Smart Data Smart Profits The Next Revolution in Mechanical Engineering
Smart Data Smart Profits The Next Revolution in Mechanical Engineering
Making optimum use of machines by having manufacturers and customers operate them together — this is just one of the many new business opportunities made possible by the ongoing wave of digitalization sweeping across the manufacturing sector. As global industry becomes more connected and data-driven, the time is ripe to use secure digital spaces, often called data rooms, to unlock untapped productivity and foster new value creation models in mechanical engineering.
For Europe’s medium-sized enterprises — the backbone of the region’s industrial strength — this shift holds enormous promise. These companies are sitting on a well-guarded treasure trove that they are only now really beginning to unearth: an infinite amount of operational and performance data generated daily by their machines and systems. This is not just raw information; it is powerful intelligence that, when combined with decades of domain-specific know-how residing in the minds of engineers, designers, and operators, can be transformed into real competitive advantage.
The challenge, however, is to make this wealth of data usable — and profitable. Machine manufacturers and users must find new ways to collaborate by leveraging digitalized processes, trusted data-sharing frameworks, and secure cloud technologies. When they do, they not only improve their own productivity but strengthen Europe’s position in the global industrial arena.
Dr. Tom Schneider, Managing Director Research & Development at Trumpf, and Christoph Herr, Industrial Evangelist Manufacturing-X at VDMA, discuss this potential in detail in the new episode of the VDMA Industry Podcast: “Turning data into revenue — the tokenization of mechanical engineering.” “We need to use our experience and modern technologies to create data spaces in order to build our innovations in the future,” says Dr. Schneider. He stresses that Europe’s industry should not be intimidated by the hyperscalers — the massive global data processing groups — and their promises of big data solutions. “Because they lack the domain knowledge of the machine,” he emphasizes, pointing out that true value comes from the unique insights of those who design, build, and run complex machinery.
Such secure data rooms and trusted data ecosystems are now within reach for small and medium-sized enterprises thanks to advances in secure software platforms, standardized machine interfaces, and open-source frameworks promoted by initiatives like Manufacturing-X. By automating secure data exchanges between machines, companies can collaborate without compromising proprietary information or intellectual property — a key concern for many family-owned Mittelstand companies that have built their reputations on precision engineering and trust.
“We are at a point where you can earn money with data. It is becoming easier and easier to generate revenue with data,” explains Christoph Herr. This growing opportunity is driving new forms of business models that go beyond the traditional buy-or-lease decision many manufacturers have long faced. In the near future, a machine might not be simply sold or rented out — it could be operated as part of a shared, performance-based partnership.
In practice, this can lead to entirely new forms of business relationships between machine builders and users. Dr. Schneider describes this innovative model as “equipment as a service,” where the manufacturer and the operator enter into a multi-year agreement to co-manage the machine’s operation. Instead of a single transaction, both parties work together to maximize the machine’s performance, uptime, and output quality — aligning incentives to boost productivity and shared revenue streams.
This shift not only helps SMEs generate additional income but also strengthens the resilience and adaptability of Europe’s manufacturing ecosystem in a fast-changing global market. With trusted data rooms, secure data exchange, and a shared commitment to continuous improvement, machine builders and users can work together to unlock a new era of industrial competitiveness — one that is rooted in the region’s deep domain expertise and powered by modern digital tools.
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