the World Economic Forum. I'm joined today by my colleague and friend, Enno de Boer from McKinsey, who is right now with us in our TV studio in New York. Enno, a very warm welcome. Thank you, Francisco. It's a pleasure to be hosting this event with you today. In the current geopolitical context, local manufacturing and supply chain resilience are becoming increasingly important. At the same time, organizations face new obstacles as they strive to engage their workforce and sustain operations amidst international unrest. Furthermore, there are new pressures related to the need to maintain sustainability commitments and accelerate the transition towards renewable energy while addressing more immediate energy market disruptions. These concurrent challenges call for innovation and leadership and inspiration. What we actually need is a guide, a guide to help organizations find a path forward and be able to navigate two days unchartered waters by leveraging technology-enabled operations. The members of our global lighthouse network have inspired the development of such a playbook and we will share our main learnings with all of you today. We will also welcome the newest members of the network which has grown to over 100 sites. A hundred lighthouses? That's an impressive number, you know. There are many among our audience who are joining us for the very first time on our Lighthouse Life event. Francisco, could you give us a quick introduction to the Global Lighthouse Network? Absolutely. The Global Lighthouse Network is a community of production sites and value chains that are world leaders in successfully adopting the cutting-edge technologies of the forced industrial revolutions. Lighthouses are using these technologies to maximize efficiency and competitiveness at scale. They are transforming business models and driving economic growth and they are improving workforce engagement while delivering environmental results and boosting productivity. That's right, Francisco. The old belief that companies couldn't achieve environmental impact and productivity at the same time is just wrong. The Lighthouse proved that it's possible to do both at the very same time. Actually, the COVID-19 pandemic has sped up digitization efforts in so many areas and ways. To achieve impact and results, companies need to adopt technologies at scale and avoid pilot purgatory. Eno, why don't you tell us a bit more about this? Well, you're right, Francisco. It's important to move quickly and at scale to escape the pilot trap. Many of our Lighthouses are tackling several business problems with digital at the same time. So I'm super delighted to welcome today our first two procurement Lighthouses. What really sets our Lighthouses apart from others is that they are not pursuing growth at any cost. Instead, they have a responsible approach. They engage their workforce and drive environmental sustainability at the same time. We will be announcing three new sustainability Lighthouses today. These companies show us how to reduce environmental impact. Why are these Lighthouses so successful? Because they have, from the very, very start, put the people at the center of the digital transformation. It's all about how you engage the workforce. Our second panel discussion today will focus on exactly this topic. Our new report, the Playbook for Responsible Industry Transformation, highlights all of this. It gives insights on how companies can scale for our technologies to not only achieve greater operational performance, but really to do this in a responsible way. Well, thank you, Eno. The companies we're about to meet have demonstrated that this Playbook actually works. And I'm delighted to start welcoming the new members that are joining our Global Lighthouse Network today. We added 30 new sites to the network, which brings the total number of Lighthouses to 103. Lighthouses come from all around the world and represent different industry sectors. These are companies of different sizes and they are all lighting the way for our global manufacturing community. Let's discover who these Lighthouses are. Anofi is one of our first Procurement Lighthouses. Welcome into the network. It's using 4IR solutions such as smart tender analytics, supplier performance analytics, and should cost modeling with impact far beyond procurement. Likewise, TAVR is also one of our first Procurement Lighthouses. TAVR's global procurement function is leading the way for the company with analytics-driven 4IR solutions, such as implementing a machine learning-based SpendCube. BOE Technology Group, one of the largest LCD manufacturing companies in the world, is widely using artificial intelligence to transform production. You have most likely seen their products in action. Bosch Automotive in Changsha is overcoming supply chain challenges by using automation and AI solutions. By deploying 45 technology use cases, the site is maintaining its market position and achieving carbon neutrality. With increased demand for high-quality products and services, Hire's Genjo Water Heater Factory is using big data and 5GH computing to build close connections with suppliers, customers, and other plants. We have again two sites from Johnson & Johnson. The consumer health site in Bangkok uses a range of 4IR technologies, such as collaborative supply chain control towers to address agility, profitability, and cost-to-serve challenges. The Pharma Latina site created a digital connected end-to-end supply chain and industry-first real-time release technology reduces production lead times. LG Electronics redesigned an old factory in Changwon to create a digital lighthouse plant. It's using digital solutions to manage its growing product portfolio complexity and meet rising quality expectations. Two media sites are welcomed to the network today. The Tsing Jo site, a 30-year-old factory adopted advanced technologies at scale to transform the manufacturing system. Examples include a lights-out injection molding, automation enabled by artificial intelligence. Also at media, the Heffey site is the company's biggest manufacturing center of washing machines. They have deployed intelligent logistics by using IoT and blockchain technology. P&G in Wanzhou is successfully leveraging artificial intelligence, flexible automation, and digital twins. They created a highly responsive supply chain which is serving consumers across multiple channels. Facing changing customer demands, Schneider Electric invested into forced industrial revolution solutions such an end-to-end agile supply chain control tower. This has drastically reduced lead times. Unilever deployed predictive analytics to speed up product formulation. This is driven by the need to accelerate the pace of innovation and speed of response to consumer demand. We have 13 new lighthouses. What an amazing cohort. Congratulations to all of them. It's now time to hear from our global lighthouse CEOs. Francesco will lead a discussion focused on accelerating and scaling forced industrial revolution transformation. I'm delighted to introduce our first panel discussions of the day with leaders of our lighthouses. They will share real-life examples from their own lighthouses. The members of the Global Lighthouse Network are using the technology trends of today to set the standards of tomorrow. To learn more about these trends, I'm delighted to be joined by Mr. Cho, CEO of LG Electronics, Mr. Schultz, CEO of Teba Pharmaceuticals, and Mr. Chen, Chairman of BOE. They will talk about the solutions and results that led their facilities to be recognized at lighthouses in 2022. Thank you all for joining us today. It's a real pleasure to have you here with us. Mr. Cho, let me start with you. And first of all, many congratulations for the lighthouse recognition. Your Chen-want site has joined our network as part of this year's cohort, and we have seen the site improve labor availability and