Fraunhofer Institute for Systems and Innovation Research ISILerch, C.; Jäger, A. (2024): Industry in a Changing Era: Production Paradigms During the Last 50 Years. In: Edler, J.; Walz, R. (Ed): Systems and Innovation Research in Transition. Research Questions and Trends in Historical Perspective. Cham: Springer.
Production and humanization of the working world
Innovations in industrial production in Germany
Traditionally, the German economy is known for its strong industrial core. The high quality of its industrial products, combined with rapid increases in productivity, have meant Germany has always enjoyed huge global recognition as a production location. Industry has remained a strong part of the German economy right up to today. However, industrial production has undergone an incredible transformation over the past 50 years.
In this collection we will analyze this transformation and examine the key trends seen in industry over the last five decades, focusing on Germany in particular. We will also look at potential developments that may occur in industry in future. This work has been based not only on the available literature, but also on interviews with experts and an expert workshop.
Philosophy of production has been through a radical change
The results show that industry has undergone some fundamental changes over the past five decades, affecting not only technological and organizational methods of production, but also its basic philosophy.
The associated paradigm shifts have altered the general framework in which industrial companies operate and have led to new ways of thinking in production and innovation research too. Overall, we have identified six production paradigms and five paradigm shifts for the five-decade period under review, which can be grouped into three overarching phases:
- Phase I, which was all about the conflicting demands of productivity and working conditions, and which stretched from the early 1970s to the late 1980s.
- Phase II, which focused on the issue of how Germany as a production location could compete on a global level, and which spanned the late 1980s to the early 2010s.
- Phase III, which aims to connect physical objects in production to the Internet of Things, and which has dominated since the start of the 2010s.
Future industrial developments will likely give rise to the question of a new fundamental technology in particular. Although the digitalization of production is the major trend at the moment, no new fundamental technology has yet emerged for the production of the future.
There are some key trends to be seen, however, including the decarbonization of industry, interaction between humans and intelligent machines in production, and the global realignment of value chains.
Industrial production research at Fraunhofer ISI: Five projects from five decades
Swipe through the years
1984-1988: Impact analysis of the indirect-specific support for the company application of CAD/CAM systems within the framework of the Manufacturing Technology
To promote the operational application of CAD/CAM systems in the context of the “Manufacturing Technology” program, a concurrent analysis was designed and executed to evaluate their impact. The analysis looked at 1,285 projects in 1,193 companies, with a methodology based on before-and-after comparisons, the control group approach, and the case study approach. This indirect-specific grant initiative was able to reach almost all large and very many medium-sized companies in the target group, while also catering to lots of smaller companies; around three-quarters of the businesses that received support had fewer than 500 employees.
1996-1999: Joint project "Operational framework conditions of new production structures" (RAMONA)
This research project focused on analyzing and rethinking operational processes for new production structures, with Fraunhofer ISI taking the view that companies needed to embrace wholesale change. The objective was to usher in a profound cultural shift within firms, with new ground rules around collaboration, to ensure production in Germany would be fit for the future. Working together with four industrial companies, Fraunhofer ISI designed and implemented new, practical concepts for working time models, business planning and management, and new HR development processes, all of which were built on sound economic foundations.
1996-1999: Joint project "Development of production concepts for the integration of product and industrial service as a contribution to securing locations (IPDL)" (PROSERVICE)
Competition becoming more globalized, digitalization bringing about changes for information and communications, and concerns about safeguarding production in Germany as a business/industrial location were all reasons behind this research project. The objective was to come up with concepts for new, integrated product and service packages in collaboration with companies and to identify universal design guidelines and evaluation tools, combined with a systematic transfer of knowledge to the general public. The project also presented the opportunity to develop quantitative approaches for broad-based empirical monitoring.
2008-2011: Joint project "Innovation management for cooperation between low-tech and high-tech companies (Low 2 High)"; Subproject: Scientific support
This research project, run in collaboration with corporate partners, focused on the role played by non-research-intensive organizations — known as low-tech companies — compared to research-intensive high-tech companies in terms of industrial innovation in Germany. One central pillar of the project was a qualitative and quantitative analysis of the various forms of cooperation that exist between low-tech and high-tech companies. But the project also aimed to develop instruments and methods that were specific to each type of cooperation in order to better shape cooperative relationships between low-tech and high-tech firms.
2018/2019: Study on the relevance of B2B online platforms to the national economy
This study was about formulating the implications of regulatory, innovation and industrial policy measures aiming to establish Germany as a lead market for i4.0 solutions. Valid and representative statements on how B2B platforms are currently being used and how they are set to be used in future by the manufacturing industries formed the empirical basis for the study. These statements were in turn based on data taken from the industrial census on modernizing production; data on the development of added value; and supplementary explorative, qualitative interviews conducted with industrial companies, ICT providers and knowledge-intensive service providers. The current and prospective significance to the national economy of B2B platforms could therefore be quantitatively assessed and developments evaluated.
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