2017 GW October Conference The 4 th Industrial Revolution & SME Policy Innovation October 26, 2017 Young-Sup Joo , Ph.D. Distinguished Professor, Korea University Former SME Minister, SMBA of Korea
2017 GW October Conference
The 4th Industrial Revolution & SME Policy Innovation
October 26, 2017
Young-Sup Joo, Ph.D.Distinguished Professor, Korea University
Former SME Minister, SMBA of Korea
Young-Sup Joo, Ph.D. - October 2017
Megatrends of Global Economy
q “4th Industrial Revolution” & “New Normal Era”as Two Keywords of the Global Economy
LowGrowth
LowInterest Rate
Low Inflation
High Unemployment
Young-Sup Joo, Ph.D. - October 2017
The 4th IR & New Normal Era will be a big threat
for our Future Jobs.
Is it true?What is our countermeasure?
Young-Sup Joo, Ph.D. - October 2017
PhysicalWorld(Real)
Cyber World
(Digital)
Bio World
(Human)
The 4th Industrial Revolution (Davos 2016)• Industrial Revolution driven by Convergence
of Digital Devices, Human and Physical Environment- Tech Innovation : IOT, Big Data, AI, AR/VR, Robot, Bio, etc.
• “Convergence of Physical-Cyber-Bio Worlds”
* Broad Perspective
4th Industrial Revolution - Definition
Young-Sup Joo, Ph.D. - October 2017
“Industrie 4.0” as 4th Industrial Revolution
(Source : DFKI)
Industrie 4.0
* Narrow Perspective
Young-Sup Joo, Ph.D. - October 2017
Core Technologies for 4th Industrial Revolution
IOT
Big Data
AI
CyberSecurity
5G CPS HMIUI/UX
Cyber Based Technology
Robotics
AR/VRMR
Physical Based Technology
SmartSensor
3DPrinting
EnergySystem
Platform Technology
CloudComputing
Young-Sup Joo, Ph.D. - October 2017
Evolution of Manufacturing Paradigm
(Source : Prof. Darek Ceglarek, WMG)
Young-Sup Joo, Ph.D. - October 2017
Evolution of Manufacturing Paradigm
(Source : Prof. Darek Ceglarek, WMG)
Industrie 2.0
Industrie 3.0
Industrie 4.0
Young-Sup Joo, Ph.D. - October 2017
4th Industrial Revolution - Impacts
Physical + Cyber + Bio Convergence
Ø Mass Production &Mass Consumption
Ø Customized Production & Customized Consumption
è In the new era, a small but fast fish eats a big but slow fish.
Ø Products Decide Demand
Ø Led by Large-sized Enterprises
Ø Led by Innovative Start-ups & SMEs
Ø Demand Creates Products
4th Industrial Revolution
Ø Scale matters Ø Speed and Flexibilitymatters
è The era of Innovative Start-ups and SMEs is coming!
Young-Sup Joo, Ph.D. - October 2017
New Normal Era - Impacts
High GrowthLow Unemployment
Low GrowthHigh Unemployment
Global Growth RateSliding Down
Job CreationAs Top Priority
Increasing Sentiment of Trade Protectionism
4.12
WORLDOECD
2.663.55
2.203.75
2.61 2.560.94
8.3 7.5
10.0 11.3 11.5
4.65.8 9.6 8.1
6.2USA
EU
Global Financial Crisis
ü In the low growth era, the economic pie is getting stagnant→ Job has emerged as the top priority issue globally
ü Job ‘Zero-Sum’ : The world is in a war to create jobs
Young-Sup Joo, Ph.D. - October 2017
q Most of Jobs are created by SMEs/Startups : over 95% recently
q SMEs as a Main Driver of Export, Economic Growth, and Employment
-21.2
SMEs LSEs
91.3121.2
79.898.1
20.21.98.7
’11 ’12 ’13 ’14
(2016)
Young-Sup Joo, Ph.D. - October 2017
For 4th IR and New Normal Era,
SMEs and Start-ups
is the Key to Success!
