Post on 23-Jan-2018
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Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation are proprietaries of Intree 4.0 Forum. It contains confidential information of Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation.
Chaisung Lim Chairman of Korea Industry 4.0 Association Prof. Konkuk Business School edisonfoot@gmail.com
Digital Transformation of Korean Manufacturers Today and Challenges
GE Innovation Forum 2017 LIVE 2017. 8.25 Grand Hyatt Incheon
NOTICE: Proprietary and Confidential
Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation are proprietaries of Intree 4.0 Forum. It contains confidential information of Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation.
NOTICE: Proprietary and Confidential
Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation are proprietaries of Intree 4.0 Forum. It contains confidential information of Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation.
I. Challenging environment
Copyright ⓒ 2017 Korea Industry 4.0 Association
Export decline after the successful rise
Source: Korea International Trade Association
3
548.8 559.6
573.1
526.9
495.5
2012 2013 2014 2015 2016
7th 7th 7th
8th
6th
Uni
t: Bi
llion
$
Source: WTO
Growth of Exports and GNI per capita in Korea
Copyright ⓒ 2017 Korea Industry 4.0 Association
Global manufacturing competitiveness index
4
Source: Deloitte Development LLC
Copyright ⓒ 2017 Korea Industry 4.0 Association
Digital transformation of society and business
5
Personalized value society
Hyper connected society Data capitalism
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Korean companies’ “Worries”
6
Limit of hardware driven productivity improvement Competetion from IT, DT companies in value creation
OEM Producer ? Value Creator ?
NOTICE: Proprietary and Confidential
Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation are proprietaries of Intree 4.0 Forum. It contains confidential information of Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation.
II. Current status
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Korean companies moving
From Automated Manufacturing
To Smart Manufacturing
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IIoT platform for aircraft engine manufacturing
Korean leading company examples
Spreading smart factory best practices
Source: Joong Ang Ilbo 2017.07.19
Moving towards networking of all processes
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My understanding on the status of Korean companies
• Early stage digital twins
• Decision making on the basis of data
• Silos in the flow of data
• Big data analysis
• Not with new business models
NOTICE: Proprietary and Confidential
Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation are proprietaries of Intree 4.0 Forum. It contains confidential information of Intree 4.0 Forum, Intree 4.0 World Forum, and Korea Industry 4.0 Innovation.
III. Challenges
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Digital transformation challenges
12
Can we break limit of productivity improvement? Can we become value creator?
Korean company with ‘Manufacturing+IT+DT’
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Data & Platform
Digital human resources & Organization
Innovation speed
Digital transformation challenges
Overcoming challenges: learning from Amazon, Google, GE?
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Digital transformation challenges
Overcoming challenges: Learning from suppliers & customers of Amazon, Google, GE
Partnership in building the new ecosystem
Copyright ⓒ 2017 Korea Industry 4.0 Association 15
Source: Henderson(2003) modified
Partnership factors to consider in technology & product life cycle
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Thank you
*Acknowledgement I am grateful to Hangu Park and Seokhee Han of Korea Industry 4.0 Association for their contribution to the contents of the presentation.