The 4 th Industrial Revolution & SME Policy Innovation
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1 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
2 Megatrends of Global Economy q 4 th Industrial Revolution & New Normal Era as Two Keywords of the Global Economy Low Growth High Unemployment Low Interest Rate Low Inflation
3 The 4 th IR & New Normal Era will be a big threat for our Future Jobs. Is it true? What is our countermeasure?
4 4 th Industrial Revolution - Definition * Broad Perspective 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 Physical World (Real) Cyber World (Digital) Bio World (Human)
5 Industrie 4.0 as 4 th Industrial Revolution * Narrow Perspective Industrie 4.0 (Source : DFKI)
6 Core Technologies for 4 th Industrial Revolution Cyber Based Technology Physical Based Technology IOT AI Smart Sensor Robotics Big Data Cyber Security 3D Printing AR/VR MR Platform Technology 5G Cloud Computing CPS HMI UI/UX Energy System
7 Evolution of Manufacturing Paradigm (Source : Prof. Darek Ceglarek, WMG) Young-Sup Joo, Ph.D. - October 2017
8 Evolution of Manufacturing Paradigm Industrie 2.0 Industrie 3.0 Industrie 4.0 (Source : Prof. Darek Ceglarek, WMG) Young-Sup Joo, Ph.D. - October 2017
9 4 th Industrial Revolution - Impacts Ø Mass Production & Mass Consumption Ø Products Decide Demand Ø Scale matters Ø Led by Large-sized Enterprises 4 th Industrial Revolution Physical + Cyber + Bio Convergence Ø Customized Production & Customized Consumption Ø Demand Creates Products Ø Speed and Flexibility matters Ø Led by Innovative Start-ups & SMEs è In the new era, a small but fast fish eats a big but slow fish. è The era of Innovative Start-ups and SMEs is coming!
10 New Normal Era - Impacts High Growth Low Unemployment Global Financial Crisis Low Growth High Unemployment Global Growth Rate Sliding Down Job Creation As Top Priority Increasing Sentiment of Trade Protectionism WORLD OECD EU USA 6.2 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
11 q Most of Jobs are created by SMEs/Startups : over 95% recently SMEs LSEs q SMEs as a Main Driver of Export, Economic Growth, and Employment (2016)
12 For 4 th IR and New Normal Era, SMEs and Start-ups is the Key to Success!
13 4 th IR and SME Policy Innovation - Summary q Intensively Nurture Innovative Start-ups & SMEs Technology Innovation to secure Global Competitiveness Human-centered ( Humane ) Entrepreneurship 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
14 4 th IR and SME Policy Innovation (1) q Intensively Nurture Innovative Start-ups & SMEs ü Implement a Master Plan to Secure Global Competitiveness for Start-ups & SMEs Primarily, Secure Technology Competitiveness by Strengthening R&D for Continuous Tech Innovation - 4 th IR, Convergence & Integration, Smart & Green Innovation - Open Innovation : Global R&D Collaboration Secure Speed & Flexibility Competitiveness - Need Management/System/Culture/HR Innovation ü Nurture & Disseminate Human-centered Entrepreneurship Innovate Corporate Culture & Increase Investment in HR Young-Sup Joo, Ph.D. - October 2017
15 For the Success of SMEs and Start-ups, Humane Entrepreneurship is the Key!
16 UN MSME Day & Humane Entrepreneurship q ICSB-UN SME Ministerial Meeting (June 16, UN Hq.) ð UN has declared June 27 every year as UN MSME Day
17 The 4 th Industrial Revolution does not only require Technology Innovation, but also Human-centered Business Model Innovation
18 4 th IR and SME Policy Innovation (2) q Execute Business Model Innovation - 1 ü Pursue Customized Products & Services Based BM Mass Production ð Mass & Individual Customization Differentiate Customization by Business Size and Type, etc. Product Volume High Low Cost Competitive Mass Production Niche Markets Strategy Mix Upgrade & Differentiation Mass Customization Regionalization Full/Semi-Individual Customization Low Product Variety High Young-Sup Joo, Ph.D. - October 2017
19 4 th IR and SME Policy Innovation (2) q Execute Business Model Innovation - 2 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 ü Pursue Networking, Organizing, and Grouping of Start-ups & SMEs to secure Scale Merits Execute Joint X - Marketing, Brand, R&D, Production, Purchasing, etc. ü Pursue New Business Models Product Servitization, O2O, Data-driven BM, etc. Young-Sup Joo, Ph.D. - October 2017
20 1 2 창조경제및제 4 차산업혁명에의대응 Moving Picture
21 4 th IR and SME Policy Innovation (3) Young-Sup Joo, Ph.D. - October 2017
22 Proposal for Global Collaboration Propose Cooperation for Global Standardization and Joint R&D / HRD / BD among Global Leading Countries to lead and disseminate 4 th Industrial Revolution R&D / HRD / BD Ø Joint R&D of Core Technology including AI, Big Data, IOT, CPS by Global Industry/Universities/ Research Institutes Ø Cooperation in HRD and Global Business Development Global Standardization Ø Global Standardization of Existing and Newly Developed Core Technologies Ø Jointly Lead Global Standardization Activities Young-Sup Joo, Ph.D. - October 2017
23 It s time for global countries to enhance cooperation including 4 th IR programs to create new growth engines and put the global economy back to a high growth track.
24 To this end, we must nurture Innovative Start-ups and SMEs by promoting Human-centered Corporate Culture based on Humane Entrepreneurship
25 Thank you for your attention!
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