The vast majority of manufacturers are turning to artificial intelligence (AI) to ‘turbocharge’ their products and services, finds a new research report from Accenture.
Based on a survey of 500 manufacturing companies in six industries across Europe, North America and Asia, the report notes the ability of AI – particularly when combined with mobile computing and big data analytics – to transform not only core operations, but also worker and customer experiences, and ultimately even business models, and to enable “Industry X.0” strategies.
Yet the research found that only a small group is already leveraging AI in a way that Accenture refers to as Applied Intelligence – intelligent technology and human ingenuity, combined with analytics and industry expertise, applied at the core of business – at scale. For instance, while 98 percent of the surveyed organizations have begun to enhance their offerings with AI, only 16 percent of them have established a holistic AI vision for their business, only 5 percent are committing resources to AI-driven product initiatives, and only 2 percent report that they have begun to leverage AI solutions at scale.
The research also highlights the challenges companies face when trying to use the technology: The concerns cited most often were data quality (identified by 51 percent of respondents); data- and cyber security (45 percent); deciding between ‘buying vs. making’ AI-embedded solutions (45 percent); and data sharing and protecting intellectual property (40 percent).
“The re-invention of industrial products with AI is still in its early stages, and getting it right is anything but easy,” said Eric Schaeffer, a senior managing director at Accenture and global lead of its Industrial practice. “However, the successes of the AI leaders in our sample clearly show that it can be done and that the business case for AI in industrial is very strong.”
The report mentions how companies that re-invent their products by combining AI with other digital technologies can reap huge rewards. For instance, it cites other Accenture research showing that mastering AI can enable industrial-equipment manufacturers to boost their market capitalization by as much as 25 percent.
How AI leaders succeed
To get to these kinds of results, companies must go through a journey which, according to the Accenture report, comprises four stages: (1) exuding belief in AI and its ability to digitally reinvent products; (2) building a vision for leveraging existing offerings with AI; (3) committing resources to AI-driven product reinvention; and (4) executing on their vision and planned initiatives to digitally reinvent the product at scale.
Through clustering the surveyed companies by both industry and “AI-journey stage,” the report shows that AI maturity seems to vary by industry: Automotive companies seem to be more likely to commit to and execute AI initiatives, with 9 percent reaching the third stage and 5 percent reaching the fourth stage. However, only 7 percent and 3 percent of consumer durables companies and industrial and heavy equipment makers, respectively, reach the third stage, with only 1 percent of companies in each of those two sectors reaching the fourth stage.
Other results indicate what sets apart the 16 percent of companies that are at least envisioning AI-enabled ways to reinvent their products: Companies that reach the “vision” stage develop the investment and ecosystem strategies to acquire, process and secure the data needed to drive maximum value from AI. Moreover, they carefully analyze what they need to focus on: 82 percent of these “visionaries” cited enhanced “customer loyalty” and “deeper insights from product and service usage” as the key value drivers for themselves. The same proportion also said that “greater safety” and “smarter solutions and services” would be critical benefits of AI use for their customers.
Most of the 5 percent of surveyed companies that commit significant resources to AI initiatives concentrate on building both the IT capabilities and the skills necessary for large-scale AI implementation: 91 percent of those companies cited analytics and systems integration skills as imperative, and 64 percent said they would change elements of their business model as a result of embedding AI.
The 2 percent that reach the fourth stage – execution at scale – set themselves apart by closely working with ecosystem partners to identify, in granular detail, the AI components they want to combine with other digital technologies, now and in the future, as part of their customer value propositions. Among the key AI solutions these companies are planning to use are computer vision (73 percent), deep learning (64 percent) and robotics process automation (64 percent).
“Our findings suggest a strong correlation between a holistic, well-planned strategy and AI success,” said Raghav Narsalay, a managing director and Industry X.0 research lead at Accenture. “However, three-quarters of the companies we surveyed are still experimenting, using what might be called a ‘scattershot’ approach. But this is likely to change in the near future — and that’s when we’ll really see a rise in product reinvention with AI.”
