Coronavirus: Five strategies for industrial and automotive companies
To rebound from the coronavirus pandemic, industrials must undertake a journey that begins with resolve and ends with fundamental reform.
By Joe Dertouzos, Heike Freund, Michael Mischkot, Asutosh Padhi, and Andreas Tschiesner – We are still in the early stages of a global health crisis resulting from the coronavirus pandemic. Protecting lives is the first priority, but we must also protect our livelihoods. For automotive and industrial companies, surviving and emerging stronger at the far end of this crisis will require thinking beyond the next fiscal quarter. Success in the long run will require a journey across five stages: Resolve, Resilience, Return, Reimagination, and Reform.
The first stage, Resolve, involves determining the scale, pace, and depth of action required. To do so, companies in advanced industries must take the following steps:
- establishing a nerve center to steer the organization, serve as the information hub, manage risk and responses, and align all stakeholders
- protecting employees by making their health the paramount concern and adjusting production as needed
- screening and safeguarding the supply chain by understanding risks and taking action to address disruption
- adapting marketing and sales by identifying and mitigating the risks of declining sales while meeting critical customer needs
- maintaining financial health by improving liquidity, reducing costs, and establishing a spend control tower
During the Resolve phase, companies must also make difficult choices, such as suspending production facilities, suspending discretionary spending, and furloughing workers. These decisions will require a comprehensive understanding of the situation, including data-driven scenarios for market evolution.
Consider the automotive industry. It is difficult to predict how the pandemic will affect sales in the European Union and the United States, two regions where coronavirus penetration is still emerging. We draw insights about potential developments by looking at the evolution of auto sales in China over the first quarter, since this country has already “bent the curve” and begun to recover from the coronavirus.
As industrials experience virus-related shutdowns and economic pressures, they should move quickly to address near-term cash management challenges and broader resiliency issues. more>
Posted in Business, Economy, Education, Healthcare, History, How to, Nature, Science, Technology
Tagged Business improvement, Earth, Financial crisis, Health, McKinsey, Pandemic, Skills
Redefine the Line: How automotive trends are changing the ways we move from point A to B
By Tarun Tejpal – The automotive industry has been one of the most dynamic and exciting incubators of technological and product innovation in the modern world. A unique mix of investment, consumer interest, and industry competition has driven this dynamism with a constant search for the next feature, style, or capability to capture the public imagination. At the 1964 New York World’s Fair, General Motors (GM) hoped to capture such interest with the Firebird IV concept car. GM explained, then, that the Firebird IV “anticipates the day when the family will drive to the super-highway, turn over the car’s controls to an automatic, programmed guidance system and travel in comfort and absolute safety at more than twice the speed possible on today’s expressways.” (Gao, Hensley, & Zielke, 2014).
GM’s vision of the future was striking and exciting, but the technology did not yet exist to make it a reality. Ford took a different approach to generating buzz in the market, focusing on the present. Instead of forecasting a future of self-driving cars and super highways, Ford launched a car for “young America out to have a good time”: the Mustang (Gao et al., 2014). It engaged the new generation by providing both transportation and personal expression in a stylish, highly configurable, and inexpensive package. Ford estimated it would sell 100,000 Mustangs, but one year after the launch it had sold over 400,000 (Gao et al., 2014).
Vehicles are now a central feature of everyday life. Since 1964, global vehicle sales have grown by nearly 3 percent on average each year, nearly double the rate of population growth, resulting in one billion vehicles on the road today (Gao et al., 2014).
However, large-scale trends, such as a surging Chinese automotive market, electrification, and urbanization, are beginning to affect the form and function of vehicles and personal mobility systems. more>
Posted in Business, Economic development, Economy, Education, History, How to, Nature, Net, Science, Technology
Tagged Auto industry, Business improvement, Internet, PLM, Productivity, Program Lifecycle Management, Siemens, Skills
By Mira Rapp-Hooper – As people around the world fall ill, global markets convulse, and supply chains collapse, COVID-19 may also reorder international politics as we know it. No analyst can know when this crisis will end, much less divine the world we will meet at its conclusion. But as scholars have begun to note, it is plausible that China will emerge from the wreckage as more of a global leader than it began.
Following World War II, the United States was a chief architect of the so-called liberal international order and became its uncontested leader with the Cold War’s end. China, with its breathtaking economic growth and vast increases in military spending, has been on the ascent for decades, but long remained focused on domestic stability and the security of the Chinese Communist Party. It clambered to center stage after 2008, when the global financial crisis appeared to signal a weakening of American primacy.
