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5 Major Trends Transforming Semiconductor Manufacturing Equipment Market Outlook over 2021-2027

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5 Major Trends Transforming Semiconductor Manufacturing Equipment Market Outlook over 2021-2027

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The expansion of the electronics industry, driven by the burgeoning demand for consumer electronics, the growing gaming industry, and increasing proclivity towards electric and hybrid vehicles, has created enormous lucrative opportunities for the semiconductor manufacturing equipment market. This can be attributed to the elevating demand for various semiconductor manufacturing tools for producing memory ICs, sensors, PMIC, microprocessors, system-on-chips, etc.

The industry landscape is being further enhanced by ongoing business expansion moves initiated by major semiconductor companies. A prominent example of such an initiative is the commencement of the construction of two new factories in the U.S. by the leading chipmaker Intel in 2021. These facilities will house the company’s highly advanced chipmaking technology.

According to the recent report by Global Market Insights, Inc., the semiconductor manufacturing equipment market size is projected to surpass USD 90 billion by 2027, in light of the following trends:

New product launches by key companies

Major companies operating in the industry are focusing on the development of innovative semiconductor manufacturing devices to effectively meet consumer demand and gain a competitive edge in the market. Quoting an instance, in 2020, Advantest Corporation launched two general-purpose hardware equipment, digital, and power supply modules to support the capabilities of the T2000 test platform. They are designed for use in the volume manufacturing of SoC chips, power management ICs, CMOS image sensors, and automotive sensors.

Heightened adoption of polishing & grinding equipment

Polishing & grinding processes are largely adopted for manufacturing MEMS sensors, integrated circuits (ICs), chipsets, optics, and compound semiconductors. The growing preference for miniaturized ICs in electronics requires frequent polishing & grinding for reducing subsurface damage and maintaining wafer flexibility. The rising demand for the process is encouraging the market players to focus on new product development which is positively influencing the business growth. To illustrate, in 2020, ACM Research, Inc. introduced the Ultra-Stress-Free Polishing tool for advanced semiconductor packaging and wafer processing. Reportedly, polishing & grinding equipment is projected to exhibit a robust CAGR of over 5.0% through 2027.

Mounting popularity of 2D technology

The growing popularity of 2D technology can be credited to the associated benefits such as robust built, less power consumption, and minimum cost of operations. It is being extensively used in the manufacturing of 2D-planar memory devices. Various companies and research institutes are forming strategic alliances to develop ICs based on 2D material. For instance, in 2021, TSMC partnered with the National Institute of Taiwan and MIT for developing 1nm chips using two-dimensional material. With increased adoption, 2D technology segment is expected to observe a lucrative CAGR of 6.0% through 2027.

Rising adoption of foundry supply chain process

Rising demand for power electronics and high-performance computing devices is prompting the foundry providers to improve their IC manufacturing through new technology nodes. Various companies are inclined on technical enhancements like application of laser-plasma as a light source in extreme ultraviolet printing devices to generate high-quality wavelengths. For instance, in 2021, Micron announced its plans of deploying extreme ultraviolet equipment in its manufacturing foundries. Considering these factors, the foundry supply chain process segment had captured over 25% share in 2020 and is expected to register a significant CAGR of over 6.0% through 2027.

Growing semiconductor-based projects in Europe

The increasing government initiatives and investments towards semiconductor-based projects in Europe are driving the expansion of the semiconductor manufacturing equipment industry in the region. To illustrate, in 2021, the European Union unveiled its plans of increasing the chip production capacity by 20% by 2030. The EU also declared investing USD 160 billion towards technological development involving semiconductor manufacturing and supply chain infrastructure. In addition, regional chipmakers are collaborating with diverse industry experts which, in turn, is favoring industrial growth. According to the report, the industry is anticipated to register a robust CAGR of 4.5% through 2027.

Briefly, the semiconductor manufacturing equipment market is gaining traction with the increasing investments in chip manufacturing facilities coupled with the emergence of technologically advanced solutions.

Source: Global Market Insights Inc.

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Want to Bring Digital Transformation to Your Business? The Right Leadership is Key.

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When Under Armour ramped up its digital transformation efforts after the pandemic began, positive results soon emerged, and this year executives at the sportswear maker were able to report higher profit margins and a more seamless product-to-market pathway.

But Under Armour’s success story isn’t everyone’s success story. Plenty of companies spend lots of money on digital transformations, but only a small percentage achieve their desired outcome, says Sri Manchala, the ForbesBooks author of Crossing the Digital Fault Line: 10 Rules of Highly Successful Leaders in Digitalization (www.digitalfaultline.com).

That’s because digital transformation done right isn’t just about the money invested. It requires leadership of a particular kind, the kind that “methodical innovators” provide, says Manchala, CEO of the highly specialized digital transformation services firm Trianz.

“If heroic efforts, motivational speeches, and incentives alone worked, then more companies would be succeeding,” he says. “This battle requires intelligence, not superhuman efforts.”

In other words, he says, this is not a time to be a Marvel superhero.

“You are fighting to understand, control, and get ahead of a dynamic situation, not beat down an enemy,” Manchala says. “This is the time to think and act like a lead planner or the leader of a crisis-management center.”

After all, digital transformation entails more than building better intranets and websites, he says. It involves harnessing data to truly understand customer behavior in a digital world. It includes reimagining products and services. It concerns delivering high-velocity, digitalized experiences across the value chain to all stakeholders, even if that means discarding existing models.

The Methodical Innovator Persona

So just what kind of leaders are methodical innovators and why are they right for this moment? First and foremost, they are big-picture thinkers, Manchala says.

“They have an ability to connect the dots and boil down complex dynamics into simple, easy to understand root causes, dynamics and impact,” he says.

Methodical innovators also are exceedingly stakeholder-focused, whether those stakeholders are customers, suppliers, employees, partners or regulators.

Manchala says they also analyze data and develop their vision, strategy and priorities based on what the data reveals to them.

“Given their focus on outcomes, they are less emotional or attached to the past,” he says. “They are very willing to let go of prior business models and processes if the analytics support doing so.”

Also, instead of letting their egos get in the way of what they want to achieve, methodical Innovators practice a “no ego” approach, Manchala says. They quickly figure out just how big the problem is and just how little they really know about it, then they surround themselves with people who can make up for the knowledge they lack.

That may sound easy enough, but it’s not, he says.

