Battery storage and flexibility for municipal utilities

How municipal energy suppliers benefit from flexibility markets and battery storage and actively shape the future

The energy transition is not only changing technical systems, it is also putting the business models of municipal utilities to the test. Decentralized generation, volatile feed-in, increasing grid requirements and new customer expectations are challenging us to rethink.

But it is precisely this change that offers tangible opportunities. Storage technologies and flexibility markets are opening up new revenue streams, strategic positioning and the opportunity to actively shape the future of energy for municipal energy suppliers.

Flexibility as a key competence

Battery storage and flexibility services are increasingly seen as key factors for a stable, economical and sustainable energy supply. They enable municipal utilities to respond to new challenges with marketable solutions:

• Relieve local grids
• Provide balancing energy
• Smooth load peaks
• Optimize own generation
• Develop new services for commerce, industry and neighborhoods

Especially against the backdrop of Redispatch 2.0, new regulatory framework conditions and increasing complexity in grid management, these technologies are becoming a strategic asset.

Four fields of action for new value creation

In joint projects with municipal utilities, EARLY BRANDS has identified four key fields of action in which storage and flexibility can be specifically transferred into new business models. In the following, we show specific approaches and design options for each of these fields:

1. 1. revenue sources & growth

• Grid-serving large-scale battery storage: revenue from grid services, peak shaving and spot market trading
• Energy-as-a-Service: storage and load management solutions for business customers without own investments
• Neighborhood solutions: Integration of PV, battery storage and charging infrastructure in residential and commercial areas
• Sector coupling for industry: efficiently networking electricity, heat and mobility for large-scale consumers

2. 2. leverage value potential

• Heat storage for industrial processes
• Self-consumption optimization in the municipal utility, e.g. by optimizing electricity costs in the waterworks through battery storage
• Co-location of renewables & storage for flexibilization

3. 3. seize the opportunities of the digital transformation

• Virtual power plants (VPP) for better market integration
• Dynamic electricity tariffs via smart metering
• Microgrids & energy management as a service

4. 4. future viability through resilience

• Blackout prevention through storage solutions
• Demand-side management in real time
• Temporary storage solutions for critical infrastructures

Microgrids as a resilient and independent energy solution for industrial and commercial customers.

From potential to implementation – with a sense of proportion and experience

Many municipal energy suppliers have recognized that flexibility strategies and storage technologies can not only achieve ecological goals, but also open up new earnings potential. But which models make economic sense, which can be implemented with existing personnel and what is really relevant to the market?

EARLY BRANDS provides practical support on these issues, with a clear focus on what is feasible. In close cooperation with municipal utilities, viable concepts are developed within a few weeks, which are

• can be realized on the market within 12-24 months,
• build on existing structures,
• and are validated by employees and customer/market feedback.
  Our experience in innovation and technology consulting in the field of energy storage and flexibility strategies shows that it is not just the strategy that is decisive: It is not just the strategy that is decisive, but the way to get there. From the conception, support during implementation with excellent technology partners and ongoing integration of the ideas of employees and customers.

Actively shaping the future

The future of energy is no longer abstract – it is happening locally: in municipal utilities, in neighborhoods, in industrial partnerships. Those who consistently invest in flexibility and storage today can position themselves in new markets, mitigate risks and strengthen their own resilience.

Figure: Teamwork meets method: agile innovation approaches create business models for the municipal energy transition

EARLY BRANDS brings many years of practical experience to the table. Whether in the development of battery storage projects with a capacity of over 100 MW, in strategic innovation processes or through active participation in specialist committees such as the working groups on large-scale storage and financing in the German Energy Storage Systems Association (BVES). Involvement in the VKU Association of Municipal Enterprises also contributes to this.
Municipal utilities that recognize these opportunities are not only securing their future viability, but are also actively shaping how supply, economic efficiency and sustainability will interact in the future.

Catch the Future…!

How large-scale battery storage systems are shaping the future of the energy transition

At EARLY BRANDS, we focus on leveraging value potential with new technologies, creating benefits here and now and for future generations. In this article, our Managing Partner Alexander Witte provides insights into an exciting key technology of the energy transition: Stationary large-scale battery storage + how it creates values and benefits.

What are large-scale battery storage systems and why are they a key technology of our time?

Large-scale battery storage systems are stationary systems for storing large quantities of electrical energy. They enable us to store energy within seconds, e.g. when there is high availability from the grid, and feed it back into the grid when there is greater demand. Li-ion (lithium-ion) and LFP (lithium iron phosphate) batteries are currently the most commonly used storage media. These combine high energy density, fast charging and discharging times and a long service life of 12-15 years in some cases.

Large battery storage systems can be operated very well “standalone” in containers, e.g. at power plant sites with existing grid infrastructure. They are also gaining in importance as a co-location solution with a connection to wind farms and solar parks. Storage systems are an important key technology for a robust energy infrastructure and the success of the energy transition in Germany, Europe and worldwide. Their operation opens up numerous innovative opportunities for economically attractive use cases in order to leverage the value potential of the energy transition and successfully shape corporate development.

What is its significance for the success of the energy transition?

Large-scale battery storage systems are like a “pocket knife” for the energy transition. In the event of sudden peaks in demand or unexpected power plant outages, they step in like a service technician in a matter of seconds, balancing the energy demand and thus stabilizing the grid to a pulse of 50 hertz. They are the key to reducing current grid bottlenecks by storing surplus energy and releasing it when needed.

Today, more than 63% of electricity consumption in Germany is already covered by renewable energies. When the wind is strong, grid bottlenecks occur and the wind turbines come to a standstill. In some cases, this results in negative electricity costs because the surplus electricity is available and cannot be stored. Gas-fired power plants step in when there is too much wind or solar power in the grid.