increase its product portfolio complexity by 70%, which is impressive, and all through the adoption of four-yard driven technologies and applications. Why is Chen-want leading the way across your production network that counts today on a total of 26 production facilities? Okay, to start on behalf of entire LG Electronics, I would like to extend my sincere gratitude to the World Economic Forum. It is my honor to be designated as a lighthouse factory. Before going into why we started with Chen-want factory, let me talk about our customers and recent trends. The customer's usage pattern are getting more personalized to the extent that home appliances are now even regarded as individual appliances. Together with the advancement of digital technologies, this personalization trend is providing significant challenges to the entire value chain of the company, especially the manufacturing system. To properly respond to these challenges, we decided to come up with a more advanced and sophisticated system by applying fourth industrial revolution technologies with massive investment in Chen-want plant. The Chen-want plant at the place where LG Electronics overplants history study is the base camp for production of some of the most complex and premium products that require innovative ways of manufacturing. So with its proximity to LG's core technologies and assets, we could concentrate all our integrated competencies along with internal as well as external solution partners. And finally accomplish it disruptive, yet quite successful changes going through trial and error and quick adjustment. We also believe a Chen-want factory has advantages to easily replicate and spread its practices to the rest of our global production facilities. Excellent, well, many thanks. And Mr. Chen, congratulations to you as well. Your site in Fuju is receiving the Lighthouse recognition just two years after the start of its digital transformation journey to enable product diversification and to address a fast-gracing product demand. BOE leveraged four-year technology to significantly increase its competitiveness. Can you tell us more about what were the main reasons that led your team to successfully accelerate digital transformation at such a pace? Thank you, Mr. Chen. First of all, I would like to take this opportunity to thank my digital transformation team. We wouldn't be here today without their years of excellent efforts. It's a great honor for us to be named a Lighthouse factory. There are reasons why BOE attaches great importance to and accelerates the capability building of smart manufacturing and digital transformation. First, it is a future-oriented strategy based on profound insights into the trend of the global economy, the 4IR and the development patterns of the semiconductor display industry. BOE has long realized the importance of increasing productivity through smart manufacturing. Therefore, as early as 2015, when initially setting up the FUJO plant, we positioned it as the world's most competitive smart semiconductor display plant and empower it with substantial 4IR technology to boost its efficiency. Second, we aim to share and replicate our digital operation experience in smart manufacturing practices accumulated for nearly 20 years and to build a standardized smart manufacturing system with dynamic upgrading that operates across the company. Now, BOE has 17 panel plants in mainland China and we have accumulated profound intellectual capital and industry leading smart manufacturing capabilities which have integrated into a unified industrial internet platform. We are also striving to share and replicate the smart manufacturing technologies and advanced manufacturing experience across all our 17 plants to improve BOE's overall smart manufacturing level among which the FUJO plant is an extraordinary example. Third, smart manufacturing and digital operation brings in huge profits. BOE FUJO plant at the lighthouse on the basis of a fully automatic production system is widely adopted AI and advanced analytical technologies. For example, the AI-based automatic repair machines through data interaction and check repair synergy can reduce manpower by approximately 20%. And besides that, through big data analysis and machine learning, the quality improvement of new products accelerates by approximately 43%. And this will bring tangible profits to our company. Thank you very much. 检测人员的下降 是整个的这样一个品质的提升速度 提升了大概将于43% 这些都为企业的发展 Congratulations to you and your team once again. Mr. Schultz, let me turn to you now. And a very warm welcome to the Global Lighthouse Network. TEVA is one of the first lighthouses recognized for the digitization of its procurement function. And your digital transformation journey actually started from procurement, from this function, which is something new to the network. What led your teams to accelerate digital transformation with a particular focus on procurement? Human focus was really based on the history of the company. TEVA has a mission to be a leader in generics and biopharmaceuticals helping patients live better lives worldwide. And we serve around 200 million patients every day. We have been created through a lot of mergers, more than 20 mergers over 20 years. And that resulted in us having an IT backbone with more than 25 ERQ systems around 80 factories worldwide. But everything had been brought together through mergers, not through organic group. And when we were then faced with some economic challenges some four years ago and had to restructure, we realized that in order to improve our gross margin then we simply had to get a better grip of procurement simply due to the fact that we were buying for nearly $8 billion a year. And that was a major part of our cost structure. And unless we could improve that part of the cost structure we would not really be able to improve our overall profitability. Given the fact that we do more than 30,000 different products in these many plants worldwide it's of course very difficult unless you digitalize and you get all the data in-house and you get the assessment of all your suppliers in-house in some smart databases with smart analytics. So without the help of artificial intelligence we would not have been able to get the overview and reach the benefits we've seen by much more consolidated procurement for the whole group. And the reason for that is of course that we came out of much more fragmented procurement historically and that the data was still sitting in fragmented IT systems. In parallel with the digitalization of procurement we've also been consolidating our ERP backbone. So we are soon in a situation where we only have one ERP backbone, one set of systems and that will of course further enhance the analytical capabilities we have so that we will be able to even more improve our worldwide sourcing, so our worldwide logistics. So it's been a long journey. It's been with the purpose of improving gross margins but it's really been fed by using modern technology and artificial intelligence and digitalizing all the data needed to keep an overview of this enormous network serving hundreds of millions of patients and delivering billions and billions of tablets and other products every year. Impressive, thank you so much Mr. Schultz and let me be changed a bit the focus of this discussion now. We know that key neighbors such as training programs, agile ways of working or new technological systems are critical for companies to successfully drive digital transformation and it would be a question to you Mr. Chen. Empowering your employees with advanced analytics supported by a dedicated transformation office has been a major driver, a major enabler of success for your companies. Can you tell us more about some of those key neighbors that power your digital transformation journey? To know how, to know how, to know how, to know how, to know how. The successful transformation