Being Honest With Themselves

“It is incredibly hard for any leader to say ‘I don’t know’ in the corporate world,” Manchala says. “There is fear of being branded as ignorant, of being behind the curve, or of not being effective. A large percentage of leaders choose the tactics of ignoring, deflecting or deferring problems.”

But in the Digital Age, he says, you can run, but you cannot hide from what you don’t know.

That ties directly into what Manchala says is at the core of a successful leader’s character – an inherent honesty. For more than 100 years, study after study shows that the most important and admired quality in leaders is honesty, Manchala says.

“While we tend to think of honesty in transactions with others, methodical innovators are first honest with themselves,” he says. “In an environment of unknown forces, dynamics, pace and outcomes, they realize the importance of knowing what they don’t know. It is by acknowledging what they do not know that they begin the process of personal transformation.”

____________________________________________________________

Sri Manchala, the ForbesBooks author of Crossing the Digital Fault Line: 10 Rules of Highly Successful Leaders in Digitalization (www.digitalfaultline.com), is the CEO of Trianz, a highly specialized digital-transformation services firm headquartered in Silicon Valley and serving clients globally. Manchala shares data-driven insights on transformations and adaptive business leadership based on his two and a half decades in the technology industry, and leadership experience in the military and as a CEO. Manchala is a graduate of the National Defense Academy, an elite training academy for India’s Armed Forces officers, where he served in the infantry and Parachute Regiment (Special Forces). He is also an alumnus of the Marshall School of Business at the University of Southern California, where he is now a corporate advisory board member.

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Axis of Innovation: A New School of Geopolitical Economics for the Digital Age

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What a difference a few decades make. Trade ministers from the United States and European Union recently felt compelled to sit down for special high-level ministerial forum in hopes of strengthening their relationship after years of transatlantic tensions on all manner of digital-age economic and trade matters—from digital service taxes to cross-border data flows—which together reflect fundamental differences of geopolitical strategy for the digital economy.

This never would have been necessary in the Cold War, when there was a clear, Manichean struggle between the democratic, market-based West and the authoritarian-communist East. It would have been inconceivable in those days to have such differences “across the pond.” There was strong bipartisan support in the United States—and parallel support in Europe—for a cohesive approach to the geopolitical economy that aimed to attract allies and isolate the Soviet Union and China by supporting Western business interests and spreading democracy around the world.

 


But now, as the Cold War fades into history and as the global economy is increasingly driven by digital and information technologies instead of heavy industry, that consensus view of the geopolitical economy has fractured. The old “free markets and free people” camp has maintained a foothold in the United States, and authoritarian statism is still deeply rooted in the parts of the East, but alongside them there are now other competing visions—including social democratic regulation in Europe and a rising form of digital protectionism in countries such as India, Indonesia, and Vietnam.

If the United States is to effectively advance its interests, which now hinge on spurring faster and deeper digital innovation and transformation, then U.S. policymakers need to recognize this new formation, while embracing a new framework for the geopolitical economy that is better suited to the times: national developmentalism. The overriding priority should be advancing domestic technology competitiveness instead of sacrificing U.S. economic interests on the altar of other foreign policy goals as America often did in the Cold War. Failure to execute this strategic pivot will produce a technologically weaker U.S. economy.

Until recently, America had only one big idea when it came to geopolitical economics, embodied in the neoliberal “Washington consensus.” Policymakers advocated at home and abroad for open markets, deeper trade, limited regulation, budget constraints, the rule of law, and a modest role for government. That approach worked in the Cold War, but there are two problems with it now: First, it ignores the fact that government plays a key role in helping develop and spread digital technologies, as we have seen in the history of the Internet, semiconductors, computing, and technologies like GPS—all of which the federal government spurred. Advancing growth in the era of digital innovation requires more than firms and markets acting on their own. Second, when U.S. policymakers point to the Washington consensus as the only alternative to China’s seemingly successful state-directed model, it gives nations looking to grow their own digital economies a limited choice: Do little and hope markets work things out for the best or be aggressive by copying Beijing’s statist model.

As in the Cold War, some nations today continue to embrace authoritarian statism, but with a digital edge and a more market-friendly veneer. China and Russia are the torchbearers for this formula, with China taking it to the greatest extreme. For China’s central planners, the approach is more than authoritarian; it is deeply mercantilist, seeking not just to build up domestic technology firms by any means necessary, but also to harm foreign competitors—as when Chinese firms coerce their Western counterparts into transferring intellectual property as the price of doing business in China while also enjoying lavish subsidies for “going out” to challenge Western firms for global market share.

This is a model that empowers U.S. adversaries and harms global innovation, because by employing tactics such as massive subsidies, IP theft, and coerced technology transfers, China is empowering its firms to take market share away from more innovative firms in other nations. Moreover, China scoffs at concepts such as freedom and democracy, and in global governance forums, its strategy is to ensure that its formula prevails over the U.S. model of freedom and human rights with private and civil-sector governance.

Meanwhile, where the United States and Europe once were closely aligned on economic and foreign policy, their goals and interests have now diverged. In the EU’s social democratic approach to the digital economy, the government’s main role is to regulate, rather than promote, technology and technology companies (especially U.S. companies) to achieve social policy goals. The EU is doing everything it can, including using carrots and sticks, to bring other nations into its orbit, offering its model as a third-way alternative to Chinese authoritarianism and what it considers to be America’s “cowboy capitalism.” The result is a spread of a digital regulatory system marked by higher taxes, onerous rules, and strict antitrust enforcement, which constrains global innovation and weakens U.S. competitiveness. And unfortunately, many U.S. policymakers, particularly on the left, see this as an appealing alternative to the Washington consensus they believe has been discredited.

But ultimately social-democratic regulation of the digital economy will prove to be a dead end. Even though EU social democrats and their U.S. allies profess to be pro-innovation, the reality is that onerous regulations on privacy, competition, “fairness,” and other areas result in less innovation, slower economic growth, and worse experiences for consumers.

On a separate track are unaligned nations that often charted their own path in the Cold War era. Today, many of them are defaulting toward digital protectionism as a preferred approach. For example, India, Indonesia, and Vietnam, among others, see limiting foreign IT and digital market access as the key to growing their domestic digital economies. To that end, they take measures such as limiting cross-border data flows, favoring domestic digital firms, and otherwise discriminating against foreign technology firms. This, too, will likely prove to be a dead end. Digital protectionism usually doesn’t work, in part because it doesn’t just harm the interests of U.S. firms and others, but often drives up the costs of digital technologies domestically, thereby limiting their use and forgoing the productivity benefits they offer.

