Silicon Economy Logistics Ecosystem: From Theory to Practice

The Silicon Economy is an initiative of the Fraunhofer Institute for Material Flow and Logistics IML, supported by the German logistics industry and a highly interesting and important project. Together, an open-source infrastructure for the platform economy of the future is being developed. ‘Silicon Economy’ aims to quickly bridge the gap to the economy.

(Dortmund) Just a few weeks after the handover of the funding notification for the major research project ‘Silicon Economy Logistics Ecosystem’ by Federal Minister of Transport Andreas Scheuer, the operational work kicked off at the Fraunhofer Institute for Material Flow and Logistics IML: The institute directors Prof. Michael ten Hompel and Prof. Michael Henke welcomed representatives from the Federal Office for Administrative Services (BAV), including the project-responsible specialist Jürgen Dannen, for an initial exchange on-site in Dortmund.

Funding of 25 million euros

As the granting authority, the BAV, headquartered in Aurich, organizes and manages various funding programs in the business area of the Federal Ministry of Transport and Digital Infrastructure (BMVI). The project ‘Silicon Economy Logistics Ecosystem’ is funded with 25 million euros by the BMVI. With the counter-model to Silicon Valley, the Fraunhofer IML aims to facilitate a decentralized and open platform economy in Germany and Europe. During a tour of the institute, the BAV delegation was able to gain an impression of the state-of-the-art facilities of the associated research halls and the innovation potential of scientific research. In particular, through demonstrations of a bio-intelligent drone swarm and the autonomous high-speed vehicles ‘LoadRunner’, the representatives of the BAV received a first good insight into possible applications within the ‘Silicon Economy’.

Collaboration between science and industry is crucial

The group agreed that the collaboration between science and industry is of great importance for the success of the new platform economy. Innovative developments from research must reach companies as quickly as possible. Therefore, the principle ‘No development without application’ also applies to the Silicon Economy from the very beginning, emphasized ten Hompel, managing director of the Fraunhofer IML: ‘We invite all interested companies to bring their specific needs into our work. Because only in collaboration with industry will we set the course for an open and decentralized platform economy that enables every company – regardless of size – to access the business models of the future.’

Opportunities for companies to participate

Currently, the project is building a community with a variety of participation opportunities for companies. Notable companies have already been won as partners for the first agile development projects. The goals of the Silicon Economy Logistics Ecosystem are:

• Strengthening the logistics industry in Germany and Europe
• Creating new business potentials
• Supporting companies in sustainability goals

In the coming five years, current forecasts suggest that the most successful business models in logistics will come from the platform economy. The understanding of the platform economy of the future is characterized by a diversity and coexistence of different logistical and industrial B2B platforms: the Silicon Economy. Logistics companies of all sizes will then have the chance to conduct their business operations fully automated – from ordering to billing to transport. For individual companies, building a platform still incurs enormous costs today, is immensely labor-intensive, and is also fraught with legal uncertainties. Therefore, the project is jointly creating the software and hardware environment for the autonomous, AI-driven logistics of tomorrow. The new logistical operating system will meet the highest data protection requirements and can be used by any company, regardless of size. Graphic: Silicon Economywww.silicon-economy.com    www.iml.fraunhofer.de