Results from the research also indicate that the rate of product reinvention with AI will likely vary by industry. Changing sources of profitable revenue is a priority for 65 percent of those in the automotive sector, for example, while the sub-groups of the reports’ “industrial equipment manufacturing” cluster are split: Most heavy equipment makers (57 percent) state that product-lifecycle sales and marketing strategy is their key priority, while 42 percent of those in the industrial and electrical equipment sector expect that embedding AI will lead to changes in their innovation architecture.
hordon kim / email@example.com
Hyundai Mobis to Launch an ‘Open Innovation Center’ in Silicon Valley
Hyundai Mobis begins to make a full-fledged commitment to discover promising global startups and invest in them… Another center to be opened in Shenzhen, China during the first half of next year
Hyundai Mobis has established an “Open Innovation Center,” M.Cube, at Silicon Valley in the U.S. to speed up the search and investment in global startups that have new vehicle technologies such as self-driving.
Also, the company will expand its research branch in Shenzhen, China into M.Cube by adding an investment role to it. M.Cube embodies the company’s commitment to open innovation activities, creativity and incubation.
Hyundai Mobis will use M.Cube as its core base to discover and invest in startups with strong growth potential in the areas such as self-driving (sensors, logic, software platforms), connectivity (Infotainment, biometrics) and innovative new businesses (AI, vehicle security), to strengthen its technologies for future vehicles. To this end, it has appointed as the head of M.Cube Dr. Sean Ryu, who has more than 20 years of experience in startup investments in the US, and will continue to expand the organization.
The M.Cube that is being readied to launch in Shenzhen next year will become its base with a focus on AI and Big Data. Hyundai Mobis is expecting, together with Chinese startups, to secure core technologies for autonomous driving and connectivity optimized for the local market. Shenzhen, which used to be the Chinese mecca of manufacturing industry and has now been transformed into the hub of the 4th industrial revolution, is considered as the best place to discover outstanding startups.
Hyundai Mobis believes that M.Cube will be a win-win for both itself and startups. The company will invest in startups possessing creative ideas, and startups can explore their growth potential with the help of the company’s expertise in core auto components and infrastructure.
“We’ll not just simply invest in startups, but also actively support them with our R&D capabilities such as self-driving and connectivity,” said Jeong Soo-kyeong, Sr. Vice VP of Hyundai Mobis. “Collaboration will be facilitated so that the ideas of startups can be effectively developed into vehicle optimization.”
Meanwhile, Hyundai Mobis is actively promoting open innovation with Korean startups by carrying out events such as M.Start contest. It has recently invested in StradVision which features world-class, deep learning-based image recognition technology and also announced that it is considering engaging in joint research and development with Genesis Lab and Linkflow.
● Strengthening the strategic collaboration with Hyundai CRADLE… as many as a dozen investments will be made into global startups by next year
Hyundai Mobis M.Cube is strengthening its strategic collaboration with Hyundai CRADLE. Through this, it plans to make around a dozen investments in global startups by next year.
Hyundai CRADLE focuses on integration between technologies for future vehicles such as mobility service and smart city and finished vehicles, and M.Cube on investments in startups that possess core technologies such as self-driving and connectivity. It is a strategy where they will establish a value chain that starts from core technologies, auto components, finished vehicles to future vehicles, and increase investment efficiency.
Hyundai Mobis will expand its investment in startups by collaborating with Hyundai CRADLE in areas where M.Cube has not been established such as Israel, Europe and Asia. In particular, Israel has many startups that are strong in areas such as vehicle security and sensors, and support from the government and universities there is abundant. In France and Northern Europe, where entrepreneurial activities per capita are higher, auto component and mobility startups are expected to be the main investment targets.
● The synergy between open innovation and research centers in both Korea and overseas are expected to be increased
Hyundai Mobis is expecting notable synergy effects between M.Cube and research centers located in Korea and overseas. It aims to integrate R&D capabilities gained from these research centers and core technologies acquired through investment in startups.
Of particular note, last August, Hyundai Mobis invested in StradVision which has world-class image recognition technology, and announced that it plans to develop a deep learning-based camera by 2020. It will be an upgraded next-gen AI camera made through integrating ADAS, the self-driving technology of Hyundai Mobis and image recognition technology of StradVision.
Hyundai Mobis is currently operating a technology research institute in Korea and a total of four overseas institutes in areas such as North America, China, Germany and India. The institutes, where a total number of 3,000 researchers are working now, play a role in establishing a roadmap for overall R&D of the company. Its leading role is vital in the entire scope of R&D such as self-driving, eco-friendly products and chassis components.
