Blueprint for the Operating System of German Industry

1. Vision, Mission & Value Proposition — The North Star

1.1 The Value Proposition for Manufacturing (What)

We translate the vision and mission into a concrete, value-focused promise for early customers:

2. Strategic Foundation & Positioning

2.1 Status Quo: The Industry 4.0 Scaling Trap

Reality in most German factories is sobering. Despite investing €10–40B annually in “Industry 4.0” (VDMA, PwC), most capital is used ineffectively. Capgemini & Everest Group (2024) show that only 5% of companies have achieved scaled, enterprise-wide digitization. A vast majority 71% are stuck in pilots (46%) and siloed departmental solutions (25%).

The result isn’t a “smart factory” but a patchwork of “digital islands in an analog ocean.” These islands prevent synergies, increase complexity, and fail to create network-wide resilience and flexibility. That’s the scaling trap to break.

2.2 The Solution: The Software-Defined Factory Architecture

The answer is a fundamentally new architecture: decoupling hardware and software. Like the iPhone revolution—before the App Store, phone functionality was tied to hardware; decoupling enabled an explosion of third-party innovation. We apply this to the factory: the machine (hardware) becomes a standardized platform, while capability (software) can be flexibly orchestrated. A robot isn’t just a “welding robot” but a “motion platform” that can weld, glue, or inspect. This is the leap from rigid automation to fluid orchestration.

The reference architecture is the blueprint to transform isolated systems into an integrated, intelligent whole.

The Factory as the Nucleus of Value Creation

We start with the concept of the “Software-Defined Factory” because the factory is where digital plans become physical value. Challenges are greatest here, and efficiency gains can be realized fastest. This is the pragmatic, value-creating entry point.

But that’s only step one. Our architecture is designed to transcend the shopfloor. After flexing the heart of value creation—production—we extend the principle across the organism. The ultimate goal is not only the smart factory but the fully connected and resilient “Software-Defined Value Stream”—from the first design idea in PLM to machine feedback in the field.

It consists of three core elements:

• 1. Physical & Virtual Layer: The base spanning physical OT hardware (machines, robots) and existing IT systems (PLM, SCM, ERP, MES).
• 2. The Central Platform (Our Core IP): An abstraction layer decoupling hardware from software. It integrates data from all silos into a central knowledge graph and exposes it through standardized layers for analytics and applications.

  Think of this knowledge graph like “Google for the factory”: It knows all the data (machine state, work order, 3D model) and their relationships. Instead of finding documents, it answers complex questions like: “Which work orders are affected by the design change to part XY and are currently running on machines with critical maintenance status?”

• 3. Intelligence & Orchestration: The layer enabling decentralized yet harmonized execution of functions across the value stream—from product to process to automation and simulation.

Pragmatic Focus: The "Value Stream Graph"

To manage complexity and deliver fast value, we don’t begin by building an all-encompassing data model. We focus first on a “Value Stream Graph” that models only the data flow needed to solve a single, highly profitable, cross-value-stream problem for the lighthouse customer.

Rationale: This approach is deliberately not a one-off lighthouse project but the first vortex in the customer’s digital backbone. By building on an extensible graph from the start, each new connection (e.g., logistics or quality management) enriches the central knowledge model rather than creating another interface.

2.3 Strategic Frame: The CRISP Vision

Our approach enables the leading industry vision. The CRISP framework by Dr. Gunter Beitinger (Siemens) is the internationally recognized gold standard for managing modern production networks.

While CRISP defines the target state, the Software-Defined Factory provides the essential technology foundation to achieve it. We position ourselves as the enabler for the CRISP vision.

2.4 Competitive Differentiation

No current market player offers an integrated solution to overcome the scaling trap and realize CRISP. Their business models and technologies have structural weaknesses we address head-on.

2.5 Why Now?

Three unstoppable trends make our solution not just relevant but essential:

1. Collapsing supply chains: Resilience moved from nice-to-have to survival. Companies must act cross-value-stream in real time.
2. Generative AI in production: AI needs clean, connected data. Without a central semantic data foundation, AI remains siloed. We provide that foundation.
3. The end of monoliths: Customers demand open, flexible architectures over vendor silos. Our open platform is the answer.

2.6 Initial Focus: Ideal Customer Profile (ICP)

We enter the market with a sharp focus where our approach yields the fastest and largest value:

• Industry: Discrete manufacturing, especially automotive suppliers or machinery/equipment.
• Revenue size: €500M–€5B to ensure strategic pain and investment capacity.
• Complexity: At least 3–5 plants in different regions with heterogeneous IT/OT.
• Strategic pressure: Facing concrete challenges (e.g., EV transition, supply chain resilience) unsolved by silo solutions.
• System landscape: Established backbones (e.g., SAP, Siemens PLM) whose value we can amplify.

3. The Hybrid Business Model

3.1 The Phased Approach

Our hybrid model explicitly avoids the services trap. Each phase funds and validates the next product-centric phase with real market data. Services aren’t an end in themselves—they’re the capital-efficient engine to build a scalable technology asset. This is codified in our “Strategic Product Reinvestment Rate” principle (see 3.2).

We follow a disciplined, sequential plan combining cashflow and valuable customer data with building a scalable product.

3.2 Strategic Product Reinvestment Rate (SPRR)

The founder commits contractually to reinvest 25% of all revenues from co-creation business (Phase 2) as an untouchable SPRR into a separate budget for the platform team (Phase 3).