China and others took the American financial stumble as a blunder of democratic capitalism, and a moment of opportunity to advance their own agendas. Under Xi Jinping, Beijing has seen the last decade as a period of “strategic opportunity” — one it did not necessarily expect to last, as it faces its own expected economic and demographic slowdowns. It built military bases in the South China Sea in contravention of international law, launched the vast and opaque Belt and Road Initiative to spread economic and political influence, doubled down on the state’s role in the economy and prejudicial policies, and coopted international human rights bodies. Along the way, it began to develop its own global governance aspirations and visions.
With the election of Donald Trump, the United States widened Beijing’s window of opportunity with its self-inflicted political convulsion. To China’s great fortune, American foreign policy was now expressly hostile to multilateral institutions, bellicose on trade, and defined national security in terms of narrow, homeland defense. To experts in the United States and abroad this looked like a willing abdication of the system the United States had constructed and led. But alongside these fears, and in another significant shift, foreign policy thinkers from both major parties increasingly agreed that the United States and China had entered a period of a great-power competition, in part, over the future of the international order and which power would set its terms.
Alone, the United States could not hope to match China’s economic and military heft in Asia. With allies by its side, America could remain peerless and manage peaceful change. Narrow unilateralism stoked renewed perceptions of further American decline and attenuated an otherwise favorable balance of power.
Enter the novel coronavirus.
It should be stunning that a virus that originated in China and spread in part due to Chinese government mismanagement may reorder the world to Beijing’s advantage, as Kurt Campbell and Rush Doshi have argued. more>
Posted in Book review, Business, EARTH WATCH, Economic development, Economy, Education, History, How to, Nature, Science, Technology
Tagged China, Economy, Health, Pandemic, United States, world order
We’re not going back to the ‘normal’ we had before coronavirus
Our global managing partner Kevin Sneader joined Andrew Ross Sorkin on CNBC’s “Squawk Box” Wednesday, March 25, to talk live about the business implications of the coronavirus pandemic. The full interview is available now at CNBC.com. You can read all of our material on the crisis at our coronavirus insights page.
By Kevin Sneader – One thing is clear from all the conversations I’ve had: nothing is going to be the same. This is a new normal, a different way of operating.
I think for our clients, they’re worried about their employees, their customers, and cash—in that order. And they are worried about cash. Even in the health care sector, there are providers who are not getting paid right now, and they’re worried about cash flow just as players in several other sectors are.
Another reality they’re all dealing with is that people keep sending them scenarios as to how this could play out. The message we’re hearing is that the scenarios are helpful, but leaders are wondering what’s going to be true across all these scenarios. Because if it’s not going back to the way it was before, what’s the next normal? What’s the way in which we’re going to have to operate?
The reality is that consumer behavior is changing fundamentally, and so much else is changing, and the question is, “will it go back?” I think the answer in many cases is “no.”
If you think about a lot of what’s happened in the last few years, some of it’s going to be reinforced. The shift [to working] online has now been given a boost, and it’s hard to see that being taken back to where it was before.
At the same time, I think one of the biggest shifts will be the way that products reach us. For many years, we and others have been focused on efficiency: how efficiently can I run my supply chain? I think now there’s going to be a lot of conversation about, how resilient is my supply chain? more>
Posted in Business, EARTH WATCH, Economic development, Economy, Education, Healthcare, How to, Nature, Science, Technology
Tagged Business improvement, Health, Internet, McKinsey, Pandemic, Skills, Supply chain, Technology
Single-wave 400G across 4,000km? Yes – with Ciena’s new Waveserver 5.
Ciena’s popular family of Waveserver products just got a new member – Waveserver 5. With tunable capacity up to 800G and support for 400GbE services at any distance, learn how Waveserver 5 is already setting new industry benchmarks – in live networks.
By Kent Jordan – Two mega-trends have been driving rapid innovation in optical networks. Advanced coherent technology brings the promise of greater network capacity, now reaching up to 800G across short links and 400G at distance. At the same time, new compact modular platforms promise greater density, reduced footprint and lower energy consumption.
What if you could combine this incredible performance and awesome density into one device? Sounds too good to be true, right?
Well not anymore. Ciena’s most advanced coherent technology, WaveLogicTM 5 Extreme, has arrived in the newest member of our Waveserver family of interconnect platforms: Waveserver 5. And, it’s bringing the performance you need, packaged in a compact and efficient footprint.
Combining the world’s most innovative coherent chipset with the simple, server-like operational model the Waveserver family is known for, Waveserver 5 provides network operators with industry-leading transport economics for high-capacity, high-growth applications.
Internet2 will be one of Ciena’s first customers to deploy Waveserver 5. They are building out their next-generation research and education (R&E) network across the U.S. and they have selected Ciena’s best, most flexible, open and highest-performance technologies to do the job. more>
Posted in Broadband, Business, Communication industry, Economic development, Economy, Education, How to, Net, Product, Science, Technology
Tagged Broadband, Business improvement, Ciena, Fiber optics, Internet, Skills