Systems Engineering Study in Germany Part 1 – Overview and Analysis Results

SYSTEMS ENGINEERING STUDY IN GERMANY PART 1 – OVERVIEW AND ANALYSIS RESULTS

Dr. Jens Heidrich Fraunhofer IESE IPA/SEC Special Seminar Kaiserslautern,© Fraunhofer IESE Germany Tokyo (Oct 24, 2016) and Osaka (Oct 26, 2016) SYSTEMS ENGINEERING STUDY IN GERMANY PART 1 – OVERVIEW AND ANALYSIS RESULTS

 The Fraunhofer-Gesellschaft in Germany  Trends towards Systems Engineering  Systems Engineering Study  Recommendations and Areas of Activity

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The Fraunhofer-Gesellschaft undertakes applied research of direct utility to private and public enterprise and of wide benefit to society.

€2.1 billion €1.8 Major infrastructure capital expenditure billion and defense research Nearly 24,000 Almost 30% is staff contributed by German federal and Länder governments.

More than 70% is derived from contracts with industry and from publicly financed

research projects, Contract Research Contract 67 institutes and Volume Financial research units 2015

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 Founded in 1996 Itzehoe Rostock Lübeck  One of the leading software and Bremerhaven

system engineering institutes in Bremen Europe and worldwide Hannover Berlin Potsdam Teltow  Over 160 full time equivalents Braunschweig Magdeburg Cottbus Oberhausen Halle Dortmund Schkopau Leipzig Duisburg Schmallenberg Dresden St. Augustin Jena Aachen Euskirchen Chemnitz Wachtberg Ilmenau Darmstadt Würzburg Erlangen St. Ingbert Kaiserslautern Fürth Nürnberg Saarbrücken Karlsruhe Pfinztal Ettlingen Stuttgart Freising Freiburg München

Kandern Holzkirchen Efringen- Kirchen

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Tokyo Kaiserslautern

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 The Fraunhofer-Gesellschaft in Germany  Trends towards Systems Engineering  Systems Engineering Study  Recommendations and Areas of Activity

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 New business models  Physical objects go digital  Machinery, things, living objects like plants and animals  Usage of Big Data to exploit opportunities  Uncertainty at runtime  From closed systems to highly integrated systems of systems

[Source: Images from https://pixabay.com]

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IS Emergent Information Software Systems IS-Driven

MS Mobile Systems

ES Cyber-Physical Embedded Systems Systems ES-Driven

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 Software is the key to innovation and productivity boost

Smart ecosystems and integrated cyber- 4.0 physical systems

SPS-based automation 3.0 technology

Assembly-line organization, electrical 2.0 drives

Mechanical production facilities, hydropower, 1.0 steam engines

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TODAY REACTIVE PROACTIVE FUTURE  Which events can  Machine-to- be isolated and machine handled by a communication service employee?  Analysis of  Which errors machine and influence the surrounding data operation of a  Estimation of complete industry machine‘s plant? condition  Is there a Compare to history, identify trends, and  Predict errors & correlation predict errors maintain machine between the errors?  Avoid downtime  Avoid unnecessary 80% 20% maintenance FALSE ALARMS QUALIFIED SIGNALS [agendaCPS]

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Better planning and control 80% 15% 5% (in the production resp. logistics)

High customer satisfaction 67% 27% 6%

Large flexibility in the products 62% 27% 11%

Short Time-to-Market 54% 32% 14% (in the product development)

Improvement of quality 49% 35% 16%

Individualization of products 46% 34% 20%

0% 20% 40% 60% 80% 100%

High Medium Low

[PwC 2014]

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© Fraunhofer IESE Smart Ecosystems: A Trend across Domains  Individual products instead of mass products  Massive integration of data into technical systems of systems  Self-organization and re-organization  Self-optimization: autonomy  From static solutions designed during development time to dynamic solutions that adapt and optimize autonomously during runtime!

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Autonomy Diversity

User Uncertainty Experience

Safety and Security

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Model-Based Systems Relationship between Systems Engineering and Engineering Methodologies (by Performance (Source: CMU, SEI) INCOSE MBSE Focus Group, 2007) 100% 90% 15% Improving the Integration of 24% 80% Program Management and 57% Systems Engineering (by 70% 33% INCOSE, PMI, 2012) 60% 50% 47% Systems Engineering in Industrial Practice (by Unity, 40% Fraunhofer IPT and Heinz 30% 24% Project Performance Project 52% Nixdorf Institute, 2013) 20% 29% Survey of Systems Engineering 10% 20% Effectiveness (by SEI, 2012) 0% Lower SEC (n=48) Middle SEC (n=49) Higher SEC (n=51) Study on Model Driven Total System Engineering Capability (SEC) Development (by Fraunhofer IESE, 2013) Lower Performance Middle Performance Higher Performance

