Digital Convergence and the fourth Techno-Industrial Revolution

Here is the review of the weekly news. For your convenience, please, just click on the desired article.

Newsletter of last week

Accessing India’s Consumer Market by capitalising on the E- commerce Boom

Awards

Innovation prize for plastics from plants

OutDoor Industry Award: Decision time

Cotton Creation Era – Denim Creative Design Award”: Garmon Chemicals promotes Traceability and Sustainability with COTTON USA

China

Karl Mayer’s FILESIZE is gaining ground in China in the production of printed circuit boards

The reborn bling dynasty in China

Global personal luxury goods market expected to grow by 6-8 % to EUR 276-281 billion in 2018, driven by strong rebound in China

Companies

lululemon athletica inc. announces first quarter fiscal 2018 result

ITEMA Group announces excellent first quarter 2018 results first quarter 2018 results

lululemon athletica inc. announces repurchase of 3.3 Million shares from Advent International Corporation

Competition Authorities

Antitrust – EU Commission confirms unannounced inspections in the styrene monomer purchasing sector

3D Printing

3D Printing – German Audi expects to reduce prototyping lead times by up to 50 % in the production of tail light cover

Denim

India Denim Show brings together the whole Denim fraternity under one roof

E-Commerce

Is Stitch Fix the Netflix of Fashion?

Economic Data

April Industrial producer prices stable in Euro Area, up by 0.1 % in EU28

April 2018 compared with March 2018 – Volume of retail trade up by 0.1% in Euro Area – Up by 0.4 % in EU28

Events

Techtextil 2019 once again on course for growth

India Denim Show brings together the whole Denim fraternity under one roof

Euro

President Jean-Claude Juncker at the Brussels Economic Forum: “Protection, prosperity, progress: A stronger Euro for a stronger Europe”

India

A lucrative marketing initiative – Karl Mayer participated in the VDMA Symposium and held its own Tricot Circle in May 2018

Innovations

KARL MAYER launches the HKS 3-M with a working width of 280″

H&M Group announcing new cutting-edge technology features

Vein-like patterns produce a vibrant design – LACE.EXPRESS lace with bourdon cord by Karl Mayer

Huggies introduces first-ever customizable Diaper

DSM showcases latest innovations for ballistic protective solutions made with Dyneema® at Eurosatory 2018

Outdoor Activities

Biking – Loaded with lightweight luggage for new adventures

New Products

Schlafhorst’s AUTOCORO 9 VACUUM Trash Cleaner means more profit from automating cleaning

Lenzing Introduces Veocel Brand for the Nonwovens Industry

Wool activewear, a new global fashion fad

Personalities

Top management change at Santex Rimar Group

Clariant’s Deepak Parikh – Luciano Benetton

Orbituary – What Kate Spade stood for

Retailing

Germany reports a cooling economic climate, also for its textile sectors in the first quarter 2018

Rue La La is buying Gilt from Hudson Bay

Lord & Taylor’s Fifth Avenue store to close after 104 years

Success Stories

Ten thousand samples for 52 seasons…

Sustainability

Sustainable Fashion Blueprint Report 2018 offers framework

Updated EDANA Flushability Guidelines released to help Consumers

Textile Machinery

Revised data by ITMF on textile machinery shipment statistics published May 30, 2018

Trade

US-China trade face-off result of skewed understanding of realities

Trade facilitation – Symposium highlights role of Trade Facilitation Agreement in easing global flow of goods

EU trade defence: stronger and more effective rules enter into force

Webinar

Free Webinar – Take your LCA to the next step – calculate your circularity! (June 21, 2018)

Worth Reading

OECD – Trade Facilitation and the Global Economy

WTO issues 2018 Annual Report

 

 

Newsletter

Digital Convergence and the fourth Techno-Industrial Revolution

By guest author Robert Glaze, President of the Brenva Institute and Meta Technologist

Robert Glaze

We are particularly proud to offer you today an exclusivity by Robert Glaze on digital convergence and the fourth techno-industrial revolution.

Robert Glaze is an excellent lecturer with a very broad knowledge and the capability to give clear, short and comprehensive details on the topics TextileFuture readers are interested

He wrote the following introduction:

“Welcome to the Spring 2018 issue of The Brenva Briefing. As many of you are becoming aware, the acceleration of the Digital Convergence is beginning to have impacts across many business sectors and industries.