The standstill of wind turbines is currently leading to redispatch costs of around 20 billion euros, which are currently being passed on to the taxpayer. This means that electricity bills are becoming more expensive, while the operators of renewable energy plants continue to receive their money. These so-called “redispatch” measures can be greatly minimized with large-scale battery storage systems. The energy transition therefore forgot to consider the infrastructure for storing renewable energy in parallel with its expansion. Storage systems help to ensure that fewer fossil fuel power plants, e.g. gas-fired power plants, have to be used to stabilize the grid in the future.

With large-scale battery storage systems as the “pocket knife of the energy transition”, flexibility can be provided in the grid and electricity can be traded on the energy markets at the same time. This is done by storing electricity during the course of the day when large quantities are available at low cost – and by withdrawing it 1-2 hours later, for example, when there is more demand for electricity on the market. Grid bottlenecks and peak loads will increase.

On the positive side for Germany: for two years now, large-scale battery storage systems have become very economically viable thanks to technical advances and increasing battery production capacities. Some of the systems pay for themselves in less than 10 years, even without state EEG subsidies. Since the beginning of 2024, there has also been a tailwind from the Bundestag, which has recognized across all parliamentary groups how important large-scale battery storage systems are as a building block for the success of our energy transition. The expansion of storage systems must now catch up with the expansion of renewable energies such as wind and photovoltaics (PV) as quickly as possible so that the German energy transition as a whole succeeds and makes economic sense.

What is the growth potential?

The importance of large-scale battery storage systems for the electricity system will increase significantly in the future. This is because without energy storage, the further expansion of renewable energies such as wind and PV will be difficult to manage. At the beginning of 2024, there will be around 1.5 gigawatt hours (GWh) of installed capacity on the grid in Germany. Our estimate is that capacity in this country will increase to 15 MW or 55 GWh or more by 2030 – if the political framework conditions are right. This would mean that we would install 10 times as much output and hourly capacity in 5-6 years. Current market analyses by Frontier Economics, the Fraunhofer Institute and the German Energy Storage Association support this assessment. According to the Fraunhofer ISE research institute, much more is needed for a functioning, climate-friendly economy and energy infrastructure: up to 104 GWh by 2030, which is 100 times more than today! By 2050, the stock of large energy storage systems in Germany could even grow to 60 gigawatts of power and more than 270 GWh of capacity.

What topics and developments are you actively involved in at EARLY BRANDS?

Without more storage, there will be no successful grid expansion with wind and PV in Germany and Europe. There is attractive economic growth potential for large-scale battery storage as a key technology, which we at EARLY BRANDS are actively helping to shape. Together with leading energy companies, storage manufacturers and infrastructure partners, we are part of the implementation. We advise and support our clients from industry, such as leading production companies from the consumer goods industry or logistics, in realizing attractive value potential from battery storage. In such projects, we support production companies in optimizing energy costs through physical or virtual battery storage, reacting more flexibly to peak loads and at the same time integrating more renewable energies into their energy mix.

In teaming up with leading energy companies as well as larger operators of renewable energy systems, we are currently also designing and implementing large-scale battery storage projects in which medium-sized companies and the financial sector are involved as facilitators, accelerators and implementation partners. We use our strong EARLY BRANDS network of leading technology companies from the energy sector and the storage industry and have our finger on the pulse of current trends and technological developments. We are involved in BVES, the Bundesverband Energiespeicher Systeme e.V. (Federal Association of Energy Storage Systems).

What are the current trends and developments that fascinate you?

In addition to the use of stationary large-scale battery storage as a building block of the energy transition, many exciting applications are developing in parallel. In many cases, these are the result of technological leaps, as is currently the case with innovative storage media such as redox flow, solid flow or solid-state batteries. In other words, material innovations leading to higher energy densities and new economic applications.

What is already working today in laboratory or pilot tests will be economically exciting in the near future and create value for new generations. What would it be like if inland waterway vessels were powered by large batteries instead of or in addition to diesel? The first ports, such as Hamburg or Antwerp, are already using large-scale battery storage systems for ship power and balancing the grids. The leap via innovative storage materials to ships or, in the medium term, to airplanes is still a long way off, but is becoming increasingly tangible.

Catch the Future…!

How robots are driving the future of the maritime industry

The maritime industry is at a turning point: imagine a world in which autonomous ships cross oceans on their own, smart offshore platforms work more efficiently and underwater robots explore the deep sea. This vision is increasingly becoming reality thanks to rapid progress in robotics.
But where is the concrete economic potential today? And how can maritime companies make targeted use of these technologies to operate more safely, efficiently and sustainably? This is precisely where EARLY BRANDS and the German Research Center for Artificial Intelligence (DFKI) come in: As innovation partners, they support companies in identifying attractive areas of application for robotics and AI at an early stage – not as a vision of the future, but as a tangible reality.

Advances in technology open new doors

The further development of robotics and AI is not only creating more powerful solutions for the maritime industry, but also economically viable ones. Large language models (LLMs) in particular are taking maritime automation to a new level. They serve as the “brain” of modern robotic systems, enable real-time data analysis and support decision-making on the high seas.

One example of this is the “Navigation-GPT” project, which uses LLMs for the navigation of autonomous ships. This technology allows ships to calculate and optimize complex routes autonomously – a revolution for maritime logistics.

