The World Economic Forum today announces the addition of seven new factories to its network of “Manufacturing Lighthouses”, state-of-the-art facilities that serve as world leaders in how to successfully adopt and integrate the cutting-edge technologies of the Fourth Industrial Revolution.
The Lighthouses join a group of nine others, which were unveiled in 2018. All were selected from an initial list of 1,000 manufacturers based on their successful implementation of Fourth Industrial Revolution technologies in ways that have driven financial and operational impact.
The wider purpose of the community is to help overcome the practical challenges being experienced by industries in advanced and emerging economies when upgrading technology. Earlier work by the Forum identified that more than 70% of businesses investing in technologies, such as big data analytics, artificial intelligence (AI) or 3D printing, fail to move beyond the pilot phase. In response to this, all Lighthouses in the network have agreed to open their doors and share their knowledge with other manufacturing businesses.
The new Lighthouses represent a range of industries and geographical locations, with four factories located in Europe, two in China and one in the Middle East. Importantly, the list also contains a medium-sized business, the Italian-based Rold. One frequent challenge highlighted by businesses is that they lack the scale and resources to implement advanced technologies cost effectively.
The new Lighthouses are:
BMW Group (Regensburg Plant, Germany): This car plant manufactured approximately 320,000 vehicles in 2018. By using the custom BMW internet of things platform, it incurred time and cost, but the result has been cut the time to deploy all new applications by 80% leading to, among other things, a significant reduction in logistics costs and 5% reduction in quality issues.
Danfoss, Commercial Compressors (Tianjin, China): This factory makes compressors for refrigerators, air conditioning units and other products. By using its full digital traceability system and digital tools such as smart sensors, visual inspection, auto monitoring system etc. to improve quality control, it has improved labour productivity by 30% and decreased customer complaints by 57% within two years.
Foxconn (Shenzhen, China): “Lights off factory” – This factory, which specializes in components for smartphones and other electrical equipment, boasts a fully automated manufacturing process with machine learning and AI driving auto optimization of equipment, smart self-maintenance and real-time status monitoring in smart production. Its Fourth Industrial Revolution-first approach has resulted in efficiency gains of 30% and lowered its stock cycle by 15%.
Rold (Cerro Maggiore, Italy): This 240-employee business makes locking mechanisms for washing machines and dishwashers. As the only SME in the Lighthouse network, its use of Fourth Industrial Revolution technologies such as smart watches, rapid prototyping and digital dashboards has helped improve turnover by between 7% and 8%.
Sandvik Coromant (Gimo, Sweden): This producer of cutting tools and solutions has created a digital thread through its production processes that has significantly raised labour productivity. One example is its ‘touchless changeover’ which allows design patterns to be changed automatically, even during unmanned shifts.
Saudi Aramco Uthmaniyah Gas Plant (Uthmaniyah, Saudi Arabia): The giant’s gas processing plant has become a leader in a number of Fourth Industrial Revolution technologies including the use of Advanced Analytics and Artificial Intelligence solutions via Saudi Aramco Fourth Industrial Revolution Center, the use of drones to inspect pipelines and machinery (cutting inspection times by 90%) and wearable technologies such as digital helmets that help workers cut the time it takes to make inspections and repairs.
Tata Steel (IJmuiden, The Netherlands): This plant of 9,000 employees is putting its people first, creating an Advanced Analytics Academy to help workers come up with solutions to reduce waste, and improve the quality and reliability of production processes. This work has resulted in a significant improvement in financial results.
The Lighthouse programme has been conducted in collaboration with McKinsey. In conjunction with the expansion of the network, the Forum today also publishes a white paper, Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing, which showcases findings from the project to date.