Competing for the future is now becoming a prime strategic imperative of companies and countries. This new world is going to be built around the concepts of rapidly reconfigurable and regenerative systems, both virtual and physical.

The hyper-scalability of computation and the evolution of purpose designed artificial intelligence systems will accelerate a company’s ability to research, architect and implement new products and services.

External cloud services will no longer be necessary and even today you should be considering creating your own cloud for reasons as varied as flexibility in application development to higher levels of security.

The core of your business must now be developed and managed by you, not teams and reams of external suppliers and consultants. The days of achieving scale by outsourcing / insourcing are going to come to an end. If you cannot create and manage your core, you will probably not be a competitor for very long in this new world.

All non-core business processes, functions and activities will be open to the new ecosystem of related firms that are part of a reciprocal exchange of materials, services, knowledge and distribution. These new circular industry models will be at the centre of powering stronger localization and regionalization of markets and faster speed to market of technological advances.

We have a great deal of new thinking to undertake and it will be a privilege to do so with you as Digital Convergence advances.”

Intelligent Autonomous Automation

Early signs are the moves toward advancing into the digital convergence, is consolidation and commoditization of all aspects of what had been traditional business models.

This points toward a key learning for the Digital Convergence, the OEM in many instances will become commoditized and the brand will mean less as part of the value proposition. For instance, the automobile industry OEM will likely disappear unless they are able to collapse their supply chains into a common ecosystem of supply-manufacturing-distribution of autonomous vehicles. But, as ownership will likely be replaced by subscription or on demand fees, the brand will increasingly mean less.

You do not care who manufactures the plane, train, tram or underground car you are riding in, likewise you will not care who builds your autonomous car that you “hail”, “subscribe to” or “access.

The role automation and autonomous services and even products will take in the next decade will become the foundation for many industries.

The first human-less bank has now opened in Shanghai. Fully automated and artificial intelligence powered with a staff of robots to guide your visit. Average visit times for transactions are lower but the customer is staying around to watch videos and interact with “smart” systems without the “inconvenience or bias” of a human employee.

The balance between productivity and quality is now tilting toward the continuity and consistency of the automated intelligence. Besides 24/7 capabilities, the autonomous intelligent automation modules are becoming rapidly capable of complex work and as at Hitachi’s warehouses, even take on the role of management over humans and machines.

Autonomous automation is here to stay and it is critical that every company in every industry evaluate how it can improve overall performance in many aspects of your business.

Competing for the future and building the next wave of progress will require that you embrace this new interface between humans and machines.

Leadership 4.0

In 2015 I began creating the next critical component of the Fourth Techno-Industrial Revolution. Industry 4.0 was beginning to gain traction and get underway in Europe and Asia but there was the small matter that both leadership and management was going to change in ways no one could ever imagine.

The core principles of Leadership 4.0 had been developed and then I wrote white paper that was developed for collaborative use with the Zurich Institute of Business, the European campus of Chinas major business school, CEIBS. Eventually the white paper, with a forward written by Dr. Philip Boksberger, CEO of the Zurich Institute, was translated into mandarin and converted into a manual for China MBA and EMBA students. While I will continue to provide lectures and workshops on Leadership 4.0, it will be a continually evolving management platform as we transition and transform business in the Digital Convergence.

The following are some of the key elements of Leadership 4.0.

To begin, the Leader 4.0 will be highly interdisciplinary who can manage rapidly changing complexity in multiple business processes. The Leader 4.0 will also lead and manage an ecosystem of employees with intelligent machines and systems as their co- worker in rapidly reconfigurable and regenerative environments.

New Business Ecosystems Replace Organisations and Hierarchies

The Mindset of the 4.0 Leader will be highly resilient and embraces non-linear and circular business models in reciprocal ecosystems.

End to End Leadership from Invention and Innovation to distribution and customer satisfaction.

Leading in Continuous Innovation Environments

Continual Personal Scaling will be Required by the Leader 4.0

Leader 4.0 will be an Intelligent Executive in an Intelligent Company of Intelligent Systems, Platforms, Networks and Machines built upon Artificial Intelligence that Learns

Are You Ready? Contact: The Zurich Institute of Business for their Fall Schedule or me directly to learn more about innovative education for the next tsunami of technology and business.

