Global Industrial Innovation Conference Hosted by Standards Association
Discussion on the Shift in Manufacturing from Mass Production to Customized Production

A forum was held to discuss the direction of the Fourth Industrial Revolution and how to adapt to the changes it will bring. In particular, the focus was on the role of small and medium-sized enterprises (SMEs) and venture companies in the manufacturing sector, as well as the direction of government policy.

The '2017 Global Industrial Innovation Conference' was held at the Korea Chamber of Commerce and Industry in Seoul starting on the 8th, sponsored by the Small and Medium Business Administration and hosted by the Korean Standards Association.

On the first day of the event, a lecture by Local Motors CTO Dan Fox on 'Creative Disruptors of the Sharing Economy: Innovative Product Production by Automotive Startups' was followed by a talk by Small and Medium Business Administration Administrator Joo Young-seop on 'The Role and Policy Direction of Small and Medium Enterprises in the Era of Innovation' and a global roundtable discussion on the beginning of the digital manufacturing revolution.

Joo Young-seop, Administrator of the Small and Medium Business Administration, emphasized that the two key keywords of the Fourth Industrial Revolution are 'technological innovation' and 'business innovation,' stating, “Now is the era in which small and medium-sized venture companies and startups succeed.” "We must prepare business models while innovating technology to meet the diverse needs of consumers," he said.

Stating that the employment and economic contributions of large corporations are becoming insignificant and that small and medium-sized enterprises (SMEs) and startups will play a crucial role in job creation and economic revitalization, he stated, “The Small and Medium Business Administration is providing multifaceted support in R&D, marketing, funding, and talent development to help SMEs secure global competitiveness. We will continue to provide support focused on competitiveness rather than simple aid policies,” adding that large corporations must transform into platform companies and grow together with startups.

We should prepare for business innovation rather than technological innovation.

The subsequent roundtable discussion, themed '3D Printing, On-Demand Production, Artificial Intelligence, and the Beginning of the Digital Manufacturing Revolution,' featured Joo Young-sup, Administrator of the Small and Medium Business Administration; Dan Fox, CTO of Local Motors; and Shuris Melkot, former Deputy Director of the National Institute of Standards and Technology (NIST).

In response to a question regarding the policies necessary for SMEs to innovate and what policies exist in the United States, Deputy Director Shuris Melkot replied, “SMEs play a significant role in the manufacturing sector in the U.S. as well. It is important to maintain national competitiveness. Since SMEs often possess talented personnel but lack funding, we are running the STTR program (SME R&D program). We are encouraging industry-academia research support and partnerships.”

In response to the question of what we need to prepare for in the Fourth Industrial Revolution, Commissioner Ju stated, “We must consider how to pursue business innovation. Technological innovation is moving too fast, and no single company can handle it all. The government is focusing on creating an ecosystem that allows us to leverage surrounding resources to compensate for technological shortcomings.” "We must prepare for business model innovation that meets consumer needs with the global market in mind," he said.

In developed countries, there is a movement shifting from mass production to customized production. When asked how to accelerate this transition to customized production given that mass production is central to Korea's manufacturing industry, CTO Dan explained, “It is important to create micro-factories to quickly bring prototypes to market. If a prototype is successful, it can lead to mass production. All that is needed is to understand customer needs and quickly produce small quantities of products.”

Finally, regarding the policies the Ministry of SMEs and Startups is focusing on for the future, Commissioner Joo concluded by saying, “We are preparing for job creation to respond to the New Normal era and technological innovation to respond to the Fourth Industrial Revolution. I believe that startups will lead both of these aspects. It is difficult as the whole world is experiencing a period of low growth. We will help them acquire the competitiveness to grow together as global enterprises by cooperating with companies around the world.”

In addition, the conference will be held over two days with topics including Smart Factory, Japanese Innovation Trends, TPM/Equipment Maintenance Trends, Connectivity, Quality Management in the Era of Convergence, Equipment Management/Equipment Technology Trends, Smart Value Chain, Convergence of Manufacturing and ICT, Preventive/Predictive Maintenance Trends, Innovation & Strategy, Next-Generation Quality Innovation, and Disaster Management/Innovation Culture Trends.