Smart Factory as a Service (SFaaS)


New solutions for production of the future

Munich, 21 June 2018 – On 20 June 2018, MHP, KUKA and Munich Re presented for the first time the "SmartFactory as a Service (SFaaS)" in Munich, and thus a new business model that has the potential to revolutionize production processes in the automobile industry of the future. For this purpose, the three companies are bringing together their core competences: The robot-based automated production is being developed by KUKA, MHP, with its digitalization expertise, is contributing its closed loop manufacturing approach in the entire project phase and taking care of system integration, and Munich Re is completing the business model with integrated risk management and innovative financing models.

  • Industry 4.0 and digitalization make possible new production methods and demand new business models. What these models might be will be presented by MHP, KUKA and Munich Re in the new SmartFactory as a Service.
  • Use of the SmartFactory as a Service makes it possible for manufacturing companies to focus on customer satisfaction without themselves having to take responsibility for peripheral aspects of value creation, investment costs and risks. Flexible small-series production will thus become economically viable for the first time.
  • Thanks to the new integration of consistent and embedded data and risk management, the SmartFactory as a Service shortens the product development process and facilitates market-oriented product testing and development.
  • Furthermore, the real-life SmartFactory as a Service offers the ideal location for events and workshops for promoting the exchange of ideas and challenges in a dynamic eco-system.

The economy is currently experiencing a shift triggered by dynamically changing customer expectations which are subjecting manufacturing companies to great pressure to innovate. In order to remain competitive also in the future, the companies face the challenge of adapting their traditional processes. This transformation requires great flexibility and transparency throughout the entire value creation chain, as well as access to critical resources. It is causing considerable capital costs and involves substantial uncertainties and risks.

The SmartFactory as a Service will be able to reduce the market entry time for new products by up to 30%, thus significantly improving one of the key competitive indicators for manufacturing companies. For this purpose, the interaction within the partnership and the combination of complementary expertise is essential.

The three partners are jointly pursuing the objective of digitalizing the entire value creation chain, implementing a consistent, high-quality data flow, and merging previously unconnected areas and systems in the production development process. In this connection, the SmartFactory as a Service will independently and flexibly produce various product types in any quantity, thus meeting changing customer demands for individualized products.

The scalable integration of development, production and embedded risk and financial management facilitates the implementation of synergies throughout the value creation chain, thus allowing manufacturing companies to benefit from innovative usage models with full variabilization of costs.

Dr.-Ing. Ralf Hofmann, Chairman of the Board of Management of MHP:
"Acceleration can no longer take place only in production, but in a closed "Engineering Value Chain" – which means consistency in data, processes and organizations. This end-to-end flow facilitates the optimization of highly individualized production. Customer-specific mass production with the tools of series production."

Dr. Till Reuter, Chairman of the Board of KUKA AG:
"The ability for a system to change is a decisive criterion for the future viability of production. Our customers face the challenge of having to react flexibly and rapidly to market requirements. The SmartFactory as a Service can achieve this. Thanks to the cooperation with Munich Re and MHP, we are now a great deal closer to the business models of the future."

Dr. Torsten Jeworrek, Member of the Board of Munich Re:
"The combination of state-of-the-art production technology, digital networking of all processes, and risk management and financial power, makes possible a new form of production. We want to develop this with customers and thus support them on their path towards a digital future."

In the SmartFactory as a Service in the dynamic factory district of Munich, the production of tomorrow can already be experienced live today. It demonstrates and supports the implementation of innovative business models. In seminars, presentations and workshops, customers and all involved in the emerging eco-system discuss the dimensions being opened up by the IoT for industrial companies. The location provides space for networking, for the exchange of ideas across various industries, and for the joint development of concrete application cases of new business ideas.

Interested companies are invited to become part of the network and to help shape the development of the production of the future.

Further information is available at

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