While consumers are able to see benefits added to their daily lives with IoT, it is the adoption in the industry and manufacturing sectors that are seeing the most significant economic gains, reductions in waste, and higher quality production. IoT is expected to see massive growth in the next ten to fifteen years, and most of that growth is expected to come from enterprise adoption, or what is now called IIoT, the industrial internet of things.

Below we take a look at how businesses are implementing IIoT and how it is revolutionizing industries all over the world.

Volkswagen Truck & Bus Launches RIO Platform

Beginning in 2017, Volkswagen Truck & Bus began offering its  RIO platform, an open and cloud-based “operating system.” RIO is unique in that it can connect multiple pieces of the global supply chain regardless of brand. Because the shipping and logistics industries utilize many different brands and types of equipment, it has been difficult to make the process more connected and more sustainable – but RIO does just that.

Shippers, dispatchers, carriers, drivers, and recipients can all be connected with a uniform logistics platform that includes forecasting features. RIO looks at information from traffic, weather, and navigation and combines it with information from tractors, trailers, bodies, drivers, and orders so that it can offer recommendations in real time.

Volkswagen Truck & Bus utilize IIoT technology to help compile information across multiple brands and types of logistics equipment. (Photo courtesy of Volkswagen AG)

In utilizing IIoT technology, Volkswagen can streamline the vast information sources across brands that will help improve the transportation and reloading process. As Volkswagen Truck & Bus CEO Andreas Renschler noted, this is not just good for efficiency and the company’s bottom line, it is also good for the environment. Being able to real-time decisions through multiple sensors and input, there will be fewer empty trucks on the road and far less waste.  

Caterpillar IIoT Saves Money, Increases Uptime

In the U.S., construction and mining equipment company Caterpillar is utilizing IIoT to help customers monitor their equipment to increase efficiency. Partnering with Uptake, a predictive analytics firm, Caterpillar sends data gathered from sensors on its products and sends it into the cloud for diagnostic analysis. Caterpillar then provides its customers with vital information related to their equipment so that they have the ability to plan maintenance schedules more efficiently. If customers can know that several parts are likely to need to be replaced, these can be fixed all at once while the equipment is offline instead of having each one break individually while in use. This ultimately helps prevent costly downtime providing customers with uninterrupted productivity.

Caterpillar also integrated advanced IIoT systems in their Marine Division to help monitor almost every aspect of their tugboats and shipping vessels. The generators, engines, GPS, air conditioning systems, and fuel meters are all connected and providing valuable data for the systems operators.

Caterpillar’s IIoT systems can now look at GPS and weather information to help guide the ship operators in how much power to use when operating their vessels. Also, when Caterpillar looked at performance data and hull cleaning correlations, they learned that dirty hulls were costing more than $5 million per year in decreased performance. By changing the cleaning schedule from once every two years to once every six months, they were able to save $400,000 per year per ship.

POSCO Implements AI Into Its Smart Factories

POSCO’s Gwangyang Works is one of the top automotive coated steel plants in the world, providing 10% of global supply. During automotive steel production, one of the most critical steps is the coating weight process. When coating weight is controlled manually, quality deviates depending on the skill level of the worker, inevitably resulting in significant amounts of wasted zinc, so POSCO implemented IIoT technology to improve efficiency and product quality & consistency.  

POSCO workers monitor the optimal coating weight predicted through IIoT and AI. It is now possible to collect hundreds of different types of data and make adjustments in real time for complex coating weights

This highly-sophisticated technology helps keeps the thickness of the coating layer consistent – even when operating conditions change suddenly. They have installed a data integration infrastructure that uses an automated control technology that predicts the coating weight of zinc in automotive steel to precisely control the Continuous Galvanizing Line (CGL). In combination with the coating weight system, they have also created a data pre-analysis system that can preemptively detect abnormalities. The implementation of this technology has helped to increase the quality of POSCO’s automotive coated steel while also decreasing production costs.

Advancements in IoT technology are changing the way people live, but behind the scenes, at manufacturing facilities around the world, IIoT is having an even greater impact. Companies like Volkswagen, Caterpillar, and POSCO are leading the way to create more efficient and sustainable production methods using IIoT.