of BOE can be attributed to four enablers. First, optimizing management organization especially the digital management system. We have established a three tier digital management system covering the group as a whole, the manufacturing plants and the cross functional teams. We have established a professional office of digital transformation responsible for the unified planning and management of transformation projects in regards to organizations, processes and IT. And that in an effort to build one digital and visual BOE. For example, in BOE Fuzhou Plant we also set up a special team of digital transformation led by the plant general manager and equipped with agile groups in charge and responsible for implementing our digital transformation strategy. So as to further ensure the successful digital transformation of the whole company. Second, emphasizing the actual effectiveness of digitization. We believe that the core of digital transformation is data-driven management transformation. And the goal is to improve management quality and operational efficiency. In BOE Fuzhou Plant, we have widely adopted industrial internet technologies. For instance, we collect the process data of over 1700 main process machines and over 4,000 auxiliary process machines and using a MC system and to dynamically monitor the operation of machines and finally integrate them into a data lake including the data of delivery costs and manufacturing and planning, et cetera. And by further data analysis we have developed diverse smart applications which serve to improve operational efficiency and profits. Third, accumulating intellectual capital. We established BOE Smart Manufacturing School in one aspect to summarize the practical experience of benchmark plants and elevated to intellectual capital at the company level. And in other aspect to train all the employees and use the experience gained to the fullest extent so as to improve the company's smart manufacturing level as a whole. In BOE Fuzhou Plant, we further divide the digital talent into six categories and set up corresponding positions related to digital transformation. For example, the plant general manager is responsible for setting the digitalization vision and goals and transformation leaders are in charge of piloting and replicating experience. Transformation engineers are responsible for implementing the application of digitalization on site. Fourth, building on an ecosystem. BOE Fuzhou Plant has been actively absorbing advanced practices and building and improving its ecosystem to promote ecological integration for wing-wing co-innovation with its partners. Meanwhile, it expands its cooperation with universities and research institutions, especially in forward-looking technologies and foster greater synergy for key breakthroughs. We have also established BOE Innovation Partner Conference and other platforms so as to promote exchanges and corporations of industry partners. There's, thank you very much. Thank you, Mr. Chen. In pressing investments and developments that are powering innovation at BOE, let me come back to you, Mr. Chen, on this topic of ecosystems. Your time on site developed an advanced technology ecosystem through strong collaborations with robots manufacturers, IT companies and collaborations with universities as well. How critical was this network to enable the transformation of your site? Yes, as you said, our technology ecosystem was very critical to the successful transformation of Chang'an factory. It really played a key role in facilitating integration of partner's tech solutions, orchestrating resources and composing services and encouraging co-creation of best use cases among ecosystem partners. We plan to leverage the full strength of our partners to maximize speed, efficiency and productivity and achieve synergetic mutual growth and eventually create a diverse technological enablers. For example, we were able to establish a three-dimensional logistic systems to reduce factory space by 30%. The digital twin technology helped us shorten development and set up time by 30%. And predictive maintenance system was created based on cloud and edge computing technology to boost productivity by 20%. All of these achievements were only possible by the collaboration and contribution among ecosystem partners. Thank you. Thank you, Mr. Duan. 20% productivity increases, definitely an impressive number and results. Congratulations on that. Mr. Schulz, let me come back to you. I mean, it has taken only or just two years for your procurement function to digitize and smartly process and you made this data available across the entire company, which is impressive. What ecosystem did Teba build to help achieve such an impact? And what were the challenges that you face throughout the journey? So the challenges from the beginning was, like I said before, the diverse structure of the company having been amalgamated through all these mergers and having manufacturing sites all over the world and, of course, having procurement flows all over the world. So the aim was really the same aim as for the whole company, which was to integrate the company working as one Teba, ensuring that we could serve the patients we serve every day in the best possible way. And in order to do that, we had done some of the two problems approach. One approach was let's consolidate and optimize our IT platform as fast as possible. So in parallel with working with them, we have been able to take out, you would say, all the procurement data from the different sub systems that have not yet been consolidated, put them in together to get a worldwide consolidated view on all the different things that we procure. And of course, that's the only way to really optimize your integration with your suppliers, get the best possible overview of logistics and flows throughout the year by doing this. It's not ideal yet, I would say, because what we really want to have is this backbone system that's fully integrated worldwide. We will have that completed in about two years. Then we'll have all the basic data in one system, pulling it out, analyzing it, using artificial intelligence to do the right decisions. And in doing so, you could say we've had to work very much together with our IT function, because that's of course a key part of the basic foundational data structures and data transfers and data accumulations, but also working very, very close with all the manufacturing sites. Because without the engagement of the manufacturing sites who are depending on the flows of products every day for their actual manufacturing, you don't get to optimize this. And in the future, we are looking to a, you would say, completely optimized system that also include all the logistical pieces and the total optimization worldwide. So it's a journey we are on. I would say that we have come quite a good way and you're actually right about the number. The number is close to $8 billion a year. And of course we want to optimize both the quality of procurement, the price of the things we procure, but also of course the availability. And in today's environment, with all the discussions about supply chains, it's of course extremely important that you have an optimized supply chain and optimized procurement, not just on price, but also on quality and security of supplies. And we think so far it's been very successful. Many thanks, Mr. Schultz. And it's impressive to see how date is power in the collaboration in between the different functions across the organization. Maybe one more question. I mean, when you look at the years ahead, what's your vision and plan to further scale digital transformation beyond procurement and to start transforming multiple functions? Yeah, so I'm hoping that we can take this user artificial intelligence and broaden it out significantly. We're already doing it actually a lot in our R&D functions. So when we do clinical