The hottest Siemens CEO Kaisa world is changing. H

2022-08-22
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Siemens CEO Kaisa: the world is changing, how should enterprises respond

Kaisa, President and CEO of Siemens AG

although we are just beginning to see the clue, one thing is very clear: the fourth industrial revolution is the most drastic change in the history of human civilization. Although the previous industrial revolutions have had a far-reaching impact, they have never released such a huge force for change

the fourth industrial revolution is really changing every corner of human activities: how we produce, how we use the earth's resources, how we communicate with each other, how we learn, how we work, how we govern, and how we conduct business. The scale, speed and scope of its impact are unprecedented

recall that ten years ago, there was no intelligence at that time. But now, who would go out without taking it

only a few decades ago, computers in only a handful of locations were able to connect to the Internet. Today, almost everyone can connect to networks all over the world and access the vast information and knowledge base created by mankind

great power brings great risks. Indeed, success or failure is of great importance. If the change is successful, digitalization will benefit nearly 10billion people living on the earth in 2050. However, if the reform fails, the society will be divided into two camps of winners and losers, social unrest and anarchy will intensify, the link between society and groups will be broken, and people will no longer believe that the government has the ability to achieve the mission of rule of law and security

this is why the fourth industrial revolution is not just about technology or business itself, but about the whole society. When computers defeat the strongest human go players, when robots start writing text, when machines can talk, all this becomes so fascinating. However, all this is based on human defined algorithms to control the machine, not the opposite. There is no doubt that the program we are writing now will change our common future

this is becoming a reality in manufacturing. Our so-called industry 4.0 enables manufacturing enterprises to create digital twins based on the whole manufacturing environment, from laboratory (pay attention to the prominent part of the machine) room to factory, from exhibition hall to service. Manufacturing enterprises can design, simulate and test complex products in a virtual environment before manufacturing the first physical prototype, building a production line and starting actual production

software helps optimize every step of the process and every task, whether performed by humans or machines. Once everything works successfully in the virtual world, the result can be transformed into the physical world, into the machine, and the final result will be fed back to the virtual world to complete the whole closed loop

this seamless integration of virtual and real worlds, the so-called Information Physics system, is a great progress we see today. It eclipses everything the industry has so far. Just like the previous industrial revolutions, but this time the scope is larger. The fourth industrial revolution will cut millions of jobs, but at the same time it will create millions of new jobs. Since manufacturing accounts for 70% of Global trade, in the words of Adam Smith, this is really about the wealth of nations. So the question is: how can we make as many people as possible benefit from the fourth industrial revolution

first of all, we can draw lessons from history and lay a conceptual foundation for an inclusive society. In the middle of the 20th century, thought leaders such as the economist Alfred m ller armack proposed the so-called social market economy, which is the successful model that Germany has used so far

he foresaw an open society aimed at combining the principles of free markets with the principles of fair distribution of economic prosperity. This vision is closer to today's reality than ever before, because it points out the way to an inclusive form of capitalism and a sustainable model of economic and social welfare. I believe that the next step in achieving inclusiveness is to significantly raise corporate standards in terms of society and sustainability

unlike Milton Friedman's idea that Milton is divided into rapid cooling and slow cooling, the enterprise should not only depend on the enterprise itself. Shareholder value should not be the only measure. On the contrary, we should let the interests of stakeholders, even social value, become the yardstick to measure the performance of enterprises

today, stakeholders, including customers, shareholders, suppliers, employees, political leaders and the whole society, have reason to expect enterprises to undertake greater social responsibilities, such as protecting the environment, working for social equity, assisting refugees, training and educating workers. Enterprises should create value for society. This is also the concept advocated by Siemens (business to society)

secondly, the fourth industrial revolution is based on knowledge, and we need to carry out a synchronous revolution in training and education. Here, the government and enterprises must work together to provide workers with the skills and qualifications needed to participate in the digital economy, for example, so that they can seize the opportunities brought by artificial intelligence. If workers cannot keep up with the pace of knowledge progress all their lives, who will do millions of new jobs

third, we must encourage innovation and adaptability. Digitalization has proved its subversive power in the past, and it has brought earth shaking changes to the entire industry. We often hear that the Internet cuts out the middleman costs money. Digital technology makes new business models possible. Now we see that it is bringing new social models, one of which is the sharing economy. It challenges our basic understanding of the economic order: the significant role of providing professional technical support and value-added services to customers in four aspects: property sales, production and technical quality. Whether you think it is good or bad, it is a reality

fourth, as leaders, we must summon up courage to solve thorny problems. There are many of these problems

How can we guarantee the future life of those who are unemployed because of machines? Do we need a guaranteed basic income? Should we tax software and robots? Does the company providing the global IT platform need to comply with the rules and regulations of each country? If so, how to implement it? What freedoms and rights should individuals enjoy in the digital age

these are the thorny problems we face today. And I don't think thinking about the so-called good old days will get a good answer. Zygmunt Bauman, a Polish sociologist and philosopher, believes in his book retrotopia that many people have completely lost confidence in the idea of building a future society and turned to the past. Although times have changed, they still yearn for it

On the contrary, we should have expectations, recognize the opportunities and risks brought by the fourth industrial revolution, and then roll up our sleeves to find truly effective answers for us and future generations

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