Implemented in four municipalities in Denmark’s North Jutland region, the Nordvest Smart Production project helps SMEs in sparsely populated areas to grow through digital transformation. The project has enabled 45 firms to use data and modern technologies to optimise processes and innovate. As a result, over 200 new ideas have been developed and tested, leading to the creation of 25 jobs and seven patents pending. Despite the Covid-19 pandemic, the companies continue to report growth and increased profitability.
- 29 September 2021
"Nordvest Smart Production is designed to help SMEs grow through digital transformation. We bring abstract ideas and concepts into play in a business segment notoriously hard to reach with this kind of effort and answer the need for bringing Industry4.0 technologies and mindsets to businesses in areas with low population."
Technology screenings in SMEs give them an understanding of how to reach their digital potential. This supports the development of smarter products, processes and strategies which can bring about further transformation for the companies and their supply chains.
Training sessions help local business services to support innovation, while 15 public talks have been held on digital transformation topics including 3D printing, Internet of Things architectures and blockchain.
Open dialogue
The business environment in North Jutland is similar to that in much of Europe. It features many small firms that use new technologies directly related to their trade but have little experience of Industry 4.0 strategies linking production with smart technology or of data-driven development.
Nordvest Smart Production aims to identify Industry 4.0 practices that are relevant to SMEs. The project initiates dialogue with companies, orienting the conversation towards ways of mixing conventional and digital solutions.
At the meetings, core ideas are introduced and potential areas for change identified. A plan is drafted for the company’s approval. The first stage of implementation mainly involves analysis of problems. Subsequent stages focus on problem-solving and transformative actions.
Academic-industrial cooperation
Facilitating cooperation between SMEs and knowledge institutions such as universities is an important part of the project. Its data-driven approach challenges established practices, giving rise to new research problems, some of which Aalborg University has explored further. The enrolment of some 50 students on internships to help solve companies’ digitisation problems has bridged the gap between industry and academia and led to job offers for students.
SMEs typically grow thanks to their owners’ understanding of their own trade. However, to lead digital transformation, owners have to work in unfamiliar areas. To support this process, the project helped decision-makers adopt a digital mindset with seminars, screening activities and strategy sessions.
Throughout the project, the partners have extracted and generalised knowledge acquired from innovation processes in individual companies. This has resulted in the compilation of models allowing SMEs to assess their digital maturity, identify barriers to digitisation and plan business transformation.
A think-tank composed of business and policy stakeholders has been set up to distil the findings of Nordvest Smart Production into strategic recommendations for the region. The project has contributed to the creation of an innovation research facility at Aalborg University and efforts to establish a support centre for data-intensive innovation in SMEs.
Beneficiaries
‘We have grown from eight to 19 employees, in large part due to collaboration with Nordvest Smart Production and the experts. We increased sales because we gained more certifications and digitally supported production. We increased production through streamlining and, as a bonus, we are considering founding a new laser cleaning company.’
Peter Frederiksen, CEO and owner of J-Coating, an SME in Aalestrup
‘Aalborg University wants to contribute to growth of SMEs. That is why we are proud of our participation in the Nordvest Smart Production project, which has contributed positively to the development of many exciting SMEs.’
Professor Ole Madsen, Department of Materials and Production, Aalborg University
Total investment and EU funding
Total investment for the project “Nordvest Smart Production” is EUR 3 434 725 with the EU’s European Regional Development Fund contributing EUR 1 258 410 through the “Innovation and Sustainable Growth in Businesses” Operational Programme for the 2014-2020 programming period. The investment falls under the priority “Increase the number of innovative SMEs”.