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 The Fraunhofer-Gesellschaft in Germany  Trends towards Systems Engineering  Systems Engineering Study  Recommendations and Areas of Activity

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 Amount of software in products is increasing  Software becomes an enabler for new services and business models  Systems Engineering is an interdisciplinary approach that considers both business and technical needs (hardware and software)  Establishing appropriate practices is crucial for developing innovative products on time, within budget, and with a high level of quality 

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© Fraunhofer IESE  42 invitations to 34 organizations Domains of Study Participants  22 agreed to be interviewed 11%  20 interviews with 18 companies, 5% such as: 3% 24% Airbus DS Electronics and Border Security Art of Technology AG AVL LIST GmbH 11% Binder Elektronik GmbH 30% camLine GmbH CIBEK technology + trading GmbH 16% ETAS GmbH Hella KGaA Hueck & Co. Robert Bosch GmbH Production Healthcare ZF TRW Automotive Holdings Corp. Aerospace Automotive  6 SMEs and 14 LOs Transportation Mechanical Engineering  29 questions in 12 groups Electronics

October 24 and 26, 2016 17 SME = Small or Medium-sized Enterprise © Fraunhofer IESE LO = Large Organization Recent Trends in Product Engineering  Companies are driven by

Increasing innovational  Increased complexity of system demands requirements Shorter product life cycles  Shorter time to market Higher integration and higher interface diversity  Larger number of product Increasing cost pressure variations

Global product engineering  In future, in addition more cross- disciplined development is seen Increasing product variation (20%) Shorter time to market (shorter R&D phases)  This will in turn increase Requirements become complexity of projects more complex

0% 20% 40% 60% 80%

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© Fraunhofer IESE Importance of Software in  85% stated that software plays a major role in their products Product  Even though 70% stated that they 5% come from a pure hardware 10% development world  85% stated that they spent 30% or more (up to 90%) of the development budget on software 85% development  More than half agreed that this Essential/ Important will further increase within the Hard to estimate/ Dependent of product next five years No answer

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© Fraunhofer IESE  Importance of System Engineering Average importance of Systems Engineering is 7.6 in 5 Years 50%  Will increase to 8.7 within the next five years 40%  Reasons for increase:  Customer demand for higher 30% quality 20%  Increased product complexity  Requirements related to system 10% platforms and integration

0%  Large organizations generally 1 2 3 4 5 6 7 8 9 10 estimate a higher importance not within 5 years Overall SME LO essential important for survival

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Change management within the  80% stated that organizational organization Requirements and interface change management is top management challenge Modelling and simulation

Data and information management  Followed by:

Ensuring product quality  Managing complex

Methodological skills requirements and interfaces

Establishing coherent tool chains  Modeling and simulation Human Resources Management  Future challenges include in Integration of methods and processes addition: Growing multidisciplinary development  Human Resources Management Other

0% 20% 40% 60% 80% 100%  Data- and information

Overall SME LO management

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© Fraunhofer IESE  Coverage of ISO/IEC 15288/12207 LOs basically cover whole ISO/IEC 15288/12207, whereas SMEs focus on technical and implementation Agreement processes 100% 80%  Standards used are quite domain- 60% specific, except for quite general 40% approaches, e.g., ISO 9001 20% Project- Technical 0% Enabling  40% of LOs explicitly referred to ISO/IEC 15288  45% of LOs and SMEs follow an agile model whereas 50% of LOs Project follow a waterfall model  80% of LOs provide different SME LO variants of a standard process

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© Fraunhofer IESE  Many different disciplines and Disciplines involved in Systems stakeholders involved in Systems Engineering Engineering 100%  Hardware Engineers or Software 80% Engineers are still viewed as “isolated” disciplines within some 60% organizations

40%  Role of “Systems Engineer” is only defined in larger organizations 20%  Coordination of stakeholders takes 0% place by a defined process by 85% of LOs, but only 20% of SMEs  Between 60% and 70% of the companies create joint teams and perform joint workshops and meetings for coordination Overall SME LO

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© Fraunhofer IESE Criticality of Externally Supplied  Almost 60% get less than 25% of Components their product parts supplied from 80% external sources 70%  Nevertheless, one third obtain up 60% to 50% from external suppliers 50%  Average criticality in terms of 40% intellectual property of externally

30% supplied components is 3.5

20%

10%

0% 1 2 3 4 5 6 7 8 9 10 not Overall SME LO highly critical critical

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60%  Model-driven development

40%  Requirements engineering

20%  Test-driven development 0%  Verification and validation  LOs focus on model-driven development as well as system verification and validation  SMEs more focus on test-driven Overall SME LO development

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80%  Technical processes 60%  Software implementation

