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On the way to the Digital Company

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Tomorrow's mobility is becoming increasingly digital. Companies that shape this future must therefore be digital pioneers. How does ZF fulfill this role? A conversation with ZF CDO Dr. René Deist.
Andreas Neemann,
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Andreas Neemann wrote his first ZF text in 2001 about 6HP transmissions. Since then, the automotive writer has filled many publications for internal and external readers, showcasing his passion for the Group's more complex subjects.

Digitalization is a megatrend, including in the automotive industry. What does a Group like ZF expect from its digitalization initiative?

Digitalization is a megatrend, including in the automotive industry. What does a Group like ZF expect from its digitalization initiative?

Deist: Digitalization is not an end in itself for us, but a key to the strategic goals we set ourselves as a company. We want to make Next Generation Mobility possible. What does this mean specifically? People expect viable mobility that is electric, intelligent, connected, sustainable, safe and autonomous, while still affordable. And to do all this and offer the corresponding technologies worldwide, we must become a digital company. We need digital tools, digital processes, digital working methods.

Where is ZF on this path?

Where is ZF on this path?

Deist: For a formerly classic industrial company, this is an enormous transformation process that is also linked to the current switch to electric mobility. I see us well positioned here. I always say that digitalization requires every one of us to embrace change. It's like quitting smoking or changing your diet: Your attitude needs to change. And this is precisely where we have improved substantially over the past few years in terms of the much-cited mindset and speed. I would summarize it like this: In some individual aspects, we already top the industry ranking; with other issues we've still got some way to catch up.
Chief Digital Officer Dr. René Deist

Which areas do you focus on specifically when it comes to digitalization?

Which areas do you focus on specifically when it comes to digitalization?

Deist: There are three main application areas for us: Firstly, production, secondly, our entire process environment – from purchasing to the entire flow of value & goods through to the backoffice – and thirdly, our products including technology development. In all three areas, we have completed important stages on the way to Group-wide standardized digitalization.
ZF Digitalization

ZF fosters digitalization for production, products and business processes; all data are intelligently combined in the ZF Cloud

Can you run through them for us?

Can you run through them for us?

Deist: Let's look at production: The Digital Manufacturing Platform allows us to transfer all the data generated in our plants to our ZF Cloud. There, we can analyze the data in the background using AI tools. In this way we leverage the potential available to us through condition monitoring and predictive maintenance of machinery. As this also minimizes unplanned downtimes, it creates a great deal of potential for savings.

Is this primarily about savings?

Is this primarily about savings?

Deist: Not only. But if we want sustainable mobility to be affordable for everyone, we must keep the costs in check. But there's much more involved: Our industrialization expertise is now an important competitive factor. At a time of strained supply chains and volatile fluctuations in demand, it's important that we can scale our production quickly. And making data available in the cloud also makes this easier for us.

Have you got any other examples?

Have you got any other examples?

Deist: First of all, let me say something about the process environment: Over the past eight years, we have acquired two large companies and integrated them into the Group. However, this integration has not yet been completed end-to-end for processes. We have now done this with new, modern business processes that have been implemented in an ERP system and are now being rolled out worldwide. This kind of process standardization also provides the basis for automating them – and this, in turn, opens up enormous potential once you look at the use of resources and finally at the costs.
And ultimately, we have also initiated important changes on the product development side: Digital tools facilitate agile development processes. Today, we can incorporate our expertise across divisions much better than we did years ago. If software becomes a key element in defining vehicles in future, we will also play a part in this. Our aim is to remain a development partner for manufacturers, but also to position ourselves as a provider of new digital products and services that end customers find compelling.
"Digitalization demands a willingness to change from each and every one of us."
Dr. René Deist, Chief Digital Officer ZF

In which area is ZF a digital champion?

In which area is ZF a digital champion?

Deist: We are the most consistent in the industry when it comes to merging data in a single cloud. With our partner Microsoft, we have set up a Group-wide ZF Cloud that supports a wide range of functions, whether it's DevOps tools for software programming or, as I mentioned, storing worldwide production data.

How do you organize the transformation process – and how many employees are affected?

How do you organize the transformation process – and how many employees are affected?

Deist: "Affected" is a peculiarly passive word. We want to convince our colleagues about digitalization because it is a good development. Here, it makes sense to participate actively. We manage to do that because we support digitalization with one of the largest Group-wide further training initiatives ever in ZF's history. Our Academy, which in turn consists of digital learning platforms, makes this very simple. From management to the workforce in the plants, anyone can check their digital skills and receive tailor-made offerings to build on and expand the digital skills they need.

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