Digital Transformation in Manufacturing: Data Spaces and Manufacturing-X in Practice
The industrial sector is undergoing a significant digital transformation, with data-driven ecosystems playing a pivotal role. Central to this evolution are data spaces—federated, secure environments designed for data exchange. Currently, under the initiative known as Manufacturing-X, a cross-industry data space for manufacturing is taking shape. This initiative aims to enable companies to collaboratively and sovereignly utilize data across their entire value chains, enhancing competitiveness, resilience, and sustainability.
This article provides an overview of digital transformation in manufacturing and examines how Manufacturing-X and its technical core component, the MX-Port, function. Through two concrete use cases from InstaWerk—a pioneer in digital CNC manufacturing—we demonstrate how real-time shop floor data enables more precise calculations and how a Manufacturer Information Service (MIS) facilitates smart onboarding of new manufacturing partners. Finally, we discuss how these solutions integrate into existing business processes and their strategic relevance for industry decision-makers.
Manufacturing-X and the MX-Port: Interoperability and Data Sovereignty in Practice
At the heart of Manufacturing-X lies the vision of decentralized, trustworthy data exchange among industry partners. Technically, this is facilitated by the MX-Port—an open framework that serves as a "shared service box" for companies to securely and standardly exchange data across organizational boundaries.
The MX-Port adopts a multi-layered approach, addressing key requirements such as interoperability, trust & security, scalability, and data sovereignty. It builds upon existing standards and initiatives, including Gaia-X, Catena-X, Plattform Industrie 4.0, IDTA (Industrial Digital Twin Association), and the OPC Foundation. This foundation allows Manufacturing-X to create a framework where each participant retains control over their data—a crucial principle, as "the data space requires a trust space, because only there are companies willing to let their valuable asset—the data—flow."
The MX-Port further extends existing concepts by considering connectivity down to the shop floor, an aspect previously unaddressed in the automotive data space Catena-X. It also accommodates industry-specific requirements, such as new business models like firmware updates for machines or "Equipment as a Service" offerings in exchange for data.
In essence, the MX-Port provides an integration architecture that enables different software applications to be uniformly networked without the need for proprietary interfaces for each case. Strategically, Manufacturing-X promises a breakthrough in digital collaboration. "With the grassroots approach of Manufacturing-X to share data without losing sovereignty over it, we have finally cut this Gordian knot," explains Hartmut Rauen from VDMA. Companies can leverage their domain knowledge along the supply chain profitably without relinquishing control over their data to central platform operators or hyperscalers. This federated approach to data spaces fosters trust and encourages data sharing—essential prerequisites for the acceptance and utilization of digital ecosystems in the industry.
Use Case 1: More Accurate Price and Delivery Time Calculations Through Real-Time Shop Floor Data
InstaWerk—known as Germany's leading platform for CNC components—already enables customers to upload CAD models and receive real-time pricing and delivery dates. This instant calculation significantly accelerates the ordering process and reduces costs. However, the precision of such calculations was previously limited due to restricted data. Offers often relied on average market assumptions and static data, as real-time information from manufacturing operations was lacking.
The challenges were evident: capacities at manufacturing partners had to be partially manually queried, available machine utilizations were only unstructured or not digitally available, and there was a lack of transparency regarding machine hourly rates and current free slots. In short, the platform could only calculate with an estimated total market capacity without real-time insights into individual workshops.
With the support of Manufacturing-X, InstaWerk has developed a data space prototype to bridge this gap. The core of this approach is a direct connection to the shop floor level: through an MX-Port, machines in InstaWerk's manufacturing network can provide real-time data. This includes live information on machine utilization, maintenance statuses, or available capacities, all within the scope that each partner chooses to share (emphasizing data sovereignty).
InstaWerk employs in-house modules for real-time data processing and standardized service queries. A practical example is a digital twin or a digital capacity dashboard: manufacturing partners can input and update their available time slots, machine capabilities, and cost parameters in a structured format. All this information feeds into the calculation software. The result: price and delivery time forecasts become significantly more precise and dynamic. Instead of relying on conservative buffer times, InstaWerk can now often provide customers with delivery times that are realistically achievable based on actual available capacity—even if shorter. Cost factors can also be better estimated, knowing which machine with what hourly rate will likely handle the job.
For buyers, this means more reliable service and fewer unpleasant surprises; for manufacturers in the network, data transparency offers the opportunity to increase their utilization and receive orders that precisely match their current capacity situation. Overall, a win-win situation emerges: efficiency and speed in the procurement process increase without compromising the established quality and cost control.
Use Case 2: Intelligent Onboarding of New Manufacturing Partners via MIS and MX-Port
Another strategic advantage of the data space infrastructure becomes apparent when onboarding new manufacturing partners. While InstaWerk boasts a vast network of over 3,000 CNC machines, specific customer requests occasionally necessitate new competencies or additional capacity. Previously, this meant time-consuming supplier searches, manual verification processes, and lengthy audits before a new partner could be productively integrated.