Under the theme of ‘Breaking Barriers,’ this month The Steel Wire invited Chanyong Park, an editor from Esquire Korea, to look at some of the world’s most well-known watchmakers and why they utilize certain types of stainless steel. Below is his take on different types of stainless steel that have been used to make some of the most iconic wristwatches.  

Stainless Steel in Wristwatches

In general, wristwatches are made of stainless steel. Although other types of materials, such as gold, titanium, ceramics, and carbon, are often used, stainless steel provides excellent rigidity at a reasonable price. This is the reason brands like Rolex, Apple, and many other brands put great emphasis on utilizing stainless steel to make wristwatches.

What should be considered when choosing the material for your wristwatch? There are two main factors. The first is the sensitivity some people may have to the materials in stainless steel as they can cause allergic reactions or rashes.

Second is its ability to withstand a variety of conditions from hand washing to strong impact. In particular, it is important to have properties like corrosion- and shock-resistance. Wristwatches should also be able to withstand temperature changes and not become discolored over time. When taking these factors into account, stainless steel is an ideal choice.

Various Types of Stainless Steel

The grades of stainless steel are classified based on their composition of steel and non-steel materials. Because steel naturally rusts over time, other materials are added to prevent rusting. Steel can be classified into several distinct categories: 200, 300, and 900-series based on its composition.

300-Series Stainless Steel Types

• Type 301: contains iron, chromium, and nickel
• Type 302: consists a higher amount of carbon to make it stronger
• Type 304: most commonly used type of stainless steel
• Type 304L: contains less amount of carbon, used for welding
• Type 304LN: contains nitrogen to increase tension
• Type 316: second most widely used stainless steel, contains a small amount of molybdenum to resist corrosion
• Type 316L: contains less amount of carbon compared to 316

Type 316 and 316L are great materials for making wristwatches because they can both withstand extreme temperatures and are more corrosion resistant. They are also allergy-safe and are used to make medical devices.

Rolex and the Reason for 904L

Rolex, one of the most well-known luxury watch brands, puts great emphasis on using specific types of stainless steel. Instead of using the more common 316, it uses Type 904L. Although 904L is more difficult to make and consists of extra materials such as chromium, molybdenum, nickel, and copper, it has numerous benefits. It is more resistant to acids, has a harder surface, and appears brighter, making it suitable for modern wristwatches that are not only functional but decorative.

Rolex Oyster Perpetual Air-King (Courtesy of Official Rolex website)

Rolex utilizes 904L with the greatest of quality control. Since 904L is harder than other types of stainless steel, Rolex had to design its own new tools to work with 904L stainless steel. Once Rolex receives the material from its steel suppliers, Rolex casts and scans it. Rolex sends back steel that does not meet its standards, and re-melts and hardens the approved steel in order to eliminate any inclusions.

In using 904L, Rolex wristwatches stand out as they appear more polished, look warmer, and age extremely well. Rolex has been using 904L in watch cases since 1985 and from 2006, it began to utilize 904L in the band. If you ever wondered why your Rolex watch shines differently than your father’s, what you noticed was the difference between 316L and 904L.

However, for those with a nickel allergy, rashes can occur because 904L carries more chromium, molybdenum, nickel, and copper. Those who want to wear a Rolex watch but have a nickel allergy can either purchase an older version of the watch or simply replace the band.

The debate between 904L and 316L continues with watch lovers. Although some may argue that it is not necessary to use 940L due to nickel sensitivities, 316L and 904L are both highly recognized materials, even being used in medical devices.

Audemars Piguet and the Reason for 316L

Although Rolex uses 904L, there are many other brands that continue to use 316L and make even more expensive wristwatches. Audemars Piguet is one of them. Its Royal Oak, made from 316L, is considered to be the brand’s most iconic wristwatch. Royal Oak is unique among luxury wristwatches as it was one of the first to move to stainless steel in 1972. This broke with the industry standard of using gold in luxury watches.

Royal Oak Chronograph Automatic (Source: Official Audemars Piguet website)

Before the Royal Oak, stainless steel was typically seen in watches made for divers or pilots that focused on durability. Audemars Piguet was the brand that broke the rules by offering a luxury watch made from steel, following its slogan, “To break the rules, you must first master them”.