“Lighthouse factories are found in companies large and small, in all industries and regions. Rather than replacing operators with machines, lighthouse factories are transforming work to make it less repetitive, more interesting, diversified and productive. Rather than staying within the factory walls, Lighthouses build a broad innovation system with business, government and civil society. Beyond local pilots, Lighthouses create value and resilience through the supply chain, and agility and responsiveness for customers. Technology, deployed wisely in our manufacturing and production system, can create a better, cleaner world. We hope this network can be a source of inspiration to help break out of productivity stagnation and deliver the maximum positive benefit for society,” said Helena Leurent, Head of the Shaping the Future of Production System Initiative at the World Economic Forum.
“These 16 Lighthouses represent a turning point. We are now seeing the start of the second phase, as Fourth Industrial Revolution technologies are penetrating the core of all industries, and our platform of 16 Lighthouses is the clearest sign we have,” said Enno de Boer, Partner and Head of McKinsey’s Global Manufacturing Practice, which collaborated with the Forum on the project. “However, these leaders have a two-year head start ahead of companies that are still sorting out how to scale. We are running the risk that the value creation will be centered around a few ecosystems, rather than disseminated across entire industries. The race has clearly started.”
The extended network of “Manufacturing Lighthouses” will be officially presented at the World Economic Forum’s Annual Meeting 2019, taking place on 22-25 January 2019 in Davos-Klosters, Switzerland, and convening under the theme, Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution.
Youth in the Global South Must Join Forces for Their Future of Work
I believe that the developing world is full of opportunities for young people because many of us have the energy and eagerness to make a difference in the world. In many cases the solutions to problems in communities are simpler than they appear. It just needs someone to push. I know from first-hand experience that there is nothing more rewarding than creating a venture or project that has an impact.
In 2001 I witnessed a foot-and-mouth disease outbreak among cattle that severely damaged the economy of Uruguay, as well as other countries’ in the region. Many years later, in 2012, after graduating as an electrical engineer and working with small satellites, I heard about a competition for young innovators organized by the International Telecommunication Union. They were looking for technological inventions that could solve a problem in a particular region. I immediately thought about the foot and mouth disease outbreak and used my knowledge of space technology to create a system that could monitor anomalies in cattle remotely. I submitted the idea and some months later found out I had won the competition! With the cash prize I founded Chipsafer, a monitoring platform that analyses cattle behaviour using data transmitted from trackers installed in their collars. Besides detecting anomalies in cattle behaviour and combating cattle theft, Chipsafer can also help improve the decisions farmers make relating to the production process.
Countries from the Global South should join forces to surf on the wave of technological revolution and benefit from innovative solutions like these to overcome challenges and to achieve a better and more sustainable future. That’s what we mean by South-South cooperation.
Young people – students, entrepreneurs, professionals, activists – need to play a part in this too because they are drivers of change. Yet, with 65 million young people unemployed globally, they still face many challenges.
In a few weeks I will be part of a panel at an ILO event in Argentina on the future of work for youth, with a focus on developing countries. It will take place on the sidelines of the Second High-level United Nations Conference on South-South cooperation (BAPA+40).
My fellow panellists will include Rebeca Grynspan, who was a member of the ILO Global Commission on the Future of Work, as well as workers’ and employers’ representatives. We’ll look at the issue from three angles; policies for skills development, green jobs, and social dialogue. The aim of the session is to provide recommendations for BAPA+40 participants on the effective integration of youth employment policies into South-South and triangular cooperation (where developed countries or multilateral organizations support South-South cooperation).
I plan to talk about the challenges for youth in the context of the future world of work and discuss the impact of South-South cooperation in promoting decent jobs for youth.
Technology is revolutionising the world, and the world of work is no exception. I believe all stakeholders, whether they are international institutions, governments, employers’ or workers’ organizations, must accept responsibility and take collective action to build the future of work that we want. South-South and triangular cooperation must be part of the answer.
Artificial Intelligence in Knowledge Societies: A ROAM Approach – Open Data and AI
The session “Open Data and AI” organized within the framework of “Principles for AI: Towards a Humanistic Approach?” on 5 March 2019 requested UNESCO to continue leveraging its convening power to increase awareness around artificial intelligence and big data, support development of inclusive policy on Open Data and support upstream and downstream capacity enhancement.
