Seizing the Trend Shaping the New Models

　　Volatile pandemic situation has clouded the world economies, posing uncertainties for enterprises about the future in forecasting basic data such as fuel and utility prices.  It’s tremendously challenging to plan budgets or setting targets.  Only being able to quickly respond to the changes were we able to succeed in shaping the new models.

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　　Given the Sino-US power struggle, increasingly scarce natural resources, and facing drastic environmental changes, even China, the world’s second largest economy with 1.4 billion populations, continues to reform.  As a business leader, it is necessary to seize the trend and quickly respond.

　　The post-pandemic outlook of industrial developments includes the following three dimensions--

Restructure of Global Supply Chains

　　With the gridlock of the Sino-US relation, coupled with the pandemic and tariff barrier, global supply chains are forced to restructure and become localized.  Nations and enterprises are finding solutions to fix the production supply chain problems.  The U. S. government even requests companies to share relevant data  that causes public outroars.

　　With many manufacturing companies under the Far Eastern Group, geographic allocation of supply chains has always been important.  Current operating sites of Far Eastern New Century, the Group’s flagship company, include Taiwan, China, U.S., Japan, Vietnam, Malaysia, etc.  Through diverse production sites, this can help lower operating risk of relying on single production site, and with vertical integration and one-stop operation from raw material to final product, to lower disruption of production due to material shortage to achieve regional synergies.

Toward Net Zero  Promote Environmental Sustainability

　　Global climate change has caused water shortage in Taiwan last year despite its abundant rainfall in the past.  To achieve sustainable development, energy conservation and carbon reduction have not only reach consensus of all nations, but also remain top priority of enterprises.  Take Asia Cement for example, since its inception the company has been not only committing to factory greening and accomplishing the goal of “turning factory site into green park,” but also engaging in developing circular economy with its core competence.  In 2020, all water sludge of Taipei City Water Plant was treated and reused by Asia Cement Hualien Plant.  If we count in New Taipei City, over 80 percent of water sludge of the Greater Taipei Area was handled by Asia Cement Corporation, enabling co-existence and co-prosperity between the industry and environment.

Advancing Technologies  Enterprise Expedites on Digital Transformation

　　The development and application of advancing technologies not only accelerate enterprises’ digital development, but also disrupt the traditional working models and habits.  Everything needs to be digitized from processes to database.  When attending previous economic forums in different nations in the past, with few hundreds’ attendees on site, it’s not possible to have direct dialogue with everyone, but now through video conference, one may click on the profile photo and be able to proceed with discussion directly.

　　Under the wave of digitization, industries must also face with reshuffling of their businesses.  Many renowned companies have vanished due to lack of timely restructuring.  Therefore, all leaders must understand what is Artificial Intelligence, Internet of Things, and 5G mobile networks?  Periodically examine whether one’s own enterprise has established comprehensive Big Data, and proceed with data analytics and applications?  Have all systems and data being uploaded to the Cloud?  Most importantly is shaping the corporation’s digital culture.

　　Far EasTone Telecommuncations is the Far Eastern Group’s core business to push for digital transformation through big data, artificial intelligence, and internet of things to promote industry transformation, such as assisting Far Eastern Memorial Hospital to introduce video telecare clinic services by transmitting physiological data and examination images of patients to physicians as bases for making diagnosis remotely.  Up till now there are about 2,500 persons/times of such services.  In the future, Far EasTone will continue to promote its technological capabilities and innovative applications to help the consumers, industries, and strategic partners of each segment to realize the vision of smart life, smart business, and smart city.

Conclusion

　　Embracing the new normal, first, enterprise must redefine its positioning, "who are you?" to know the current development status of the corporation.  Then, "why are you here?" to clearly see your own strength and weakness when compete against peers to ensure one’s position in the overall industry; Lastly, "what do you want to be?"  Based on which to draw strategy and direction for future developments.

　　In this dynamic era, if the speed of transformation fails to keep up with the world, one will be eliminated by the market.  Just as biologist Charles Darwin said: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”  Only with constant adjustment and going forward with the time can we continue to grow under the new normal.

(Abstract from Chaiaman's speech given at 2021 Global Views Leaders' Forum)

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