Royal Oak was a challenge for watchmakers with regard to surface treatment technology, design, and branding. There are two ways to treat the roughed-out surfaces of ceramic, one is brushing on the barrels and the other is polishing on all edges. Audemars Piguet alternately brushes and polishes each angle of the octagonal clock of Royal Oak. The key is to brush it in one direction. In 1972, the price of Royal Oak was 10 times more than the Rolex Submariner. However, Royal Oak succeeded manufacturing luxury brand watches with stainless steel.

Sinn and the Reason for 212

German watch manufacturer, Sinn, specializes in making shock absorbent watches that utilize a very unique type of stainless steel. It uses Type 212 from ThyssenKrupp, a type of stainless steel that is particularly resistant to seawater making it useful for diving.

Sinn Diving Watch EZM3 (Source: Official Sinn website)

According to its website, “Sinn was the first company to manufacture diving watches that complied with European diving equipment standards and the first to test and certify them for pressure resistance, water−resistance, and resistance to fogging.” The use of this specialized stainless steel has helped Sinn and other watch manufacturers take their watches to new levels.

Wristwatch technology began in England over 100 years ago and was further advanced in Switzerland. After two world wars, the concept of wearing a watch around the wrist spread, and then the Japanese-led quartz movement reshaped the market. The Swiss changed its strategy to turn watches into a luxury item, and now, American IT entrepreneurs are redefining it as wearable tech. Stainless steel’s  use in such precision-dependent instruments is a testament to its value and capabilities.

*The author is a POSCO contributor. The opinions expressed are those of the writer.

Greater stability has become a must in competitive sports ranging from baseball, football (both traditional and North American), rugby, golf, athletics and lacrosse. In the world of mountain climbing, crampons have also become indispensable.

Most professional-level cleats, regardless of sport, have one thing in common, however – they make use of steel.

Running through the History of the Cleat

Cleats’ origins can be traced back to 1500s England, where they were worn to play amateur football. Some historians have said that King Henry VIII’s Great Wardrobe included a pair of specially crafted, hand-stitched boots he used to play football in. When the first professional clubs were formed in England, beginning with in Nottingham County in 1862, a new demand for the studded football boot arose.

However, it was across the other side of the Atlantic where steel spikes were first used for cleat studs, back in 1860 in the United States. Baseball was becoming mainstream, and rapidly developing into America’s new favorite pastime, and players requested better shoes to play in. The solution presented itself in the form of steel-spiked footwear. Going into the 20^th Century, the demand for cleats skyrocketed as professional team sports grew in popularity all over the world.

Other sports professionals began adopting the use of the steel-studded cleats. Lacrosse players, golfers and track-and-field athletes all understood the importance of having extra traction, especially when playing on wet or slippery surfaces conditions.

Soon, even mountaineers began to realize how useful steel cleats were. Oscar Eckenstein designed the first pair of 10-point crampons in 1908, utilizing steel as their main material, and other climbers quickly followed suit.

Why Steel Cleats and Not Plastic?

Peak athletic performance requires the best equipment made from the strongest materials. While playing most field sports, an athlete needs to be able firm and stable contact with the ground at all times. This allows them to throw, catch, sprint, swing, kick, turn, or push off of another player at a moment’s notice.

Livestrong.com writers mention that a pair of good cleats gives your feet much-needed traction on the turf for sports that take place of grass or dirt, like football, baseball, soccer, golf, lacrosse, rugby and others. For each different sport, steel spikes are arranged in different patterns to provide maximum effectiveness.

Metal spikes have been used on sporting shoes for decades because of their toughness and durability. With modern shoe designs, steel spikes can be replaced if one becomes worn down or bent – without having to replace the entire shoe.

With molded plastic cleats, this is most often not the case. Steel-studded cleats are often slightly more expensive than plastic versions. However, a good pair of steel cleats will last you longer than plastic equivalents, as when the plastic studs wear down, the shoes lose their stabilizing properties.

Plastic spikes are certainly commonly used nowadays, but are often used in youth sports where metal spikes are deemed less appropriate. As they are often cheaper, they can be more suitable for children, whose feet tend to grow quickly.

Steel studs are also preferred in professional leagues, as they can dig deeper into turf and dirt much more than plastic studs. While walking on harder surfaces, steel studs give off a very recognizable sound – a loud clinking, compared to the softer tip-tapping of plastic studs.