trials, there's a lot of data being generated. And combining all this data, you can make better decisions about your development programs for new pharmaceuticals to help people in the future. So that's just one example, but we're using it everywhere. We're also trying to get better at estimating demand. We are supplying, as I said, we're the biggest supplier of generic pharmaceuticals worldwide. So we have very, very big volumes and it's sometimes a challenge to predict, of course, correctly these many, many SPUs. What will the actual demand be? How do we optimize our manufacturing planning? And there we are trying to use artificial intelligence as well. And I think in the future, we will have sort of 24 seven updated data on all movements and all demand signals that will make the whole manufacturing even more effective. And it's really also good for the environment because the more effective we get, the less waste there will be, the less scrap there will be, the more precise we can supply the markets with what they actually need, what the patients actually need. So we're also having a big drive to improve our environmental performance, which is linked to basically optimizing the resource usage all over the value chain. So there are many exciting things in the companies. Impressive and definitely very exciting, especially what you just mentioned about seeing the results and the impact going beyond productivity and impact in areas such as sustainability that are so critical nowadays. So thank you, Mr. Schultz. Mr. Chou and Mr. Chen, let me get back to you. Your lighthouses have shown the potential of applying digital solutions and advanced analytics as well within your manufacturing facilities. And maybe Mr. Chou, what is your plan to further scale the deployment of these advanced technologies and solutions to improve operations across your entire production network in the next year or the couple of years ahead? LG Electronics Global Manufacturing Network is made up of 26 sites in 13 different countries. So our goal is to apply the digital technologies pioneered at Chang'an Plant to the other LG production sites around the world. Based on similarities in our production systems, we adopted modularized solutions, which are easy to fit for different sites accelerating the speed of global expansion. So I would like to call this innovation as a service for internal customers. And also during the pandemic, we expanded the use of tele-operation technology to provide effective virtual support to overseas subsidiaries, minimizing the need for travel. As our next step, we seek to establish a seamless data floor across the entire value chain to optimize our total supply chain management from AI-based demand forecasting to manufacturing and from procurement to customer services. With this, we will make a pool operation structure that is more agile in responding to customer needs. That's my answer. Excellent, and I really like the concept of innovation as a service. I will definitely follow one offline on that one to learn more. Thank you. And Mr. Chen, maybe same question to you. What is your plan to scale technologies for a year across your entire production network?  Thank you. Looking ahead, the digitalization and intellectualization of all the elements in industrial production will be normal. And smart manufacturing will always stay at the forefront and become essential to keeping a manufacturer competitive in the industry. BOE will integrate its replicable capabilities accumulated over the years into platforms and systems of smart manufacturing. Empower the upstream and downstream of the value chain through BOE's industrial internet platform. Build a smart manufacturing network linking the whole industrial chain, set up an integrated supply manufacturing platform with the fastest speed, the highest efficiency, the lowest cost, and the best quality. So as to integrate for IR technologies into our development strategy and the intellectual capital of the industry, elevating the smart manufacturing of global semiconductor display industry to a new level. In an era of IoT with everything interconnected, the screens are the displaying windows of the IoT world. BOE launched the strategy of screen-connected IoT in 2021, integrating more functions into the screens, developing the screens into more forms and creating more application scenarios with a view to empowering the whole industrial chain to create greater value. We'll stick to your customer-oriented strategies as always, continue to increase investment and innovation, so as to provide optimized products and services. Together with global partners and lighthouses, we aim to jointly build cooperative platforms for win-win development opportunities in the brighter future. Thank you. I'm delighted to welcome the three of you into the Global Lighthouse Network and thank you especially for taking the time to share your vision and valuable insights with our global manufacturing community today. Thank you, and with that, Eno, let me go back to you. That was a fascinating discussion. I really enjoyed hearing Mr. Chen talking about how a well-designed digital transformation pays off rapidly and is key for sustainable growth. It highlights how lighthouses act as scale-up vehicles for the entire organization. It's the scale that boosts the returns. So often we talk about increasing impact, but as mentioned earlier, our latest report talks about the need for responsible operations, including the need to improve environmental footprint to do more with less. I'm now excited to announce three new sustainability lighthouses in nations. These are sites or value chains using digital and analytic solutions to make an outside positive environmental impact in addition to significant financial and operational results. Let's meet our new sustainability lighthouses. Through adaptive process control, Johnson Cork has optimized its processes and reduced carbon emissions. This is contributing to its corporate pledge of reaching carbon neutrality in 2030. Schneider's site in Le Vol de Rue unlocked data through IoT sensors connected to their digital platform. This is improving energy management and reducing CO2 emissions at the site, contributing to Schneider's corporate pledge to be net zero carbon by 2030. Western Digital Smart Factory in Penang is driving energy reductions through machine learning, powered lighthouse automation and smart energy usage optimization. Thank you, Enno. We have one more panel discussion today, featuring three leaders from our Global Lighthouse Network who will share their insights on responsible transformation. They will talk about how environmental sustainability and workforce engagement are critical to the success of any transformation. I'm delighted to introduce Katie George, Senior Partner and Chief People Officer at McKinsey and a close friend of our Global Lighthouse Network who will be leading today's final discussion. Katie, over to you. Thank you very much, Francisco. Today, I'm very excited to be joined by three leaders of companies that have been recognized not only as digital lighthouses, but as sustainability lighthouses, companies that have demonstrated fantastic results on improving the environmental sustainability of their operations, even while also achieving fantastic breakthrough performance on other dimensions. They're showing us what is possible in terms of delivering not only great economic results but also great environmental results. They also have really been innovating the way that they work with their workforces and through their workforces to deliver these breakthrough results. These are companies that have invested in upskilling and engaging their front lines in ways that have unleashed fantastic innovation and creativity and really empowered their front line to do things that they've never done before. They've also done things at scale. So each of