GC Catena X T Systems en 09 2023 Data
GC Catena X T Systems en 09 2023 Data
Content
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
Automotive challenges −
yesterday, today, tomorrow
“Where are the engine hoods?” “Why do the transmissions have to be delivered to a different
gate now?” “Where should we send the invoice now?” − Automotive value chains/networks are
complex. They generate day-to-day challenges at the operational level. That's the reality.
However, not a new reality.
Transparency (along the entire supply chain) and the efficiency of New possibilities for (automated) collaboration will pay off in
processes are − together with cost pressure − the classic challen- terms of future competitiveness − and make important contribu-
ges in automotive value creation. Different or missing standards tions to solving “old” challenges. Digitalization could also enable
and semantics contribute substantially to existing inefficiencies. new data-driven business models or situational on-demand
relationships in the sense of manufacturing as a service. This
With the disruptive events of the last years, resilience, business trend has already been established in the financial environment
continuity and supply chains have also moved into the spotlight. as “banking as a service” for several years.
But that's not all: new regulatory requirements regarding various
sustainability aspects are creating further challenges for the From T-Systems' perspective, the automotive industry is taking
automotive industry, which ultimately result in sustainability a big step toward the future with Catena-X 2023. Catena-X will
reports. Corporate social responsibility must take into account not be able to solve all of the automotive industry's problems,
topics such as the German Supply Chain Due Diligence Act, the but it will nonetheless put the industry on a new, powerful foun-
circular economy, and the EU Green Deal with the reduction of dation. The situation of the companies involved/affected could
carbon footprints. Many requirements that have been handled not be more different: On the one hand are the major OEMs and
“softly” so far will be enacted into law in the future and provided tier 1 suppliers, some of them co-creators of Catena-X; on the
with targets and key performance indicators. One such metric is other hand there is a legion of small and mid-sized suppliers.
already on the horizon: reducing the industry's carbon footprint Different roles in the ecosystem such as user and supplier, pro-
by about 35 percent by 2030 (compared to 20201). vider of platform services, etc. offer opportunities and generate
requirements.
Against the backdrop of this “homework”, the future is sometimes
getting out of sight. But here, too, challenges await: New digital With this paper, T-Systems sheds light on the status quo of
skills, especially software skills, must be developed. The new Catena-X and its prospects. At the same time, it shows how your
digital capabilities also include digital twins, for example. company can play a part.
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
What is Catena-X? In our previous paper we explained the vision Catena-X establishes uniform standards for participation and
of Catena-X as follows: “... to establish a common, data-driven processes in the ecosystem. These standards, e.g. data spaces,
value network of all players in the German automotive industry. also guarantee data sovereignty, among other things. This allows
The data eco-system draws on European standards that gua- for a secure and confidential exchange of data across the plat-
rantee the digital sovereignty of all players in the automotive form. These standards are all the more important because
industry. Catena-X creates a neutral, secure, trustworthy plat- Catena-X is built on a decentralized approach. Services can be
form tailored to the automotive industry. It offers services and offered and used on this basis. The core task of the actual
business applications, some of which are based on open source. Catena-X platform is to bring together the supply and demand
Data sharing creates synergy effects that promote digital inno- sides within an agreed compliance framework.
vation in the automotive value chain. But Catena-X does not
want to stop at industry or national borders: In the future, repre- From T-Systems' point of view, a common scenario will be that
sentatives of other industries will also use the eco-system (e.g., the data located in an enterprise system is made available to a
from mechanical engineering and chemistry). The open plat- service of another party. The data remains with its owner and is
form allows worldwide use.” only made available to the service for calculation purposes. For
example, a supplier could provide data for a carbon footprint
Perhaps the most vivid explanation: Catena-X is an example of a calculation triggered by an OEM. For new business models,
digital, industry-specific ecosystem in which various stakeholders such data can also be made available (possibly for a fee) to
participate in different roles. Some will go so far as to describe third parties (see example).
Catena-X also as an approach for an industry cloud (platform2).
Example:
Data-based business model
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
The Catena-X ecosystem consists of three principal components: the Association Catena-X e.V., the “Development Environment” and
the “Operating Environment”.