Against this backdrop, the United States faces a host of new challenges, but it also has an opportunity to secure a new era of prosperity for itself and others by embracing a national developmentalist model in which government helps coach firms within its borders to compete globally, innovate, and boost productivity. This entails supporting innovation, markets, and business—including big business. But it also recognizes that the state should play a key role in supporting digital innovation in areas like broadband, health care, education, and governance while defending U.S. firms from unfair foreign competition. Among the nations moving toward the national developmentalism model are the Scandinavian bloc, the United Kingdom (as conservatives increasingly move beyond their Thatcherite traditions), Israel, Singapore, and Taiwan. Some U.S. policymakers on both sides of the aisle have begun moving in this direction, too, as evidenced by the Senate’s United States Innovation and Competition Act.

While the doctrine of national developmentalism presents a more realistic picture of the world, recognizing that nations seek competitive advantage in IT and digital industries, it also counsels a “race-to-the-top,” wherein nations support digital innovation with policies related to research and development, worker skills, and digital infrastructure, plus conducive regulatory and tax policies, and government leadership in using the technologies themselves.

The United States should fully embrace this burgeoning national developmentalism at home and work methodically to bring as many other countries as possible into the U.S. national developmentalist orbit—selling it as a compelling and effective alternative to social democratic regulation, protectionism, and authoritarian statism. We are no longer locked in a Manichean struggle; there are now several models on offer. But one is clearly the best.

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Robert D. Atkinson (@RobAtkinsonITIF) is president of the Information Technology and Innovation Foundation, the leading think tank for science and technology policy.

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5 Innovations in Manufacturing Processes and Their Effect on the Bottom Line

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Manufacturing is a rapidly evolving industry. With a broad spectrum of sectors depending on manufacturing, modern facilities are often quick to adopt new technology that improves on their existing processes.

The rise of automation, artificial intelligence (AI) and data have created a wave of digital transformation. As manufacturing grows and becomes increasingly competitive, capitalizing on Industry 4.0 innovations can determine whether or not a company will succeed.

Here’s a look at five of these innovations and how they affect the bottom line.

1. Cobots

Robots aren’t new in the manufacturing industry. But as automation has grown, new approaches and technologies have emerged that can take its benefits further. Collaborative robots, or cobots, are one of the most significant of these upgrades to factory automation.

In a 2021 study, 44.9% of surveyed businesses said that robots are an integral part of their operations. Of those companies, 34.9% had adopted cobots. Cobots have slowly become more popular as manufacturers have realized the limits of traditional automation. Other robotic solutions are expensive and inflexible, making it difficult to scale, but not cobots.

Since cobots work alongside humans instead of replacing them, they typically automate fewer processes at once. Consequently, they’re often more affordable than traditional automation and easier to implement. Manufacturers can then automate one process at a time, slowly scaling up to meet demand or new challenges.

This incremental approach to automation removes the high upfront costs and disruptions of traditional automation. As a result, cobots enable manufacturers, especially smaller businesses, to scale up and down with ease. These companies can then enjoy quicker, higher ROIs.

2. IoT Sensors

Another growing innovation in manufacturing is the implementation of internet of things (IoT) sensors. While these technologies aren’t a manufacturing-specific phenomenon, they hold considerable potential in this sector. Perhaps their most popular and impressive use case is predictive maintenance.

Predictive maintenance improves on traditional maintenance schedules by avoiding both breakdowns and unnecessary repairs. According to a Deloitte report, it reduces maintenance costs by 25% on average. That’s an impressive figure on its own, but it also reduces breakdowns by an average of 70%.

Considering that an hour of downtime costs more than $100,000 in 98% of organizations, that adds up to considerable savings. Predictive maintenance isn’t the only application of IoT sensors in manufacturing, either.

Manufacturers can also use these sensors to gather data points throughout their operations. This data can then reveal areas of potential improvement, enabling ongoing optimization. The longer manufacturers use these technologies, the more they can save through them.

3. Additive Manufacturing

One recent innovation that is specific to manufacturing is 3D printing, also known as additive manufacturing. While this technology is most well known as a tool for hobbyists, it originated as an industrial production technique. Recent advances have made it a more viable solution, leading to a comeback in industrial manufacturing.

Additive manufacturing lets manufacturers produce parts and products as a single piece instead of assembling multiple smaller components. Like mil-spec buffer tubes, which are made of a single piece of aluminum, this improves products’ strength and resiliency. As a result, they produce fewer defects, improving the company’s bottom line.

Since additive manufacturing adds material instead of cutting it away, it also reduces waste. Manufacturers can get more parts or products from the same amount of materials. 3D printers also typically work faster than traditional production techniques, leading to a quicker time to market.

Additive manufacturing is also more energy-efficient. Some products, like car batteries, require a lot of energy to handle the sensitive materials they need, leading to higher costs. By reducing energy consumption through additive manufacturing, facilities can increase their profit margins. Alternatively, they could reduce end prices, selling more with consistent profit margins.

4. 5G Connectivity

Like the IoT, 5G isn’t strictly a manufacturing technology, but it has impressive potential for the sector. 5G networks aren’t widespread enough yet to bring substantial improvements to the consumer sector, but they’re ideal for manufacturing facilities. Their higher bandwidth, increased speeds and lower latency let smart manufacturing reach its full height.

5G networks can theoretically support up to one million devices per square kilometer, ten times 4G’s limits. That will allow manufacturers to expand their IoT infrastructure to virtually every machine in the facility. Lower latencies will allow these interconnected systems to communicate more efficiently and reliably, unlocking Industry 4.0’s potential.

With all of these machines connected to one another, manufacturers could create cohesive autonomous environments. If a disruption occurs in one process, machines down the line could know and adapt to it, minimizing its impact. As a result, manufacturers could maintain higher productivity levels, minimizing their losses from lost time.

5G lets manufacturers use technologies like the IoT and automation to their full extent. This leads to higher ROIs for these significant investments.

5. Machine Vision Error Detection

AI has many use cases in manufacturing, but one of its most enticing is machine vision. Machine vision systems let manufacturers automate quality control processes at both the front and back end of production lines. This automation, in turn, improves the efficiency and accuracy of their error detection.