these companies has been able to demonstrate not only that they can pilot new technologies, but have truly transformed their way of working in order to create sustained outcomes. So with that, I am delighted to be joined by three leaders, Christine Bastion, who is the Executive Vice President and Chief People Officer of Western Digital, Kathy Wengle, the Executive Vice President and Chief Global Supply Chain Officer of Johnson & Johnson, and Oza Thompson, Senior Vice President and Head of Business Area Technologies and New Businesses of Erickson. Thank you all very much for joining me. Christine, let me start with you. Congratulations on your recent recognition as a lighthouse. I know that your Panang site has experienced very significant volume growth four times in the last five years, but you've done that while maintaining and achieving your sustainability pledge. So can you tell us a little bit about how your fourth Industrial Revolution technology applications have allowed you to do that? Eddie, thank you. So we at Western Digital recognize the importance of doing our part to contain global temperature rise. And so it was important to pledge and set our ambitious goal to limit the increase to less than 1.5 Celsius by 2030. While we've made significant improvements the past few years, we have a lot of work to achieve our goal. It is particularly challenging to achieve the goal while the factory is going through expansion. And so that's why we rely on four IR technologies to drive eco-efficiency. Four IR technologies have helped boost our operations productivity and efficiency. This increased our operational performance to support the growth without the need to add more resources or machines that consume more energy. 90% of the greenhouse gas emissions we create come from electricity. So we deployed more than 1,000 industrial IoT sensors to more than 500 pieces of equipment and 15 utility systems to gather data and generate analytics insights. This allows us to optimize energy consumption across the entire factory. This is how four IR technology accelerates sustainability for Western Digital. Christine, that's fantastic. Thank you very much. Kathy, I know that you at Johnson & Johnson are also working towards a sustainability pledge and that your site in Cork, in Janssen's Cork site, has implemented adaptive process controls and reduced carbon emissions per kilogram of product by 56%, which is just fantastic. I know that meeting your growing business demands at the same time is working towards your sustainability goals are very challenging. How have you done that? What is your strategy? Well, thank you, Kathy. It's great to be here with everyone. And I'd say our strategy hinges really on three approaches, accountability, digital, and partnerships. So first it's about setting bold climate commitments that demonstrate our accountability as Johnson & Johnson to making science-based progress. For more than three decades, we've been setting publicly facing environmental goals and we continue to commit to bold goals, including the intention to source 100% of our global electricity needs from renewable sources by 2025 and to be carbon neutral in our global operations by 2030. So along with that then, we're harnessing digital and industry 4.0 advanced manufacturing technologies to reduce our carbon footprint and to your earlier point, drive greater resilience. So it's just so proud of our team to receive our first web sustainability designation for our lighthouse, as you mentioned in Cork, Ireland. Our Cork site's really been a model in our global supply chain of how to reduce that environmental footprint using 4.0 IR technologies, whether it's the physical wind turbine that was installed there, but also having power purchase agreements with local wind farms in Ireland. We then use that adaptive advanced process control and digital twin technologies to optimize the performance, not only in manufacturing, but of our chillers, our pumps, our cooling towers. Those are some of the biggest energy users on the site and also have a really important impact in plant reliability and cost. So now that we scaled those, we've rolled that out to 16 of our sites and we really look at our Cork site as one of our leaders in the sustainability journey and that intersection of better performance and a better outcome for the planet. That's great, Kathy, thank you very much. Really impressive. And OSI, your Lewisville site has actually built sustainability into the very design of the building and the site itself by through heating, ventilation, air conditioning systems that are controlled smartly and you've reduced energy consumption by 24%. So if you can talk about what is Erickson's approach and how does this help you towards your sustainability goals? Thank you, Kathy. I'm first of all, great to be here. I think first of all, just as Christine and Kate mentioned, and I don't think it's a coincidence, we all care about how can we contribute and do our share of meeting the sustainability goals, right? And that means that we need to think differently, we need to think differently and we actually need the latest technologies to realize that. So that's kind of one piece of it. The other part is we are a technology company so we also feel you can spend obligation to be an example for other companies on what you can do if implemented right. So there are two parts for us. So it really comes back to our mission, creating connection that makes the imaginable possible and we really want to do that by using limitless connectivity to improving people's life, redefine business and create a more sustainable future. And this may sound like marketing, but I think when it comes to creating a sustainable future, I think that's become a guiding star for us. And I think the Lewis wheel factory is a great example of that because it's not only about energy efficiency, it's not only about bringing the latest technologies, it is actually showing what you can do if you use the same thinking, the best operation of the domain competence, bring the best people together and apply the best technologies. And if you talk about a lot of the smart ways to optimize the energy efficiency and usage, but it's also back to using 100% renewable sources, reducing rainwater to reduce the water usage, but also building the site with the reusable recyclable materials. So as you hear, a lot of the technology leadership, it's not only about IG, which we love to talk about, or all the smart AI applications, it's actually also about all the development happening on the materials side and on the design side. And I think that's what's really, really exciting. And then you can say, why is this important? For example, why do we need to change our supply chain the way we produce? So this way we can reduce the energy efficiency of water usage, but also we manage to actually get closer to the customer who we serve. So we're actually able to deliver better products faster to the customer while actually reducing the airborne part of our supply chain from 30% to 10%, right? And that becomes, this is how you make this possible like a blueprint within our system. So how can we now replicate a lot of this across our production system as well as a great example, all our technology partners, all our customers and all enterprise who want to do a similar journey on how can you make this happen? So that's why I would say Lewisville is super important for us in many ways both for our customers, our US business, for us showing that this is possible internally at their exam and inspire others to go on the journey. That's great. You just captured the essence of what the Lighthouse Network is trying to do in terms of inspiring both within your own companies and outside. So thank you for that. And you mentioned something else that I wanted to shift to which is this notion that it's not just about technology, it's