The Catena-X e.V. association performs central tasks, such as the certification of the services offered/used and the governance of the
ecosystem. To this end, it publishes standards for generic core services, enabling/enablement services, and business applications.
In the “Operating Environment”, the certified services that comply with the standards are operated and offered by the various providers.
These also include open source and commercial services.
At the end of January 2023, Cofinity-X was founded as the first company selected to operate the Catena-X Automotive Network
(pictured is the magenta circle within the Operating Environment).
External
input
Association Catena-X e.V.
Standardization/certification/neutral governance/transfer
Cofinity-X
Tractus-X
28 first Open Source Project License &
partners to get Service
the ecosystem Proprietary agreements
up and running applications
Services
The “Development Environment” is dedicated to continuous implementation was developed within the open source project
development in compliance with the standards on the plat- Eclipse Tractus-X and documented there.
form. Reference implementations for the data space on an Currently, the Catena-X consortium is the first developer of
open source basis also play a role here. The reference services (magenta circle).
Excursus
The standards ensure interoperability, data sovereignty integrated into the platform. They are supplemented by
and security for all participants in the data space. domain- and application-specific requirements from the
All ecosystem participants must comply with them. The automotive sector. The uniform semantics and the provision
Catena-X standards are based, among other things, on of data are implemented via digital twins. The certification
concepts and principles developed by Gaia-X and the of ecosystem participants and software components create
International Data Space Association (IDSA). They are trust and transparency in the ecosystem.
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
The reference implementation (see fig. 2) from the Eclipse Tractus-X project is divided into three areas:
Fig.2: Overview of the Catena-X reference implementation (Copyright Catena-X Automotive Network e.V.)
Core services The core services are divided into two groups: services from
section A can be offered several times on the platform. These
Core services, as the name suggests, comprise the nucleus of the include identity management and rights/role assignment based
Catena-X platform. These services perform the core governance on OpenID Connect and OAuth, the provision of a marketplace for
tasks. They include, for example, the marketplace, complete service selection, and the visualization of standardized semantic
identity management and the Digital Twin Registry Service. One models as a machine-readable standard. Services from section B
important component in particular is the issuing of a unique are only offered once − the respective provider is selected as part
Business Partner Number (BPN) − this allows the counterpart to of the Catena-X nomination process when the platform is built.
be clearly assigned and identified. The BPN is associated with Section B services include the central Business Partner Manage-
each data exchange. ment with the Golden Record for the “master data” and the BPN
output. The Digital Twin Registry, which manages the Digital
Twins and finds the metadata of the Digital Twins, is also such a
platform-intrinsic section B service.
OAuth
Many Internet services use the open standard protocol another service. In doing so, no details of his access
OAuth to authenticate users. Via OAuth a user allows authorization are disclosed.
an application to access authorizing data provided by
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
Enablement services
The provision of enablement services, on the other hand, is decentralized. All participants in the ecosystem are responsible for connec-
ting to the platform in accordance with the set standards. This involves connecting existing legacy systems, for example. The basis for
this is the Eclipse Data Space Connector (EDC). It is also an important piece in the mosaic to ensure data sovereignty and interoperability
for the participant.
EDC
The Eclipse Data Room Connector (EDC) provides a identity, data catalog and transmission technologies. This
connector framework for sovereign, cross-organizational allows compliance, policy and control functions across the
data exchange. The framework provides modules for data entire network. Subscribers can either implement the EDC
queries, data exchange, policy enforcement, monitoring themselves or engage an enablement service provider to
and auditing. The EDC can be integrated into existing deliver the EDC as a managed service.
The Simple Data Exchanger (SDE) is available for participants Business applications
who do not have an increased need for integration and only want
to provide/purchase data. It allows SMEs (small and medium- The central and enablement services allow working with Catena-X.
sized enterprises) to manage contracts and comply with the The unique selling points of the platform are integrated into this
usage guidelines in the Catena-X data space. The SDE is in close basis: data sovereignty and standardization. But it is the business
association with the EDC. applications offered on the marketplace that generate added
business value for the participants.
