because employees take a high level of personal responsibility and participate in the continuous improvement processes. On the other hand, it makes GWE attractive as an employer in times when the shortage of skilled workers threatens to affect entire sectors. “Satisfied, well-trained employees are the heart of every company” – and in the context of digitalization, this heart also becomes the driving force for further progress.

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Flexibility of processes in GWE

Another, often underestimated, advantage of digitalization in GWE is the high degree of flexibility that arises from the networking of all processes. Customer requests that change quickly or complex product variants can now be implemented much more easily. In the past, companies sometimes had to wait months until a new production line was prepared. Today, thanks to automated configurations and digital interfaces, production systems can be adapted within a very short time. “Flexibility is the guarantee that we can fulfill customer wishes” – this statement illustrates the aim of always remaining competitive, especially in fast-moving markets.

Batch size 1 production: Individualized products in series

A clear example of this flexibility is the possible introduction of batch size 1 production. This means that each product is individually adapted to the respective customer needs without resulting in inefficient production. Digital twins, AI algorithms and networked production systems play hand in hand here. They make it possible to map, optimize and, if necessary, reroute every production step virtually. This allows GWE to produce tailor-made products in series and offer the customer the highest level of individualization.

GWE as a digital lighthouse factory

The role that the GWE plays as a “digital lighthouse factory” is being followed with great interest in the industry. The insights that GWE gains on the way to increasing digitalization can often be transferred to other industries and companies. “A lighthouse shows the way” – and that is exactly what the GWE is doing with its pioneering role. Other companies look at best practices when implementing new technologies, further develop their own ideas and benefit from the lessons learned. The digital transformation of the GWE is therefore contributing to a broad wave of industrialization in the course of which digital solutions will become the standard and no longer the exception.

Global networking and knowledge transfer

In this context, global networking is also a significant factor. Siemens is a global company with a variety of locations and partners. Findings from the GWE can be incorporated and further developed wherever Siemens operates. Experiences from other plants that are in different stages of digitalization also flow back to Erlangen, thereby promoting a continuous learning and improvement process. “Knowledge increases when it is shared” – a motto that has become a living practice at GWE and throughout the company.

Digital transformation as a dynamic process

At the same time, the GWE is drawing up visions for the future that are aimed at continuously advancing and deepening digitalization. Developments to date show that digital transformation is never completely complete, but rather represents constant change. New technologies and requirements emerge, markets change, and the entire industry landscape remains in flux. “Change is the only constant” – which is why it is crucial for GWE not to rest on the successes it has already achieved, but rather to continually question and further develop its own innovation processes.

Value of strategic partnerships

Partnerships play an important role in these innovation processes. Whether with research institutions, universities or technology companies - the networking of different competencies makes it possible to transfer complex technologies such as artificial intelligence or blockchain to industrial-grade solutions in a short time. “Collaboration is the key to success” – GWE is convinced that strategic partnerships create a mutual transfer of know-how from which everyone involved benefits. For example, the University of Erlangen-Nuremberg, as a regional institution, can contribute to the scientific basis, while start-ups bring in fresh ideas and agile development approaches.

New business models through digitalization

Another interesting aspect is that the GWE is not only redefining production processes through digital transformation, but also business models. For example, by equipping products with sensors and being in constant connection with the manufacturer via the Internet of Things (IoT), it becomes possible to offer services such as real-time monitoring, predictive maintenance or pay-per-use models. “Technology creates new markets” – this sentence describes the potential that digitalization opens up. Instead of classic product sales, companies like GWE can increasingly offer services that strengthen long-term customer relationships and open up new sources of revenue.

Platform-based collaboration

Looking to the future, it can also be noted that the GWE has already begun to introduce concepts such as digital platforms through which business partners and customers can promote joint developments. These platforms make it possible to combine data from different sources, analyze it and integrate it into new products or services. “We share our data in order to grow together” – this idea illustrates the openness and cooperation that have become indispensable in the wake of digitalization.

A special feature of modern factories like the GWE is the ability to view data as a strategic resource. It's not just about collecting information, but above all about intelligently evaluating it. Modern analysis tools detect patterns in huge amounts of data that would remain hidden to the human eye. “Data is the new gold” – this saying illustrates how valuable the right information at the right time can be. Data analytics can be used to create forecasts, optimize production processes, stabilize the supply chain and continuously improve products.

Challenges of data-drivenness

However, this data-driven nature also presents challenges. Topics such as data protection and data security have top priority. The GWE relies on sophisticated security concepts that ensure both the protection of sensitive information and the availability of the systems. “Trust is the basis of all collaboration” – and this trust can only be gained through reliable security standards that regulate the handling of data and access to company resources. At the same time, protection against cyber attacks must be continually expanded, because increasing networking makes factories attractive targets for potential attackers.

Facets of digital transformation

The digital transformation in GWE has numerous facets. It ranges from the fundamental reorganization of manufacturing processes to the integration of AI systems to new forms of collaboration and business model development. A crucial aspect is always how quickly and flexibly you can react to changes. “Innovation is the driver, but resilience is the basis” – this means that the best idea is only successful if the company is able to adapt sustainably to ever-changing conditions.