also about people. And one of the things that I think we found is that all of your companies have really put workforce and people in the center of your deployment and your approaches. And that's a bit counter to some of the popular press about how automation and digital technologies are going to somehow disempower the workforce or even put them out of work. What we've seen from your companies and the others is really innovative, upskilling programs, whole academies, new types of apprenticeship. We've also seen this notion of ideation hubs to promote innovation in different ways. And then we've also seen wholesale organizational restructuring to unleash new workforce capabilities and kind of realign workforce to the agile approach and the end-to-end value chain approach that you're all using in the 4IR applications. So maybe I could talk to each of you and just ask each of you to comment a bit on what you're doing from a workforce perspective. And maybe Kathy, I'll start with you and Johnson and Johnson. I know when you're designated a lighthouse back in 2018, which feels like quite a long time ago, one of the things that was highlighted was the in-house technical capabilities and the knowledge development that you were pursuing. We'd love to know how has that worked for you and how have you evolved and what have you learned over the last several years and what is your workforce strategy going forward? Well, thank you, Katie. And to your point about why we came together as lighthouses and why certainly J&J wanted to be a pioneer there, was we disagreed with that premise that the Fourth Industrial Revolution was going to move around our employees versus having them be at the heart of everything we do. And being a company that's been here for more than 135 years, our amazing talent in our plants and around the company have had to go through multiple industrial revolutions. So we knew and we know how important it is to keep our employees at the center of this. And to your question about the last three years, if anything, it's put an even greater emphasis on upskilling our employees in areas like digital, but in areas about how that intersects with risk management and resilience and supporting the mental and the physical well-being of our on-site superheroes, advancing diversity and inclusion because all of these things really come together. Osa mentioned design thinking. And it's really about how do you design your workforce for the capabilities you need for the future? And so when we look at those opportunities, I think one, again, it's diverse and inclusive workforce drives innovation. It drives innovation that's reflective of the stakeholders and the communities we serve. And a digitally-first workforce at all levels acts with much more agility. And it enables us to build partnerships and capabilities that drive scale across the global network, not only inside our company, but with many, many more partners. Then I'd say we're really amplifying efforts to attract and retain a more diverse and inclusive workforce development programs we've put in place across our corporation on resilience and digitally-adept talent. We have specific focus areas, including our Women in STEM 2D program. And that, D, by the way, is about design thinking that goes into everything we do in science and technology, engineering, math, manufacturing. And it's about upskilling using industry 4.0 tools all the way out to mental health resilience. So we really see that it comes together in our commitment to our team members to upskill them. And that sparks their innovation in how we keep our company at the forefront of everything we do. That's great. And you talk about the connection between workforce investment and innovation and agility. And I know, Christine, that that's been really central to your work at Western Digital as well. The Penang site joined the Global Lighthouse Network only in 2021, so a bit more recently. But I know that one of the things that you have done there is to create an agile digital studio which really drives ideation and innovation in a very participative way. Can you talk a little bit about that and particularly what you've learned during the pandemic? Because as Kathy mentioned, that's added a new layer of complexity, but potentially also acceleration to our efforts. That's right, Katie. And thank you for the question because it's really important. And I think similar to Kathy's point, people are at the forefront when we think about innovation. And so at Western Digital, we pride ourselves on being at the forefront of game-changing innovations from the invention of the first hard disk drive to the recent advancements in 3DNAN. We're constantly pushing the technology and the innovation boundaries to turn the impossible to possible. And it's 4IR that is about connectedness. When we think about connecting our people with this purpose of innovation, which is the key in keeping our workforce passionately engaged, both in the upskilling, but also in being future-ready. To embrace that passion, we created the Agile Digital Studio for people to continue to collaborate and innovate. Prior to the pandemic, we were doing this in person, but during the pandemic, what we were able to rely upon was to introduce technologies like VR, AR, and collaboration platforms to keep people connected and collaborating and innovating. The result was great because across the board, we increased invention disclosures during the pandemic as compared to before. That's incredible. I just think that the work that all of your teams have done during the pandemic, I think, as Kathy said, really is heroic and really has taught us what is possible. Very exciting. Osa, we'd love to hear a bit about what you have done. I know that one of the things that stood out for us in the Lewisville site was the way that you went after a multi-pronged approach to upskilling your workforce, including using a virtual reality platform as well as collaborating with local universities. Can you tell us a bit about that and also how important is it to bring the workforce along? Couldn't you just do this by deploying technology? No, thank you. I promised myself I wouldn't make this all about 5G, but as you mentioned about the virtual reality, I think augmented reality and extra driven education, I think that's one of the most exciting use cases I see for 5G going forward. And it's not only for upskilling or re-skilling. As you think about onboarding new people into a team, or when you need expertise, that you may not need to have an all-site, but have one site and can be with you, literally in a mixed reality in the factory to help solve your problems. So I think there's a lot of exciting things that reduce this actually to faster upskilling our teams and also learn as we design new processes, new production flows with new methodologies and new technologies that frankly not, even if we're a tech company, not all people in our factory were used to work with us. So that was a great way to kind of get them bored and it became even more important as we were setting up this factory during the pandemic. So it was not always possible to be as many people physically on site as well. So I think that's really exciting. And I think it comes back to, you have to upskilling riskal, both into new processes, but then there also maybe new technologies, new ways of working. Think the other part, that I think both Katie and Kristen, both Pashapon was really, it's not only about re-skilling and upskilling, it's not as much about how you work together. So one thing we learned to really make this happen and quickly implement new solutions, you actually need to have people who typically work with production flows, who very have the domain expertise in the processes, together with some of the people who might say, new technology. With the IT folks, we can actually scale this because otherwise you