The overseas institutes are carrying out customized R&D activities for each region. The institute in North America is developing prior art such as self-driving, the one in China is developing auto components for local vehicles, the one in Europe is making sensors and chassis components and the one in India is increasing its research capability specializing in software. Aside from this, the company also has a research institute in Vietnam that conducts analysis on self-driving data.
Mitsui Chemicals POLYMETAC to Be Used in Lightweight Frames of New Autonomous Unmanned Aerial Vehicles
Lightweight and reduction of the number of parts lead to simple structure using metal resin integrally molded technology
Mitsui Chemicals Inc.(President & CEO: Tsutomu Tannowa) announced that the Group’s unique metal resin integral technology, POLYMETAC has been selected for use in the frames of new autonomous unmanned aerial vehicles which are currently being developed by Aerosense Inc. (CEO: Hisashi Taniguchi), a joint venture of Sony Mobile Communications Inc. and ZMP Inc.
POLYMETAC is Mitsui Chemicals’ completely new technology for strong adhesion and bonding of various metals and resins that was not possible using conventional methods.
Out of Mitsui Chemicals’ numerous lightweight solutions, POLYMETAC cuts weight and helps to reduce the number of parts and steps in the manufacturing processes as well. It is a completely new technology that provides totally new hybrid solutions.
Mitsui Chemicals provides Aerosense with hybrid product of carbon fiber reinforced plastic (CFRP) and aluminum joint parts made by its POLYMETAC technology and provides full support in shaping and designing the parts which will be used in the frame of aerial vehicle.
The new joint parts greatly enhance the structural rigidity of aerial vehicles while significantly reducing weight and providing simpler designs by eliminating the need for fasteners such as bolts.
“Our autonomous unmanned aerial vehicles provide solutions to various industrial needs. It is important that we are able to provide greater flight distances and improved performance by reducing weight and the number of parts while ensuring durability and strength of our aerial vehicles,” says Hisashi Taniguchi, CEO of Aerosense. “Mitsui Chemicals’ POLYMETAC technology makes it possible to extend flight distance by 40% providing our customers with greater added value.”
“POLYMETAC allows adhesion and bonding of various metals and resins, and for the current project, CFRP and aluminum parts were integrated by its technology,” says Akio Hirahara, General Manager of Mitsui Chemicals’ New Market Development (Automotive Materials) Division. “Mitsui Chemicals used its cutting edge simulation technology to design simple joint shapes with a single part which were originally composed of approximately 20 pieces. The technology contributes to a 50% weight reduction of joint parts while improving rigidity.”
Mitsui Chemicals will continue to pursue new uses and development of POLYMETACTM technology for state-of-the-art lightweight solutions in automotive and electrical applications.
Arm launches Neoverse, infrastructure IP portfolio for 5G and cloud to edge infrastructure
Delivering the world-class performance, security, and scalability required to support the diverse compute requirements of the next-generation infrastructure from hyperscale to edge access
Last week at Arm TechCon, Arm disclosed details on a dedicated roadmap and new brand of infrastructure-class IP for 5G networks and next-generation cloud to edge infrastructure. Arm® Neoverse® solutions are uniquely designed for higher-levels of performance, security, and scalability not seen today. Innovation from microarchitecture design up through silicon, software, and systems will enable best-in-class solutions to address the diverse and evolving requirements across the entire compute spectrum.
Arm also provided a first look at its Neoverse processor IP roadmap, with early details on upcoming platforms optimized for leading-edge process nodes. The new roadmap is designed specifically for infrastructure, beginning with the launch of the “Ares” IP platform in early 2019 on 7nm and delivering staggering performance gains of 30 percent per generation through 2021. The Neoverse IP roadmap has been specifically architected for the unique performance, efficiency, and scalability requirements needed to keep up with changing data patterns, new workloads, and the ever-increasing demands of an infrastructure evolving to support a trillion intelligent devices.
“Today Arm is sending disruptive shockwaves across the cloud, networking and storage world as Arm Neoverse delivers the foundation for the new global infrastructure to enable a trillion connected devices,” said Drew Henry, senior vice president and general manager, Infrastructure Line of Business, Arm. “Arm Neoverse IP will enable a broad set of our ecosystem partners to transform infrastructure from cloud to edge and push compute to where it’s most needed, store data where most appropriate, and evolve networking to securely connect this complex world.”