When Heineken installed a machine vision quality control system in its Marseille, France bottling plant, it highlighted this technology’s benefits. The facility’s bottling machine operates at 22 bottles per second, far too fast for human workers to spot any bottle defects without stopping it. The machine vision system, on the other hand, can analyze bottles at speed with a 0% error rate.

Machine vision error detection lets manufacturers increase production while maintaining the same level of quality. Since these systems deliver a level of consistency impossible for a human, they’re also more accurate. As a result, facilities will also produce fewer defects.

Fewer defects translate into less waste, and faster checking enables increased output. These factors combined result in an improved bottom line.

New Technologies Make Manufacturing More Profitable

These five technologies aren’t the only ones pushing manufacturing forward, but they are among the most notable. As more facilities embrace these innovations, manufacturing is becoming a more profitable industry.

Technologies like these improve efficiency, minimize errors, optimize operations and more. Manufacturers that can capitalize on them early will ensure their future success, and those that don’t may quickly fall behind.

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5 Major Trends Transforming mPOS Terminals Market Outlook Over 2021-2027

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Growing penetration of smartphones in conjunction with increased consumer proclivity towards UPI payment methods has led to the transformation of the payment landscape. The increasing card transactions across the globe are driving the adoption of mPOS payment solutions across various sectors including, hospitality, retail, healthcare, entertainment, etc. In March 2021, over 1.5 billion debit card transactions were recorded in the UK which represents an increase of 21.4% as compared to February 2021. A notable rise in the usage of card payments is expected to give a major impetus to mPOS terminals market over the upcoming years. The market size is projected to surpass USD 70 billion by 2027, cited the latest report by Global Market Insights Inc.

The industry growth is being further stimulated by the pivotal trends mentioned below:

Development of innovative solutions by market players

Various major players operating in the industry are inclined on developing advanced solutions that can suit the customer requirements and offer an enhanced experience. For instance, in 2021, Mastercard partnered with Global Payments Inc. and NMI to roll out the pilot of its first live Cloud Tap on Phone with Computer Engineering Group. This product is apparently Mastercard’s next-generation acceptance product, where the software is hosted on Microsoft’s Azure cloud platform.

Increasing consumer preference for cloud-based mPOS

Cloud-based mPOS terminals are observing mounting demand especially among small stores and restaurants owing to their low cost of installation and maintenance. These terminals require an efficient internet connection for carrying out payment transactions which reduce the need for costly infrastructure. The cost-effectiveness and space constraints encourage small merchants to deploy cloud-based mPOS systems.

Growing popularity of contactless payments

The massive popularity of contactless payment transactions due to the expansion of e-commerce sector and the emerging trend of card-on-delivery has accelerated the deployment of mPOS terminals. Consumers are now preferring contactless payment methods owing to more convenience and safety while performing transactions. Besides, the COVID-19 pandemic has also expedited the trend of contactless payments globally. For instance, effective from May 2020, the France government increased the limit on contactless payment from USD 35 to USD 59, on the recommendation of the European Banking Authority (EBA).

Increasing adoption in restaurants

Restaurants are increasingly adopting the mPOS terminals as they intend to enhance the customers’ dining experience. A large number of cafes, restaurants, bars and pantries are now investing in innovative POS devices to facilitate faster transactions during peak hours. For instance, in 2020, Shift4 Payments launched a contactless QR code ordering solution for restaurants. According to the company, this system provides restaurants with a customized QR code that can be displayed on placemats, table tents, etc. The customers can scan the code using their phone to access the menu and place an order. The order is then sent directly to the restaurant’s POS system.

Burgeoning demand in the hospitality sector of North America

mPOS terminals industry is witnessing significant growth in North America owing to the increasing adoption of POS terminals in the regional hospitality sector. The thriving travel & tourism industry has impelled the construction of various luxury hotels and resorts in the region. Citing an instance, in 2021, Wyndham Hotels & Resorts, Inc. announced the launch of a luxury hotel brand amid the recovery of the luxury sector from the pandemic. Several independent casinos, hotels, and resorts owners use mPOS solutions for providing the guests with a seamless experience and convenience while paying bills.

The industry will grow exponentially over the ensuing years as people around the world are showing great interest in more innovative and convenient ways of payments. This is indeed prompting numerous industrial sectors to invest in innovative POS solutions to meet customer demand. Increasing penetration of the internet and smartphones will further strengthen the mobile POS terminals industry landscape.

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Smart Cities of the Future Rely on Innovation, Critical Discussions

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In the Chinese city of Hangzhou, an AI-based smart technology called “City Brain” has helped reduce traffic jams by 15%. During the pandemic, New York City analyzed data related to spending pattern changes in specific neighborhoods to better allocate aid disbursement and investment priorities. And San Diego was lauded for approaching city-building with a “citizen-centric focus”, thanks in part to its use of mobile apps, and expansion of open data, along with its Get It Done citizen reporting tool.


 

Smart cities are sprouting up around the globe at an increasing rate, and they are quickly becoming model frameworks for future-ready urban centers seeking to level up how they collect and parse citizen data. What they all have in common is how they invest resources and time into developing city-centric solutions to address the wide swath of city challenges: waste and water management, public safety, transportation, air quality monitoring, traffic and parking, public works, municipal Wi-Fi, and more.

What the future of cities relies on, especially as they all recover from a devastating pandemic, is the innovation brimming across hundreds of projects built to answer a critical question: how can we leverage the data from smart city technologies to digitally empower cities to adapt and thrive?

When cities smarten up, everyone wins

For cities considering the pros and cons of adopting new technologies, it’s hard to argue with the data: By 2025, cities that deploy smart-mobility applications have the potential to cut commuting times by 20% on average, with some people enjoying even larger reductions, a McKinsey report found.

Take the sprinkler your neighbors automatically ran this weekend after it rained. If cities deployed sensors and analytics to water consumption patterns, which pairs advanced metering with digital feedback messages, it can urge people toward conservation and reduce consumption by 25% in cities where residential water usage is high. While currently, much of this IoT technology and data is owned by the private sector, it’s critical to bridge this gap in order to help the public better understand their behaviors and impact through data. Additionally, access to this data will enable cities to make better decisions about public resources and amenities.

The more data a city can collect about its citizens’ habits, the more sense they can make of which resources can be allocated where. And it can save lives, too. In Nevada cities, Waycare’s predictive AI delivers an 18% reduction in primary crashes and a 43% reduction in the percentage of speeding drivers along key corridors.

