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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 ?

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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.

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

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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.

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.