The automotive industry and its suppliers are facing considerable regulatory challenges. Over the next five years, the Data Act, CO2 reporting and the Digital Product Passport will become mandatory through EU regulations such as the Corporate Sustainability Reporting Directive (CSRD) and national laws. At the same time, markets such as China will introduce a battery passport. To meet these requirements, Catena-X offers the automotive industry an effective framework. At the same time, the framework enables new, data-driven business models to be developed. As a result, Catena-X is seen as a great opportunity for the automotive industry. OEMs such as BMW, Mercedes-Benz and Volkswagen are actively driving its development and are increasingly demanding its introduction from their supply chain. This case study examines the challenges that automotive suppliers have to overcome. It also shows how a collaboration with Novatec and i-flow enables successful Catena-X integration through an end-to-end data infrastructure.
Basics and Overview
Catena-X is based on a funding initiative of the Federal Ministry of Economics and Climate Protection (BMWK). Within this framework, a consortium of leading companies such as BMW, Bosch, Mercedes-Benz, SAP and Siemens from the automotive and IT sectors was founded. Following the conclusion of the funding project, the initiative will be continued in the form of an association. The aim is to create an open data ecosystem to standardize and improve data exchange along the supply chain.
How does Catena-X work?
At its heart is the so-called data space, in which data is exchanged peer-to-peer between two companies. The data exchange is based on the following key principles:
- Data sovereignty: Everyone remains the owner of the data provided. Companies themselves decide which data they share, with whom they share it and under what conditions.
- Data transparency: Participants can benefit from data exchange with other companies (e.g. on the basis of cross-value-added data regarding traceability)
- Data standardization: According to the Catena-X standard, data must be integrated either manually (e.g. in CSV format) or via automatic data pipelines. The core component for data exchange is the Eclipse Data Space Connector (EDC). This connector controls the compliant data exchange and combines the data with standardized and individual usage rights.
- Use-case focus: Catena-X focuses on the implementation of specific use cases that offer high benefits for the automotive industry, including
- Product Carbon Footprint: Enables simple recording and aggregation of CO2 emissions along the supply chain.
- Traceability: Exchange of quality-relevant data to optimize recall campaigns.
- Battery passport: Tracks the life cycle of a battery to promote sustainability and recycling.
When will Catena-X be launched?
Catena-X is not a single, one-off introduction, but an ongoing initiative that is being implemented step by step. Development and implementation began in 2021 as part of a funding initiative by the Federal Ministry for Economic Affairs and Climate Protection (BMWK). Initial pilot projects and applications were tested and further developed in the following years. When automotive suppliers have to use the framework depends heavily on the requirements of the respective OEM. However, companies can already start introducing it now via a defined onboarding process.
Introduction Poses Challenges for Automotive Suppliers
The forthcoming introduction of Catena-X presents automotive suppliers with challenges in many respects:
- Complex system integration: Suppliers often use a wide variety of OT and IT systems in their plants. Integrating these systems into the Catena-X data rooms requires existing data formats and structures to be adapted. This can be very resource-intensive.
- Organizational hurdles: The introduction requires resources and possibly investment in new technologies and infrastructure. Experts need to be trained in the concept surrounding the framework.
- Long-term benefits: Suppliers should ensure that the Catena-X integration is in line with the strategic direction and business objectives, for example in terms of digitalization and sustainability. In addition, its use is closely linked to the fulfillment of sustainability goals. Suppliers should adapt their processes so that they also contribute to achieving these goals.
- Dynamic requirements: The framework is being developed step by step and is subject to continuous adjustments. Suppliers therefore need flexible and adaptable solutions to keep pace with these changes.
Solution: Catena-X Ready with a three-stage approach
To successfully master the challenges of integrating Catena-X, Novatec offers support with a three-stage approach:
- Strategy: Novatec works closely with suppliers to develop a tailored digitalization strategy that integrates the introduction of Catena-X into long-term business goals. This strategy lays the foundation for companies to maximize the benefits of the framework while strengthening their competitiveness.
- Culture: Successful implementation and integration requires a culture of openness in dealing with data. Novatec supports suppliers in creating a corporate culture that promotes openness, innovation and digital transformation.
- Technology: Novatec supports the integration of OT and IT systems into the framework and relies on strong partners such as i-flow. Novatec integrates customer systems into the data room on the basis of the data infrastructure provided by i-flow.
