Corporations to lead next industrial revolution…’leadership based on national policy implementation’
Park Jong Il | comja77@ | 2017-03-06 11:02:12
■ 2017 restart Korea
A corporation to lead the fourth industrial revolution
[Digital times, by Park Jong Il] Major domestic conglomerates such as Samsung, Hyundai and Kia Motors are speeding up the fourth industrial revolution related representative business such as Internet of Things (IoT), big data, Artificial Intelligence (AI), robot and self driving cars. As each country provides full support to become a leader country in the fourth industrial revolution, it is increasingly pointed out that Korean government should also promote the fourth industrial revolution as a national task.
According to the industry on March 5, major Korean conglomerates such as Samsung, Hyundai Motor, and SK are considering the fourth industrial revolution as a strategy to overcome protectionism and are making a bold investment to redesign their overall business.
This is because of the fact that the growth engines of Korean companies, which were based on manufacturing industries in the past, have reached its limit. In particular, it is analyzed that the fact that the companies competing in the global market are getting ahead are being stimulus for the fourth industrial revolution leadership. Google-a search engine company, and Amazon-an online distribution company, are expanding their business areas with self driving cars and AI platforms, and automakers, on the other hand, such as GM are planning to change their internal combustion engines to self driving electric cars.
Kwon Wo Hyun-Vice president of Samsung Electronics once mentioned, ‘The fourth industrial revolution related technology competitiveness is going to be one of the main existence reason of companies in the future.
Samsung Electronics has decided to invest in IoT, AI, automobile electronic apparatus as well as and bio field as future business and invested a huge amount of USD 8 billion (about KRW 9.23 trillion) to acquire US electronic apparatus manufacturing company- Haman Co., Ltd. Samsung is planning to promote a smart car and AI business based on automobile electric apparatus business field in earnest through this acquisition.
Hyundai and Kia Motors, on the other hand, have established a strategic technology research institute and have set a strategic goal of transforming themselves into a future leading car company by implementing fully self driving cars by 2030 and integrating development organizations and personnel related to self driving cars into one organization. SK Innovation and SK Hynix both plan to invest a total of KRW 3 trillion and KRW 7 trillion this year, and SK Telecom plans to invest heavily in major affiliates such as KRW 11 trillion over the next three years. LG Electronics, on the other hand, is developing a future display such as an organic light emitting diodes (OLED) and electric car batteries as its new growth engine. In addition, LG Chem is building up its bio business capacity by merger of Farm Hannong and LG Life Sciences. Lotte is planning a customized service that integrates information technology (IT), including the launching of IBM``s AI solution- Watson.
The mobile service industry is also expanding its business into smart home services. SK Telecom``s Who, KT``s ‘Giga Gini, and LG U +``s Smart City trial service of Goyang City. The financial industry, on the other hand, is developing future markets such as FinTech. It is being pointed out that the provision of support at the national level shall be implemented in order to be more empowered by the movements of these companies into the fourth industrial revolution. The Korea International Trade Association (KITA) suggested to the government to set up a ‘National Innovation Strategy Meeting’ (tentative name) in order to promote the fourth industrial revolution as a national policy task. Germany has been pursuing a smart factory strategy at the national level under ``Industry 4.0`` since 2011 and the US is also implementing a manufacturing revival policy that includes IoT and big data such as ‘the modern manufacturing strategy``.
Jo Joon-Il, a senior researcher at LG Economic Research Institute, stated, ‘The importance of ``business model transformation`` beyond innovation of existing technologies and products is growing in order for domestic manufacturing to grow again. The changes in the organizational culture should be prioritized to lead the market. ‘
By Park Jong Il comja77@
[ copyright ⓒ The Digitaltimes ]
A corporation to lead the fourth industrial revolution
[Digital times, by Park Jong Il] Major domestic conglomerates such as Samsung, Hyundai and Kia Motors are speeding up the fourth industrial revolution related representative business such as Internet of Things (IoT), big data, Artificial Intelligence (AI), robot and self driving cars. As each country provides full support to become a leader country in the fourth industrial revolution, it is increasingly pointed out that Korean government should also promote the fourth industrial revolution as a national task.
According to the industry on March 5, major Korean conglomerates such as Samsung, Hyundai Motor, and SK are considering the fourth industrial revolution as a strategy to overcome protectionism and are making a bold investment to redesign their overall business.
This is because of the fact that the growth engines of Korean companies, which were based on manufacturing industries in the past, have reached its limit. In particular, it is analyzed that the fact that the companies competing in the global market are getting ahead are being stimulus for the fourth industrial revolution leadership. Google-a search engine company, and Amazon-an online distribution company, are expanding their business areas with self driving cars and AI platforms, and automakers, on the other hand, such as GM are planning to change their internal combustion engines to self driving electric cars.
Kwon Wo Hyun-Vice president of Samsung Electronics once mentioned, ‘The fourth industrial revolution related technology competitiveness is going to be one of the main existence reason of companies in the future.
Samsung Electronics has decided to invest in IoT, AI, automobile electronic apparatus as well as and bio field as future business and invested a huge amount of USD 8 billion (about KRW 9.23 trillion) to acquire US electronic apparatus manufacturing company- Haman Co., Ltd. Samsung is planning to promote a smart car and AI business based on automobile electric apparatus business field in earnest through this acquisition.
Hyundai and Kia Motors, on the other hand, have established a strategic technology research institute and have set a strategic goal of transforming themselves into a future leading car company by implementing fully self driving cars by 2030 and integrating development organizations and personnel related to self driving cars into one organization. SK Innovation and SK Hynix both plan to invest a total of KRW 3 trillion and KRW 7 trillion this year, and SK Telecom plans to invest heavily in major affiliates such as KRW 11 trillion over the next three years. LG Electronics, on the other hand, is developing a future display such as an organic light emitting diodes (OLED) and electric car batteries as its new growth engine. In addition, LG Chem is building up its bio business capacity by merger of Farm Hannong and LG Life Sciences. Lotte is planning a customized service that integrates information technology (IT), including the launching of IBM``s AI solution- Watson.
The mobile service industry is also expanding its business into smart home services. SK Telecom``s Who, KT``s ‘Giga Gini, and LG U +``s Smart City trial service of Goyang City. The financial industry, on the other hand, is developing future markets such as FinTech. It is being pointed out that the provision of support at the national level shall be implemented in order to be more empowered by the movements of these companies into the fourth industrial revolution. The Korea International Trade Association (KITA) suggested to the government to set up a ‘National Innovation Strategy Meeting’ (tentative name) in order to promote the fourth industrial revolution as a national policy task. Germany has been pursuing a smart factory strategy at the national level under ``Industry 4.0`` since 2011 and the US is also implementing a manufacturing revival policy that includes IoT and big data such as ‘the modern manufacturing strategy``.
Jo Joon-Il, a senior researcher at LG Economic Research Institute, stated, ‘The importance of ``business model transformation`` beyond innovation of existing technologies and products is growing in order for domestic manufacturing to grow again. The changes in the organizational culture should be prioritized to lead the market. ‘
By Park Jong Il comja77@