The crisis being faced in Precision Manufacturing in Germany- providing a different proposition

I received this “I have a friend who runs a small – medium sized business highly specialised in high precision machinery for one critical part of a car, including EV’s here in Germany. The forecast for the car future in Germany worries him as he in a niche provider, content today with what he does but sees a difficult future. He needs options and wonders how he can “break out” of his single business rather locked into the Car Industry. What would the Intelligent Integrated Business Ecosystem (IIBE) do for him? 

I refer back to Bob Gravestijns really probing article “Germany’s industrial memory loss: Why an engineering engine is losing the ecosystem play” to help explain how a country can still have world-class firms, skills and institutions, yet begin to lose the architecture that allows them to learn, align and adapt together.

So let me speak to your friend’s situation tuned to the reality of German precision manufacturing, the automotive transition, and the ecosystem pressures he’s feeling. 

This will show exactly what the IIBE would do for him, and why it matters now, not later. 

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Germany’s industrial memory loss: Why an engineering engine is losing the ecosystem play

Germany’s Industrial Memory Loss

Germany may be about to do something few believed possible: lose not just industrial output, but the industrial memory that made it Europe’s most admired manufacturing power. Since the pandemic, the country has lost nearly a quarter of a million manufacturing jobs, industrial production has fallen every year since 2022, and more than 31 per cent of industrial firms now say they are less competitive globally. Paul Hobcraft’s Intelligent Integrated Business Ecosystem (IIBE) offers a sharp way to read this. It helps explain how a country can still have world-class firms, skills and institutions, yet begin to lose the architecture that allows them to learn, align and adapt together.

Some will argue that Germany is simply going through the same shift every mature economy faces. Lower-value production moves elsewhere; higher-value engineering, design and coordination stay at home. In that reading, Germany is not declining. It is upgrading.

It is a neat story. It is also too easy.

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Who or What is Stopping our Growth?

Recognizing the growing reality -growth is slowing down

Every organisation eventually reaches a moment when the world stops behaving in the way their internal logic expects. Strategies that once felt solid begin to slip. Technology that once promised clarity delivers only more noise. Partnerships that once looked aligned start drifting apart. People work harder, yet progress feels strangely brittle.

It’s easy to misread this moment as an execution problem. But it isn’t.

It’s the moment when an organisation quietly outgrows the architecture it uses to understand its world.

The organisation hasn’t become weaker. The system around it has become more interdependent, more volatile, more structurally complex than the tools it is using to navigate it.

This is the moment described and recognized in the IIBE foundation architecture — the moment when leaders realise they are operating inside an ecosystem, but without the structural architecture that makes that ecosystem legible, coherent, and strategically productive.

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Six Strategic Issues Siemens AG Must Resolve to Unlock Its Next Growth Era: Why a New Ecosystem Mindset Matters

This is taken from a Siemens publication This is © Siemens 2025 | Siemens ONE Tech

Siemens has announced a “new growth era,” fuelled by its One Tech ambition, disciplined capital allocation, and a sharpened portfolio. The message is “confidence with prudence” — a determination to grow, but within the lines of a proven industrial blueprint. Yet beneath this narrative lies a fundamental question:

To quote from the Press Release : “Siemens today (13th November 2025) presents its strategy for achieving the next stage of growth at the “Siemens ONE Tech – Strategy & Results” event.

“Siemens today is stronger than ever – with a record fiscal 2025. Our strategy works. We grow by combining the real and the digital worlds. With our ONE Tech Company program, we enter the next stage of growth and raise our mid-term ambition for revenue growth to 6 to 9 percent”, said Roland Busch, President and Chief Executive Officer of Siemens AG. “With a highly synergistic portfolio, we aim to double our digital business revenue, capitalize on growth regions and verticals, and scale our AI offerings with €1 billion investment over the next three years.” Siemens is raising its mid-term revenue growth ambition to a range of 6 to 9 percent, excluding Siemens Healthineers

As I was listening, I kept asking “are they leveraging and exploring ways to accelerate this further in additional ways of opportunity exploration?”

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Are you ready to elevate your Business Partner Ecosystem with us?

The time to evaluate Business Partner Ecosystems

Many business organizations have already attracted and worked with various ecosystem partners to solve immediate and longer-term issues.

