To better understand those dramatic developments, POSCO invited noted futurist Thomas Frey to address this year’s POSCO EVI Forum, held Oct. 31-Nov. 2 in Incheon, South Korea. Every two years, POSCO invites hundreds of its customers and partners to learn about POSCO’s unique approach to steel solutions and to talk about the future of the steel industry. So Frey’s presentation gave all the attendees plenty of food for thought.

Frey is the founder of the DaVinci Institute, a think tank and research firm dedicated to exploring the deep transformations that technology is bringing to our world. Frey pointed out that all industries have an arc, with a beginning, middle and an end, and at the moment most of the biggest and most-profitable industries are in the latter half of that curve. In other words, big changes are underway.

A Challenging New World

Frey pointed out that there are two major aspects to innovation: disruptive and catalytic. Disruptive innovation refers to industries that are hurt or eliminated by technology (like how cars took the place of horses and carriages). But catalytic innovation creates whole new fields and economies (like how the rise of electricity completely changed manufacturing and what industry produced).

So far, the modern digital revolution has had two big catalytic innovations – the internet and smart phones. But Frey sees eight more fields that could be just as transformative:

• Driverless vehicles
• The trillion sensor movement
• 3D printing
• The Internet of Things (IoT)
• Contour crafting
• Artificial Intelligence (AI)
• Virtual Reality (VR)
• Flying drones

Each mobile app has the potential to eliminate a few jobs, but with thousands of apps, those jobs begin to add up. Together, these innovations could see 2 billion jobs disappear, as machines take over for up to 47 percent of current jobs. And, Frey noted, some 8,000 startups received $12 billion last year, all looking to take a bite out of traditional industries. “There are no safe industries out there,” Frey said.

But Frey didn’t make this prediction in a “doom and gloom” sort of way – “It’s a wakeup call,” he said. While challenging, these changes could also lead to all new jobs and possibilities.

Cruisin’ Into a New World of Cars

To illustrate what these catalytic innovations might mean, Frey went in-depth about the implications of the rise of driverless vehicles. Most obviously, self-driving cars and trucks will eliminate a wide range of driving-related jobs, like taxi drivers and couriers.

But the changes caused by driverless vehicles to our world will go much deeper than that. Self-driving cars will change society from a buying model to an access economy, where people will just order a vehicle when they need one instead of owning their own. That eliminates the need for most parking lots, gas stations and other automotive fields.

The improved safety potential of driverless vehicles could greatly reduce repair-related work. And, because nearly 10 percent of retail sales are car-related, this could result in major changes for our economy as a whole. Some parts will change from B2C to B2B, while other aspects of the industry will just disappear.

Steel and the New Era of Megaprojects

All businesses have an arc, and steel will, too, noted Frey. “How long before we reach peak steel? Don’t know yet, but we think there’s a long run here still.”

So, with the rise of new substances and manufacturing, as well as the digitizing of much of the economy, what does that mean for steel?

“The future of steel will be defined by megaprojects,” Frey asserted. Indeed, megaprojects represent 8 percent of the global GDP, so the changing infrastructure needs caused by rising digitization will transform economies and the steel industry. “By 2030, we’ll see more changes to our core infrastructure than in the combined total of human history.”

These megaprojects include huge new bridge and tunnel projects, often linking countries across great bodies of water, as well as new high-speed transportation options, like hyperloops and ET3s. With hyperloops promising speeds of 1,100km/hour and ET3s theoretically able to go 6,000km/hour, the ability to go halfway around the world in a couple of hours could once more revolutionize how our societies work. But building the tracks and systems needed for these technologies would require massive amounts of spending – and massive quantities of steel.

“We are entering into an era of unprecedented opportunity,” summarized Frey, talking about both the steel industry and society as a whole. Thanks to Thomas Frey, the EVI Forum attendees gained many valuable insights to think about and discuss during this year’s event.

POSCO EVI Forum Impresses With Solution Marketing

Solution Marketing Revs Up POSCO’s Steel Business

2014 POSCO Global EVI Forum #1 ‘From Steel Supplier to Solution Partner’

2014 POSCO Global EVI Forum #2 Program Details and Client Interview

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

He was one of more than 1,000 attendees at this year’s POSCO Global Early Vendor Involvement (EVI) Forum, held Oct. 31 to Nov. 2 in Incheon, South Korea. Every two years, POSCO invites hundreds of its customers and partners, to learn about solution marketing, POSCO’s unique approach to building proactive steel solutions for its customers.

“Since I’m from an Australian electrical steel company, I appreciate the chance to learn meaningful information regarding advance manufacturing and relevant industries,” added Andonovski.

