Title

AWS re:Invent 2023 - From machine to digital services: Equipment as a service (MFG104)

Summary

David from the AWS Solutions Architecture team introduces the session, highlighting Heidelberger Druckmaschine's transformation using AWS to drive a new business model called "Heidelberg subscription" or "equipment as a service."
Heidelberg, a German precision engineering company with a 170-year history, is a market leader in industrial printing presses.
AWS aims to help manufacturers leverage cloud data across their product lifecycle, with examples like Stellantis's virtual engineering workbench and Northvolt's software-defined factory.
The shift from asset-centric to customer-centric models is discussed, emphasizing the importance of data for service contracts, performance consulting, and subscription offerings.
Matthias, a product owner at Heidelberg, explains the company's transition to a subscription model, which led to increased productivity and reduced capital expenses for customers.
Jörg, a cloud architect, details the technical journey, including the development of a cloud-based data platform and digital products, which improved service team productivity and customer experience.
Heidelberg's achievements include a near real-time data platform, reduced operating costs, better machine performance under subscription, and a significant share of recurrent revenue.
The session concludes with insights into the technical, organizational, and cultural challenges faced during the transformation and the ongoing development of the Heidelberg ecosystem.

Heidelberg's transition to a subscription model represents a significant shift in the manufacturing industry, moving from one-time sales to ongoing customer relationships and recurring revenue.
The use of AWS cloud services, including IoT, Kinesis Data Streams, Lambda, DynamoDB, and secure tunneling, was crucial in enabling near real-time data processing and remote service capabilities.
The technical challenges of moving from on-premises to cloud-based solutions were overcome with AWS training, consulting, and the formation of independent product teams focused on DevSec FinOps.
Organizational transformation was necessary, with the backing of top management and a restructured team setup to enable vertical action and responsibility for digital products.
Cultural challenges highlighted the importance of agility, quick feedback loops, and enabling teams to take on the responsibilities associated with DevOps practices.
Heidelberg's success in implementing a subscription model and digital transformation serves as a trendsetter and example for other companies in the machinery and manufacturing industries.