Some cities haven’t caught up to the shining examples of layering data collection and real-time analysis in urban centers. More often than not, they are encumbered by bureaucratic and outdated approaches to data collection.

There’s a disconnect between the municipalities and corporations that may have IoT data and the stakeholders, including those same cities and private developers who could benefit from it, too. Same-old strategies on data gathering, such as physical surveys and endless meetings to pick at each process, should be phased out, and allow for an intermediary to help finesse the conversation between those three pillars of city development.

Also, cities have to address the unease some people may feel about surveillance technology, for example. In China, where that tech has long been the norm, they’re even anxious about how their data will be used by their government: According to a recent survey by tech firm Tencent and Chinese state broadcaster CCTV, nearly 80% of respondents said they worried about the impact of artificial intelligence on their privacy.

Pandemic’s curveball could end up being a home run

If there’s any hand wringing over the state of cities due to the havoc wrought by the pandemic, urban theorist Richard Florida offers some comforting words: “Cities have been the epicenters of infectious disease since the time of Gilgamesh, and they have always bounced back—often stronger than before.”

Some insiders believe that as much as the pandemic crippled supply chains and shut down business sectors across communities, it brought a few silver linings. Data collection strategies accelerated immensely, whether from health care departments or government agencies. The continuing trend of leveraging Internet of Things devices, which connect to each other quickly and remotely, also gave rise to intriguing pairings.

At the state and infrastructure levels, AI and machine learning will likely be matched with IoT for even closer social monitoring as pandemic warning and control systems are established, notes a report from research firm MSCI.

As broadband use skyrocketed during a year of work-from-home policies, rollouts of 5G networks continued at a brisk space, and even picked up in areas that needed high-quality connectivity as soon as possible. Building that underlying network is fundamental to enable seamless adoption of technologies at the heart of smart cities of the future.

Going forward, city planners and developers will work with datasets from businesses who layer various granular data on heat maps via an analytics platform. Understanding the correlation between income levels and access to certain retail, like grocery stores, or access to transit and parks where a neighborhood’s density is rapidly increasing, may be opportunities for cities to identify community needs and work with developers on new projects.

“Six key groups of people should be at the table to discuss where smart cities go from here,” says Chelsea Collier, founder of Digi.City, a consultant specializing in smart city technology.

Those groups should be:

-Government bodies, from local to federal

-Educational institutions, from kindergarten to post-secondary

-Startup entrepreneurs to bring subject matter expertise to the discussion

-Artists and creative who can fuel projects with outside-the-box solutions

-Social sectors such as nonprofits and advocacy groups

-and communities and their citizens

“When everyone listens to each other’s perspective, it’s more useful than just working towards someone’s agenda,” adds Collier.

The smarter the city, the more it’s open to how various sectors, private and public, can drive innovation and growth forward. The future of cities will be written by those players who look beyond their own personal missions and instead cast a wide net to strengthen neighborhoods adapting to a strange post-pandemic era fraught with challenges.

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Sara Maffey is the head of industry relations at Local Logic, a location intelligence platform that digitizes the build world for consumers, investors, developers and governments. Local Logic delivers an unrivaled clarity and actionable insights capable of creating more sustainable and equitable cities.

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Archives, Global Logistics, Global Trade Daily, Warehousing

6 Innovative Trends in Warehouse Technology

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Gone are the times when warehouses were simple hangars full of stuff. As technology progresses, new, ingenious solutions see the light of day. Some see daily usage across the globe. Others await further development to become viable. Yet, both have one thing in common: they’re revolutionizing the warehousing industry. Today, we’re focusing on innovative trends in warehouse technology already in use. The ones you can implement today to make your warehouse more efficient and effective.

Trend 1 – Goodbye, clunky Excell sheets!

People in the warehousing industry already know about Warehouse Management Systems (WMS). This is one of the innovative trends in warehouse technology already in widespread use. And not without reason.

WMS is a set of software and protocols designed to manage and optimize warehouse performance. It places complete control of your warehouse at your fingertips, thus helping you:

-Save money on labor and operating costs;

-Increase warehouse productivity;

-Improve accuracy and inventory visibility;

-Improve workforce management;

-Make inventory, shipping, and labor management more efficient.

However, WMS’s biggest strength is adaptability. You can either integrate it with existing systems or have it operate as a standalone unit. Therefore, whether you’re starting from scratch or you’ve been in business for years, you can definitely benefit from it.

Trend 2 – Automation and Robotics

The usage of automation and robotics isn’t new, per se. Various industries already use both to a larger or lesser extent. However, this trend wasn’t so popular in the warehouse industry up until recently. In the wake of the Coronavirus, many companies had to adapt their modus operandi. The focus shifted to reduce human contact while retaining efficiency. Automation and robotics were the logical choices. But, aside from keeping your warehouse operational, integrating both can help you:

-Reduce labor costs;

-Optimize the space;

-Increase productivity;

-Increase throughput.

When combined with employees, automation and robotics can dramatically increase the efficiency of your facilities. In some cases, even up to 100%. Now, that’s a productivity spike every prospective businessman dreams of.

Trend 3 – Picking matters

Order picking is an integral and indispensable part of operating the warehouse. It’s also tedious, inefficient, and prone to mistakes. Unless, that is, you integrate Wearables and Smart Picking Technologies. Aside from acting as a picklist, a combination of these technologies provides more convenience for both you and your customer. But, it also vastly increases the safety, efficiency, and effectiveness of your warehouse. Furthermore, it eases the burden on your employees, thus allowing them to focus on more pressing matters.

Trend 4 – “Tell” your warehouse what you want it to do

The combination of previous technologies gives you unparalleled control over your facilities. As such, you’d think it’s efficient enough. Well – not quite. There’s always room for improvement, and, in this case, it comes in the form of Voice Activation Technologies. This technology is already seeing widespread use. It’s functional enough, easy to use, and super convenient. After all, why would anyone sit in the office, clicking and typing thousands of times, when they can simply tell the warehouse what to do?

Trend 5 – “Smartify” your warehouse

The advancement of smart technologies opened a world of possibilities for various industries. Of course, warehousing didn’t fall short, either. In fact, all innovative trends in warehouse technology we listed can utilize smart technologies, in one way or another. Today, with only the internet and a smart device, you can manage an entire industrial complex. Without even setting foot on the premises. But, comfort and convenience aside, smart technology comes with many more benefits. The most notable ones are:

-Ability to track cargo or product in real-time;

-Data accessibility and transparency;

-Visibility and access to operation(s) 24/7;

-Improved worker productivity;

-Lower equipment downtime.