Autonomous transport vehicles are also already being used in port logistics. At the Estonian terminal of HHLA TK Estonia, for example, Hamburger Hafen und Logistik AG (HHLA) is cooperating with the Munich-based company FERNRIDE. Together, they are testing the use of remote-controlled and semi-autonomous tractor units for container transportation. This project aims to compensate for the shortage of drivers and increase efficiency in terminal operations. Autonomous delivery traffic is already taking place in the port of Rotterdam. (source)

Economic areas of application that are already possible today

Maximum efficiency: How automation is revolutionizing the maritime industry
Forget expensive downtimes and risky maintenance work on the high seas! Smart robots inspect offshore facilities around the clock, detecting the smallest weaknesses before they become costly problems and minimizing downtime. The result? More safety, lower costs – and an industry that is heading for the future at top speed.

Autonomous ports & offshore facilities: when machines set the pace
Welcome to the era of smart ports! Drones and autonomous robots are taking over ship handling, optimizing logistics processes and making procedures more efficient than ever before. While every maneuver on land is coordinated to the second, smart offshore systems ensure smooth processes in extreme environments.

Together with maritime companies, EARLY BRANDS and DFKI are analyzing which automation potentials are already economically viable – and where the greatest levers for future innovations lie.

Underwater robotics: the invisible heroes of the deep
Deep down, where humans reach their limits, intelligent underwater robots take command. They inspect pipelines, maintain underwater structures and provide high-precision environmental analyses – and do so completely autonomously. Whether for oil and gas platforms or for sustainable marine research, these high-tech pioneers are making the ocean more transparent, safer and more efficient.

Europe as a driver of innovation – act now!

While the USA and Asia are investing massively in maritime robotics, Europe must ignite the innovation engine. Companies that focus on robotics now will secure long-term competitive advantages. Cooperation between start-ups, research institutions such as the DFKI and innovation projects with industry are crucial to driving technological progress.

Strategic impulses for decision-makers

Top decision-makers in the maritime industry are faced with the question: How can robotics be used strategically? Three central fields of action provide the direction:

1. strengthening innovative strength – actively developing future-oriented technologies and making them economically viable for your own company.

2. cooperation with tech partners – making faster progress through collaboration with technology companies.

3. increasing sustainability and efficiency – robotics as a driver for resource-conserving and economically efficient processes.

The experts from EARLY BRANDS and DFKI are available to discuss these topics. They have been cooperating on AI and robotics since 2020. The focus: bringing AI and robotics that are economically attractive and provide high practical benefits to companies. In a short space of time, concepts for attractive areas of application are developed, their economic viability and feasibility validated and pilot projects implemented. For robotics and AI that already creates benefits here and now. The participating companies benefit from the global network of EARLY BRANDS and DFKI with leading technology companies in robotics and AI.

Strategydialog: Interactive platform for the future of the maritime industry

The Strategy Forum offers the ideal platform to not only discuss these questions in theory, but also to develop practical solutions. Here, top decision-makers from the maritime industry come together with leading robotics experts to develop innovative strategies together.

EARLY BRANDS and DFKI are there to provide impetus – with insights into current technology developments, best practices and interactive sessions that show how companies can already benefit from robotics and AI today.

Event information: The next Strategy Dialogue “Robotics for the maritime industry” will take place on April 23th, 2025 at the DFKI Robotics Innovation Center (RIC) in Bremen.

Interested in participating? Please send your expression of interest to: contact@earlybrands.de

Catch the Future…!

VHR satellites: Game changer for innovation and sustainability?

Very-high-resolution (VHR) satellite data is giving us a whole new view of our planet. It is also becoming increasingly important for business. Advances in small satellite technology, production and AI-based data analysis have made these technologies accessible and efficient. In this EARLY BRANDS Insight article, we take a look at this fascinating technology that allows us to look at global challenges such as climate change, urbanization and resource scarcity from a new perspective. We look at how VHR satellite technologies are already supporting innovative solutions and sustainable progress in many industries.

What is VHR satellite data and why is it important?

VHR satellite data comes from satellites that can observe the Earth’s surface in impressive detail. With a resolution of up to 80 centimeters in the visible and near infrared (VNIR) and 6 meters in the shortwave infrared (SWIR), they allow us to observe changes in the Earth’s surface with unprecedented precision.

But what makes VHR satellite data unique?

Unlike conventional Earth observation data, it allows detailed analysis of the smallest structures. In particular, the eight spectral bands available go far beyond visual imaging: This enables analyses that reveal changes in vegetation, water or even thermal patterns. Such data is valuable and critical for making informed decisions in areas such as climate change, agriculture, security and urban planning.

The importance of VHR satellites lies in their versatility, enabling daily global observations and providing information that was previously difficult to access. From detecting coastal erosion and monitoring crops to providing early warning of natural disasters, the possibilities are almost limitless.

What opportunities and potential does VHR satellite data open up?

The applications for these technologies are cross-market, cross-industry, and virtually limitless. Here are some exciting application examples from recent projects:

1. Climate change and environmental monitoring

VHR data makes it possible to analyze the effects of climate change in real time. Coastal regions threatened by erosion and flooding can be continuously monitored. The health of forests and the quality of water resources can also be accurately determined. This data enables more precise planning of protective measures and helps to develop long-term strategies for sustainable development.

2. Agriculture and food security

In agriculture, VHR data is revolutionizing the way we farm. The technology can be used to predict crop yields, detect pest infestations early, and analyze soils more accurately. Particularly exciting is its use in aquaculture, where water quality and habitats are monitored to promote sustainable practices. These technologies can not only reduce costs, but also improve compliance with environmental standards.

3. Disaster management and security

In the event of natural disasters, fast reactions are crucial. VHR satellites provide critical information almost in real time. For example, they help with the early detection of forest fires and the creation of damage maps, as well as coordinating rescue operations and developing long-term prevention measures. Additional safety applications can be implemented by monitoring crisis areas or tracking maritime activities. These applications not only save lives, but also significantly reduce economic losses.

4. Urban planning and smart cities

Detailed mapping of urban areas enables intelligent urban development. Traffic flows, energy consumption and infrastructure can be designed more efficiently on the basis of VHR satellite data – a decisive step towards sustainable cities.