In his TechCon keynote, Henry shared his vision for the new infrastructure and the diverse range of use cases Neoverse will address, including hyperscale cloud datacenters, storage solutions, and 5G networks. Arm Neoverse is based on guiding design principles centered around:
- World-class high performance, secure IP and architectures purpose-built for cloud native and networked workloads
- A highly-scalable set of IP optimized for leading-edge process nodes, including “Ares” (7nm), “Zeus” (7nm+), and “Poseidon” (5nm), designed to enable systems across the infrastructure
- A robust ecosystem empowered to build unique and diverse solutions targeting a wide range of use-cases through leveraged investment in unified software, tools, and silicon platforms
“The modern datacenter is no longer a physical construct, but a center of data and compute residing in the cloud and on the edge. More than ever, organizations must consider distributed, connected datacenter design methods to support the data and devices coming in the 5G world,” said Patrick Moorhead, Principal Analyst, Moor Insights & Strategy. “Arm is one of those rapidly emerging in the market and with Arm Neoverse purpose-built IP, it should be well-positioned to support many of the compute spectrum needs from hyperscale to edge access.”
Designing IP and system architectures for focused markets such as server, automotive, and networking has been a key priority for Arm over the past year. In the infrastructure space specifically, Arm has already been successful as the largest architecture deployed in the global internet infrastructure with nearly 30%-unit share. This achievement highlights not only a shift in preferred architecture, but the pervasiveness of Arm-powered technologies across the entire infrastructure market.
The announcement of Neoverse underscores the continued investment Arm and the ecosystem are making to deliver more ubiquitous compute from the cloud to the edge while delivering world-class performance and efficiency for the next generation of distributed cloud to edge infrastructure.
“Ampere is actively developing high-performance Arm-based server CPUs and platforms for the future of hyperscale, cloud, and edge computing,” said Rohit Vidwans executive vice president of Engineering at Ampere Computing. “We are excited about Arm’s commitment to growing the ecosystem of Arm products into new areas with the Neoverse announcement.”
“Combing Arm’s long-term infrastructure roadmap with Broadcom’s best in class networking technology, Broadcom delivers leadership performance products for the datacenter that are still power efficient. Arm’s roadmap enables optimizations that accelerate customer workloads for the evolving compute and connectivity requirements of tomorrow’s datacenter,” said Ed Redmond, senior vice president and general manager, Compute and Connectivity, Broadcom, Inc.
“Marvell® Infrastructure Processors are extensively deployed in a variety of leading network products. They are designed to analyze, secure, compute, and transform in both wired and wireless networks from the edge to the core,” said Raj Singh, senior vice president and general manager, Infrastructure Processors BU, Marvell Semiconductor Inc. “As a long term technology licensee, as well as an Arm IP customer, Marvell is very pleased to see this increased focus on the enterprise and 5G markets with Neoverse IP. We believe this will greatly benefit the whole Arm ecosystem in providing high performance and power-efficient solutions for the next generation of network infrastructure and compute.”
“Choice allows businesses to select the best solution for their needs, and this is true all the way down to the underlying architecture. It’s up to software vendors like Red Hat to be able to support this demand for choice from our customers as they extend operations into the hybrid cloud,” said Stefanie Chiras, vice president and general manager, Red Hat Enterprise Linux, Red Hat. “With this emphasis on choice front and center, we look forward to supporting solutions from the Arm Neoverse ecosystem as our customers seek to match their evolving business requirements to the most appropriate enterprise IT solutions.”
“Time to market in today’s rapidly evolving infrastructure requires proven, scalable IP, development tools, advanced processes, and a complete ecosystem to provide compelling solutions,” said Suk Lee, senior director of Design Infrastructure Marketing Division at TSMC. “The Arm Neoverse ecosystem leverages our most advanced processes to provide the highest performance solutions to a highly connected world.”
“High-performance IP, along with a complete ecosystem, enables customers to take full advantage of the flexibility inherent in our Arm-based products, said Gaurav Singh, vice president, architecture and verification, Xilinx. “The evolution of these cores, coupled with the capability of CCIX, provide an ideal platform for smart offload and purpose-driven edge compute platforms. We congratulate Arm on the launch of Neoverse and are looking forward to what it might enable.”
more info: https://www.arm.com/solutions/infrastructure
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