40% processes

20%

Overall SME LO

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© Fraunhofer IESE  80% of the participants referred to Specification Languages Used UML as the major specification 100% language  LOs tend to use SysML for system 80% modeling  More than 50% of the tools mentioned were related to modeling 60% different aspects of the overall system 40%  30% mentioned requirements and 40% simulation tools as being relevant 20%  As a future topic, close to 40% mentioned the adoption of formal 0% methods and model-based UML SysML DSL Other approaches instead of Overall SME LO informal/textual specifications

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80%  Increased virtual engineering

60%  Better integration of the tool chains used 40%  Demand seems to be bigger for 20% SMEs 0%  Approx. 40% of LOs mentioned improved program management (aka. project portfolio management)  Approx. 40% of the SMEs mentioned higher degree of Overall SME LO automation

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80% programs to improve the capabilities related to Systems 60% Engineering 40%  Participation in Systems 20% Engineering conferences was also 0% mentioned as being beneficial

Overall SME LO

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 The Fraunhofer-Gesellschaft in Germany  Trends towards Systems Engineering  Systems Engineering Study  Recommendations and Areas of Activity

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© Fraunhofer IESE  80% stated that organizational  Creating internal and buying-in change management is the key external training programs on challenge (see outcome #4) different topics is obligatory (see  It is important to openly think outcome #12) about which organizational  We would also recommend to: structure and processes are best  Participate in Systems suited Engineering conferences  In particular, it is important to  Become an active members of include all stakeholders (see communities for experience outcome #6) in that process exchange

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© Fraunhofer IESE  85% stated that software plays a  LOs should place special focus on major role (see outcome #2)  Companies should build up /  Management of the overall maintain Software Engineering portfolio of projects competencies depending on:  Interconnections and  Amount of software in product dependencies among projects  Major IP and USP of company (see outcome #11)  If IP/USP is in software, companies should build up own resources  If software is only a means, companies should build up competencies for managing software suppliers (see outcome #7)

October 24 and 26, 2016 32 IP = Intellectual Property © Fraunhofer IESE USP = Unique Selling Point  Time to market is getting shorter  Complexity of requirements and and product complexity is increasing number of product variants has (see outcome #1) increased (see outcome #1)  It is important to efficiently and  Cross-disciplined development will effectively deliver value to the come into play customers  Companies need to deal with (see  This requires a well-integrated and aligned approach across all outcome #2): disciplines involved (see outcome #6)  How to elicit/develop  Companies should carefully think requirements on the system about what impact Systems level and break them down Engineering has and what a custom-  How to manage them tailored process should look like (see systematically over time outcome #5)

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© Fraunhofer IESE  Model-driven development of  Companies should think about systems is seen as a key practice establishing proper techniques and  LOs have implemented it at least methods (see outcome #8) for: partially (see outcome #8)  System verification and validation  An organization should evaluate: in general   Which aspects of the system Test-driven system development specification should be modelled specifically   What appropriate language and Additionally, an integrated tool support is available development process should ensure that system verification and  Tool selection should be influenced validation is properly linked to other by the degree of integration (see engineering processes outcomes #10 and #11)

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© Fraunhofer IESE  Complexity of products increases (see outcome #1) and development  Companies have developed their is becoming more multi-disciplined own tools for particular tasks and (see outcome #6) overcoming shortages of existing tools (see outcome #10)  It becomes more difficult/costly to compose the system physically  One major point for improvement is better integration of the tool  Companies should think about chains (see outcome #11) virtual engineering of systems based on sound models  Especially when starting to do Systems Engineering, companies  This is seen as a major should therefore put special improvement potential for emphasis on the interoperability of speeding up (see outcome #11) their tools

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© Fraunhofer IESE  Increased system complexity and  Establish change management product variations are drivers strategy  Systems Engineering is considered to  Build up competencies in Systems be of outmost importance for and Software Engineering as well as companies portfolio management (for LOs)  Change management is challenging  Work on an integrated Systems  Model-driven development, Engineering approach including all requirements engineering, test- stakeholders driven development, and verification  Establish practices in the areas of and validation are key areas to System Requirements Engineering, establish Model-Driven Systems Development,  Improvement potential lies in and System Verification and increased virtual engineering and Validation better integration of the tool chains  Mature companies should invest into  Internal and external training practices for Virtual Systems programs are key for improving Engineering and integrated tool capabilities chains

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Dr. Jens Heidrich Dōmo arigatō Division Manager Process Management PM Fraunhofer IESE Fraunhofer-Platz 1 67663 Kaiserslautern Germany Phone: +49 (0) 631-6800-2193 Fax: +49 (0) 631-6800-9-2193 [email protected]

[Picture from http://www.japanischergarten.de]

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