The balance between innovation and resilience

The GWE has managed to find this balance between innovation and resilience. On the one hand, it boldly advances new technologies and dares to fundamentally question conventional processes. On the other hand, it preserves the structures and competencies that have proven themselves in the past and integrates them into the new, digital world. The result is a production environment in which traditional engineering meets state-of-the-art software solutions - to the benefit of both sides.

The Industrial Metaverse

This is how an “industrial metaverse” is being created at the Siemens equipment factory in Erlangen, which not only connects the real and digital worlds for demonstration purposes, but also enables them to be experienced in practice. This groundbreaking development sets standards in terms of productivity, sustainability and innovative strength. But perhaps the most important message that comes from the GWE is: “Digitalization is not an end in itself, but a long-term promise to make our world better.” If we succeed in making production more efficient and at the same time more environmentally friendly, in creating new jobs and in... Relieving the burden of complex manufacturing processes shows the true benefit of this transformation.

Digital transformation as industry change

The digital transformation at the Siemens equipment plant in Erlangen is an example of the entire change in the industry. Where analog processes used to dominate, networked, intelligent systems are now in use that communicate and act in real time. Where linear supply chains once existed, flexible networks are now emerging in which everyone involved works together on product innovations. Where random quality controls were previously relied upon, today comprehensive data analysis enables errors to be prevented before they can even occur.

New opportunities through digital change

Especially at a time when global challenges such as climate change, resource scarcity and volatile markets are increasing the pressure on companies, digital change opens up new opportunities to overcome these problems. The GWE shows that economic success and sustainable action are not mutually exclusive, but can reinforce each other if technology is used responsibly. This includes continually expanding the skills of our own workforce and leaving the next generation a world in which digitalization and environmental protection go hand in hand.

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“We produce the future”

“We produce the future” – this motto could be on many posters, but at GWE it is already being put into practice. The consistent further development towards becoming a “digital lighthouse factory” makes it possible to master the balancing act between tradition and modernity. Siemens has a long history in electrical engineering and mechanical engineering, but instead of resting on its past successes, the company is looking forward. New technologies are researched, tested and integrated to stay at the forefront of the global industrial landscape.

Responsibility and values ​​in digital change

We learn from the example of GWE that digitalization not only increases efficiency and profits, but also brings with it responsibility. As large industrial players, companies like Siemens have the opportunity to influence social values ​​and shape entire regions. This responsibility is reflected in the concepts of sustainable production, resource-saving management and human-centered workplace design. “Technology must serve people” – a premise that GWE aligns with by using digital tools and intelligent machines to make workplaces safer, healthier and more efficient.

Future developments in the GWE

Looking ahead, it will be exciting to see how the Siemens equipment plant in Erlangen continues to expand its role as a pioneer. New applications in augmented or virtual reality could deepen the Metaverse experience and make collaboration with globally distributed teams even closer. Robots may learn to not only perform physical work, but also support complex planning processes through AI algorithms. At the same time, supply chain resilience is becoming increasingly important, which could lead to stronger partnerships, more diversification and intelligent forecasting methods.

The unstoppable change

The GWE journey represents an entire industry that is undergoing rapid change. What is considered progressive today will become normal tomorrow, and the day after tomorrow a new technology could revolutionize the playing field again. “Change is unstoppable, but we are helping to shape it” - a confidence that leads the GWE to see innovations not as a threat, but as an opportunity.

Vision of a modern factory

Overall, the Siemens equipment plant in Erlangen illustrates what a modern factory that combines digitalization, automation and sustainability can look like. From digital twins to AI-supported processes to the industrial metaverse, a vision of Industry 4.0 is within reach. The GWE demonstrates that progress and environmental protection can go hand in hand if you have the courage to leave old paths and use new technologies with a sense of responsibility. The message to the world is: “The future has already begun – let’s shape it together.”

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A culture of change

With this attitude, GWE not only contributes to its own company success, but also shows other companies the way into a new era of industrial value creation. Concrete examples of digital twins, AI-supported production processes, robotics, automation and intelligent data analysis can already be found in numerous industries, but they are rarely linked to one another as consistently as in the GWE. That's what makes this location a true beacon: the ability to weave individual technology components into an integrated overall vision in which all the cogs mesh perfectly.

Success through corporate culture

In the end, the success of the GWE is also a question of culture. Without the willingness to embrace change, without the courage to accept mistakes, and without the will to learn from these mistakes, digital change would not be successful. “Culture beats strategy” – and the GWE shows how a culture of trust, openness and willingness to learn forms the basis on which any digitization strategy, no matter how ambitious, can be successfully built.

A factory of the future

All of these aspects make it clear why the Siemens equipment factory in Erlangen can be described as a “digital lighthouse factory”. It is a place where not only machines work, but also people who design and test the factory of the future every day. This future combines economic efficiency, sustainability, innovation and social responsibility in a concept that goes far beyond pure production. The GWE thus provides an impressive example for other companies that are embarking on their own path towards digitalization.

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Konrad Wolfenstein

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