Welcoming the Industrial Revolution 4.0: Large enterprises are ready

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PhD. Nguyen Kim Cuong, Director General of CMC Software Solutions Company Limited (CMC Corporation).

Would you please tell us about the application of the achievements of the Industrial Revolution 4.0 by enterprises and sectors?

It can be said, the willingness of welcoming the Industrial Revolution 4.0 is clear. Generally, the sectors are eager to welcome the achievements of the Industrial Revolution 4.0, but some of them are worried about missing out if they do not catch up with it. For enterprises -the main driving force for economic development, the adoption of science and technology varies from sector to sector, some sectors have ability to invest and apply the Industrial Revolution 4.0 achievements, while others are restricted.

The actual provision of technology application solutions of CMC shows that smart factory software application was expensive but now, the price has been accepted. The smart factory software has been applied in many factories. Basically, smart factory management means collecting information from all stages of the manufacturing process and then gathering them so that the enterprise director can directly grasp and guide, handle incidents, manage materials and semi-products warehouse most effectively, reducing the inventory.

Another application is that from the information collecting during the manufacturing process, the system also has the ability to forecast about machines which are going to malfunction. Currently, CMC is deploying this software for 200 factories that are Samsung partners. Although this is not representative for Vietnam's economic sector, but in the deployment process, many Vietnamese companies are very interested in this software such as SABECO, Tan Hiep Phat and Thaco ...

What is your assessment on the readiness of enterprises for the Industrial Revolution 4.0?

In general, the smart factory software application to the enterprise management have been carried out in many industrial and processing factories. Enterprises that are engaged in exploitation of fishery and agricultural products are applying and strongly developing this application. Many enterprises are providing smart agricultural services, which helps to raise productivity by two to three times in the same farming area. As a result, enterprises in the fields of industry and agriculture are rapidly changing in the application of technology.

For enterprises in the banking sector, they are relatively ready for the Industrial Revolution 4.0 (because they possess good data systems) and CMC also supports them in analyzing information to detect abnormal transactions in order to combat against fraud, money laundering and discover trends to exploit and provide for banking partners, thereby helping them have better business strategies.

I personally think that the readiness to invest in Industrial Revolution 4.0 is expressed clearly in big technology companies such as CMC, Viettel, FPT, VNPT ..., in particular, our CMC Corporation have shown our determination with the slogan "4.0 Ready" as the orientation for the development of new technology solutions and services. VinGroup has recently set up Big Data Research Institute and Vin Hi-Tech Research Institute. Despite efforts, the reality is that except for large enterprises, there are not many sectors or enterprises having clear orientations. Most enterprises are still confused.

What are difficulties in accessing Industrial Revolution 4.0, Sir ?

In the recent Vietnam innovation network programme, which gathers more than 100 overseas talented Vietnamese experts and scientists, many experts expressed their optimism about this issue, but one scientist said that, "Vietnam is very enthusiastic to welcome IR 4.0, but it is not ready yet, particularly in terms of data, human resources and the environment to apply technological advances." In addition, many Vietnamese enterprises still do not really realize the importance of technology. Many enterprises realize this but are restricted on financial capacity, which does not allow the investment in technology. Another difficulty from the technology providers themselves, is that the ability of the technology sector is "drowning" compared to the needs of enterprises in the market, which can not offer solutions that are both effective and cheap. If a solution is effective, its price is expensive and vice-versa

So how can the weaknesses be overcome to help Vietnam economy in general, and enterprises in particular, access the achievements of the Industrial Revolution 4.0, sir?

With regard to human resources, the training system is rapidly changing. There are initiatives to build artificial intelligence centers in universities, in research institutes and in large enterprises as I mentioned above. This is a good premise to build the human resources that can invent and grasp modern technology.

With regard to the data issue, this depends on each sector and each enterprise. They must have a strategic look at the data collection of their enterprise and their sector or at a higher level (state management agencies). In this respect, state management agencies must introduce policies to gather data to support enterprises. For example, in the field of insurance, Vietnam's insurance premiums for auto body and chassis are now considered to be very high, and as these parts are easy to be damaged, the insurance company has to pay a lot, it has to offer a high premium to compensate for the paid amount. Overseas, the management agencies will have sufficient data on all compensation claims of all insurance companies, accordingly, the insurance premium for each individual will be different, not be equal to all people as in Vietnam

With regard to the technology application environment, only enterprises that are aware of process building, data accumulation, have the chance to apply 4.0 and improve the process automatically and vice versa.

One of the difficulties in accessing the Industrial Revolution 4.0 is due to the limitation of technology companies that have not offered many technological solutions with reasonable prices. It is also the responsibility of technology companies to develop solutions that are more feature-based, more efficient and cost-effective. We have an additional solution, this limitation only happens for companies lacking qualified human resources to catch the modern technology services, those companies can hire our system and human resources and we will deal with that problem.

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However, as I have said above, there are issues that enterprises themselves are aware of, but they also cannot deal with and need the support of the Government to connect information and regulate, manage. The Government should focus on solving problems that enterprises can not do.

Thank you Sir!