Modern Cleat Designs

With the progression of cleat designs and the technology available to measure and track effectiveness, sports footwear has evolved to become adaptable to almost all conditions.

The world’s leading sports brands offer cleats for each sport with interchangeable steel spikes. These vary in length, point and size, and are all fit for different conditions. For example, in muddier conditions, you may need longer spikes to dig deeper into the turf.

In the case of track-and-field, the steel spikes used are extremely sharp-pointed, designed to gain maximum traction on synthetic and dirt tracks when runners are moving at high speed.

As adult athletes tend to play their chosen sports for a relatively long time, they need footwear that is durable and dependable. High-level sports place a lot of pressure on shoes, and top-level athletes value stability, traction and balance above many other factors – and perhaps this is why steel remains many sportspeople’s first choice for cleat studs.

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Fortune announces the top 500 global brands every year by selecting them based on performance in areas such as sales and operating profit from the previous year. POSCO ranked 161^st, 146^th, 167^th, 177^th, 162^nd each year since 2011, and 173^rd this year.

This is the result of the company furthering their technological developments and creating profits through cost reduction and innovation projects, all despite the global steel crisis that has continued for years.

Among the global steelmakers, ArcelorMittal ranked 123^rd, NSSMC 238^th, and Baoshan steel 275^th.

Meanwhile, U.S. company Walmart has been ranked number one for three consecutive years, with Exxon Mobil, Volkswagen, Toyota and Apple also being included in the top 10 list. Along with POSCO, a total of 15 Korean companies including Samsung Electronics and Hyundai Motors were included in the 500 companies listed. The number of Chinese companies in the list has been steadily increasing from 95 in 2013 to 110 this year.

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The 2015 Seoul Motor Show, which will run until April 12 at the Korea International Exhibition Center (KINTEX), is in full swing. Under the theme “Experience the Technology, Feel the Artistry”, the show has already drawn in thousands with its displays of some 370 automobiles from over 30 brands.

2015 Seoul Motor Show’s Concept Cars

The show’s concept cars, an eclectic mix of automobiles that possess both innovative technologies and cutting-edge designs, are undoubtedly a highlight of the event for most car enthusiast attendees. Kia Motors’ all-new K5 sedan has drawn attention with its sleek, sporty design, as has the Alfieri by Maserati, a stylish coupé named after the most prominent of the founding Maserati brothers.

Yet it’s undeniable that eco-friendliness is a theme that stands at the forefront of this year’s show, as evidenced by the number of electric and hybrid models on display from brands such as Porsche, Lexus and Hyundai.

EOLAB: A Stand Out Model

Among the show’s “green” concept models, Renault’s EOLAB, which is making its first appearance in Asia since its official global debut at last year’s Paris Motor Show, stands out, thanks to its revolutionary style and environmentally conscious characteristics. Although it’s unlikely that the EOLAB will make it to production anytime soon, its technological innovations are slated to appear on future models by 2020.

Renault claims that the EOLAB boasts a super-efficient fuel economy of 100 kilometers per liter, while at the same time produces as low as 22 grams of CO2 per kilometer, parameters that are five times better than its eco-friendly rivals. EOLAB’s eco-efficiency is possible because of its extraordinary lightness, enabled by the use of its state-of-the-art high-strength steel and special magnesium panels developed in conjunction with POSCO.

POSCO and Renault, a Perfect Match

Although the EOLAB may be a car of the future, the relationship between Renault and POSCO is nothing new. In 2012, POSCO signed a joint development agreement with Renault-Samsung, and in 2014, joined in on the EOLAB production project with the French automaker.

Dr. Lee Hong-woo, Principal Researcher of POSCO, noted that the collaboration was a great opportunity to show off the excellence of POSCO’s technology to the world.

“I believe that it was exceptionally special because the collaboration represented Renault’s firm trust in POSCO,” Lee noted. “Also, through this project, POSCO and Renault signed an additional agreement to co-develop light vehicle body and automobile chassis solutions for the next generation. Therefore, we are looking forward to establishing a full range of EVI networks in the upcoming future.”

The Future of POSCO

As global car manufacturers like those participating in this year’s Seoul Motor Show continue to seek lighter but stronger materials for automobiles of the future, demand for POSCO’s advanced high-strength steel products and magnesium plates will also increase.

