Applications are our Future

1
Applications are our Future

• Dennis Tsichritzis
• Fraunhofer-Gesellschaft
• INTEROP-ESA
• Geneva
• Feb 23, 2005

2
Applications are our Future

• Times are changing in IT
• How shall we respond?
• Applications as Impulse for Restructurings in
  German IT Research Landscape
• What should we do?

3
Times are changing

• Technology / Products / Services / Markets /
  Investors
• Is it a tremor or an earthquake?
• 10 1 Signals

4
Margins are razor thin

• Hardware From key technology to commodity
• Software From golden goose to quasi free

• From importing experts to outsourcing jobs

5
Markets

• From corporate driven
• To consumer driven
• From rational to modish

6
Investment in IT

• From strategic investment
• To normal capital investment
• From productivity engine to a cost factor

7
Companies

• From start-ups and growth companies
• To Mergers and Acquisitions
• From Births to Funerals

8
Venture Capitalists

• From chasing ideas
• To looking at markets and profits
• From vapor to bucks

9
Marketing

• From selling products
• To selling services
• From telling to listening

10
Outsourcing

• From They build, we collect
• To Oops! They are moving up the chain
• Production and RD have no natural barrier

11
Software

• From proprietary
• To open source
• Ho do you profit by giving something away?

12
Technology Innovation

• From technology push
• To market pull
• People want holes not drills

13
Research directions

• From peer vision
• To application needs
• From Prophets to Bishops

14
101/ Originality and Novelty

• From big bang
• To intellectual closure
• Concepts static, ontology dynamic

15
We are becoming middle aged

• Rich, fat and slow to move
• There is nothing wrong but stop behaving like
  teenagers!!

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Applications are our Future

• Times are changing in IT
• How shall we respond?
• Applications as Impulse for Restructurings in
  German IT Research Landscape
• What should we do?

17
Move up and get involved in

• Health, Transport, Energy, Materials,
  Entertainment, Education, etc.
• Get 10 of all the action

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SmartHouse Example
External devices Phones, Notebooks, Cars,
Wearables
PC
Phone
Satellite
thermoset
Applications Internet Shopping Home
delivery Remote metering Tele-Security Remote
maintenance
Security
Energygauge
Wireless RemoteControl(s)
RF
Light
Sockets
waterheating
Audio/Video
Copper Coax Optical
ServiceGateway System-Manager
Sanitaryfacilities
Householdappliances
According to Fraunhofer IMS
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Materials Adaptronics
Materials with integrated actors and sensors can
change their structure and adapt to external
conditions.
Reduction of vibrations, adaptive regulation of
safety belts, active suspension of the motor
Reduction of vibrations for more precise
positioning of robots
Automotive
Robots
Adaptive artificial limbsVibration and noise
reduction of diagnosis systems as MRT
Medicine
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Logistics Innovative material flow system
MultiShuttle

• Innovative storage and transport system
• Transport of cases / bins
• Wide range of application due to combination of
  storage and transport
• Energy supply via rail
• Autonomous operating, low price vehicles
• Scalable performance(up to 500 dual cycles/hr)
• Storage capacity and throughput adjustable
• Suitable for unfavorable building sites

21
Health Rapid Development of Medication
The impact and the toxicity of new
pharmaceuticals will be detected by genome- and
protein-expression tests. The individual reaction
of patients to pharmaceuticals can be
demonstrated.
Quick identification of pharmaceutical targets by
a high-throughput screening
Impact profiles
New pharmaceuticals will be applied to cells or
cell-systems in order to get knowledge about
their effect on the human body faster
In-vitro test
22
Health Regenerative Medicine - Project Cellprom

• Main task Nanoscapes
• Development of procedures and devices to create
  nanoscale macromolecular landscape
• Principle Cellforming
• Surface imprinting of cells by nanoscapes
• Development of Cell Programming Devices
• Result NanoLandscaper
• New generation of nanobiotechnological
  equipment

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Security Estimated European Market
24
Life Sciences Patent Mining for investment with
long-term impact (freedom to operate)
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Strategic Planning Geographic Data Mining

• Integration of geographic and economic parameter
• Revenues
• Competition
• Assortment
• Customers
• Topology
• Geographic distribution

How is the purchasing power distributed? How is
the product affinity?
Where is the customer living?
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Applications are our Future

• Times are changing in IT
• How shall we respond?
• Applications as Impulse for Restructurings in
  German IT Research Landscape
• What can we expect?