The Block Chain and Other Delusions

Over the last year serious questions have arisen about somewhat new transaction management systems like block chain. Remember that block chain is NOT a trust based system, it is a trust less system. It relies on technological “values” that seek to provide transparency into primarily financial transactions.

There are at least a dozen structural issues with the basic block chain architecture that make it vulnerable and open to being coopted by unauthorized transactions or having core networks being penetrated from various block chain network locations; and the double spend dilemma remains unsolved even today.

However, those are minor when we look deeper into the fundamentals of block chain and other new digital services that are represented as being secure.

Block chain is built upon “good enough” architectures, engineering and technologies. As a result, much like quantitative algorithms they contain a breaking point where they will fail or be compromised.

There have been few advances in the core nature of what constitutes the digital building blocks over the past two decades. We continue to have to address the fact that the digital data packet and the networks that carry them remain indefensible. The internet as a system was never designed to be defended.

The present cyber-security hype of creating massive numbers of companies to “solve” the digital security issue, is just that, hype. More fuel for the investment engines with no real outcomes that will be of any value.

Ripple, a block chain crypto currency system, does not use itself for its own financial transactions; Slush uses external third party validation of its “block chain” transactions; and DAO the crypto currency and block chain research engine, had its entire digital wallet plundered.

Block chain may not even be a “good enough” technology and “good enough” is NOT “good enough” to build civilization on.

Quantum computation may be. Watch for our next Brenva Briefing in the summer of 2018.

The Lorange Network

A few years ago, Dr. Peter Lorange, former head the major Swiss Business School IMD and later founder of the innovative Lorange Institute for Business in Switzerland, began reading my periodic technology update called Undercurrents.

Eventually he suggested that I should provide lectures at his Institute for European executives on Industry 4.0 which I was delighted to do. He eventually sold and transferred ownership of the Lorange Institute to CEIBS, China’s leading business school that is Shanghai based and now has a Switzerland campus.

While I continue to be on the Executive Faculty at CEIBS Zurich, I have also been a participant in the development of Dr. Lorange’s latest venture, The Lorange Network for family offices based in Oslo, Norway and assisted in its leadership and operation by his son, Per Lorange.

Among exciting developments this Spring, I can now mention that we have entered into a close cooperation with the Lorange Network, including my writing essays and articles for their special digital publishing program and speaking at future Lorange events.

The Lorange Network is a digital and “blended learning” platform in English language that fosters the distribution of key insights and learning specifically targeted to family offices and family businesses. Lorange Network also welcomes investors, CEO’s and Chairpersons of companies with complementary concerns and issues. Furthermore, it is a digital space for members to learn and share their experiences and then export their increased understanding, knowledge and confidence to their business.

Through our cooperation with the Lorange Network I am delighted to offer the clients and friends of the Brenva Institute a 50% reduction in the subscription price for a one year membership which will allow up to three family members or close family colleagues to participate. The special fee will be USD 50 per month instead of USD 100 per month.

You can test out the membership for a month or take a one year subscription, please go to lorangenetwork.com. To see my friend Dr. Peter Lorange, go to CNN Money Switzerland – Peter Lorange.

This is truly a world class opportunity for you to be a part of.

Anticipate Acceleration

Fifteen years ago the Goldman Sachs Group Equity Trading Desk has 500 employees, today it has three, yes three employees, working with intelligent platforms powered by AI.

A major New York law firm has replaced most of its bankruptcy attorneys and staff with an AI machine.

Walmart recently replace over 3,000 employees who inventoried their distribution centers using RF tools with Drones that fly the warehouses doing the work in relatively short periods of time.

Many OEM’s are worried about suppliers who are looking at going vertical and assuming the OEM role and many in their distribution chain considering the same thing.

The Digital Convergence is leapfrogging many new and early stage companies who were using “yesterdays” technologies. It is no longer sufficient to merely be different or even differentiated, where you may end up on the digital convergence continuum is now paramount.

We have entered a period of when the firms that engage in Industry 4.0 and Leadership 4.0 will gain a decided advantage in their business sector and be on their way to developing new ecosystem models for end to end business.

The rapid development of automated service and product companies will start to introduce large scale displacement at local levels and begin to be reflected in national employment statistics as governments generate the political will to do so.

The Digital Convergence will go where digital is treated best; much like capital in the past century always went to where it was treated best.

Data will become labour. Data will become capital.

Will capitalism as we know it be replaced by a new form of economic exchange called data-ism?