have a lot of folks everywhere, but it doesn't really scale or work. As well as working with our sourcing supply chain, what we've learned was typically these are engaged in different phase-along journey and then it doesn't work, it doesn't scale, it gets stuck. So putting together that cross-functional theme from the beginning, when you start to launch new ways of working, that was fundamental to us. So that's because I think it's part of the definition of how we think about agile ways of working, but I think it's also about bringing the multidisciplinary skills into your team and that requires a new type of leadership and a new type of working. And of course that also expands our partners because we're not delivering this in isolation, we work for the tech partners and all our regular suppliers. So it was everything from having our summer regular suppliers being okay with us accessing data for some of the applications and use cases for the device scale, but it was also how did we work very strategically with some of our four tech partners to make this happen. And then the final note that I really want to touch upon is, and I think it comes back to Kate's comment about that our people in the center of this transformation, we learned something. So the heroes of our transformation of Lewis we made a thought if the discussion we had intensively two, three years ago, it was are the people in the factory going to disappear? What job are they going to have? We actually realized they actually got even more empowered because they became the champions. We would not be able to design our workflows though they're meaningful without them. So by making this happen, they actually became the heroes. Some of them had also got that new very exciting role in the fact of more exciting that they had before. So I think in much more strategic and what we learned with the next time is actually the team who stood up to Lewisville factory, they've become heroes because A, they became the blueprint on if this is how we do this, global example for example, they came to here for product teams because when there've been supply chain challenges, they actually been able to use this to fix this much more effectively than we could ever done before. And third, now I bring them as example to our customers. Now when I want to sell private networks to show what they can enable the factories is actually the operations team. And that's not the type of heroism that we actually had before we started place this. So really exciting and again, it shows I think from how we really augmented the value of that skill. And then finally, I think by moving that way, if you apply it right, you can actually increase worker safety and it could shift also a lot of the time you spend on the site, actually much more valuable creative processes. And perhaps there were some time before where some on the tone of our habitats which could sometimes be a safety risk for many workers. So I think I'm very optimistic and I'm even more excited to see some, not only to talk but actually improve points for that today. I love that. I just love the optimism that all three of you bring to really the future of manufacturing and operations and the future of work and being able to create wonderful experiences and really meaningful jobs for people. So thank you for that. I'm gonna switch to one last question which is a speed round. So I'm gonna ask each of you for one or two word answers to what being part of the Global Lighthouse Network really means to you and your company. So let me start also with you. What word or two would you use? Inspiring and connectedness. That's fantastic. Christine, how about you? Alignment on common ground. Wow, not easy to come by. That's great. Kathy. Stronger together. Love it. Well, thank you all for this really inspiring conversation. Each of your companies has been recognized as sustainability lighthouses and truly are showing us the way to achieve real breakthroughs on sustainability in ways that I think we've never seen before. And as we've talked about, each of you and your companies are also showing us the magic of investing in our workforce and unleashing the power that they bring in innovation and performance. So thank you very much for being with us. Francisco and Enno, back to you. Thank you, Katie. It's now time to bring our event to a close. Many congratulations again to all our new lighthouses and especially to the three lighthouses who are designated as sustainability lighthouses. And of course, let me also say thank you, Enno, and all our colleagues at the World Economic Forum and McKinsey for the amazing dedication and work which makes all this possible. Francisco, thanks to you as well and to our audience for taking time out of their very busy schedules to join our Lighthouse Life event. We end our event with 103 lighthouses in our network and six designated sustainability lighthouses. What an amazing achievement. I hope you feel all inspired by the possibilities the lighthouses have shown us today. These 103 sites offer us a blueprint to scale digital adoption and answer some of the most pressing challenges of our time. I'm certainly inspired. However, we still have a lot of work to do. There are millions of facilities and companies around the world and that we want to reach and engage in the unique learning opportunity that the Global Lighthouse Network provides. Our network will continue to grow and we invite you all to reach out to us to learn more about the journey the world's becoming a lighthouse. There are many benefits of being part of this unique global community of influential innovators.  Thank you again to all for joining us today. Stay engaged and reach out to us at any time. Bye for now.


It's DDK and I'm back today with another video. Shout out to you for tuning in. If you are not subscribed, do me a favor and smash that subscribe button. I will be doing a giveaway when I get $50,000 subscribers. I don't even want it in your head right now. What would I be giving away? I will be giving away $500. There's gonna be three places. First place, $250. Second place, $150. And third place, $100. I got my game for my scholar. In today's video, guess what? I know y'all see what's going on, baby. I don't want y'all to see too much. Y'all see that? Y'all see that? Y'all see that? We got our first contract in our Sprinter van. Now, in this video, I'm gonna tell you guys how we got the contract, what the company is called, and what we gonna do to go out there and ball. So stay tuned to stick around when playing around. Let's get right into it. Before we talk about the contract, I wanna say huge shout out to my guy, Tim. My guy, Tim, I met him when I was doing a Metro B order. And we just chopped it up. He said he's seen the YouTube channel. We chopped it up.  So guess what? I took some notes, baby. And then guess what I did after that? One day, I went out there to try to get me a son on order. It was super dry that day. I mean, nothing was going on.  