For example, data providers and users can provide data via the
CSV data format (comma separated values) or manually. The The Catena-X consortium has identified ten use cases that can
SDE registers the relevant metadata in the Digital Twin Registry generate added business value. These include solutions that
and makes it accessible via EDC according to the selected address regulatory issues such as traceability, sustainability and
access policies. circular economy, as well as solutions designed to increase internal
and cross-company efficiency: Quality improvement, demand
The basic EDC service can then be extended by so-called adaptors, and capacity management, modular production, manufacturing
which offer the contributors increased functionality in terms of as a service, real-time control and simulation, digital behavior
data supply. They depend on the type of connected backend twins and business partner management. Applications for these
system and are therefore very specific. (and for other use cases not yet identified) can be used via
certified providers in the marketplace.
In 2023, the marketplace will start with the first use cases:
traceability, sustainability and business partner management.
Real-time control
4 Quality improvement 8 and simulation
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
Example:
Catena-X impulses for the circular economy
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
In total, there will be seven different roles of contributors in the Catena-X ecosystem. T-Systems will also be present in some roles,
e.g., enablement service provider and core service provider:
Core service providers (sections A and B) that provide core platform services. They can also act as orchestrators,
1 enabling interoperability of Catena-X with other data spaces/ecosystems.
2 Enablement service providers operate services that connect data suppliers and customers (via EDC and SDE).
3 Business application providers offering their services on the marketplace (supply side).
Onboarding service providers take care of the “creation” of new contributors and their user identities in the network.
4 Often they also offer the connection to Catena-X as a continuous managed service.
6 Data providers and data consumers represent the users of the platform.
Conformity Assessment Bodies ensure compliance of services with platform standards and are an important part of
7 the certification process
Operating Environment
2 3 5 2 3 5 6
Enablement Business Consulting Enablement Business Consulting Data provider/
service application service service application service
provider provider provider provider provider provider consumer
Uses third-party
third-party solutions on third-party solutions on core services/solutions
marketplace A marketplace B
1 1
Core service Core service
provider A synchronization of the provider B 7
organization/user identities Conformity
4 Assessment Bodies
On-Boarding
service provider synchronization of the certifies third-party
organization/user identities core services/solutions
Fig.4: High-level overview of the operational environment (Copyright Catena-X Automotive Network e.V.)
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
The seven roles provide each company with an option to participate in the ecosystem.
T-Systems currently sees two relevant perspectives for most companies in the automotive
environment: “be prepared” and “get connected”5.
A first look: preparing for the Catena-X engagement It is also important that employees in the company are prepared
for the new reality and that appropriate responsibilities are allo-
Catena-X will become the new standard for collaboration within cated within the company.
the automotive industry and thus an essential prerequisite for
companies to participate in automotive value creation. Ideally,
they will identify at an early stage what role they want to/can Basis: connection to the ecosystem
play in the ecosystem. It is important − possibly with the
involvement of a Catena-X expert/consultant − to develop The connection to Catena-X will be essential for every company
such a strategic approach. in the automotive environment. Depending on the objective, this
elementary functionality for participation should already be
The fulfillment of basic requirements (for participation in the planned now. In other words, how will enablement services be
ecosystem) will be obligatory. This includes onboarding, but also implemented? Larger companies should plan which backend
the provision of data in a Catena-X compliant format. systems are to be integrated for data provision or data evaluation
as part of their EDC implementation. Smaller companies can
In addition, companies can explore further business options. quickly and easily “plug in” to the ecosystem as service users and
Can existing services (in the company) be offered in the eco data providers via a (low-cost) SDE approach to provide their
system? Can new services be developed for the ecosystem to data. Catena-X envisions that such onboarding into the ecosys-
generate new sources of income? A fee-based provision of data tem will take two to four months. The standardized onboarding
for (data-driven) services from other providers is also conceivable. process is described in the diagram below. Details can be found in
the official Catena-X diagram6.
We accompany you Choose your Define your Business case Integrate your
step by step onboarding partner business goals (cost-benefit plan) ecosystem
Technical enablement
Data Preparatory
Operation Data space Data integration analysis
management
Organizational enablement
Fig.5: The Catena-X onboarding process (Copyright Catena-X Automotive Network e.V.)