Why European data sovereignty plays a key role?

European data not only offers high quality and geo-strategic reliability, but also complies with strict privacy and security standards. This is particularly advantageous when it comes to building long-term partnerships with leading companies in the industrial, logistics and financial sectors and driving innovative projects.

Data sovereignty: European data ensures that sensitive information is not controlled by non-European interests.

EARLY BRANDS and the world of VHR satellite data

Why do we at EARLY BRANDS realize projects with this technology? The answer is simple: we see enormous potential value and benefits for companies and future generations. VHR satellite data is more than just a technical gimmick. They are already an innovative tool for solving specific challenges in many industries and realizing sustainable innovations with high practical value Companies that rely on this technology at an early stage will secure decisive competitive advantages.

Our focus is on making this data accessible and usable in products and services with our customers. Whether it is the optimization of supply chains, ports, the development of smart cities or the improvement of environmental strategies – we work to generate actionable insights from the available data. In doing so, we combine technological and strategic expertise with a deep understanding of the needs of the companies we work with:

Consulting: We support companies in recognizing the potential of VHR satellite data and translating it into specific business applications.

Networking: Together with partners from the satellite and AI industry, we develop innovative solutions for energy companies, logistics, insurance companies, NGOs and more.

Implementation: We support the integration of satellite data into existing service and business models, thereby creating sustainable added value. We make the economic potential transparent before implementation. Market and customer benefits are validated before technical implementation begins.

Outlook for the future: Where is the journey going with VHR satellite data and AI?

The development of VHR satellites goes hand in hand with advances in computing and artificial intelligence (AI). For example, “edge AI” can be used in the satellite so that data processing is done in the satellite rather than on the ground, saving time and improving the efficiency of analysis and decision making. It is already clear that the combination of VHR data and artificial intelligence is opening up new horizons. Algorithms can not only detect change, but also predict it – a game changer for industries such as logistics, energy and the environment.

At EARLY BRANDS, we are not just observers of these developments, but active initiators and co-creators. Together with our partners from industry and research, we realize solutions that are not only economically viable, but also sustainable. To achieve this, we rely on strong networks, technological excellence and the ability to translate complex data into tangible solutions – and European data sovereignty.

Summarised

High-resolution satellite data is the key to competitive, value-added new products and services, and to unlocking the value potential of businesses. They combine precision with foresight – exactly what is needed to shape the future today. Whether in agriculture, disaster management or energy supply, the applications are diverse and promising. At EARLY BRANDS, we harness this potential with European data and the expertise of innovative satellite and AI companies. To make a difference today and tomorrow – for innovation, progress and competitiveness in Europe and around the world.

Let’s take this journey together.

Catch the Future…!

USING CROSS-SECTIONAL TECHNOLOGIES AS AN OPPORTUNITY

Keep your rocket on course…

The technologies “AR” (Augmented Reality), “VR” (Virtual Reality) and “Remote” are playing an increasingly important role for more and more companies. However, the value potential that can already be leveraged with these technologies along the value chain is often not immediately visible.

Let’s get started…

…imagine you are sitting in a rocket and have to steer it through space. On your way, you will encounter several meteoroids with valuable properties. If you recognize them early, you can use raw materials to reach your destination faster. If you miss a meteoroid, which may even be on a collision course, it can slow down or even destroy your rocket. The rocket represents your company and the decisions you make. Meteoroids are new technologies and innovations that can give you an competitive edge – if you take advantage of them early. However, if they pass by unnoticed, the competition may take advantage of these same raw materials. In the worst case, a disruptive technology can ruin your company.

With our high experience in innovation consulting, we give an overview which meteoroids are already buzzing around in orbit today.

One of these meteoroids is “visual assistance”. We are currently experiencing a high innovation momentum in remote technologies such as “AR” or “video” and “real-time voice translation”. What if your employees were already leveraging attractive value potentials in technical consulting, installation or after-sales services – in other words, generating more money? And successfully face the shortage of skilled workers in the process?

We know: AR is no longer just a “gimmick”. And it is not only used by large corporations under laboratory conditions. Rather, AR and remote technologies offer innovative hands-on solutions that inspire customers and employees. And enable competitive edge.

In particular, these are cross-sectional technologies. This means that they can be used throughout the entire value chain. Starting with the visualization of technical advice and sales, through visual work instructions for production processes during assembly, to remote support for technicians for installation, assembly or maintenance – remotely.

Let’s give your rocket a quickstart – insights into three valuable use cases …

# 1 – Remote repair and maintenance with the customer

Many of us have already encountered the idea of digital assistance. Especially in the B2C area: for example, about 80% of the usual customer inquiries of a website are answered by a “chatbot”.

In the B2B sector, the framework conditions usually look different: missing standards, complex requirements, flexible adjustments, special machines… Therefore, in most cases, service technicians are contacted when problems occur. Long journeys, overnight stays with expenses lead to high time and cost expenditures. Is this possible in another way?

With remote and augmented reality, such deployments can be avoided. The cooperation between PTC and Howden, for example, shows that this technology is already being used in practice to create value. They are already very successfully using augmented reality services for remote support. With the new service, the customer is advised live by a product expert and guided to carry out the repair independently. In this way, technicians and companies save time and money and can cooperate with each other flexibly and independently of location.

# 2 – Virtualize technical consulting and sales

Not only “aftersales” but also “presales” can get a quickstart with remote and AR. For example, integrating new tech-nologies in “video and voice in sales” can save time and money. PS-AMS PSL, for example, has integrated a virtual showroom with a live consultation – and successfully digitized presales as a result. This is just one example of many B2B cases that already use the advantages of virtual showrooms today.

