The Business of Local, Powered by Saudi Aramco - Day 2 - #FII6

Introduction

The moderator introduces the panelists and asks them about the biggest impact their organizations have had on the local economy.

Panelist Introductions

• The moderator introduces the panelists, including Mr. Sang and Choi, President and CEO of Samsung Engineering; Ivan Erickson, President and CEO of Aker ASA; Catherine Zhu, Global Head Venture Digital Innovation and Partnerships of HSBC; and Toshinara, President and CEO of Your Corporation.

• Toshinara speaks briefly about his company.

Impact on Local Economy

• The moderator asks each panelist to discuss the biggest impact their organization has had on the local economy.

• Mr. Sang discusses how Samsung Engineering has worked as a major contractor in Saudi Arabia, creating jobs and fostering young talent.

• Ivan Erickson talks about how Aker ASA has been a front-runner in all core industries in Norway for 180 years. They are now focused on energy, particularly oil and gas, but also renewable technologies like offshore wind.

• Catherine Zhu explains that HSBC is a global trade bank operating in 56 countries. In Saudi Arabia alone they employ over 5000 people and serve more than 1.5 million customers.

Conclusion

The moderator concludes by summarizing what was discussed during the panel discussion.

Key Takeaways

• The moderator summarizes that each panelist discussed their organization's impact on the local economy. Samsung Engineering has created jobs and fostered young talent in Saudi Arabia, Aker ASA has been a front-runner in all core industries in Norway for 180 years and is now focused on energy and renewable technologies, while HSBC is a global trade bank operating in 56 countries.

Introduction to HSBC and Yokogawa

In this section, the speakers introduce themselves and their companies. They discuss the various sectors they operate in and how they contribute to the local economy.

Introduction to HSBC and Yokogawa

• HSBC is involved in more than just banking; it operates in sectors such as EV, solar, and biotech.

• Yokogawa has had an impressive growth story in Saudi Arabia since starting with small projects in the 90s.

• Samsung aims to foster promising engineers who will lead economic growth over Saudi Arabia by establishing a new EPC company based on the National EPC Championship program.

Future Plans for Yokogawa

In this section, Mr. Sengan from Yokogawa discusses their plans for increasing investment and building a strong ecosystem around them. He talks about their efforts to recruit young talent and establish a new EPC company.

Future Plans for Yokogawa

• Yokogawa plans to establish a new EPC company in Saudi Arabia based on the National EPC Championship program.

• They have recently hired 20 young engineers who will participate in on-the-job training programs.

• They plan to strengthen partnerships with local vendors and contractors by providing smarter shops, module fabrication technologies, and digital technology solutions.

• Their innovative change of project execution structure will create new jobs related to equipment fabrication.

Aramco's Support for Pushing Forward the EPC Industry

In this section, Aramco expresses its willingness to support Yokogawa's ambitious plans for pushing forward the EPC industry in Saudi Arabia.

Aramco's Support for Pushing Forward the EPC Industry

• Aramco is willing to join hands with Yokogawa and push the EPC industry forward.

• They acknowledge Yokogawa's ambitious plans and express their support.

Arca Group's Contribution to Energy Security

In this section, the speaker talks about Arca Group's contribution to energy security and their investment in new capacity.

Arca Group's Investment in New Capacity

• Arca Group is investing 30 billion US Dollars during the next four to five years in new capacity.

• This investment is a main contribution from them to energy security.

• The investment is part of a longer-term strategy and foundation that includes technology and employment opportunities.

Arca Group's Competency in Offshore Wind Industry

In this section, the speaker discusses Arca Group's competency in offshore wind industry and their experience with floating oil and gas installations.

Arca Group's Experience with Floating Oil and Gas Installations

• Arca Group has designed more than 60 percent of all floating oil and gas installations in the world.

• Their competency and experience give them an unfair advantage to help offshore wind industry develop floating foundations.

• They have expertise both in bottom fixed as well as going forward in the floating offshore wind industry segment.

Importance of Industrial Software for Energy Challenges

In this section, the speaker talks about how industrial software can help address energy challenges.

Developing Different Method of Work for Large Capital Intensive Projects

• To provide energy security and add additional capacity, there is a need to develop a different method of work to execute large capital-intensive projects.

• A technology has been developed by Arca group deployed exactly for that purpose. It reduces engineering hours in large capital-intensive projects, enhances efficiency between the operator and a wide range of suppliers, reduces the time it takes to develop a large project, and identifies and mitigates risks involved.

Importance of Software as an Enabler

• Software is an enabler for both the transformation and improvement of Arca Group.

• It is also a very exciting new industry segment because many companies have a desperate need to change with new technology.

• Arca Group established software as a separate business in their group and has established several partnerships to scale up.

Partnership with Context in Saudi Arabia

In this section, the speaker talks about Arca Group's partnership with Context in Saudi Arabia.

Importance of Partnership with Context

• One of the most important partnerships for Arca Group is Context in Saudi Arabia.

• The partnership involves distributing their technology Google cloud services and other software technologies in key countries around the world.

• Saudi Arabia has a higher level of ambition and more opportunities than any other country today.

• Being part of it is an exciting business opportunity that contributes to transitioning existing businesses not only in Aramco but all around the world.

Growth Strategy Driven by Employment

In this section, the speaker talks about how winning companies create differentiation through growth strategy driven by employment.

