No Innovation No Business Growth Deutsche Bahn AG | Rolf Härdi | CTO | Berlin | 15.08.2017

IF I HAD ASKED PEOPLE WHAT THEY WANTED THEY WOULD HAVE SAID FASTER HORSES Henry Ford (1863 – 1947)

The Growth through Innovation Company  new idea, device or method wikipedia Innovation has the power to fuel growth, increase top-line revenue and offer customers something new. Robert B. Tucker has analysed 35 successful innovation growth companies and subsequently identified five common key best practices: 1. Innovation must be approached as a discipline.

2. Innovation must be approached comprehensively 3. Innovation must include an organized, systematic

and continual search for new opportunities 4. Innovation must involve everyone in the

organization 5. Innovation must be customer-centered

Example: Google Business Success through continious innnovations and product development 1. Clear defined vison for innovation „To organise the worlds information and make it universally accessible und useful“ 2. Continious integration of new technologies Thorough screening of new/ emerging technologies and integration / acquisition of start-up as well as established technology companies 3. Investition in R&D Google is investing >15% (14 Bil. Dollar in 2016) of its yearly revenue in R&D. This is not including the technologies acquired through acquisitions 4. Thorough conversion of the Google vision In order to ensure “useful and accessible” information, google has broadened its activities from pure analysis to creation and delivery of information

Rail - Industry To organise the worlds public transportation, making it pleasant and efficient

1. Clear defined vison for innovation What is the defined vision on innovation for the railway industry? 2. Continious integration of new technologies What are the technologies and product developments to support the vision. How do we ensure that we systematically capature these technologies 3. Investment in R&D How much of do we invest in R&D? How much of the respective revenue is invested in true Innovation rather than in product improvement or rectification 4. Investment Culture Do we have the management structure /culture to foster innovation?

Time for Innovation MY VIEW IS THERE'S NO BAD TIME TO INNOVATE Jeff Bezos, Founder, Chairman & CEO of Amazon.com

Disruptive Innovation The theory of disruptive innovation, has proved to be a powerful way of thinking about innovation-driven growth Disruption theory differentiates disruptive innovations from what are called “sustaining innovations.” The latter make good products better in the eyes of an incumbent’s existing customers: the fifth blade in a razor, the clearer TV picture, better mobile phone reception. Digital Camera Ironically, Kodak has invented the digital Camera, but shelved the innovation to protect their “core business” of making films

iPhone The killer of the “Nokia Phone”, compact digital camera, navigation device pocket calculator … The iPhone is a true disruptive and very successful innovation

Hyperloop A team of German students competing in Elon Musk's Hyperloop challenge have reached 201 mph in the latest milestone for the superfast transport system

Disruptive R&D within DB  DB mindbox is opening the world of start-up´s for DB, enabling true disruptive innovation in short time

Out of the Box – Out of DB 

Independent premises outside DB offices

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In the middle of the start-up scene located in the centre of Berlin

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Team of 12 lateral thinking employees

Approach 

Built on 3 pillars: Acceleration, Challenges, Open Data

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Concept test to start usually in-between 3 months

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Current cooperation with 27 start-ups

Examples of actual products from cooperations 

Light transmitting concrete (SUIT) is guiding travellers supporting comfort and punctuality

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Loudspeakers (HOLOPLOT) for clear understandable platform announcements

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Smart Point Sensors (KONUX) for increased availability

Agility A 50-YEAR-OLD COMPANY CAN INNOVATE AS WELL AS TWO GUYS/GALS IN A GARAGE Guy Kawasaki, Author

Emerging Technologies to support Railspecific innovation DB is building on new technologies to enable new attractive and competitive products and services Base Technologies Augmented Reality

Internet of Things

Virtuelle Erweiterung der Realität um zus. Informationsebenen

E2E Abdeckung des IoT-Stacks (Architektur) zur Nutzung vern. Sensordaten

Robotics & Drones

Advanced Analytics

Intelligente, automatisierte und autonome Systeme

Echtzeit Verarbeitung und Bereitstellung großer Datenmengen

Rail specific Innovation Fields Künstliche Intelligenz

Algorithmen übernehmen komplexe Aufgaben und verbessern sich selbst

HochleistungsKommunikation

Kommunikationskanäle mit hoher Bandbriete und geringer Latenz

Intelligente Assets integrierte Diagnoseplattform

Digitalisierung der Produktionsmittel (z.B. für gegenseitiges Monitoring)

Automatische Kupplung im GV

Ausrüstung der Güterwagen mit automatischer Mittelpufferkupplung

Regelbasierte Flottensteuerung

Innovatives IHRegime (z.B. CBM/PM)

Intelligenter Einsatz der Flotte auf Basis intelligenter Produktionsmittel

Zustandsbasierte und/oder prädiktive IH der Fahrzeuge und der Infrastruktur

Cyber Security

Blockchain

3D-Druck

Digitalisierung der IH-Durchführung

Digitale Bahn

Absicherung der ITInfrastruktur ggü. ungewollter Eingriffe von innen/außen

Datenbank, die Integrität durch verteilte Speicherung und Prüfung sicherstellt

Hochleistungs & dezentraler 3D-Druck zur Kosten und Komplexitätsreduktion

Effiziente Gestaltung der IH (z.B. Robotik, IT-unterstützte Wartungsarbeiten, etc.)

Durchgängig digitalisierter Bahnbetrieb

Digitalisation & Automatisation

Energie & Emission

Alternative Antriebe (z.B. Hybridisierung)

Intelligente Produktionssteuerung

Umrüstung der Bestandsdieselflotte mit „grünen“ und effizienten Antrieben

Digitale und moderne Elemente der Produkionssteuerung, z.B. Moving Block und NeuPro

„Grüne“ Assets

ETCS

Moderne Werkstoffe oder Komponenten für Energieeffizienz und Emissionsreduzierung (z.B. Lärm)

Optimierung der Migration und der technischen Ansätze zur Hebung von Synergieeffekten

Vernetztes Fahrassistenzsystem

Fahrzeug Software & IT/Standardisierung

Fahrassistenzsysteme zur Kostenreduktion und Kapazitätssteigerung

Rad-Schiene-Kontakt und einheitliche Schnittstellen insb. der Fz.-software für bessere Integrationsfähigkeit

Interoperability & System operability

DB is partnering with companies along the value chain Technology Strategy is focusing on a coherent and cross functional long-term partnership

Illustrativ

Value Chain  Partners Infrastructure Value Chain  Partners Station

Value Chain  Partners Rolling Stock

Not only Digitalisation The digital age is revolutionising the railway, but many traditional challenges do remain There is a wide range of growth opportunities trough innovation, also in the more traditional fields •

Wheel – Rail Interface

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New materials

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Self cleaning surfaces

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Air flow – aero dynamics

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Insulation of noise and climate

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Passenger comfort

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Energy efficiency

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Processes

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Infrastructure

•

……..

Summary Key messages from the paper Innovate for Success

Disruptive Innovation

Innovative companies are growing faster and do perform better over time. A suitable management structure / culture is required

Established companies are exposed to loose focus on real innovations, therefore a continuous disruptive innovation culture is required

Partnership with DB

Not only Digital

A successful connected railway is requiring an coherent approach to innovation, where different partners achieve together much more and faster

The challenge to make public transport more convenient and efficient is broad with many mechanical, chemical, procedural and electrical topics

INNOVATION DISTINGUISHES BETWEEN A LEADER AND A FOLLOWER Steve Jobs (1955 – 2011)

Thank You