# 3 – Digital employees and customer training

Requirements for products, processes and applications are becoming more and more complex and diverse. The challenges: How do my employees always stay operational and beeing up to date? How can I train my employees despite a shortage of skilled workers? Also here, new technologies can offer a perspective for using these risks as an opportunity. A good example: Volvo and ABB. Volvo uses AR technology to train employees efficiently, enabling them to react quickly to changing requirements.

… Back to your rocket: You’ve probably noticed that speed gives you an huge competitive edge, and the number of metroids that may still be ahead of you is growing. Now, it is your turn to bring your rocket in the most successful orbits.

Catch the Future…!

HOW ARTIFICIAL INTELIGENCE IS ALREADY BEING USED TODAY

Exciting areas of application for artificial intelligence from practice

Artificial intelligence or “AI” is a key technology of our time that basically mimics our human actions and our ability to learn. This results in exciting application options and innovation opportunities for companies to strengthen their competitiveness. Companies across all industries want to understand how artificial intelligence can help them. And gain experience with the technology. Every day with our EARLY BRANDS innovation & technology scouting, we see exciting new opportunities for companies to use and benefit from AI technologies. In this innovation spotlight, our innovation and technology experts highlight three areas of application where AI already provides a high level of practical benefits.

# 1 ROBOTS & TRANSPORT

Robots as physical machines have been successfully in use for decades. For example, they support the automotive industry in vehicle manufacturing with repetitive activities such as welding of vehicle components. Even without artificial intelligence, industrial robots already provide great added value, because they work reliably, quickly and precisely, day and night. Artificial intelligence as a further cross-sectional technology besides mechatronics, sensors, etc. raises the capabilities of robots to a new level. Because it gives robots a “brain” that allows them to perceive their environment and adjust their behavior. They learn and make decisions independently. This is not only helpful in exploring the universe, where robots like from DFKI Robotics Innovation Center become independent actors to build base camps on alien planets, for example.

Use cases for autonomous robots are of great interest to many sectors: from manufacturing industry, medical sector, disaster relief, to catering and agriculture – the smart helpers enable diverse innovation opportunities. For example, in the form of drone robots: the intelligent drone from the Israeli startup Tevel Aerobotics is equipped with a gripper and handles the care and harvesting of orchards autonomously. The drone recognizes different fruits, their quality, maturity and decides what to do. As a result, farmers save valuable time and money. Also, vehicles are becoming increasingly autonomous and are gradually changing our understanding of how humans or goods are getting from A to B. The number of companies and projects working on smart mobility and transport solutions is increasing rapidly. Whether autonomous car taxis from Waymo, air taxis from Airbus, delivery vehicles from Nuro or Alibaba, or the autonomous snowplow at the airport – startups and big players are already shaping the future of their and neighboring industries. Through innovations that are only possible with AI technologies. And AI companies such as the startup SparkCognition supply the right “artificial brain”. In addition to robots with an increasing degree of autonomy, mastering complex tasks, robots are also increasingly cooperative. They work actively with people hand in hand: the surgical robot Da Vinci already assists physicians in hospitals by enabling precise and safe operation.

We are convinced: AI-based physical robots and smart transport solutions provide businesses various innovation opportunities across processes, products, services and business models. The areas of application and benefits already go far beyond efficient manufacturing and logistics.

# 2 INTELLIGENT SERVICES

The first AI-based services have been with us for years: e.g. smart email filters that protect us from annoying spam emails, or the navigation app on our smartphone which shows us the best routes depending on the current traffic situation. In our worldwide EARLY BRANDS real-time scouting for AI innovation, we see a growing number of companies that explore the opportunities of artificial intelligence for new and enhanced services.

Technology companies such as Automation Anywhere, IBM with Watson or Amazon Web Services already offer a wide range of “AI-as-a-service” tools that enable new services based on voice, image or video recognition. One main area of ​​application are recurring activities in the context of digital services: e.g. processing of customer questions by email or live chat. Learning chatbots are increasingly handling this customer interaction. The software robots interpret the enquiries thanks to “nature language processing” and help customers 24/7. Digital experts are also changing the financial industry. Fintechs like Scalable Capital gain market share in financial advice with AI-based online investment managers: depending on the personal risk profile of retail investors, the robo advisor “intelligently” invests the money – or even trades stocks, commodities and other asset classes automatically. Professional investors have been relying on AI-based trading, or algorithmic trading, for years. And in the healthcare sector, digital doctors like Ada combine medical knowledge with artificial intelligence. It helps in the analysis of symptoms and choosing the right treatment – for self-diagnosis on the web or as a professional assistant to physicians: Infervision already enables hundreds of hospitals to analyze lung images in seconds with AI-based image analysis. The diagnosis of lung cancer is thereby accelerated. The result: Human doctors have more time for their patients.

Also insurers such as AXA XL are increasingly relying on AI-based online services. In the case of building insurance, the company optimizes its risk assessment through AI-based analysis of comprehensive building reports. It enables a faster determination of insurance conditions and quotation preparation – to the joy of the insurance company and its customers.

EARLY BRANDS is convinced: there are many exciting starting points for digital, AI-based services across markets and industries to support internal processes or new customer services and business models. The starting point for this should always be the customer and user needs. And more than ever, attention is needed on creative use cases where artificial intelligence creates a high level of customer value compared to the status quo. Be it faster response to customer queries like with AXA XL or accelerated diagnostics by Infervision. Companies should deal with the individual potentials of “intelligent services” at an early stage. This is important in order to develop successful services for the future.