Young-Sup Joo, Ph.D. - October 2017
q Intensively Nurture Innovative Start-ups & SMEs§ Technology Innovation to secure Global Competitiveness§ Human-centered (“Humane”) Entrepreneurship
4th IR and SME Policy Innovation - Summary
q Execute Human-Centered Business Model Innovation as well as Technology Innovation§ BM based on Customized/Personalized Products & Services
q Expedite Manufacturing Innovation§ Manufacturing Innovation 3.0/4.0
Young-Sup Joo, Ph.D. - October 2017
q Intensively Nurture Innovative Start-ups & SMEs
ü Implement a Master Plan to Secure Global Competitivenessfor Start-ups & SMEs § Primarily, Secure Technology Competitiveness
by Strengthening R&D for Continuous Tech Innovation- 4th IR, Convergence & Integration, Smart & Green Innovation- Open Innovation : Global R&D Collaboration
§ Secure Speed & Flexibility Competitiveness- Need Management/System/Culture/HR Innovation
4th IR and SME Policy Innovation (1)
ü Nurture & Disseminate Human-centered Entrepreneurship§ Innovate Corporate Culture & Increase Investment in HR
Young-Sup Joo, Ph.D. - October 2017
For the Success of
SMEs and Start-ups,
Humane Entrepreneurship
is the Key!
Young-Sup Joo, Ph.D. - October 2017
UN MSME Day & Humane Entrepreneurship
q ICSB-UN SME Ministerial Meeting (June 16, 2016 @ UN Hq.)
ð UN has declared June 27 every year as UN MSME Day
Young-Sup Joo, Ph.D. - October 2017
The 4th Industrial Revolutiondoes not only require
Technology Innovation,but also Human-centered
Business Model Innovation
Young-Sup Joo, Ph.D. - October 2017
4th IR and SME Policy Innovation (2)
q Execute Business Model Innovation - 1ü Pursue Customized Products & Services Based BM
§ Mass Production ð Mass & Individual Customization§ Differentiate Customization by Business Size and Type, etc.
Pro
duct
Volu
me
High
Low
Product VarietyLow High
Cost CompetitiveMass Production
Mass Customization
Regionalization
Niche Markets Full/Semi-IndividualCustomization
Strategy MixUpgrade &
Differentiation
Young-Sup Joo, Ph.D. - October 2017
q Execute Business Model Innovation - 2
ü Pursue Networking, Organizing, and Groupingof Start-ups & SMEs to secure Scale Merits
ü Pursue Alliance with Platform Enterprises§ Business Collaboration with Global Platform Companies
- Pursue M&A, Strategic Alliance, Entry into GVC, etc.
§ Korean Conglomerates : Need to cope with Global Trends
§ Execute Joint “X” - Marketing, Brand, R&D, Production, Purchasing, etc.
ü Pursue New Business Models § Product Servitization, O2O, Data-driven BM, etc.
4th IR and SME Policy Innovation (2)
Young-Sup Joo, Ph.D. - October 2017
Proposal for Global Collaboration
R&D / HRD / BD
Ø Global Standardization of Existing and Newly DevelopedCore Technologies
Global Standardization
Ø Joint R&D of Core Technologyincluding AI, Big Data, IOT, CPSby Global Industry/Universities/Research Institutes
Ø Cooperation in HRD and Global Business Development
Propose Cooperation for Global Standardization andJoint R&D / HRD / BD among Global Leading Countries
to lead and disseminate 4th Industrial Revolution
Ø Jointly Lead Global Standardization Activities
Young-Sup Joo, Ph.D. - October 2017
It’s time for global countriesto enhance cooperation
including 4th IR programs to create new growth enginesand put the global economyback to a high growth track.
Young-Sup Joo, Ph.D. - October 2017
To this end, we must nurtureInnovative Start-ups and SMEsby promoting Human-centered
Corporate Culture based on Humane Entrepreneurship