Lee Hyun-ju, Sales Manager of Automotive Flat Products Sales Group, agrees that this is only the beginning of POSCO’s involvement in the automotive industry. He states, “Although automobile companies and steel companies are already cooperating in various aspects, I believe that there are many more opportunities and possibilities to lead to an enhanced collaboration from production to completion. Therefore, I wish to continue the cooperative efforts with many more companies and people in the future.”

As the 2015 Seoul Motor Show wraps up at the end of this week, we can only wait and see what next year’s show will have to offer. One thing is for sure, though; this won’t be the last time we see POSCO playing an integral role in the design and development of the world’s finest automobiles.

POSCO’s commitment to building its brand is paying off. POSCO, which increased its brand value by 5%p compared to last year, placed 5^th on the 2014 Best Korea Brands list for the second consecutive year. Based on its TV-CM and Corporate Social Responsibility initiatives, as well as its internal branding activities, POSCO was evaluated as a brand with an asset value of about 3 trillion won. POSCO ranked 5^th after other Korean powerhouses that topped the list including Samsung, Hyundai, Kia Motors and SK Telecom.

Here are some of the factors that contributed to POSCO making it into the top 5 brands for this year’s list.

1)      A Game Changing Ad Campaign

Last year, POSCO launched its advertising campaign centered around “Becoming the Base of the World”, meant to imply that POSCO will be the foundation for the world. Although POSCO is a B2B company, it successfully showed a softer side to touch the general public and its internal employees.

In the ad shot in the Rocky Mountains, POSCO acts as the compass to guide where to go and the map to show how to go forth to take on a new challenges.

Pictured here: Still shots from 2^nd ad campaign – Where is your base camp?

Another ad captured the precious moments in our life juxtaposed to how POSCO acts as the base for everyone. The overall concept was designed to show POSCO’s vision of creating the foundations for the future through its steel, materials and energy business.

Pictured here: Still shots from 1^st ad campaign – Where is your base camp?

  2)      Commitment to CSR initiatives

POSCO strengthened its overall corporate reputation through various CSR activities. POSCO established its social enterprise ‘POSCO Humans’ in January 2013, aimed at contributing to job creation for socially underprivileged through eco-friendly steel construction projects.

In addition, POSCO established its ‘1% Sharing Foundation’ to promote ‘Sharing 1% for a better world’. The 1% Sharing Foundation raises funds through employee donations from POSCO and investment companies along with matching grants from the company itself.

The ‘1% Sharing Foundation’ launched in October 2011 starting with POSCO officers and senior managers donating 1% of their wages. This then led to voluntary participation of all POSCO Family company employees. As of November 2013, POSCO and 26 family companies have participated in the 1% sharing campaign. The foundation embodies the strengthening of local community capabilities in Korea and globally through service projects for unprivileged citizens and the protection of Korean cultural heritage properties at risk of loss.

 Pictured here: Relief project in the Philippines funded by the 1% Sharing Foundation

3)      Establishing Brand Ambassadors

POSCO created its Brand Ambassador program which includes a group of 36 POSCO employees that come together to share the company’s mission and vision. Together they work to find ways to enhance the POSCO brand through training workshops, special outings and discussion forums.

Pictured here: Brand Ambassdors sharing insights on brand value

Managing Director at Interbrand Korea, Jihun Moon, mentioned in his overall evaluation that POSCO’s “Brand Ambassador program was a successful example of brand internalization” as it contributed towards revitalizing a brand within an organization and emphasized creating support between employees through brand philosophy. 

Pictured here: Brand Ambassadors visiting other companies to gain insight on other brands

Methodology

The Best Korea Brands list is published annually by the global brand consulting group, Interbrand, which also publishes the ‘World Top 100 Brands’. The list is made up of the top 50 brands that represent Korea and is based on the same rigorous evaluation as the ‘World Top 100 Brands’ list. Under the belief that a strong brand, regardless of the market in which it operates, drives improved business performance , the three key components in all valuations include analyses of the competitive strength of the brand, the role the brand plays in the purchase decision, and the financial performance of the branded products or services. For further information on methodology, visit the official Interbrand site.

The full 2014 list is available in the 2014 March issue of Fortune Magazine Korea.

Click here for the full 2013 Best Korea Brands list.