# 3 SMART DEVICES AND FACILITIES

With smart devices and facilities, we mean, for example, virtual assistants such as Amazon Alexa, who reads our wishes from the lips – and enables us to control networked devices such as coffee machines and lamps by voice control. The internet of things combined with artificial intelligence makes it possible. Another example in the context of smart home are smart grids. They monitor and control themselves and ensure a stable grid in times of renewable energies and decentralized energy supply. This helps network operators and energy providers to ensure the high quality of their services. At the same time, the AI-based network creates opportunities for new services such as flexible electricity tariffs. Individual devices such as smart meters play an important role in this connected system, as another piece of the puzzle.

The example of smart grids can also be transferred to other application areas such as warehouses and factories: e.g. Alibaba’s autonomous warehouses with intelligent goods management or intelligent factories with predictive inspection and maintenance of production machines. The intelligent interaction of individual devices and sensors accelerates processes, prevents expensive failures and increases quality. Here, artificial intelligence is the “learning agent” that interprets logistics and manufacturing facilities with large amounts of data, orchestrates them autonomously or semi-autonomously and constantly improves itself. The startup Iron Ox with its fully autonomous vegetable farms shows the disruption potential of smart plants: AI-based robots, moisture sensors and other farming components enable a completely new interaction: sowing, quality assessment, care and harvesting of vegetables and herbs are realized autonomously, 24/7. The mobile farms can be flexibly placed near major cities, save on transport costs while providing freshly harvested vegetables.

From robots and intelligent services to smart devices and facilities: we already see how artificial intelligence as an important cross-sectional technology is creating high value for users and companies. In combination with creative ideas and strengths of companies such as brands, distribution channels and customers, new opportunities for innovation emerge. Regarding processes, products, services and business models. Companies in all sectors are in demand to identify the individual opportunities of AI technologies, and to explore the potentials together with partners and users in an agile way.

Catch the Future…!

BLOCKCHAIN AS AN INNOVATION DRIVER FOR BANKING

Exciting use cases for blockchain in banking 

Blockchain is a hot topic – and more than just a buzzword. Innovative applications and high interest are currently developing in almost every industry. Why should top decision makers in banking deal with the opportunities of blockchain and its potential for disruption? In the following, we inspire you with three use cases of the blockchain that provide a high benefit in banking. With our EARLY BRANDS real-time scouting, we keep pace with the times, recognize global innovation and technology developments very early.

This EARLY BRANDS innovation spotlight doesn’t focus on the prominent blockchain use cases like digital currencies such as Bitcoin, or ripple for international cross-currency payments. We show three other blockchain use cases and innovative projects that bankers should know: from syndicated loans, promissory note placements, to trade finance, the blockchain technology offers a high potential for innovation and disruption in banking.

USE CASE # 1 – BLOCKCHAIN-BASED SYNDICATED LOANS

Syndicated lending – this is the granting of a single loan by at least two financial institutions to borrowers. The processing is complex, with many participants involved and high administrative effort. Multiple agents, borrowers and hundreds of lenders need to coordinate and exchange information repeatedly. Countless faxes, e-mails and telephone calls accompany this process – agents spend about 70% of their time on administrative activities. At the same time, it is difficult for the players to keep track. This makes the financial instrument a hot use case for the blockchain technology: new digital solutions based on the blockchain help to reduce the administrative burden on syndicated loans. At the same time, the process becomes more transparent and secure. Through a private-blockchain trading platform, for example: it bundles all information and makes it accessible to the verified actors in real-time. Secure against the loss or falsification of sensitive data. The result: Syndicated loans are processed faster and safer. The bank’s employees, lenders and borrowers are pleased. And the bank is strengthening its competitiveness through efficiency gains in the double-digit percentage range.

There are already exciting projects out there: Finastra’s blockchain-based online marketplace Fusion LenderComm for syndicated loans was launched in 2018, after a successful pilot phase with several banks. On the one hand, the platform enables credit officers to securely publish their data and share it in real-time. On the other hand, many lenders can view the automatically consolidated data and their balance sheet items, in real-time. This saves time and money, also because the obligatory requests from lenders disappear. Another project is BBVA’s digital financing platform: it completed a first real-life transaction for a blockchain-based syndicated loan at the end of 2018. The entire processing of the syndicated loan amounting to EUR 150 million was coordinated via the private blockchain network. Agile and with maximum transparency for all parties involved. The individual negotiation steps up to the agreement of the loan contract were documented in a secure, unchangeable way on the blockchain.

USE CASE # 2 – PROMISSORY NOTES FRESHLY THOUGHT

The situation is similar with promissory note placements. The process is highly standardized but involves many manual activities during negotiations and the exchange of hundreds of documents with multiple parties. The existing inefficiencies offer attractive opportunities through innovative, digital solutions. One example and pioneer project: the promissory note platform VC Trade. It digitally maps the entire process. Most of the manual administrative activities and communication steps are eliminated. This makes the handling of promissory notes much easier for the arranging banks, issuers, investors, lawyers and rating agencies. And ensures an overall shorter processing time. With significantly reduced costs. Example: Together with Commerzbank, Helaba has transacted a promissory note worth EUR 700 million for the automotive supplier Faurecia via the VC Trade platform. Compared to the standard promissory note, about 40% of the costs were saved. The focus of VC Trade is currently on the digitalization of the promissory note process itself. For regulatory reasons, it is open to the advantages of the blockchain technology but does not emphasize them now. Through self-executing digital contracts, i.e. smart contracts, integrated into the blockchain different activities like transaction of payment tranches are automated. And faster, safer than ever.

