Digital Transformation
LS Group Chairman Koo Ja-yeol told 400 executives and team managers how much the digital transformation would affect the industry and how to thoroughly prepare for it at an executive seminar held at LS Tower in Anyang on Oct. 12.
Koo said, “The percentage of digital transformation across all industries, such as manufacturing, energy, construction and distribution, will increase from the current 10 to 20 percent to over 40 percent in the next five years. It will not just break down the boundaries between ICT and non-ICT industries and simply transform products, but rather will be the digital revolution that dramatically changes the whole business process ranging from business strategies to R&D and production to sales.”
In particular, he added, “Global leading businesses pointed t digitalization as the key factor that can resolve the current low growth trend and promote sustainable growth and they are already making a huge investment to secure the exponential technology, including artificial intelligence, the Internet of Things (IoT) and robotics. As LS’ main competitors, such as ABB, Schneider Electric, Siemens and John Deere, are focusing on the digital transformation by acquiring an IT firm through lavish investments, LS should thoroughly analyze such changes and prepare for it.”
This is the second time Koo emphasized digitalization after he stressed the importance of R&D strategy and talent for the digital era at the LS T-Fair, an event reporting research & development activities of the group in September. Accordingly, LS Group’s affiliates will make every effort to secure digital competence in sectors like the medium and long-term business strategy, R&D and human resources, after the upcoming year.