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Capgemini's Software Defined Factory (SdF) model is a new transformative paradigm for the manufacturing industry that defines and optimizes production processes, machine control and overall operations management entirely through software. This model is characterized by the encapsulation of functionalities that serve as flexibly deployable services and function according to the principle of "Integrated, Automated, Abstracted" (I2A). A key feature is the flexibility and adaptability in production, which is achieved through a high degree of software centricity. This enables companies to react quickly and efficiently to internal and external stimuli such as changing market requirements, unstable supply chains or innovative technologies in production, while at the same time meeting individual customer requirements.


The Software Defined Factory model creates an essential basis for the successful implementation of sustainability goals in production. The ability to collect and analyse data across the entire value chain means that all process steps can be checked for sustainability and flexibly optimized accordingly. Software centricity enables AI-supported automatic improvement of these processes towards Net Zero. At the same time, efficiency in production and in the supply chain is increased by the ability to convert production lines and value streams with minimal adjustments - even with higher variances. In addition, close collaboration along the entire supply chain enables production processes to be configured and controlled virtually and based on models, resulting in more efficient and resource-saving utilization. Product variants can therefore be manufactured much more locally to the customer and do not have to be produced at a specific series production site and transported across continents.

Future Outlook

In order to position themselves for the future, companies must adapt both their business models and their operating models to the current requirements for greater resilience and sustainability. Flexible, efficient and sustainable production solutions are an essential prerequisite for this. The increasingly integrated value chains of companies with customers and suppliers also present companies with completely new challenges. All of this is leading to a progressive software-centric approach to products and processes. Especially in the emerging industries in Europe, such as battery cell production, where a high degree of digitalization and efficiency are basic prerequisites for market success.

Capgemini's Software Defined Factory is already addressing this development and demonstrating a new paradigm to meet the increased requirements. The ability to react quickly to market changes, design production processes efficiently and improve collaboration along the supply chain will significantly increase competitiveness and sustainability in the industry.