For example, LBBW demonstrated the opportunities of the blockchain through promissory note placements for Daimler and Telefónica. Because of regulatory reasons, these placements also were conducted in a conventional way at the same time. Nevertheless, such projects have strong signal effects and show the innovation potential of blockchain for banking. Another example: Erste Group’s permissioned blockchain platform issued the first pure blockchain-based promissory note for the motorway operator Asfinag. Further projects like DEBTVISION show the disruptive power of the blockchain technology for banking: the digital promissory marketplace and subsidiary of the Stuttgart Stock Exchange and LBBW has the potential to “replace” the arranging banks as intermediaries in the promissory note placement. The blockchain platform brings together borrowers and potential investors. And it regulates and oversees the full process. Safe and fully automated. As a digital trust for all involved actors. Of course, this does not just apply to promissory notes or syndicated loans…

USE CASE # 3 – CHANGING TRADE FINANCE

Trust also plays a major role in trading transactions. Letters of credit serve as a payment method for trading transactions with the greatest possible security for sellers and buyers. But they are time-consuming and costly. The main reason for this: Trade finance is still based on a lot of paperwork with a high administrative overhead. Documents such as shipping documents, invoices etc. are processed, documented and exchanged between the actors manually. The result: It takes five to ten days to complete a transaction that funds export goods. In the case of blockchain-based trading, the identities of the trading partners are clear, the documents are transparent, counterfeit-proof and administrative activities automated. Trade transactions take only a few hours. The transaction is automatically carried out via smart contracts when the goods arrive at the recipient. At the same time, the blockchain ensures for the seller that the money is transferred once the trade route is completed. Everything without the intervention of third parties. Already possible today.

Some examples: HSBC, ING and six other banks have launched Voltron to digitalize global trade finance based on the blockchain platform. All finance and trade documents are exchanged quickly and securely between the parties. First transactions via the platform illustrate the benefits: the transaction processing of Cargill’s trade of soybeans from Argentina to Malaysia or polymers from India to Peru took only one hour instead of a week. We.trade and Batavia are two other innovative projects. Both rely on IBM’s Blockchain Platform and have been developed closely with multiple banks. First trading transactions for cars from Germany to Spain or raw materials from Austria to Spain were carried out faster and more secure. At the same time, smart contracts automatically triggered the transactions as soon as specified steps in the supply chain were met. The information is then automatically visible for the exporter, importer and the arranging bank, safe and in real-time.

The blockchain revolution in banking is well underway – in the sense of practice-relevant projects that add value to banking institutions and their clients. Already today, we realize innovative business models and services with the blockchain technology. Jointly with leading companies. And in close cooperation with strong startups and tech partners. We recommend dealing with the topic early – and getting to know the individual opportunities for your company at an early stage, testing them and gaining experience with the exciting blockchain technology. Think banking new together with us and keep your finger on the pulse of the times…

Catch the Future…!

ON EVERYONES’ LIPS: WHAT’S BEHIND AI, AR & CO.?

We give insights into technologies of our time

Internet of things – PRODUCTIVITY, SAFETY AND SUSTAINABILITY.

When do we talk about the internet of things (iot)? Let’s start with a few examples: A washing machine that turns on automatically, when energy is cheap and sends messages via WhatsApp when laundry is ready to be hung up. Streetlights, that turn off self-controlled when no passenger is nearby. Cars that communicate with environments so that accidents and traffic jams are avoided. How does this work? Technologies like RFID-chips, sensors, data storages and software systems are needed. They make it possible to connect things with each other and also with us. By using data exchange at the internet. From our latest smartphones, to digital displays on our fridges through to car sensors.

Opportunities and application fields are varied. Advantages and values are perfectly clear: connect things and people with each other to operate in an easier, safer, more sustainable way – from smart home, predictive maintenance to smart cities and industries.

ARTIFICIAL INTELLIGENCE – COMPUTER AS INTELLIGENT AS HUMANS.

Ada is my personal health guide and doctor. Bitesnap counts calories for me by using a simple picture of my food. Replika – lends an open ear no matter if I am anxious or just need somebody to talks with…What sounds a bit strange at first glance, is already in full swing: artificial intelligence (AI) is on the move and already established in many different fields of application.

In a nutshell: We understand AI as technology that imitates our human behavior by using complex mathematical algorithms. Just as voice recognition like Siri, Alexa & Co. Or the identification of textual and visual contents like IBM Watson. Or innovative Google‘s image search, that allows us to visually find everyting we are looking for.

Application fields of AI are nearly unlimited. AI can be used for process optimization and identification of customers’ needs and desires. In health care AI can identify diseases on early stages. Also, by using AI, robots and machines get able to take over dangerous tasks for us: like in space, underwater or mining activities.

BLOCKCHAIN – A NEW BLOCK FOR THE CHAIN.

Blockchain has the ability to restructure our habits and markets and to revolutionize the way we carry on trade today. In our centralized “platform economy” with Google, Amazon, Facebook & Co., blockchain enables decentralization + self-determination.

In a nutshell: blockchain is a chain of data blocks. In this data blocks, all transactions ever done are recorded and managed in a decentralized way: within a network of countless participants, referred as to nodes, all over the world. Specific encryption codes ensure that data stored in blockchain are unchangeable and reliable. Only if many participants have checked and validated, transactions take place. Not until then, a data block is added to the next one so that a long chain of blocks (blockchain) is created.

Reasons to pay attention to blockchain are countless: from secure supply chain and proof of origins in logistics, to healthcare with unforgeable electronic patient files through to automatic land registries by using smart contracts. Use cases for blockchain are varied.

MIXED REALITIES – EXPERIENCES IN DIFFERENT WORLDS.

Virtual Reality (VR) – Experiences in virtual worlds.

With VR-Glasses and other gadgets VR technologies makes it possible to fully dive into virtual worlds. It’s not just that: we can move and interact in a 3D virtual world. We can operate, plan and move about freely. Feel and experience things like we would do in our real world.

Augmented Reality (AR) – Bring virtual elements into real worlds.