When combined with mentioned trends, smart technology allows for incredible versatility and flexibility, the two things necessary for the growth and evolution of every business.

Trend 6 – Go renewable to remain profitable

Warehouses consume copious amounts of energy to operate, even more so if they run temperature-controlled or refrigerating units. And even more than that, once they start implementing other modern technologies from this list. Needless to say, this can lead to some serious utility bills. That’s why many warehouse companies today focus their efforts on renewable energy sources – mainly solar power.

A warehouse, as a structure, allows for the incredible use of solar panels. Huge roofs are an ideal place to install a not-so-small solar farm. This, in turn, lets you create a semi-self-sustainable operation, thus cutting your operating costs significantly. And, as a welcome side-effect, it also increases the value of the building itself. So, renewable energy sources are an excellent long-term investment.

Tomorrow starts today

Living in the age of information, we witness the birth of new, amazing technologies daily. Many of them contribute to our lives, both personal and professional. But only if we’re willing to accept, implement, and change with them. Because, as much as we depend on technology – it depends on us, too. Therefore, following innovative trends in warehouse technology is more than a whim. It’s the future of the industry and a necessity.

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Erik Waidhofer is a freelance author with over 15 years of experience in moving, warehousing, and shipping industries. When he’s not writing for Fairfax Transfer and Storage and other moving companies, he enjoys woodworking and watching old movies.

industry
3pls, Archives, Global Logistics, Global Trade Daily

How to Lead When the Industry is Volatile

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In 2011, Prince William was marrying Kate, investors’ eyes were on Greek Prime Minister George Papandreou, and global trade experts were predicting a volatile 2012.

A decade later, Prince Harry just welcomed his first child with Meghan, Greece is still in the EU, and global trade experts are predicting a volatile 2022. 

As the saying goes, don’t wait for the storm to pass — just learn to dance in the rain. For the global trade industry, this translates into: get used to the volatility.

To build a truly sustainable supply chain in an era where the only stable prediction is instability, company leadership must embrace flexibility. Creating an agile organizational structure that’s ready to adapt at the drop of a hat (or the obstruction of a barge) ought to be considered a critical task for any workforce in the industry. Because — and this is the last quote I’ll reference, I promise — as General Electric’s Chief Innovation Officer Sue Siegel said in a 2018 keynote address, “The pace of change will never be as slow as it is today.”

The experts, however, got the cause of the volatility wrong back in 2011 — they thought it would be inflation. Who would have predicted the COVID-19 pandemic, or the Suez Canal disaster? 

Company leaders who pay attention to the growing data on worker productivity and how they rate their satisfaction on their work/life balance will continue to embrace work-from-home culture (now referred to as WFH by those in the know), instead of dismissing it as a temporarily allowable measure during the pandemic.

Within my own company, until last year we enforced a strict policy of keeping computers at the office — we’d decided the risk of damage during transit and at home was just too great. The pandemic forced us to reverse that policy in an instant, on a Thursday in March, without time to prepare. But we haven’t had to replace any equipment yet; it turns out adults can be trusted to take care of their valuables — and to roll with the punches. When I reflect on the resiliency our employees have demonstrated over the past year, I’m amazed.

In fact, I think the first subheading in the economy section of the 2020 history books will be “WFH.” Employees appreciate the flexibility, and those who benefit from mental and physical health-related workplace accommodations are thriving under the ability to create their own schedule and work environment. 

Meanwhile, COOs are shaking their heads wondering why we’ve been paying for all this office real estate over the years.

Leadership coaches have long preached that innovation is prevented when you’re comfortable with structure, and 2020 forced every member of the team to learn this lesson head-on.

Another takeaway for company leadership that the talking heads have been leaving out of their morning segments is that providing total visibility to clients and customers is the first way to ensure viability during a disaster. Yes, you may get an earful at the time when delivering bad news — but they’ll appreciate it in the long run (and trust you more for it) because a sugar-coated status report doesn’t allow managers to make the best decisions possible for their projects. 

Time for one more?

Those whose leadership style leans toward positivity were more likely to see their staff weather the 2020 storm. In a crisis, employees want to grab onto hope — it’s your duty to serve as their cheerleader. At the same time, make sure you have an outlet to vent that frustration away from work, lest you compress yourself into a powder keg that creates an entirely different problem down the line. 

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Richard J. Bolte, Jr. was born in Philadelphia in 1957 and joined BDP International in 1973. Throughout his 47-year career with the company, he has held positions covering a broad range of the firm’s operations in global logistics and transportation. His formative experience at BDP centered on ocean exports and supply chain management, with particular emphasis on company operations. Rich was Vice President of the company’s Northeast Region before taking the position of Chief Operating Officer. In 1996 he was named President of BDP International.
 

In 2006, Rich Bolte was named BDP’s Chief Executive Officer; and subsequently, in 2013 the Board of Directors appointed Rich as BDP’s Chairman & CEO. He now serves as the organization’s Chairman to the Board. Rich championed BDP’s global expansion, and the company now employs nearly 5,000 employees in 135 offices throughout nearly 40 countries. He can be reached at rich.bolte@bdpint.com.

OKR
Archives, Global Trade Daily, International Trade

Four Ways the Supply Chain Can Utilize OKRs to Achieve Digitalization

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The fourth Industrial revolution is driving the creation of a more connected ecosystem within a variety of different functional areas. Organizations are re-shaping their supply chain strategies to move toward entirely integrated boundaries and to become increasingly transparent in their business practices which leads to supply chain management (SCM) 4.0. Digitizing the supply chain is an SCM 4.0 movement towards a completely integrated sequence of planning and production solutions that work in tandem to create a more visible supply stream across each touch point of the entire value chain.

According to the MHI annual report, 80 percent of supply and manufacturing industry leaders believe supply chain digitization will be the norm in five years while 16 percent think that day is already here. This trend isn’t new, but what is catching the attention is the introduction of OKRs to manage supply chain strategies towards digitalization.

OKRs – Objectives and Key Results – have been used by some of the world’s leading organizations for years now. The aim behind setting up OKRs is to manage strategies, increase employee-company vision alignment, foster transparency and encourage a focused and streamlined approach towards goal attainment. OKRs in supply chains help organizations align strategy and enable business capabilities to accelerate growth.