Three Days of In-Depth Presentations

The Forum kicked off with a signing ceremony for more than 100 agreements with global clients in the field of joint technology research and sales. And throughout the three-day event, a variety of speakers kept the audience engaged with a series of presentations.

“POSCO’s future-oriented solution marketing focuses on three solutions,” said Ohjoon Kwon, president of POSCO, in his keynote speech. “Technical solutions that providing steel utilization technology, commercial solutions that support the sales of clients’ products, and human solutions that value connecting with our clients at heart. Using these three solutions, we strive to become a reliable partner that helps our clients find success.”

In addition to a presentation by President Kwon, some of the featured speakers included GM Korea Vice President Greg Tyus, ExxonMobil CTO Douglas Fairchild, the Minister of Trade from Indonesia Thomas Trikasih Lembong and futurist Thomas Frey.

Trends and Demonstrations

Once again, the theme of the forum was “From Steel Supplier to Solution Partner,” and explored three years of solution marketing and the company’s latest products. Additionally, talks examined future trends for the steel industry, including “Eco-Friendly Vehicles,” “Upheavals in Energy,” “Mega Cities” and “Premium Living Infrastructure.”

For example, POSCO had a model car on display made from Giga Steel – an ultra-high strength steel that can withstand a load of 100kg per 1mm². Another type of high-strength steel, HSA800, is twice as strong as ordinary steel and is considered to have very good seismic resistance. And “Inkjet printing steel sheets” are designed for the application of high-resolution images, and is expected to find many uses in home appliances.

The company also introduced high-manganese steel, made from 3%-27% manganese. High-manganese steel has a range of properties – such as abrasion resistance, being non-magnetic, high strength and high formability – making it useful for the energy industry, including LNG tanks.

The Power of Solution Marketing

After the keynote address and general sessions, the attendees were divided into nine industry-specific themes, to allow more detailed discussions and presentations relevant to each field.

“The general session has provided such a great opportunity to expand my knowledge about the different areas of steel,” said Teguh Sarwono, general manager of PT KRAKATAU Steel in Indonesia. “The special lecture about Indonesia’s steel industry was especially insightful for me as a foreign vendor of POSCO.”

In addition to talking about new products, there were also presentations about outstanding examples of POSCO’s solution marketing. For example, POSCO has worked with Volkswagen to make stronger steel and reduce the weight of vehicles, and it worked with Daewoo Shipbuilding & Marine Engineering to create high-strength wire products.

“I feel honored to have been invited to the POSCO EVI Forum, and happy to have gotten the chance to meet clients from all over the world,” said Christiawaty Kasger, general manager of POSCO Indonesia Inti. “By taking part of this kind of event, I have gotten a greater sense of connection with POSCO and look forward to working together more in the future.”

Smart Factory, Smart Company

POSCO has already involved the IoT to develop improved safety measures, but now with the Smart Factory, the entire production process has advanced for the sake of creating better products in the future.

The Smart Factory transforms the conventional idea of a steel mill into an intuitive operating system, promising faster production, higher-quality goods and safer work environments.

Matching its position as a leading global steelmaker, POSCO’s Smart Factory gives evidence of the company’s optimized facilities for creating the most reliable steel products available worldwide.

Solution Marketing Revs Up POSCO’s Steel Business

2014 POSCO Global EVI Forum #1 ‘From Steel Supplier to Solution Partner’

2014 POSCO Global EVI Forum #2 Program Details and Client Interview

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

POSCO-America TSC (Technical Service Center) is strengthening its technical services and solution-based marketing support for its US and Mexican clients. The company opened last year with two offices in Mexico City, the capital and largest city in Mexico; and Birmingham, Alabama. Past January, it opened one more place of business in Houston, Texas. Based in these three cities, POSCO-America TSC is engaging in technical services and EVI (Early Vendor Involvement) activities for its clients in North and Central America, in which automotive and energy steel products are in high demand. Mexico is a global automotive industry hub. World’s top-notch automakers such as Nissan, GM and Volkswagen have active business operations in the country.

POSCO-America TSC Mexico City is currently focusing on automotive industry, providing technical services while working hard to develop new clients. It is also pursuing a certificate in automotive steel products. In an effort to increase the sales of steel products produced by POSCO and its local sales unit, POSCO-Mexico, the company is exchanging information with local processing centers and distribution corporations. POSCO-America TSC is scheduled to open a new business operation in Detroit, Michigan, within this year. Many global automobile manufacturers have headquarters and R&D centers in the city. Once it is opened, the Detroit office will dedicate itself to providing technical services for car companies in North America, as POSCO-America TSC Birmingham does.