And guess what? One was right around according to like eight minutes away, so what I did was I called him say, hey, how you doing, sir? My name is Jerome. What I was told that you guys are looking for people who have Sprinter vans and you are giving out contracts. He said, absolutely, Jerome. What kind of a van do you have? I said, I have a 2022 Mercedes Sprinter van, 170, 2,500 with the high roof. I'm trying to be out here and be the truth, baby. He said, okay, I'll tell you what, you can come here between 10 a.m. and 2 p.m. and we'll get everything situated. When you get here, you need to have your license. You need to have your insurance card and you need to have your registration for those who hate. So guess what I did? I sleep right on up there, baby. So I sleep right up there and it was very simple and very easy. I'm gonna give you guys a breakdown. Super simple. When I get to the warehouse, I walk in the front door. I say, hey, how you doing, ma'am? My name is Jerome. I called and they said that you guys are giving out contracts for Sprinter vans and I would like to apply. They said, absolutely, Jerome. They gave me application. I filled it out right there. My name, address, all my information and everything. You're also gonna fill out a W-9 form. After that, I gave them my driver's license. I gave them my registration and I gave them my insurance card. She said that the insurance card is not gonna work. So send her the declaration pages in the email. So I went right into State Farm, right in the app, baby. Went in there, sent it right to them, right? Then I sat there for about 15 minutes. Do-do-do-do-do-do-do-do. 15 and 20 minutes, I sat there, right? Next thing you know, she said, okay, somebody will be out here soon to measure your van and also give you a interview. So, somebody walked up, walked right up there with the tank measure. We walked to the van, we measured everything, measured how long it was, measured how tall it was to see how many pallets and how the hobby could stack everything. Did that right there, right on the spot, baby. Right on the spot. Right after that, we went right to the back room to do the interview. It really wasn't an interview. It was more so like a conversation on what's to be expected from the company, what the pay is and all that stuff. So I have the questions right here. Let me get it on my phone so we can go ahead and get it on, my nickname Rome and I'm rocking on the microphone. I'm gonna give you guys a question I asked them and I'm also gonna give you the answers they gave me so y'all already know when it's time for y'all to get busy. Here we go. Question number one, what type of deliveries do you guys do? They said they deliver machine parts and they also deliver printed materials. I don't know really what printed materials is but that's they deliver, baby. Now, the second question is, is are there routes or is this on demand? They let me know that this is on demand so you can go out and get them bands. Question number three, what is the typical amount of amount that you are gonna drive? They said it ranges, it depends. You might have to go here, you might have to go there. It all depends on what order you decide to take. Number four, what does the pay structure look like?  The next question is, do I have to load or unload the freight? They said absolutely not. You do not have to unload the freight or load the freight and if you do have to load or unload the freight, guess what?   The next question is, what days and times of the week are deliveries? Guess what? With this company, they are open 24 seven with the Mac 11, they open 24 seven, baby. They're open 24 seven so there's deliveries all the time of the day, all the time of the night, you can go out there and get it right. And I'm gonna throw a little jibble in there. Just so you guys know, with this company, they told me to give them a car every morning after 6 a.m. Because that's when they do the shift switch. So, second shift to third shift. So get them a car at 6 a.m.  Now, the next question is, do, this is a very important one. Do we get paid for deadhead miles or is it just from pickup location to drop off location? Now, let me give you guys the breakdown. With this company, again, you will not get paid for deadhead miles unless, let me say it again, unless you are traveling over 50 miles to the pickup. I'm gonna give you an example right now and break it down and say it very slow so you guys understand. So, if you are, mind you, this is from your house. So, if you are at home and the pickup location is 75 miles away from your house, you will not get paid for the first 50 miles, you will get paid for the 25 miles after the 50 miles. So, in this example, you will be paid for 25 miles.  The next thing I know you wanna know right now, how much do you get paid per mile? With this company, you make a dollar and 20 cents per mile. That is going from the pickup location to the drop off location, but they also try to get you a load on the way back. And if they do happen to get you a load on the way back, you will receive 60 cent per mile for doing so. So, if they get you a round trip load, you're gonna make a dollar and 20 cent on the way there and on the way back, you're gonna make 60 cent enough money to pay the rent. Do I agree with that? I ain't gonna lie, I don't really like that like that baby. Double me up, double me up. Give me 120 there, 120 back. But hey, most companies are not gonna pay you for coming back. Some of them pay for their headmouse, some of them pay less their headmouse than others. It all really depends on the company. Now, guess what baby? They have two different types of order. We're gonna talk about the first one first. Number one is ASAP drop direct.  ASAP drop direct. That means that when you approve the order, you are then gonna go directly, right when they give it to you, directly to the pickup location. And then after you get it, you have to do four things to where you're there. Let me tell you, let me give you a breakdown baby. When you get to the pickup location, you have to call them when you're on the site. Then after the freight is on board, you have to send them pictures of the freight locked down and everything, like strapped down and everything. And then you have to wait for them to say that everything is okay. You can go ahead and go to drop off location. When you get to the delivery location, you have to call them again. And then once the POD is signed, the POD stands for proof of delivery is signed. It must be signed with their first and last name. And it must be legible because we ain't trying to play no games. So after you do that, you're gonna send them a picture of that.  That is ASAP drop direct. Number two. Number two is called ASAP drop next day. Hey, it's kinda simple baby. Plain and simple ASAP drop next day. You get the picture? I got it. So I'm gonna break it down to you. With ASAP drop next day, what you're gonna do is you're gonna approve the order.  When you get to the pickup location, you still have to make those two calls. You're gonna make the call when you get on site and then you are gonna make the call when you have the freight on board and everything strapped in.  That's why it's called ASAP drop next day because you're gonna drop it off the next day. When you get on site, you're gonna call them. And then once you have the POD, which is proof of delivery, sign and signature, sign in there, printing all that stuff, that is when you're gonna call them so you can leave. That is the second drop off ASAP drop next day. Now I'm gonna give you guys what you've all been waiting for. I appreciate you staying tuned to the full video because sometimes people wanna skip the process, skip all that, they wanna do all that skipping stuff. But guess what? Do not tell anybody in the comments section what the company is. Let them do their own homework, baby. A lot of times people wanna skip the process, they wanna skip, they wanna skip the video, do all that. You have to put your own work in. So let them learn and let them earn. And if they mad, it ain't our concern, baby. Now, the company is called Bronco Logistics. That's how you spell it. B-R-O-N-C-O Logistics. Bronco Logistics, they do it in the Chicagoland area. It is in Elk Grove Village, baby. So go on here to go sign up so you can go out again and get them dividend ends and win and spend. I hope you guys enjoyed this video. Again, if you are not subscribed, go ahead and subscribe, but give me a thumbs up, but do not skip those ads. Do not forget, I will be doing a giveaway when I get 50K, 50K subscribers. I'm giving away 500. I'm gonna see you show who's running. I hope you guys enjoyed this video. I'll see you guys on the next one. Be going, be going, before you already know the DDK, and I'm on my way.