Road to Supply Chain Digitalization

Supply chain leaders who achieve supply chain digital transformation successfully integrate well-established business capabilities with emerging digital innovation. By first developing foundational supply chain capabilities and then incorporating proven business and technology innovations, leading supply chains are able to move beyond exploration to integration and optimization.

End-to-end transparency is the ultimate goal for a number of supply chain operators, as the crucial component to achieving significant efficiency gains. In a system with end-to-end transparency, every member of every business process along the supply chain network has access to all information leading to improved visibility and providing full control along the chain.

To achieve these ambitious goals and blend digital capabilities with supply chain visibility, Gartner mapped out a three-step plan for supply chain digital transformation as below:

-Embed supply chain in the digital ecosystem

-Implement autonomous supply chain

-Synchronize with digital business

However, a recent McKinsey Global Survey reports that just 14 percent of the respondents state that their supply chain digital transformation efforts have made sustained performance improvements. This is an incredibly low number, which alarms there are still challenges to either implement or sustain the digital transformation.

Digitalization Obstacles

The new global research survey went on to investigate the main obstacles organizations have so far encountered on the digital transformation journey.

-44 percent of executives reported a general lack of awareness throughout the internal ranks of their own organization

-39 percent also noted a lack of the required skills across their workforce

-50 percent of respondents said that their supply chain partners lacked the necessary awareness

-42 percent said their supply chain partners lacked the required skills

–70 percent of all digital transformation initiatives do not reach their goals (Tabrizi et al., 2019)

These obstacles appear to slow down progress outside the four walls of the organization (e.g. suppliers, partners) as well. OKRs aim to address the strategy and non-technology-related digitization challenges to seek integration and collaboration and gain efficient performance management.

OKRs in Supply Chain Digital Transformation

The executive leadership has already started looking at OKRs as the option to sail through most of the strategic digitization challenges. Here comes the major opportunity for OKR driven by supply chain digitalization that includes managing the digital transformation strategy, focussed vision, transformation alignment, and providing end-to-end organization visibility for the digital transformation.

Strategy Execution

Supply chain digitalization is not just about technology; it should be guided by a broader strategy and a mindset of change. This is related to applying the right strategy to match digitalization and focal firms, supply chain actors (such as multi-tier suppliers, multi-tier customers) based on different approaches at different development stages. A retailer, for example, might define its supply-chain digitalization strategy with respect to its aims for enhancing customer experiences: “Provide customers with the seamless digital shopping experience.” In such a case, OKR acts as the strategy management framework to define and manage such overarching company strategies to handhold the transformation execution.

Focused Vision

The vision for supply chain digitalization provides the organization with reference points for the second step in transformation planning (aka strategy execution): a comprehensive assessment of how the objectives need to be met. To make the assessment simpler, organizations need to define the performance measurement goals (also known as key results), which complete the company’s vision for its transformed supply chain.

Setting performance goals requires a company to gauge its current performance and then determine achievable improvements. A company that aims to reduce lost sales by a specific amount, for example, would need corresponding supply-chain performance goals—improving the speed and reliability of shipments to customers. Such goals can be defined as key results in OKRs and can be measured and tracked in terms of agility, service, capital and cost measurements.

Transformation Alignment

Digital transformation is not a simple IT-enabled organizational transformation; it is about the alignment of different supply chain touchpoints with organizational strategic objectives, structures, core values; and structuring and implementing supply chain processes reengineering. Ultimately, the supply-chain vision should be aligned with the company’s strategic goals. While the need for such alignment has always existed, what’s new is that both the strategic goals and the vision can be connected and interlinked to measure the execution through OKRs.

End-to-End Organization Visibility

A 2016 report by IDC predicted that 70 percent of siloed digital transformation initiatives would ultimately fail. An effective transformation depends on a transparent, forward-looking concept for the future supply chain. Visibility is extremely important to these organizations as it can play a major role and help guide organizations through transformation challenges.

OKRs create clarity and provide transparency in supply chain digitalization goals throughout the organization and supply a real-time progress report via frequent check-ins and updates. This key result heartbeat is important to ensure that corrections can be made in real-time to accommodate the ever-increasing speed of business. This means thinking about the outlook for the company amid the pressures and trends that influence its competitive situation, as well as the changing expectations of its customers.

How Do You Ensure OKRs Are Adopted and Stuck To?

It actually comes down to the solution that an organization adopts. Digitalizing the supply chain starts with digitizing the supply chain transactions including the OKRs. If OKRs are not recorded, they are set and forgotten about. If they are simply entered on excel, it would be a colossal admin task to maintain. By recording the OKRs on a digital platform like Profit.co where everyone can view whenever they need to, targets and performance stay in front of mind and the information can be made at the fingertips.

Conclusion

Organizations reap greater benefits when they develop a comprehensive vision for the future of their supply chains, carry out a disciplined assessment of existing performance, and draw up a long-term transformation road map. Business leaders find OKRs to be an effective mechanism for establishing strategies, defining goals, setting priorities, and ensuring that the activities are connected to those digital transformation goals. They should also recognize that supply-chain transformations must extend to both technology and operations. Organizations that employ these approaches amalgamated with OKRs for supply-chain digital transformation stand a better chance of capturing the full value that digital technology can provide.

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Bastin Gerald is the CEO and founder of Profit.co, an intuitive cloud-based SaaS platform, integrating OKRs and task management plus 300 other data-driven metrics to help companies successfully implement the model and reach new heights. Profit.co helps companies focus, align and engage teams for optimal productivity and company success. To learn more, visit https://www.profit.co/.

References

https://www.solvoyo.com/digital-transformation-journey-in-supply-chain-planning/

https://www.altamirahrm.com/en/blog/okrs-for-business-growth

https://www.gartner.com/en/supply-chain/insights/supply-chain-digital-transformation

https://www.workpath.com/magazine/how-to-write-good-okrs

https://www.eazystock.com/blog/supply-chain-digitalization-future-scm/

https://www.mhi.org/publications/report

https://www.mckinsey.com/business-functions/operations/our-insights/digital-transformation-raising-supply-chain-performance-to-new-levels

IT
Archives, Global Trade Daily, Software

Why Strategic IT Should be at the Top of Every Executive’s Priority List

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To say that technology has been important to business survival in recent years is certainly an understatement. In 2020, 70% of United States employees worked remotely, teams and customers relied on virtual tools to communicate, and a dispersed workforce led to additional concerns about cybersecurity. The result has been not only an increased use of technology, but also a heightened awareness of its role in driving strategic growth – and a long-overdue need for business leaders and executives to add strategic IT experts to their roster of trusted advisors.

