In an interview with EFESO, Olaf Korzinovski, Executive Vice President of Production & Components at Volkswagen (China) Investment Co., Ltd., explains what companies should pay particular attention to when it comes to digitalization, automation, and the use of AI in production. The focus is on a clear corporate strategy, the interconnection of machines, processes, and data, and the scaling of individual AI applications into holistic, increasingly autonomous production systems.

What should companies in your industry focus on when it comes to digitalization and automation? Are there, for example, special strategic or operational potential that should be addressed more strongly?

Olaf Korzinovski: The starting point is always a clear corporate strategy in which digitalization and automation are an integral part – with all the resulting consequences for the organization, processes and skills.

It is crucial to think about digitalization consistently from the value stream. The greatest leverage lies in the end-to-end networking of machines, processes and data – and making increasingly data-based and automated decisions. The target image with the greatest potential is an autonomous production system in which planning, control and optimization are largely digitally supported or automated. 

The majority of INDUSTRIE 4.0 AWARD applicants improve value creation processes in a targeted manner with AI, but with significant differences in terms of focus and results. How do you classify the current “AI impact” in manufacturing companies? Where do you see still unused fields of action? 

Olaf Korzinovski: One thing is clear: artificial intelligence has reached production – but we are currently only seeing the first flashes of it. Today, AI often optimizes individual process steps, especially where high-quality (“high-fidelity”) data is available, for example in quality assurance, logistics or maintenance. However, the real potential lies in the scaling of these individual solutions and the gradual networking of these “islands” to form a holistic production system.

“The greatest leverage lies in seamlessly connecting machines, processes, and data, and in making decisions that are increasingly data-driven and automated.”

In addition to AI, do you see another trend – technological or arising from the framework conditions of industrial transformation – that will significantly influence the importance of Industry 4.0?

Olaf Korzinovski: The term Industry 4.0 will continue to evolve. Digitalization and automation are finding their way into production much faster today – not least because the cost of automation has fallen sharply. At the same time, another factor is becoming increasingly important: the transfer of our employees’ production expertise to digital systems. Many industrial processes are still based on empirical knowledge. Systematically identifying and structuring this knowledge and transferring it to digital systems will be a key task in the coming years. 

The topic of “ROI of Industry 4.0 use cases / initiatives” is very present among the award winners. In your experience, what characterizes a successful prioritization of investments in the area of conflict between short-term efficiency increases and long-term innovative ability? 

Olaf Korzinovski: Successful prioritization combines measurable short-term effects with the long-term strategic development of skills. Companies should prioritize use cases that create value quickly, but at the same time build scalable data and software platforms. The decisive factor is not the individual pilot, but the ability to systematically scale solutions along a clear strategy path.