The workshop noted Data as an essential element for the development of artificial intelligence. The availability of large amounts of user data through services on mobile phones and internet of things among other sources, has led to a variety of AI applications and services. However, there remain many challenges. These challenges encompass issues of access, privacy, discrimination and openness. Several of these challenges are within UNESCO’s mandate of building inclusive knowledge societies for peace and sustainable development.
Ms Dorothy Gordon, Chair of the Information for All Programme at UNESCO pointed out that “despite the fact that we have a huge interest from many donors, we do not seem to have done very much systematically to prepare African countries to have useful data … [and] in a searchable format that can be combined with other sources to … yield something [beneficial]”. She stressed the need to bridge gaps in terms of the availability of legacy data, setting policy standards, and enhancing capabilities of people to work with local data sets.
Ms Constance Bommelaer, Senior Director of Global Internet Policy and International Organizations at The Internet Society underlined ‘data commons’ as an interesting solution to explore but one that needs a nuanced discussion around ownership and privacy. She highlighted the need to challenge existing notion of competition and a need for “reconsideration of market values and monopolies”. Stressing the importance of access, she shared the findings of a joint study carried out by ISOC and UNESCO that showed how a combination of local language content and better access policies results in immediate economic benefits at the local level.
As a government representative, Ms Veronika Bošković Pohar, Deputy Permanent Delegate of the Republic of Slovenia to UNESCO discussed ‘regulatory sandboxes’ as a means to provide controlled environment for AI. She hoped that Slovenia’s proposed Category 2 Centre on Artificial Intelligence would be able to make several informed decisions, provide insights into technology and societal interface and create mechanisms for continuous monitoring and reporting to reduce risks posed by AI to vulnerable groups.
Speaking as a panelist representing a knowledge organization, Prof. Maria Fasli, UNESCO Chair in Analytics and Big Data at University of Essex noted the lack of understanding on AI and Big Data and expressed concerns for the difficulty faced by the academic community in accessing data collected by large technology firms for research purpose. She further highlighted the need for high quality representative data to ensure that algorithms are not biased.
Given their experience in tracking innovation trends across the world. Mr Marcus Goddard, Vice President of Intelligence at Netexplo Observatory underlined that “access to data is a necessary but not sufficient condition for innovation. Pointing out the general trends in openness, he mentioned that openness is not Silicon Valley’s top priority and convenience seems to be the norm when it comes to launch of new products and services. He highlighted that even as data is being used in smart cities to improve access and sustainability, it is also increasing the threat of surveillance.
Mr Philippe Petitpont, Co-founder of Newsbridge, a Paris based AI and Media startup, presented the scale of the data problem that the media faces today. He remarked that media companies are gathering 30 million hours of video content every year, a number that does not include social media videos. In this situation, extracting useful insights from these videos is a cumbersome task albeit one that can be performed by AI. They try to leverage AI to help journalists process large amounts of data at lower costs.
The session brought the viewpoints of multiple stakeholders to the discussion table and some of the key concerns included were:
- Urgent need to increase awareness around artificial intelligence and big data;
- Developing strategies to strengthen access to data for training machine learning algorithms;
- Supporting both upstream and downstream capacity enhancement to leverage data for benefit;
- Involving private sector actors in the discussion around access to data and data monopolies; and
- Creating systems for addressing discrimination and biases originating through data and algorithms.
The panel members congratulated UNESCO for facilitating important discussions around issues of rights, openness, access and multistakeholder participation in the governance of data and hoped to engage with the organization for further development of issues around Open Data and AI.
Rebecca Enonchong: A Heavyweight in African Tech
Named in 2017 as one of the 100 Most Influential Africans in SCIENCE, TECH & INNOVATION by the New African Magazine and Jeune Afrique’s 50 Most Influential Africans, Rebecca Enonchong has dedicated her career to promoting tech in Africa.