Today, the process is more intelligent. Within the framework of Manufacturing-X, the Manufacturer Information Service (MIS) has been conceptualized—a digital service that can identify suitable manufacturers in a standardized manner.
How does this work in practice? If InstaWerk encounters capacity limits or special requirements, the platform can automatically issue a search request within the network. Through the MX-Port, a request containing relevant parameters—such as material, manufacturing process, required certifications, delivery location, and timeframe—is formatted into a standardized data structure and sent to the MIS.
The MIS acts as a distributed industry directory: it searches connected data spaces and partner registries for manufacturing companies that precisely meet these requirements. Importantly, all this occurs with data sovereignty in mind. The queried companies decide for themselves which information (e.g., about machines, capabilities, and available capacities) they share in the data space—the process respects confidential information and operates on an opt-in basis.
If the MIS identifies suitable candidates, InstaWerk receives a response file with potential new manufacturing partners within a short time, including information about their capabilities, available capacities, and quality certifications. What was once a laborious research process spanning several days is now a nearly instant digital match.
Subsequently, InstaWerk can directly contact these candidates and significantly expedite the onboarding process. An initial introductory conversation or even a remote audit (e.g., via video) may suffice to verify suitability. Thanks to the structured data provided by the MIS in advance, there's already a clear understanding of the potential partner's capabilities. Once a new partner is verified, the first order can be placed—often within days, not weeks.
The technical foundation of this seamless onboarding is, once again, the MX-Port. It ensures that authentication and communication among all parties are uniformly regulated. The MX-Port builds trust by integrating role and rights management: all parties know who has access to which data and for what purpose—and that data flows only temporarily and purposefully. Furthermore, the MIS relies on established IDTA standards for data models, ensuring that information about suppliers and machines is presented in a common "language."
InstaWerk actively contributes its practical experience to this development initiative to ensure that the MX-Port and its services meet the needs of modern manufacturing platforms. The benefits are clear: through standardized networking, InstaWerk enhances the resilience of its supply chain, enabling rapid integration of new partners when needed without compromising on quality or speed.
Integration into Business Processes: From ERP Connectivity to Framework Agreements
A digital solution only unfolds its full potential when it is seamlessly integrated into the user’s existing processes. InstaWerk addresses this by already offering compatibility with common enterprise software. Specifically, InstaWerk provides ERP integration via an OCI interface (Open Catalog Interface), allowing customers to directly access InstaWerk’s instant quoting and ordering functionality from within their ERP or procurement systems. Through a so-called punch-out, users are seamlessly redirected from their ERP to the InstaWerk web catalog, where they can select or configure their part, then return with the completed order directly into their ERP. The entire procurement process is executed without any media discontinuity. This eliminates tedious manual data entry; even custom-drawn parts can be ordered as conveniently as catalog items. The impact is substantial: operational procurement costs can be reduced by up to 90%, especially because time-consuming steps and potential errors are avoided.
InstaWerk also integrates flexibly into existing workflows beyond that. Companies can still use traditional approval processes or request formal quotations. Upon request, InstaWerk provides a written offer that the purchasing department can internally review and approve before placing the order. At the same time, the digital interfaces open up new opportunities for shaping long-term collaborations efficiently. Many InstaWerk clients enter into framework agreements or supplier contracts that are managed via the platform. For example, agreed special conditions or call-off quotas can be stored in the system, allowing recurring orders to be placed through the platform under predefined contractual terms.
The combination of a flexible online manufacturing platform and a plannable partnership offers the best of both worlds: spontaneous needs can be met without lengthy negotiations – and both sides benefit from the security of a contractual foundation. Additionally, the full history and communication are centrally traceable, increasing transparency across the supply chain. Strategic decisions – such as make-or-buy or capacity allocation – can be based on data-driven feedback, as all relevant information – from prices and delivery times to quality performance – is digitally available.
Conclusion: Strengthening Industrial Competitiveness through Digital Services
These examples make one thing clear: digital data spaces and services like Manufacturing-X are not ends in themselves, but powerful enablers of real business value. When data can be shared securely and in standardized formats, efficiency increases – offers and processes run faster and with fewer errors – and transparency improves, as availability and status data are visible at any time. At the same time, supply chain resilience grows: companies can respond more flexibly to disruptions, onboard alternative suppliers, and plan more proactively.
With its use cases in the Factory-X research initiative, InstaWerk demonstrates what such innovative approaches will look like in the future. The MX-Port and Manufacturing-X provide the technical framework – interoperability, data sovereignty, and security – while InstaWerk delivers the practical value, such as precise real-time pricing, quality control, or automated partner management. For decision-makers in the industry, this represents an opportunity to take procurement and production to the next level. Those who adopt open data ecosystems early can realize efficiency gains in sourcing and development, resilient operations, and deeper insights – and thereby secure a competitive edge.
The digital transformation of industry is in full swing, and data spaces like Manufacturing-X are paving the way toward a future in which collaboration and data flow go hand in hand. Companies that actively help shape this transformation will reap the benefits of increased agility and competitiveness. Now is the right time to set the course. Get in touch with us to explore the opportunities for your organization.
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