Houston along with Scotland’s Aberdeen are two of the global energy industry hubs.  Located in Houston are companies from various sectors of the energy industry, such as Exxon Mobil, Shell, EPC (Engineering, Procurement & Construction) corporations and equipment fabricators. For this reason, POSCO-America TSC Houston is striving to get information about new business opportunities, by engaging closely with its key clients. As a result of all these efforts, POSCO-America TSC successfully signed a contract to supply GI (galvanized steel) products to a major US truck maker. Upon hearing that the GI materials the truck maker had been supplied were often flawed, POSCO-America TSC proposed a solution, in an effort to win trust from the company (and it worked perfectly!). The employees of POSCO-America TSC Mexico City demonstrate a high level of satisfaction with their everyday lives, due much to mild climate and friendly locals.

In addition, they take a great pride in representing POSCO’s automotive and energy steel business in the country with great growth potential. Living up to the motto, ‘POSCO the Great’, all the employees of POSCO-America TSC will enhance its efforts to provide its clients with upgraded technical services and solution-based marketing support. In addition to pursuing a certificate in automotive steel products, POSCO-America TSC will seek to strengthen partnership with key clients through more frequent contact with them. The company also plans to form a consultative group with local manufacturers, to improve the quality of its products.

Introducing POSCO’s Global EVI Forum

EVI (Early Vendor Involvement) is an activity, initiated by finished vehicle companies, brings the key auto parts companies to participate in new model development projects. The POSCO EVI Forum, which started as a domestic auto market target event, has been developing into a global event where various industry fields and global client companies participate in; also expanding the contact points with POSCO’s clients in the meantime. Currently, the event is positioning as client-oriented marketing festival to strengthen business partnerships with customers, while facilitating interaction and exchange with potential global clients.

Presentations and Discussions of Six Major Industrial Programs

During the general session which also includes the opening ceremony on the 28^th, Remi Bastian, Renault’s head of research, advanced studies and materials, Sungho Park, POSCO’s Director of Research Center and Raghavan Ayer, SK innovation’s Science Advisor and Senior VP made presentations on industrial topics. Except for the opening ceremony and the general session, the discussions were arranged into six major industrial programs, including automobile, energy, shipbuilding, electricity, electronic, construction, stainless, and wire rod.

Each session’s presentation and discussion on ‘Steel Solution for Eco-friendly Vehicle of Now and Future’, and ‘Energy·Shipbuilding Solution for Client’s Best Value’ intensified the concentration and communication among clients and participants at the event. There were hosted discussions about industrial technology trends, followed by topic-based presentations. Noteworthy examples included a presentation on technology development designed to lighten the weight of automobiles that was undertaken by Volkswagen in Germany; the development of Hadfield steel LNG tanks from Daewoo Shipbuilding & Marine Engineering and the usage of wire rods in the marine industry by KISWIRE.

Also, the forum provided a special location to global clients of each session for technology consultation and purchase agreement, presentation and discussions. In fact, POSCO successfully established positive relationships with global clients through the technology consultation and sales agreement were proceeded for two days from the 27^th to the 28^th.

Focus on Renault’s ‘EOLAB’ of POSCO Chassis

As a rapid adaptation to the trend of European auto industry, Renault has recently introduced its hybrid concept car ‘EOLAB’ (a compound of the Greek god of wind ‘Aeolus’ and the English word ‘laboratory’) which contains POSCO’s steel products. Therefore, the unique technologies of POSCO were praised, including its lightweight· high strength products, which were used in the ‘EOLAB’ prototype. Other noteworthy additions included POSCO’s magnesium plating and PosM Steel, which received much attention from global client companies.

As a result, POSCO was able to sign various technology agreements and sales contracts during the automobile session which is one of the six industrial programs at the forum. Also, POSCO pursued a long-term cooperation with domestic and global companies of the finished vehicle and key auto parts at the same session of the forum. Moreover, POSCO agreed on technology cooperation and joint marketing activities with key domestic and global client companies for shipbuilding, construction, electronic appliance and wire rod.

Creating Successful Partnership through POSCO’s Solution Marketing

Also, this year’s forum has acquired a favorable comment by creating a special counter for POSCO’s solution business introduction and registration for the clients’ request on solution development. Even after the 2014 Global EVI Forum, POSCO promises to continue to seek for practical approaches to the customer value creation. Also, POSCO will further reinforce its growth foundation with clients by amplifying the solution marketing not only to domestic clients but also to distinguished global client companies.

In the next episode of our global blog’s Global EVI Forum series, we will introduce the in-depth explanations of each forum session and interviews with our client companies. So, please stay tuned with us!