27
GMDs pre-merger Profile

• Founded in 1968
• Federal Computer Center
• Focus on Basic Research in Information- and
  Communication Technology
• 1200 Employees
• Budget DM 180 Mio
• Percentage of Third Party-Revenues 30
• Percentage of Industry Revenues 7

28
Fraunhofers Takeover and Transfer of Institutes

• Integration of 8 GMD Institutes
• 2002 Integration of the Heinrich-Hertz-Institute
  into Fraunhofer-Gesellschaft

29
Joseph von Fraunhofer (1787 - 1826)
Researcher discovery of Fraunhofer Lines in the
sun spectrum Inventor new methods of lens
processing Entrepreneur head of royal glass
factory
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Fraunhofer Profile in 2004
57 institutes 12 700 employees
1 billion research budget

• 7 Alliances
• Microelectronics
• Production
• Information and Communication Technology
• Materials and Components
• Life Sciences
• Surface Technology and Photonics
• Defense and Security Research

31
Fraunhofer Institutes and Reseach Alliances

• Production (founded in 1998)
• IFF Magdeburg
• IML Dortmund
• IPA Stuttgart
• IPK Berlin

• Information and Communication Technology
• (founded in 2000)
• AIS St. Augustin
• FIRST Berlin
• FIT St. Augustin
• FOKUS Berlin
• IAO Stuttgart
• IDMT Ilmenau
• IESE Kaiserslautern
• IGD Darmstadt
• IITB Karlsruhe

• IPT Aachen
• UMSICHT Oberhausen
• IWU Chemnitz
• TEG Stuttgart

• IMK St. Augustin
• IPSI Darmstadt
• ISST Berlin
• ITWM Kaiserslautern
• SCAI St. Augustin
• SIT Darmstadt
• IIS Erlangen
• BIOMIP St. Augustin

• Materials and Components (founded in 1997)
• EMI Freiburg
• IAP Golm
• ICT Pfinztal
• IFAM Bremen
• IKTS Dresden
• ISC Würzburg

• ISE Freiburg
• IWM Freiburg
• IZFP Saarbrücken
• LBF Darmstadt
• WKI Braunschweig
• ITWM Kaiserslautern (Guest)

• Microelectronics (founded in 1996)
• ESK München
• HHI Berlin
• IAF Freiburg
• IDMT Ilmenau (Guest)
• IIS Erlangen

• IISB Erlangen
• IMS Duisburg
• IPMS Dresden
• ISIT Itzehoe
• IZM Berlin

• Life Sciences (founded in 2000)
• IBMT St. Ingbert
• IGB Stuttgart

• IME Schmallenberg
• ITEM Hannover

• Defense and Security (founded in 2002)
• EMI Freiburg
• IAF Freiburg
• ICT Pfinztal

Surface Technology and Photonics
Research for ministerial departments
(founded in 1998)

• FEP Dresden
• ILT Aachen
• IOF Jena

• IPM Freiburg
• IST Braunschweig
• IWS Dresden

• IITB Karlsruhe
• INT Euskirchen

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Revenue Distribution of all Fraunhofer
Information and Communication Technology
Institutes
80
80
Est.
Actual 2003
Percentage of Revenues
Percentage of Revenues
70
70
Production
60
60
SurfaceTechOptics
50
50
Percentage of Rev from industry
40
40
Microelectronics
Percentage of Rev from industry
IC-Group
Materials
2005
30
30
Life Sciences
IC-Group
20
20
IC-Group
2004
IC-Group
10
10
2003
0
0
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
Percentage of Public Funding
Percentage of Public Funding
2004 Est. 2005 Budget
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Applications are our Future

• Times are changing in IT
• How shall we respond?
• Applications as Impulse for Restructurings in
  German IT Research Landscape
• What should we do?

34
What should we do?

• Go seriously for applications!
• Example
• Frauhofer ITWM
• Institute for Business and Technical Mathematics
• in Kaiserslautern

Optimal Rev Distribution
Development of ITWM
ITWM
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• If we are not there,
• They will be here