As opposed to VR, we do not dive into virtual worlds with AR. We rather combine our real world with virtual realities by using innovative software. Thus, we widen, enlarge and enrich our physical world by technology. Ever since the hype about Pokèmon Go we all know which huge impact AR technologies can have. How does this work? AR becomes possible by using mobile devices or specific data glasses that transport virtual elements into our real world. Thereby, computer-generated visuals are integrated into our reality – so that we give our realities an upgrade.

The whys and wherefores? Receive and experience the right information at the right time at any place – omnipresent. Increase customer experiences, facilitate learning curves, foster inspiration, widen horizons and perspectives… It becomes clear as water: mixed reality application fields are varied. Already today, we see an increasing number of use cases…

EARLY BRANDS technology consulting: In our work with leading medium-sized companies and family offices, we have our finger on the pulse: Everyday, we support people and companies successfully shaping the future with innovation and technology. Especially with regard to new technologies, our experience and recommendation is: People make the difference. With empathy, creativity and enthusiasm for innovation, success and competitive advantages can be realized with new technologies.

Catch the Future..!

Insights into EARLY BRANDS Innovation & Technology Scouting

Create something positive together with positive people

In the digital age, business success strongly depends on the premature identification of new technologies and innovative business opportunities. How to keep one finger on the pulse of time? How to recognize business opportunities on early stages? How to make impulses usable for my company? Kamil one of our scouting experts finds answers for these questions.

EARLY BRANDS Insights: Kamil, how can you easily explain Innovation & Technology Scouting?

Kamil: Innovation & Technology Scouting summarizes all activities to prematurely identify relevant market developments and trends – cross-market, world-wide. To recognize and utilize business opportunities for our partners. Thereby, impulses can be very diversified: from innovation and technology trends to startup activities and new tech companies through to new findings in sciences.

EARLY BRANDS Insights: Which attitudes and perspectives are needed to identify early stage innovation opportunities?

Kamil: First of all: an open mind + broad perspectives. Cross-market and cross-industry. Competitors of today might be not competitors of tomorrow. Thus, resting on one’s laurels is not enough. Continuity is essential to identify innovation and technology developments at early stages. In short: companies need to broaden their horizons by opening valuable playing fields for the future. All our partners have a clear understanding about that. They are willing to proactively create their future success.

EARLY BRANDS Insights: How do you and your colleagues support all that?

Kamil: We are an innovation consulting with strong expertise relating to early stage innovation. Thus, we support our expedition partners precisely and individually. From identification of business relevant innovation and technology impulses such as startups or market trends to creative design of business opportunities together with employees and users through to coordination and realization with potential technology partners. Scouting is an essential starting point and one key success factor for that.

EARLY BRANDS Insights: What distinguishes EARLY BRANDS approach for Innovation & Technology Scouting? What’s different?

Kamil: The formula for success: passionate, creative innovation and technology experts and knowhow + strong network of experts + positive, interactive collaboration with our partners. Also, our partner’s employees and corporate management are vital. We combine our knowhow and experiences with external scouting impulses. Thus, we create business opportunities with high relevance for our clients + their customers. In sum, our scouting approach is focused on people. That requires strong collaboration from day one.

EARLY BRANDS Insights: What is the value of your activities?

Kamil: Our partners pursue the goal to successfully develop their future business. We support them by identifying and creating short- and long-term innovation and technology opportunities. The value perspectives are varied: from efficiency and productivity benefits to improvements of product quality through to innovative opportunities for new income streams. We quantify values of innovation and technology opportunities prematurely. That supports decision-making: if an R&D manager can quantify potentials of material savings, he or she will get support for implementation. If a board member can assess how many users are willing to pay for a new innovative subscription offer, he or she might become interested to realize such services.

EARLY BRANDS Insights: How do you combine results from scouting with ideas from your partners?

Kamil: For this purpose, regular interaction, cooperation and communication is crucial. We have a keen intuition to capture and incorporate expectations, topics and ideas among different organizational levels – precisely, cooperative, productive, considered. This is exemplified by our insight dialogues as a starting point for our projects or by our regular stakeholder jour-fixes where different people an decision maker come together.

Last but not least my personal advice:

Identify business opportunities of tomorrow already today – proactively, creatively and jointly – for competitive edge and innovation success in the digital age.

Catch the Future…!

BLOCKCHAIN – BIG BENEFITS ALREADY TODAY

Six eye opening and inspiring blockchain use cases

Blockchain is on everyone’s lips. The main idea: decentralized data bases, unforgeable and clear identities. But: is blockchain able to revolutionize our economic system? Should all companies pay attention to innovation opportunities and disruptive potentials of blockchain for their business models?

We give some insights and inspiration in six blockchain use cases: from innovative applications in banking, logistics, production and trade through to health care and human resources.

use case 1 –  New ideas for trade finances

use case 2 –  Sustainability and transparent supply chains in fishery

use case 3 –  Give patients control of their data, facilitate communication with doctors

use case 4 –  Decentralized electricity trading to increase competition and efficiency

use case 5 –  smart insurances that pay for damage events immediately

use case 6 –  University certificates

Is blockchain ready to revolutionize our markets?

DEFINITELY – and it already happens.

We realize innovative business models and services related to blockchain already today. In behalf of as well as together with leading companies. What are the chances and opportunities? How can we assess disruptive potentials for our markets and customers?At our EARLY BRANDS location in Bremen we offer the possibility to dive into the exciting blockchain use cases. Based on best practices, our experts’ knowledge and experiences, a worldwide scouting and appreciation for your needs and expectations. It is beyond question that blockchain disruptively change our economy and society. Thus, we recommend identifying and exploiting opportunities and risk on early stages – to realize future fields of opportunities prior to your competitors.

Catch the Future…!