TÜV SÜD has invested considerably in a new facility in Singapore, the first such investment outside the German headquarters. Could you update our audience on the latest developments?

TÜV SÜD @ IBP is our first major real estate investment outside of Germany. The eight-storey building, which we have started operating from in January this year, has the latest technologies to ensure energy efficiency and sustainability in accordance with the Building and Construction Authority's (BCA) Green Mark Platinum standard. In particular, we are leveraging on the digital twin concept, a full digital representation of the building and its operations, and our newly developed Smart Lift Manager solution.  

To put this into context, as part of statutory requirements, TÜV SÜD offers periodic lift inspections worldwide, which are typically carried out by physical visits of qualified inspectors. However, with remote condition monitoring and predictive maintenance, inspection quality can be enhanced and intervals optimised, resulting in considerable reductions in operations and maintenance costs. This smart lift service has been developed in Singapore together with TÜV SÜD’s domain experts in Germany and is currently being rolled out on a global scale.

What do you identify as the key services driving business growth at TÜV SÜD?

The smart lift is certainly one. Lifts are immensely important for the efficient running of an urban environment providing fast vertical access in buildings. Another key service is innovative construction monitoring and inspection using high-resolution cameras and drones, replacing the traditional manual approach.  We combined technology with our domain expertise and developed the smart façade inspection service. In addition to these services in the smart building space, TÜV SÜD in Singapore, in collaboration with our colleagues in Germany, has been developing the safety and security requirements of highly automated driving to bring autonomous vehicles on the roads of Singapore. Singapore plans to introduce autonomous buses by 2022.

Another important project we are working on is to make sensor-generated more trustworthy. Smart cities and industries, including chemical plants, need to manage countless sensors and sensor networks of different qualities - some more accurate than others, and whose use involves both sensor providers and data providers. Our sensor network verification technology has been successfully applied to the pharmaceutical industry, where the reliability of sensors is critical in ensuring safe and continuous production. We see a huge potential for trustworthy data as a service so that built-on applications can be sufficiently reliable and accurate.  

Finally, TÜV SÜD is also engaged in Artificial Intelligence (AI). The reason why we do not see the use of AI on a large scale is because these non-deterministic, black boxes do not inspire enough confidence.  We have therefore developed a rigorous quality system for AI systems that will raise confidence and provide the reliability to enable broader adoption rates.

TÜV SÜD Singapore has been involved in creating the Smart Industry Readiness Index (SIRI). What can you share with us about the progress of this initiative, but also about Singapore’s path to becoming a “smart nation”?

SIRI, developed in collaboration with the Singapore Economic Development Board and industry partners, has now been recognised by the World Economic Forum. The initiative shows how small yet focused initiatives can have a big impact. It also shows how Singapore’s success as a smart nation is based on forging the right ecosystem of different partners coming together and creating the needed momentum. The push to conduct over 700 SIRI assessments within the next 12 months will further proliferate SIRI and establish this framework as the global standard for Industry 4.0 transformation.  

Technologies are often already available, but they require unlocking mechanisms. The Singaporean regulators are forward-looking and fast in adopting new technologies. The aligned ecosystem of governments, regulators and industry players makes Singapore very advanced, a trailblazer for innovation, and a very relevant player in Industry 4.0.

What is the main challenge for Singapore’s Industry 4.0 transformation?

The greatest challenge is the actual adoption of Industry 4.0. It is up to the decision makers in the industry to bring transformation onto their agenda. However, transformation requires also a change in mindset. For the last decades, companies have improved KPIs more incrementally, and there has not been any disruption in the true sense. However, Covid-19 showed that there is a need for flexibility in production to react faster to the changing environment, and this needs strong leadership with an entrepreneurial mindset.

There is also a misconception that Industry 4.0 is all about automation. The chemical industry, for instance, is well automated. Being on a high level of automation, companies often do not see the need and benefit of digital transformation. However, becoming agile based on digital technologies encompasses not only the core production process, but also planning, scheduling and quality tasks integrated into the shopfloor, and across the enterprise and supply chain.

The word “transformation” is also often misused: implementing a few digital projects does not equate to transformation. What the market needs to think about is the vision for manufacturing in the next 3-5 years. The mid-term horizon is what calls for immediate action. The pandemic is a deflection point for those who did not feel pressured to change, as digitalised companies could react much faster to changes in the business environment.

How has TÜV SÜD managed the pandemic?

The uncertainty was challenging - businesses went on standby mode and reduced expenses and nobody knew where the crisis was heading to. As TÜV SÜD operates across multiple industries and geographies, we had a certain level of robustness that helped us navigate the crisis. By the time the pandemic was taking its toll on Europe, China was already recovering, and we could balance this ripple effect well through our diverse regional presence. During the pandemic, we saw a rise in industries such as medical, logistics, digital, e-commerce, while other industries such as the automotive and travel industry fell sharply. Despite these drastic changes, we were able to maintain a healthy business based on a diversified services portfolio.

How does greater digitalisation impact the discussion around sustainability?

Sustainability is strongly related to digitalisation. In fact, we see that digitalisation is one of the keys to sustainability. It allows greater transparency in sustainable practices, more efficient manufacturing and ultimately the realisation of a circular economy. The change is driven largely by the consumer who is more likely to choose sustainable products. I am confident that real change is underway, and the whole value chain will be scrutinised for sustainability. We already see many initiatives worldwide targeting a more sustainable manufacturing sector.

Do you have a final message?

Transformation is a means to an end, and this “end” or future state needs to be envisioned for each company and production facility, individually; it also needs to be driven by strategic business objectives first, and then by an implementation at scale. Only then the full potential of Industry 4.0 solutions can be harvested.  And SIRI can help structure this journey.

We have reached an inflection point in the way we are producing goods, and this opens the opportunity to create a sustainable production sector. This is also why the World Economic Forum’s initiative on Industry 4.0 transformation addresses inclusivity, job creation and sustainability.