Those who work within Partner Ecosystems recognize the value and benefits of overcoming many immediate operational issues.

When you view Partner Ecosystems as far more strategic to your business, you require another completely different level of collaborative work and mindset to solve challenges and complex issues that can bring a fresh dimension to your growth ambitions.

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Living in a changing world, embracing Partner Ecosystems

copyright SIA Partners, with permission on Partner Ecosystems

I have entered into a collaborative partnership with SIA Partners on Partner Ecosystems. Combining expertise, connections, methodologies, capabilities, and client work in advising, mentoring, and consulting is exciting; in offering some genuinely unique IP methodology in concept designs, research, and industry and institution connections, a compelling service offering is emerging. We believe the diversity within the proven application and combined strengths offer much.

The time to engage to discuss what this might mean to different businesses, institutions, and societies requires radically new thinking. Partner Ecosystems can solve complex issues, make a real difference in enhancing lives, and, in many cases, save lives through collaborative efforts.

Irrespective of providing solutions to the immediate and surface-level issues we are facing today, we encourage and all need to dive deeper into those systemic challenges and position at the forefront of collaborative and co-creation approaches. This requires a progressive mindset, a recognition we must change so you can differentiate your propositions and demonstrate a deep understanding of the complexities involved in tackling systemic business issues.

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Who is best to facilitate the building out of a Business Partner Ecosystem?

Who should build a Business Partner Ecosystem?

Who orchestrates or facilitates this process of building out a Business Partner Ecosystem? Is it the lead company recognizing the value of building a more robust partner ecosystem or bringing in a specialized consultancy able to facilitate the significant amount of work this usually means?

It is not just about dedicated time but about experience, understanding, and recognition of all that can potentially change when exploiting ecosystems and being adaptive enough to respond.

There are typically two main approaches to orchestrating the process of building and managing a partner ecosystem:

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A journey in achieving a Dynamic Innovation Ecosystem

The value of Ecosystems cannot be understated. Be these “innovation ecosystems”, “business ecosystems” or “dynamic ecosystems.” They form a “hierarchy of ecosystem needs“, and that is where I will be going in the weeks ahead to explain this integrated and interconnected framing of ecosystems.

I have gotten relatively excited about this strand of thinking and ecosystem design as it has been a reasonably extensive period of research building this out to a validation point.

This is undoubtedly giving me a sense of purpose in exploring ecosystems extensively as it is the way we do need to go in extracting growth and value and give a more significant impact to all the complexity and challenges we are facing in today’s and our future world.

Let me recap for those recovering from their December and early January excesses.

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Design Thinking needs a Human Touch in a World of Technology and AI generative thinking

Design thinking needs a human touch

Design Thinking is seen as the essential element that will combine with technology and AI in the future yet it is still the need for the human touch will still be essential. As we form more around ecosystem thinking and design, design thinking will be essential as the significant enabler to creative input.

There is a fascinating change by embracing Design Thinking principles differently in the future of innovation; organizations can foster a more profound culture of creativity, empathy, collaboration, and user-centricity, one we have often dreamed of in embracing design thinking but so often never achieving. This can lead to a radically different approach to developing innovative solutions, ones that need to consider the interplay between humans, technology, and generative AI.

It’s important to note, though, that while AI can provide valuable insights and automation in the design process, yet human creativity, critical thinking, and empathy remain essential.

The human touch is crucial for understanding complex emotions, cultural nuances, and ethical considerations. Critical thinking and empathy are essential within the design process that AI cannot fully capture. Exploring a number of these more human endeavours:

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Recognizing the value of innovative interplays for design thinking impact.

Why is design thinking regarded as so crucial to the future of innovation in a world of accelerating interplays between humans, technology and generative AI? How will a more open world of ecosystem partnerships gain from these interplays? Will radically different innovative interplays happen?

By embracing design thinking principles that have a growing interplay with Technology and AI generative thinking, there is the future promise of innovative solutions that address real-world complex problems. An interplay between humans, technology, and generative AI holds real future promise for offering outstanding contributions in collaborations, originality and different insights.

What will be the changes or potential to leverage these three of Design Thinking, Technology and AI Generative Thinking for solving innovation challenges in the future?

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