Enonchong, is the Chair of ActivSpaces (African Center for Technology Innovation and Ventures) in Cameroon. She is also founder and CEO of AppsTech and I/O Spaces an incubator for African diaspora in the U.S. If that wasn’t enough, she is also the Board Chair of AfriLabs and a founding member of the African Business Angel Network (ABAN).
Enonchong proudly describes herself as a tech fanatic and has been since the day she first touched a computer. “It’s an amazing tool and opened the whole world to me, pre-Internet.” Born and raised in Cameroon, Enonchong studied economics. She moved to the U.S. to finish her degree and start her career in digital technology and eventually founded her own company, AppsTech.
She also has a long history with incubation. The concept of Enonchong’s ActivSpaces, the Cameroonian-based incubator, was founded in 2001 at the Africa Technology Forum hosted by the World Bank and it finally launched in 2010.
Explaining how she and her ActivSpaces co-founders were long convinced of the transformative potential of tech, Enonchong emphasizes, “It’s one of the easiest and simplest ways to build our economy — through digital innovation. I really believe that it’s one of the areas that can have the most impact that requires the least investment.”
She warns, however, that tech entrepreneurship cannot flourish in a vacuum. “I get asked a lot about what governments and donors can do to help start-ups and I always respond: ‘they’re businesspeople.’ If you have a bad business environment, it’s going to hurt their prospects. We have a huge opportunity not just to catch up, but to link different sectors.”
The focus on East and Southern Africa, however, continues to overshadow progress made in francophone Africa. “There’s a lot happening people aren’t aware of – there are tech hubs in Chad! But no one is talking about it – it’s a problem of narrative,” assesses Enonchong. Pointing to the need to move beyond Lagos, Nairobi and Cape Town to support the countries lagging behind and also connect all of Africa, she concludes: “fulfilling the mission of AfriLabs is to support and build out the African tech and entrepreneurial ecosystem.”
AfriLabs is a network organization of over 80 innovation centers across 27 African countries, supporting hubs as they raise successful entrepreneurs. Networking provides all stakeholders in an ecosystem (start-ups, incubators, investors, researchers, etc.) with a platform to share and transfer ideas. “Hubs have had such an impact on African tech and entrepreneurs,” lauds Enonchong. “This organization takes this one step further, in that hubs and labs can all work and communicate together and learn from each other.”
“We’re here to support those in the most difficult of situations and connect them to other hubs that can maybe provide them with free support. We want to reach out and bring more country members on board and be part of the family of innovation centers across the continent.”
She sees the mission of ActivSpaces in much a similar way, which is why the incubator has not yet established a branch in the capital, Yaoundé. “We don’t want to be just for the elite and those that will succeed. Rather than the best of the best coming to us, we wanted to reach out to the people that don’t even know they’re entrepreneurs.” ActivSpaces is currently based in Douala and Buea and looking to expand to a third location where agriculture plays a prominent role. “Our choice was rural areas where entrepreneurs don’t enjoy the support to turn their cool ideas into a business.”
Enonchong also knows that incubation and entrepreneurship cannot be seen as the holy grail of African development. “It’s definitely part of the solution,” she states, “but not the only one. You can’t just promote tech entrepreneurship for youth without providing things like the Internet and other key infrastructure.”
She explains how challenges are often compounded for start-ups in francophone Africa because the business environment isn’t as conducive. “There’s a lot of innovation but if you take, for example, Disrupt Africa’s list of Start-Ups to Watch 2018, not one francophone start-up made the list.”
Having served as an advisor and mentor for the World Bank’s XL Africa/L’Afrique Excelle acceleration programs Rebecca knows this is an area where development institutions can provide value and support. She emphasized that this is especially true for those countries falling behind, saying that “the World Bank should encourage and help countries to do better, otherwise it’s a missed opportunity. If they don’t act quickly to create a more enabling environment, they’ll have missed another revolution.”
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