Rationale: This mechanism is the life insurance for the long-term vision. It’s a non-negotiable governance guardrail ensuring product development isn’t sacrificed to short-term revenue pressure.

Commercial Buffer for Resilience

To reduce dependency on a few large projects, we offer a standardized service: “Silo-Busting-as-a-Service.” It implements and operates a data bridge between exactly two systems (e.g., SAP & MES) at a fixed monthly fee—generating predictable recurring revenue while strategic deals are negotiated.

3.3 Shopfloor Enablement Playbook — The ‘P’ in CRISP

The biggest hurdle isn’t technology but adoption by the people who work with it daily. Our playbook is not an optional change-management add-on—it’s integral. It’s the user adoption interface of our platform, eliminating human-factor risk and bringing the ‘P’ (People-Centric) of CRISP to life.

• Works Council Engagement Module

  Proactive workshop with the works council to position the initiative as a tool for upskilling and relief.

• Gemba Walk 4.0

  Walk the line with supervisors and operators. Ask: “Where do you wait for which information to do your job better?”

• Lighthouse Keeper Program

  Identify and train 1–2 respected multipliers in each department as bridges between technology and shopfloor reality.

• Cockpit Co-Creation Workshop

  Design dashboards and interfaces with users, not for them. Ask the shift lead: “Which five metrics do you need to survive the next 60 minutes?”

3.4 IP Model: The Open Core Principle

We pursue an open-core model balancing market acceptance with a defensible business:

• Open-source core: Core engine of the knowledge graph and base connectors are open source to ease IP concerns.
• Proprietary enterprise layer: Licensed “Enterprise Edition” adds security, governance, HA clustering, and premium connectors.

4. Founder Foundation: Structure, Equity & Governance

4.1 Founder Profile

Success is based on the synergy of technological vision and proven entrepreneurial execution combined in the founder. We complement and scale this with an elite team of “player-coaches.”

The first strategic hire after validation is a commercial lead (CRO) to systematically scale GTM.

4.2 Legal Structure

Principle: Investor- and employee-friendly holding structure

Rationale

• Tax efficiency: Holding secures tax-optimized returns for founder on exit.
• Investor standard: Clean, standardized structure ready for VC entry.
• Employee flexibility: Clear pool (ESOP/VSOP) planned from day one.
• Liability protection: Operational risk limited to the operating GmbH.

4.3 Equity: Founder Vesting & ESOP

Principle: Secure long-term commitment and share success

The equity structure secures long-term founder commitment and attractiveness to future key hires and investors.

1. Founder vesting: Founder’s shares (held via holding) follow a standard vesting schedule, signaling long-term commitment.
   • Standard model: 4-year vesting with a 1-year cliff—25% after 12 months, then monthly over 36 months.
2. Employee Stock Option Pool (ESOP): Reserve 10–15% FD for employee equity from the start to attract entrepreneurial top talent.

4.4 Governance & Key Terms

Governance is designed from the outset to meet VC-backed standards. Key clauses are defined in the SHA.

5. Strategic Framework for External Partners

5.1 Principles

For engaging strategic advisors (e.g., Gunter Beitinger), we establish a standardized, professional framework:

• No direct GmbH shares: Advisors without full-time operational commitment receive no direct equity.
• Scalable advisory board model: A structure to onboard multiple advisors consistently.
• Performance-based compensation: Tied to measurable future contribution.

5.2 Recommended Model: Phantom Stock (VSOP)

This is the preferred method to incentivize advisors long-term without giving up control or complicating the cap table.

5.3 Proposed Licensing & Collaboration Model for CRISP

Principle: Dependency on external IP (CRISP) without a clear contractual basis is a business risk. To eliminate it, we propose the following model as the basis for a Letter of Intent (LoI).

Risk Mitigation & Alternatives

If formal CRISP licensing doesn’t materialize, our value proposition remains intact. SDF enables the principles of connectivity, resilience, etc. We’d market our assessment as “Sodexus Maturity Assessment” and reinforce credibility through ex-plant leaders and lighthouse results.

6. Cultural DNA — How We Work

6.1 Our Working Principles

These principles guide decisions, actions, and hiring.

• Product over project

  Projects exist to build the product. Every mandate must move the product vision forward.

• Customer-obsessed, not -driven

  Understand the deep, unsolved problem—not just feature requests. Say no to misaligned features.

• Learn from operators, build for operators

  Best insights come from the shopfloor. Build a culture of listening and co-creation.

• Elite team over big org

  Hire entrepreneurial player-coaches and optimize for talent density.

• Bootstrapping with ambition

  Act with financial discipline, invest boldly in the product vision funded by services profit.

• Enablers, not implementers

  We coach customers to use the platform themselves—building independence, not dependence.

7. Operational Roadmap & Next Steps

7.1 Milestones & Financial Projection

Financial Projection (Bootstrapping Case)

We operate as a “Phoenix startup”: leverage founder’s experience and network to build a profitable, customer-financed company. Primary goal is sustainable growth via performance, not external VC. Projection reflects the bootstrapping plan.

Financing strategy: Fully customer-financed (bootstrapping). External rounds not part of the initial strategy. Company value created via profitability and strategic customer assets.

7.2 Open Questions & Workshop Agenda

Items to clarify in upcoming discussions:

1. Detailed 18-month budget and liquidity plan.
2. Define initial ESOP pool (recommendation: 10–15% FD).
3. Finalize LoI and plan negotiations with Dr. Beitinger.
4. Strategy for key hires and advisory board.

Appendix: The Name Sodexus — Strategy and Foundation