Will Data serve the interests of humanity or will humans serve the interests of Data?

Industry 4.0 Transformation

The world you might have imagined a decade ago or even five years ago no longer exists. It is unlikely that your vision included the recent emergence in many varied technologies and specifically, artificial intelligence.

Major consultancies are once again offering an old marketing idea called “future-proof your business” through their legacy solutions in a shiny new wrapper.

In general, there is a reluctance by the established firms in America and in parts of Europe to even acknowledge that the world has tipped toward a new global power in commerce, China. Even fewer will recognize that China has become a leader in many technological areas.

It is difficult to develop Industry 4.0 strategies if you do not admit that there is a quickening pace in the change of the way materials, energy and information is being leveraged by innovative businesses and markets.

A transformation of your business is more than just adopting some new standards or practices, it is re-architecting and re-engineering your end to end business model, organizational structure and the role and balance of human and intelligent machine based resources and assets.

Transformation is a word that has been much used in various business services sectors but usually without any real transformation taking place. Most commonly a transition model is put in place that is mistaken for real transformation and the company never makes any real progress toward transforming their business.

If you run a business that has reasonable to high organic growth you are a likely candidate for transformation. However, if you are building your business through acquisition, with no substantive change in your technological and business model that is based upon Industry 4.0, leadership 4.0 or Digital Convergence Principles, then you are best served by selling yourself off, while you may still have some value.

Transformation requires firm commitment, discipline, focus and changing the “intelligence dynamics” of your business to include artificial intelligence colleagues!

Who owns rights to you?

The GDPR, General Data Protection Regulations, mark a major turning point and in the efforts to define the boundaries between the individual human and their engagement with ecommerce digital platforms, free platforms like social media and most all other “cookie based” discovery tools that are inserted into your digital world.

While these are long overdue regulations and policies, they have caused more than a little concern in the hallways of the digital predators that make up most of the top ten digital companies in the world, GDPR must be just the beginning in a determined effort to return the digital rights as captured in tracking an individual’s locations, actions, activities and buying habits.

Who owns the copyright of you?

Do your daily travels and actions in the world create a digital- shadow that is uniquely yours and the use of which is yours to decide?

Is the web of IP networks a wild frontier where anyone who enters it must be prepared to surrender their rights to themselves by crossing the border from lands of law to these virtual “badlands”.

A core issue has always been the one of jurisdiction, what and where would be the prevailing law that governed a digital company. They had successfully maintained that wherever the servers of data centres were located was where the law would be observed; and those locations were either very difficult to get to or they were repeatedly moving data so that no location could be determined.

GDPR has challenged and changed that shell game and it is now the physical location of the customer not their digital files that matter.

GDPR is just the initial foray into developing standards with enforcement attached.

In Europe, please contact the European Risk Policy Institute, Mr. Ivan Savov Chairman, at ivan.savov@erpi.be to engage with the highest quality GDPR training for your company.

Disclosure: Robert Glaze is the Senior Fellow at ERPI.

ASCENDANT: The Rise of a New Entrepreneurial Culture

This is a new Brenva one day workshop that has been developed by Robert Glaze for the new populations of displaced professionals that will be made redundant by the advance of intelligent machines and automation over the next decade. Many of these individuals will seek new ways to enter and engage in the Fourth Techno-Industrial Revolution.

The main components are:

  • An Asymmetrical World Unlearning Your Future Choices or Freedom
  • Small Scale Applications for Technology Localization and Regionalization
  • The New Entrepreneur

ASCENDANT is a destination day for the rest of your life!

Robert Glaze will be in Europe in fall 2018

Robert Glaze will be in Europe Fall 2018 for 5-6 weeks from mid- late September through late October. We are currently scheduling Keynote Addresses, Workshops and Seminars on the following topics:

The Digital Convergence Leadership 4.0 and Ascendant: The Rise of a New Entrepreneurial Culture.

The Brenva Institute is currently negotiating high value continual learning frameworks with several continental and global organizations and corporations for our core workshop and seminar offerings, we will be making announcements in the next issue of The Brenva Briefing.

For over twenty years the Brenva Institute has been at the leading edge of the Digital Convergence by continually developing and reconfiguring its global ecosystem of leading minds, knowledge and client services to adapt to the accelerating evolution of technology, business models, leadership requirements and economic outcomes.

 

www.brenva.com