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
Individual consulting for large companies analyze the individual company situation with regard to the rele-
vant Catena-X target use cases and the respective internal data
For large enterprises, which often have specific consulting sources. Initial solution ideas and options for Catena-X backend
needs because they maintain complex IT landscapes or specific integration also emerge in such a workshop. The workshop can
legacy systems, T-Systems recommends a deep-dive workshop usually be completed in two days and then provides clarity on
for backend integration. the further procedure for connecting specific backend systems.
Such a backend readiness workshop provides a technical deep It is ideal if the provider of the workshop can offer ready-made
dive in addition to knowledge of the Catena-X architecture and software modules with which the developed solution ideas can
its most important components. The aim of this deep dive is to be realized in a simple way.
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
After the conceptual design of the Catena-X entry the technical fer such a basic service as a managed service − with regular up-
connection to the ecosystem needs to be established. Here, too, dates and in business service quality.
various standardized and individual solutions are available accor-
ding to the company's situation. The greater part of those involved
in value creation come from the SME environment. The majority Simple Data Exchanger (SDE) as a managed service
of companies employ fewer than 100 people and therefore have
only limited or no specific IT skills. But also for them the partici- The integration of all data sources via the EDC is only the basis
pation in Catena-X is relevant. They need easy-to-use connectivity to participate in Catena-X. To actively participate, i.e. to upload
solutions that meet their participation needs, e.g. data upload. data to or download data from the platform, an additional solu-
The Simple Data Exchanger for easy data exchange is specifically tion for data exchange is required. This is where the Simple Data
designed for such companies. Exchanger comes into play. It is based on open source software.
The application is specifically tailored to exchange Digital Twin
submodel data in the formats defined and standardized by the
Eclipse Dataspace Connector (EDC) as a managed service Catena-X Association. It also supports the definition of access
and usage policies to ensure data sovereignty and control over
As already described, the EDC is one of the core components in provided data. For this purpose, the SDE makes use of the key
the data space. It enables data exchange between data provider components EDC and Digital Twin Registry (DTR). The SDE
and data consumer on the technical level. It ensures end-to-end ensures fully automated processes in the background, thus sim-
data sovereignty based on IDSA and GAIA-X standards. plifying data exchange and significantly reducing entry barriers.
Such SDE services are already available on the Catena-X market-
The EDC was developed as an open source project. Therefore, it is place. They are provided as a managed service from a cloud
not maintained with a specific quality of service. There are no (Azure, Google Cloud, AWS, Open Telekom Cloud), i.e. including
commercial software updates and no pre-configured out-of-the- support and quality of service. The SDE allows file-based data
box packages. The EDC as a pure connector needs extensions so exchange. The costs for such services are in the low double-
that it can be used for business challenges. EDC providers can of- digit euro range (per month).
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
If the file-based data exchange via SDE falls short and Example:
a full backend integration is too complex, the Basic Connection of a medium-sized company to Catena-X
Data Exchange Service for Catena-X (BASE-X) can be a
useful solution for SMEs. The data provider or consumer LRP − Autorecycling GmbH recycles 20,000 vehicles every year at
receives an API (“loose coupling”) via which he can its five locations, making it one of the leading German companies for
publish or download data packages in/from a database. vehicle recycling as well as vehicle and parts trading. The medium-
The database in turn synchronizes regularly with sized company employs around 100 people and its services are at
Catena-X via the EDC. In this way, regularly occurring the end of the automotive value chain.
business processes can be automated (e.g. automated
registration of a digital twin of a produced component With every car purchase, the company's employees must make a
in Catena-X after a serial number has been assigned to business decision: Will the vehicle “recoup” the cost? Which spare
the part for the first time). This solution can also be parts can be used to achieve which future profits? The basis for this
useful when “exotic” systems are in use for which no is valid information about the components installed in the respective
existing adaptors or “connectivity modules” are usually vehicle. Since almost every car is a “custom-made product”, this
available. In addition, BASE-X also offers support for data can only be compiled from various sources with great effort.
mapping semantic models of the customer with the
information models specified by Catena-X. Catena-X offers the recycler a way to put its business model on a
new foundation. With the automotive network enabling the sove-
reign sharing of data along the value chain, LRP employees have
access to all the information they need to make a decision at the
push of a button.
