Björn Rosengren, the theme of the Davos Agenda is “rebuilding trust”? How is ABB contributing to the meeting and what can a company like ABB do to rebuild trust?
Several of our executives, including me, are participating at the Davos Agenda. We are discussing how the transformation of industry and manufacturing in particular can drive economic growth and prosperity, and contribute to a more sustainable future. As a global technology company specializing in electrification, automation, robotics and industrial motion, ABB is playing a leading role in the transformation of industry and manufacturing, as well as the energy system.
What are the main drivers of industrial transformation and growth?
There are four long-term trends that are driving change across industries, and especially in manufacturing:
- Rising consumer demand for customized and individualized products;
- Shortages of qualified labor and the need to become more resilient;
- Uncertainty in demand, driven by COVID-19, geopolitics and other factors;
- Rapid technological advances, enabled by digital connectivity and artificial intelligence.
I would add that manufacturers need to embed sustainability in their operations to drive competitiveness and growth. Sustainability is also an economic opportunity and from a cost perspective, cutting energy use and reducing materials’ usage and waste is good for the bottom line.
In the face of these trends, manufacturers are having to become more flexible and to simplify their operations and logistics processes. Those that are embracing new technologies and ways of working are doing well; those that aren’t are finding it increasingly difficult to compete.
How do manufacturers make their operations more flexible and simpler?
The answer is technology, specifically by leveraging the next level of automation and robotics. Robots are not new – ABB built the first electrically controlled industrial robot back in the 1970s. Since then, robots have been helping to improve industrial productivity, quality and safety.
What is new is that today robots are “born” digital. Equipped with AI and software, and combined with other machines and automated guided vehicles, they can carry out many different tasks of increasing complexity as well as move around and collaborate safely with humans. You might think that such advanced robots would be very complicated to program and deploy. In fact, it’s the opposite. Advanced robots no longer require programming – you can simply show them what to do by moving their arms. With AI, they can learn to recognize objects and optimize their way of working.
These developments are driving flexibility, adaptability, simplicity and resilience.
As a provider of these advanced technologies, presumably ABB itself has had to become more flexible and simpler?
Absolutely! Our success depends on the success of our customers and this drives everything we do. Transforming industries is a core part of our company Purpose and something we have to live ourselves in our own operations.
With our business model, we have dispensed with complex processes. Decisions are made at the level of the customer by the people who understand the customers’ needs. We provide ongoing support for our customers through our collaborative operations’ centers. These allow our customers to collaborate remotely with ABB experts 24 hours a day and quickly adapt their operations to fluctuating demand. Today, we are connected to more than 1,000 industrial sites and over 1,200 marine vessels around the world.
In this way, we enable our customers to adapt their business models, as well as to become more efficient, productive and sustainable.
How have you helped customers adapt to COVID-19?
Since the outbreak of the pandemic, we have been working closely with customers to keep essential infrastructure and services running, and also to adapt to the new demand for other kinds of products. For example, our robots helped a US electronics manufacturer, which had never made a medical device in its history, switch to making FDA-approved ventilators within 30 days.
We also work closely with governments and local authorities to address societal and community challenges. In Singapore, for example, our robots have enabled a dramatic increase in COVID-19 testing capacity. Today, they are processing more than 50,000 COVID-19 tests a day, ensuring consistent quality, freeing up medical personnel and reducing the risk of infection.
What other challenges is ABB helping to address?
Alongside transforming industries, we help to address the world’s energy challenges and embed sustainability throughout our value chain. Through our leading technologies, we enable a low-carbon society and help to preserve the earth’s resources for future generations.
Specifically, we help our customers reduce their CO2 emissions, in line with the Paris climate accord, which we are very happy that the United States is rejoining. Our technologies reduce energy use in industry, buildings and transport – sectors that together account for nearly three-quarters of global energy consumption. Through our circularity approach, enabled by technology, we reduce waste, increase recycling and reusability, and make our products more durable.
Sustainability goes beyond environmental considerations. Being a global company with operations in more than 100 countries, we promote social progress around the world by being an exemplary corporate citizen.
What are the key technologies that are driving sustainability?
When it comes to reducing carbon emissions, electrification and automation are key.
We need to decarbonize the energy system and use energy more efficiently. Here, electricity is essential because, thanks to renewables, it is the only form of energy that can be produced and consumed without generating emissions. Today, we have the technology to power industries, buildings, infrastructure and land-based transport with electricity. We can also significantly reduce emissions on vessels with our on-board electric propulsion systems.
When it comes to using energy and resources more efficiently, we can already make a big difference by stepping up the deployment of existing technologies. For example, our variable speed drives for electric motors can reduce electricity consumption by up to 25 percent, while our charging solutions for electric vehicles are supporting the shift to carbon-free mobility on the road. One of our 2030 targets is to be carbon-neutral in our own operations, which we will achieve in part with our own technologies.
What are you expecting from the Davos Agenda?
Last year was 50th anniversary of the World Economic Forum. That shows what an effective platform it is for dialogue and multi-stakeholder collaboration, which are key to addressing global challenges and building a sustainable future. My colleagues and I are very much looking forward to continuing the collaboration with the WEF and its many stakeholders for the benefit of everyone.