Investment Aimed at Human Resource Growth

• Winning companies create differentiation through growth strategy driven by employment.

• Investment aimed at human resource growth drives our growth strategy.

• Skilled personnel and technology are required for growth.

Contribution to Digital Transformation

• Arca Group aims to contribute to digital transformation, sustainable transformation, and global transformation.

• They would like to contribute AI machine learning security robotics.

RD and Innovation at HSBC

In this section, Catherine discusses how HSBC uses R&D to drive commercial monetization of ideas and achieve outcomes that impact customer experience or drive value chain shifts. She also talks about the three horizons of innovation: today, tomorrow, and the day after tomorrow.

Definition of Innovation at HSBC

• R&D is broadly categorized as innovation at HSBC.

• The definition of innovation at HSBC is not pure theoretical research.

• The goal is to drive commercial monetization of certain ideas and get them to market quickly.

Three Horizons of Innovation

Today's Horizon

• Today's horizon focuses on incremental changes such as chatbots, mobile banking apps, reducing fraud, etc.

Tomorrow's Horizon

• Tomorrow's horizon aims to make 40-60% of work go away by transforming traditional ways of making money into new ways that make it easier for customers to transfer money or do foreign exchange.

• The goal is to earn a right to exist in the future economy powered by new technologies.

Day After Tomorrow's Horizon

• This horizon focuses on deep hard tech innovations such as digital assets and quantum computing.

• Digital assets give everyone the ability to code and create money tokens with monetary value.

• Quantum computing will render most cybersecurity practices obsolete across industries beyond banking.

Using R&D for Innovation Deployment

• R&D is used to deploy little "speed boats" alongside the super tanker of HSBC.

• These speed boats can take on more risk and fail fast but learn something and get to market quicker.

• Portfolioizing investments across all three horizons ensures that HSBC has the right bets in all three.

Samsung's Data Platform and Yokogawa's Software Innovations

In this section, the speakers discuss how Samsung is transforming EBC execution using VR/AR and its data platform. They also talk about Yokogawa's recent investments in developing new management technologies, including automated engineering programs.

Samsung's Data Platform

• Samsung is investing in developing new management technologies to transform EBC execution.

• Nearly 50% of all engineering activities are now automated without engineers' involvement.

• All automated engineering programs have been put onto a platform called the Engineering Data Platform.

• The Engineering Data Platform has connected all automated programs, allowing for a 50% reduction in engineering time.

Yokogawa's Software Innovations

• Practical problem-solving is at the heart of Yokogawa's approach to innovation and R&D.

• Software is necessary to solve some of the larger challenges facing industries today, such as reducing emissions from operations.

• By deploying their Connect Data Fusion platform and liberating data from relevant sources, artificial intelligence can predict electricity needs and adjust production accordingly. This has helped reduce CO2 emissions by up to 50% in offshore operations.

• Carbon capture and storage (CCS) is an important area for solving environmental issues. Yokogawa has been involved in CCS since the mid-'90s but has found it too costly. Going forward, they plan to offer CCS as a service where customers pay a fixed amount per tonne of CO2 captured and stored.

Carbon Capture and Storage (CCS)

The speakers discuss the potential of carbon capture technology to create job opportunities for the local economy.

CCS as a Job Opportunity

• CCS has the potential to create job opportunities for the local economy.

• Mobile CCS can be fabricated in a modular design, generating more job opportunities.

• The speakers express interest in exploring CCS with Acre.

Small and Medium Enterprises (SME)

The speakers discuss SME development as a key component of any economy and how Yokugawa is working towards developing assemblies in all regions they operate.

Yokugawa's Commitment to SME Development

• SME development is recognized as an engine of the economy by Yokugawa.

• Yokugawa is considering setting internal KPIs or targets to maximize SME development and empowerment.

• About 85% of broker goods and services in Yokugawa's operation in Saudi Arabia come from SMEs.

• Yokugawa works closely with local vendors, calling them partners rather than just contractors, to improve their competitiveness.

Collaboration with Aramco

The speakers discuss their collaboration with Aramco and how it presents inspiring opportunities for small businesses.

Samsung's Commitment to Small Businesses

• Samsung commits to finishing jobs and getting subcontractors and small businesses along on their journeys.

• Aramco's strategy today is about solving large global challenges domestically at a global scale.

• Time is of the essence, with net-zero commitments from governments and private business enterprises.

Agility and Speed in Problem Solving

The speaker emphasizes the importance of agility and speed in problem-solving to develop a solution and commercialize the opportunity. They encourage everyone to inspire each other to not spend more time on decision-making processes and discussions than what's actually needed.

Importance of Agility and Speed

• Deploying agility and speed is necessary to solve problems within the available time.

• Practical, tangible, and financially attractive results should be delivered as soon as possible.

• Urgency, agility, and market feedback are essential for success.

• Innovation is a necessity during times of crisis.

Cross-border Economic Development

The speaker highlights the importance of cross-border economic development for SME empowerment. They recommend increasing flexibility in the labor market to facilitate movement of labor and goods.

Importance of Cross-border Economic Development

• Cross-border economic development is crucial for SME empowerment.

• Flexibility in the labor market should be increased to facilitate movement of labor and goods.

Conclusion

The speaker concludes by thanking everyone for their participation, interest, onboard, being here with us in Saudi Arabia. They express excitement about partnering with attendees to meet Virginia 2013's ambitions.

Conclusion

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