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
Digitale IDs, verified credentials, are an important building In practice, the details of a participating company, e.g. identity,
block in modern industrial processes for generating trust. commercial register entry and tax number, are checked, signed
Hyperconnectivity with the exchange of digital assets requires and certified in the clearing office. The certificates range from
traceability in order to successfully map digital business pro- simple web signatures to EIDAS-compliant signatures as
cesses. The legitimation of the participating companies within defined by the EIDAS EU Regulation 2014. With this proof of
Catena-X is a basic factor for the success of the ecosystem. compliance, the participating company receives a verified
credential for the Catena-X data ecosystem. The clearing house
Gaia-X has published guidelines for how such legitimization of for the “get verified” service will be available in the first quarter
stakeholders is to take place. Among other things, the initiative of 2023.
envisages the establishment of a neutral clearing house
operated by verified partners. T-Systems offers one of the first
computer nodes in Europe to fulfill this Gaia-X functionality.
Similar to Catena-X, data spaces are also being created in other exchange. The IDS-based design enables data exchange while
industries and subject areas. One example is the Mobility Data maintaining data sovereignty.
Marketplace (MDM) created by the Federal Ministry of Digital
Affairs and Transport. It is intended to promote the development At the moment, the data spaces still exist as separate domains.
of intelligent transport systems for better networking of public But it is foreseeable that completely new, data-based business
transport. Information on current timetables, traffic volumes, ideas can arise on the basis of current data from different domains.
congestion, disruptions, etc. converges on the MDM. The MDM All that is needed is an integration of the data spaces. This would
also uses the standards of the International Data Space Association create a data space network with a multitude of possibilities that
(IDSA) and its IDS technology for secure and trustworthy data can be seized by anyone who has the right business idea.
Orchestration
& Integration
via
DATA
INTELLIGENCE
HUB
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Catena-X − it's the taking part that counts! Set the course for sustainable and resilient business networks now
Conclusion
The automotive industry faces a host of challenges. organizational prerequisites: onboarding and connection via
From T-Systems' perspective, Catena-X has the potential to solve enablement services are essential for this. Thirdly, it is impor-
a large part of them. Companies will have little choice about tant to take an internal “data inventory”: Is the required data
whether to engage in the digital ecosystem. Catena-X will be available digitally and what effort does it take to convert it into
essential for future collaboration and participation in automotive a Catena-X-compliant information model?
value creation. The platform provides universally binding stan-
dards that the industry has sought for decades, allowing transpa- However, the Catena-X journey does not end with the fulfillment
rency and efficiency − with complete data sovereignty. of the “rules of the game”. Companies should explore what value
creation potential they can leverage within Catena-X. We are mo-
Companies should now pave the way for a participation in the ving into the age of data-driven business models. With exclusive,
ecosystem. First and foremost, this includes establishing in demand and up-to-date data as well as innovative solutions,
Catena-X expertise within the company and defining responsi- promising business opportunities are ahead for those who can
bilities. Secondly, companies have to create the technical and read the needs and trends of the market.
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Are you looking for a solution
to manage your challenges in
the automotive industry?
Sources
[1] Revised Climate Change Act sets out binding trajectory towards climate neutrality by 2045,
Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, May 2021
[2] Top Strategic Technology Trends for 2023: Industry Cloud Platforms, By Analyst(s): Gregor Petri, Tiny Haynes, Yefim Natis, Wataru Katsurashima,
October 2022 (for registered users only)
[3] Squaring the Circle: Policies from Europe’s Circular Economy Transition, The World Bank, December 2022
[4] Advancing the implementation of the battery passport in Europe and beyond
[5] Unlock the value of data on your terms, T-Systems
[6] Info Sheet − Onboarding to the Data Ecosystem, Federal Ministry for Economic Affairs and Climate Action
Contact
Germany: 0800 33 09030
International: 00800 33 090300
Email: [email protected]
Internet: www.t-systems.com
Publisher
T-Systems International GmbH
Hahnstr. 43d
60528 Frankfurt am Main
Germany