From early in the pandemic, technology was inextricably linked to business success; in a world of physical disconnection, there was no longer a choice when it came to digital transformation. The truth, though, is that technology has been influencing the way we do business for decades. Consider the most mission-critical processes in your company; chances are every single one of them involves technology. From client onboarding and team communication to record-keeping and strategic planning, tech is not simply a part of your business – it is the foundation upon which it is built; an essential part of optimizing productivity; and the glue that holds teams, organizations, and customers together regardless of how or where they’re working. As you look towards resurgence and growth, you should be treating your tech just as you do any other foundational pillar – with strategic thoughtfulness and the expert input of business-minded advisors.

Making the Right Business Decisions About Technology: Four Key Considerations

While the importance of technology is more apparent than ever now, the ideal implementation of it within your business may not be so clear. With so many tools, vendors, and applications to choose from, finding the right ones for your company requires not only a willingness to embrace innovation but also the ability to marry technology to overarching business goals. When you do, technology becomes a competitive advantage that lets you work smarter, faster, and more productively: at companies that prioritize making tech highly accessible to their teams, employees spend 17% less time on manual processes, collaborate 16% more often, and make decisions 16% faster. As you consider how to make the right technology choices for your company, here are four key factors to consider:

1. Cybersecurity

Leaders have long known that cybersecurity was a necessary element of their IT support; organizations must have good cyber hygiene, or they could suffer loss of data, money, and reputation. Recently, however, a spike in cyber-attacks has begun to create a heightened awareness of the breadth of cybersecurity – so much so that the Department of Homeland Security recently launched a web page dedicated exclusively to addressing the challenges of increased cyber-threats. Cybersecurity efforts should go much deeper than firewalls and antivirus software; they should be built from a deep view of your entire environment to make sure you are accounting for security in every possible way. How far back should your backups go? Too far and you risk an outdated recovery point. Not far enough and you could lose a swath of critical data in one fell swoop. Is every employee trained in how to spot potential cyber threats? If not, they could easily and unknowingly compromise your company’s security. How many offices does your business have? How many remote employees? How do they need to communicate, and how sensitive is the information they’ll be sharing? All of these questions – and many more – should be at the forefront of your conversations with your technology advisors.

2. Data analytics

Data is the bread and butter of any company. It tells you who your customers are, how your team is functioning, your profit margins, your inefficiencies, the list is practically endless. As your company pursues overall growth goals, there is perhaps no more impactful IT consideration than data analytics. A consumer population that just spent a year and a half reassessing and reprioritizing is already proving unpredictable, and the deeper level of understanding that data analytics can provide will be crucial to ensuring you are addressing what may be brand new pain points – and winning their business. A skilled technology advisor can help you pinpoint the data that will drive your business goals and deliver it to you in a way that helps you make more informed business decisions more quickly. For our clients, we create custom dashboards to relay data about both their company and their industry at large, giving them a multi-layered analytical view of their business that helps them make research-backed decisions that directly drive revenue, productivity, and growth.

3. Automation

Automation can have a huge impact on labor and cost by allowing staff to devote their time and focus to the most complex tasks. In some cases, it can even eliminate the need for additional roles. With a record-high number of businesses reporting trouble hiring right now, this is critical to streamlining operations and progressing toward business goals with fewer staff. The idea of automation is nothing new for executives; it’s likely been discussed among their leadership team for years. What many may not realize, however, is how much it has evolved – and how cost-effective it has become – since those discussions began. The automation tools that used to require expensive, custom development are now simple enough for employees to build them with fairly minimal guidance. It’s estimated that nearly half of all work tasks can be automated by current technology, so working with your advisors to identify opportunities to automate can have a huge impact on your company’s efficiency – and bottom line.

4. Strategic IT consulting

As a business owner, you shouldn’t have to try to keep up with the rapid pace of changes in technology – and with so many other responsibilities on your plate, chances are you couldn’t even if you did try. Your IT team should be more than providers, they should be strategic and holistic advisors in the same way your accounting, financial, and legal advisors are. That means not only keeping you informed about the changing tech landscape, but also helping you connect IT solutions to your overarching business goals by talking to about your company, not just your technology. Do you have plans to expand? What type of growth do you anticipate in your products or services? What are your business goals over the next 12 months? What is your current market share and who are your competitors? What do you wish you were doing better? These are the meaningful, goal-based conversations your IT advisors should be leading to make sure your technology isn’t just working in the background of your business but is actively and strategically driving it forward.

Your Tech is Your Advantage

When you treat technology as a standalone concern – or worse yet, an afterthought – you miss out on the opportunity to leverage it as a major competitive advantage. The technology your company relies on isn’t just about new tools or security or even remote environments; it’s about all of these things working in tandem to move your business forward – not just toward safe and seamless tech, but towards your larger goals for revenue and growth.

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About Anders CPAs + Advisors

For 55 years, Anders has delivered full-service accounting, tax, audit and advisory services to growth-oriented companies, organizations, and individuals. For 26 years, the Anders Technology team has helped businesses across all industries leverage technology to innovate, transform, and improve their bottom lines. Guided by an experienced team of advisors, Anders Technology is a Microsoft Gold Partner, the highest level in the Microsoft Partner Network. For more information on Anders, visit anderscpa.com and follow us on Twitter, Facebook, LinkedIn, and Instagram: @AndersCPA.

About Julia Deien, Microsoft Certified Professional

As a solutions architect and Microsoft Certified Professional, Julia helps organizations achieve their growth by matching technology solutions to business goals. This happens through collaborating with clients and analyzing their technology needs and business processes. Using her expertise in the Microsoft cloud platform and industry knowledge, she consults, designs, and implements technology strategies to help Anders clients not only understand their business’ technology, but maximize its full power.

About Jason Gotway, VSP5, VMTSP, VCP550

Jason is a solutions architect and team lead with over 10 years of experience in technology and cybersecurity. Using his knowledge of methods used by cybersecurity hackers, Jason educates companies and individuals on best practices for staying safe in all things cyber and implementing efforts to avoid cybercrime. He works with businesses to develop customized cybersecurity strategies to keep their company and employees safe and productive, whether they work in-office or remotely.