Successful integration of proprietary systems into Catena-X
When integrating the company’s own systems into Catena-X, defined standards and regulations must be adhered to. These guidelines cover aspects such as data interoperability, data sovereignty, security and data protection. Participating companies must register and validate themselves and their systems. This ensures that they meet the requirements of the network. After successful validation, companies are able to share their data in a targeted and secure manner. To minimize manual effort and potential errors, a consistent data infrastructure between the company’s own systems and Catena-X is essential. Automated data pipelines enable seamless and efficient data transfer.
Introduction of an end-to-end data infrastructure based on i-flow
i-flow offers a consistent and scalable data infrastructure for the seamless integration of OT, IT and cloud systems. This is based on a modular, event-driven system architecture, the so-called Industrial Unified Namespace (UNS). A message broker forms the core of this architecture. This makes company data centrally accessible and distributes it in the internal or external network. Detailed information on this can be found here. Based on i-flow, the networking of company systems with Catena-X can be realized as follows:
- i-flow Edge: The i-flow Edge integrates OT data from controllers, sensors and SCADA systems, extracts and harmonizes relevant data and forwards it securely to the cloud via MQTT (Factory Data Hub in architecture image below).
- i-flow Hub: If required, the i-flow Hub enriches this data with data from other systems (e.g. from IT) and then automatically makes it available to the data room via the EDC Connector in accordance with the Catena-X specification (Central Data Hub in the architecture diagram below).
- Novatec Consulting: Novatec offers comprehensive consulting regarding the integration and adaptation of the existing OT/IT infrastructure to the new requirements. This includes both technical aspects and training to ensure a smooth implementation of the architecture.
Example: Product Carbon Footprint (PCF) determination using Catena-X
The architectural image shows the technical implementation of the Catena-X use case for product-specific C02 footprint calculation (PCF – Product Carbon Footprint). In this case, the CO2 footprint of a specially manufactured product is provided in the data room. To do this, i-flow collects, filters and aggregates CO2-relevant data from the control systems of the production machines on which the product is manufactured using energy and materials. i-flow then makes the data packets available in a central MQTT broker. Centralized collection enables consistent provision of data across multiple production sites. 
The Catena-X-compliant PCF must then be calculated on the basis of the recorded data. Various applications already exist for this purpose. These usually also have an integrated EDC and therefore have direct access to the data room. However, existing applications without an integrated EDC can also be connected to the Catena-X data room. These are integrated into the internal data infrastructure via separate EDCs. The AAS Digital Twin solution can also be used to provide specific product information such as the CO2 footprint.
Benefits
The strategic introduction of Catena-X by Novatec and i-flow offers automotive suppliers numerous advantages:
- Compliance: Thanks to the holistic integration of Catena-X into the digitalization strategy, automotive suppliers are optimally prepared for future regulatory requirements such as the Data Act and the Corporate Sustainability Reporting Directive (CSRD) as well as the purchasing conditions of their customers.
- Consistent data infrastructure: Based on a modular architecture, i-flow creates a robust and secure infrastructure that connects the company’s own systems directly to Catena-X across all factories. This leads to increased data consistency, minimizes manual effort and reduces the risk of errors. At the same time, companies retain full control over their own data.
- Future-proof and digitalized: A flexible architecture adapts dynamically to new Catena-X requirements and creates the basis for further digital use cases, e.g. for optimizing internal processes.
Conclusion: Catena-X as an opportunity
Catena-X will inevitably become a reality for the automotive industry. This should be seen as an opportunity for internal digitalization. Especially for companies with a low level of maturity in the area of digitalization, the framework offers concrete use cases and the necessary building blocks to create a solid foundation for digital transformation. This includes not only the establishment of a robust data infrastructure, but also the development of a suitable strategy and corporate culture. Catena-X should not be seen as an isolated initiative, as this would only lead to another isolated solution. Instead, the introduction should be an integral part of the company’s own digitalization strategy. The necessary data infrastructure forms the foundation for use cases that go beyond the immediate requirements of Catena-X. This not only ensures compliance, but also paves the way for a future-proof, flexible and sustainable digital transformation.
About Novatec
Novatec is an independent, owner-managed IT specialist. We have been guiding our customers into the digital future for almost 30 years – with more than 300 IT experts at nine locations. Our customers include companies from a wide range of industries. We advise them on all IT issues – from strategic concepts to specific applications. This starts with an individual needs analysis, leads to recommendations regarding architecture and processes and does not end with software development. This is because we take a holistic view of digital innovation and consistently rely on agile methods. Together with our clients, we explore the extent to which we can improve processes and develop new products with the help of artificial intelligence, robot-controlled process automation, mixed and augmented reality and other innovations. We also impart our expertise through training courses in various formats, tailored to customer requirements if desired.
