Unique IDs: the key to autonomization
Any discussion about autonomization in technology and business must inevitably address the need for reliable data and digital twins. While automation is based on predefined processes, autonomization refers to a system’s ability to carry out independent decision-making that adapts to changing circumstances. An essential requirement for this is a reliable link between physical assets and their digital representations. One such representation is the digital twin, which collects, updates and provides access to all the relevant information about a product throughout its life cycle. The digital product passport (DPP) regulates and expands on this concept to ensure transparency, sustainability and circularity. A key requirement for both concepts is the unique identification of products and their components. With funding from the Baden-Württemberg Stiftung, the Steinbeis Innovation Center Artificial Intelligence for Humans and Machines and Reutlingen University’s Werk150 carried out a study investigating the role of unique IDs in implementing digital product passports in the mechanical engineering industry.
The benefits of digital product passports can only be realized if products remain uniquely identifiable throughout their entire life cycle. This applies to both the product as a whole and its individual components. One particular feature of the mechanical engineering industry is that parts can be reused in different contexts after their first life – different R-strategies such as reuse, repair and recycle may be employed in parallel. In order to ensure traceability and a life cycle approach, it is vital for all the IDs and associated digital product passports to remain consistent.
The requirements for ID systems
A modern ID system for the DPP needs to meet several requirements. These include:
- Modularity: Products are increasingly made up of complex component structures. Each level must be uniquely identifiable so it can be addressed in the DPP.
- Interoperability: Identifiers must be usable across different systems and industries so they can be used in international supply chains.
- Security: Protection against tampering and counterfeiting is vital, especially in products that are critical to safety or health.
- Data ownership: In order to protect their trade secrets, enterprises must be able to control which data can be seen and who can see it.
The challenge is especially pronounced in the mechanical engineering industry, where complex assets comprise thousands of components that need to be identified not only for maintenance and service purposes, but also for recycling and second life scenarios. This poses integration and standardization issues, especially for small and medium-sized enterprises (SMEs).
The challenge of complexity
While conventional methods like barcodes or RFID do enable identification, they have their limitations in terms of counterfeit protection, data persistence and life cycle length. More modern solutions use digital IDs linked to international standards such as GS1 Digital Link or the EPCIS data model. One particularly promising approach – especially in more decentralized value networks such as those in the mechanical engineering sector – involves a combination of the Asset Administration Shell (AAS) and blockchain technology.
Compared to the automotive industry, for example, the mechanical engineering industry is more of a fragmented network that isn’t dominated by any single player and is more reliant on coordination, standardization and shared infrastructure. The AAS functions as the product’s digital twin, structuring its properties, status and event data and providing access to them via standardized interfaces. The blockchain supplements this with counterfeit-proof certificates that enable trusted identity aggregation and transfer. The two combine to produce a hybrid model that fulfils both the technical and the organizational requirements.
This approach allows enterprises to interoperably exchange identity-related and event-related data and traceably automate processes such as serial numbering, service log keeping, warranty certificates and proof of ownership. This helps to manage complexity in fragmented supply chains and enables circular business models such as reuse, refurbishment, take-back and pure-grade recycling, while at the same time protecting data ownership. The approach also supports usage-based models like pay-per-use. It enables tamper-proof management of proof of usage, condition and ownership, as well as automated billing, and service level auditing. Since products are returned to the manufacturer at a scheduled point in time, the associated ID facilitates take-back, refurbishment and remarketing of the entire product or its individual components.
Hybrid ID systems: a practical solution
To investigate the level of implementation in the mechanical engineering industry, in summer 2025 the Steinbeis Innovation Center Artificial Intelligence for Humans and Machines carried out a user survey among enterprises in the industry. The survey found that while enterprises are conscious of the need for unique ID systems, a number of significant barriers stand in the way of their implementation. Chief among these barriers is technical integration with their existing IT and production systems, something that all the respondents cited as their biggest challenge. This highlights the fact that regulatory requirements and technical standards alone will not be enough to ensure the successful introduction of digital product passports – the ability to seamlessly integrate the new solutions with established system landscapes will be key.
Other frequently mentioned challenges included a lack of standardization and ensuring end-to-end traceability. This indicates that implementation of the DPP first and foremost entails technological and architectural challenges that enterprises can only overcome with the aid of standardized solutions like the AAS and interoperable data spaces.
The hybrid Asset Administration Shell and blockchain model presented in this article offers a practical solution for the unique identification of components and products in more decentralized value networks, that can be integrated with existing IT and production systems without too much difficulty.
The project was funded through the Baden-Württemberg Stiftung blockchain ideas competition.
Contact
Prof. Dr. Daniel Palm (author)
Steinbeis Entrepreneur
Steinbeis Innovation Center Artificial Intelligence for Humans and Machines (Stuttgart)
www.siz-kimm.de
Prof. Dr.-Ing. Vera Hummel (author)
Steinbeis Entrepreneur
Steinbeis Innovation Center Artificial Intelligence for Humans and Machines (Stuttgart)
www.siz-kimm.de