[INTERVIEW] Building deeper talent pool is key for data management

LG Energy Solution Chief Data Officer Pyun Kyung-suk responds to questions during a recent interview with The Korea Times at the company's head office in Yeouido, Seoul. Korea Times photo by Choi Won-suk

LGES chief data officer stresses necessity of collaboration among data professionals

By Kim Yoo-chul

The era of digital transformation is here, and with the shift, have come a lot of innovations for leading Korean companies to explore. The ongoing COVID-19 pandemic has awakened the need for them to adapt rapidly and speed up their utilization of emerging technologies.

Korea's international competitiveness lies in manufacturing because the country is home to the world's top two memory chipmakers: Samsung and SK. Plus, it has the global top-tier steel manufacturer, POSCO, as well as automaker Hyundai Motor. LG Energy Solution (LGES) is also one of the leaders in the battery industry, followed by Samsung and SK.

So far, new strategies for guaranteeing faster product delivery and better pricing for clients have been successful for almost all Korean manufacturers.

Actually, decades ago, the major corporate growth strategy was seen as "value management," in which the role of C-suite executives was more about bringing out the maximum value from the businesses on hand. Business operations were tied to the concept of "synergies" across businesses, and the corporate headquarters was responsible for maximizing synergies across its flagship portfolios of businesses, with executives cultivating the right style of overseeing them. Now, according to company executives, the central point is that leading Korean manufacturers are well aware of the effects of the old guard insisting on hanging on to old business methods.

Within that context, because intelligent technologies such as artificial intelligence (AI), machine learning and cloud-based platforms are already affecting how technology companies communicate with their customers, Korean tech leaders are also weighing in on the level of readiness in terms of adapting strategies and driving the changes that would impact customer satisfaction and business growth.

Despite concerns that the once obscure chief data officer (CDO) position won't deliver actual business value in terms of justifying its existence, the newly-hired CDO at LGES, which supplies high-end rechargeable batteries to vehicle manufacturers including Tesla and General Motors, is ready to employ an incremental approach to build a set of data-driven management structures.

"As the CDO of the company, my role is how to optimize (customize) and even underpin the business essentials with data ― from logistics, production, to even human resources management. I will navigate the best possible ways how to ensure customization, which provides us with the chance to offer outstanding services in terms of quality, and defect rates. Once addressed, then I will move to find ways to have custom logistics systems," LGES CDO Pyun Kyung-suk said in a recent interview at the company's head office in Yeouido, central Seoul.

According to the senior executive, who previously had led projects as the lead architect for driverless vehicles, industrial artificial intelligence (AI) and cloud technology at Nvidia's U.S. headquarters, the following four areas were his responsibilities at LG: governance, operations, innovation and analytics.

"I wanted big data, infrastructure and software to be interactive. Assuming that digital transformation is the process of incorporating computer-based technologies into a company's products, processes and strategies, biopharmaceutical companies are ideally positioned to pursue data-driven management by providing the authority to CDOs as a lot of discussions and communication are happening between domain experts and AI experts," according to the company's senior vice president.

"Why does data matter inside LGES? Like the semiconductor industry, the global battery market will be reshaped by a few rational players because battery demand growth will flatten out once a large volume of internal combustion engine vehicles are replaced by electric vehicles. That means, if a company doesn't establish a structure that will work on AI and big data frameworks, then this will challenge that company's future," the CDO added.

LGES is one of the country's leading exporters that has operations globally. It operates joint ventures in Indonesia and the United States, and it is hoping to create more battery joint ventures in Europe. The executive said LGES is aiming to set up a "model site" that brings a wealth of data-driven features together to improve productivity.

"Because LGES has a long and rich history in terms of having relevant patents and technology, companies in the United States, Europe and Japan want to solidify business partnerships with us. Investments in the billions of dollars should proceed. We do need more skilled workers as the firm is on track to accelerate drives for expanded and enhanced factory automation. The plan to establish a model site is aimed at addressing cultural and language issues and customizing global operations," Pyun said, adding that the model site, once completed, will be duplicated at its overseas manufacturing plants.

Team setting, internal collaboration

The thought is that data-driven management operation will be quite tricky if business-to-business (B2B) companies are just looking at the technology and not seriously considering employees' "natural fear" of change.

Pyun said that his role is also to codify cultural shifts necessary to democratize data and increase data literacy.

The executive acknowledged that there have been concerns regarding the creation of the new data-driven business ecosystem as an organ, because there may be some confusion and disagreement about the need for data management. However, he stressed that his task is to find specific ways to improve the awareness of data management and the relevant programs for it ― something LGES employees want to be a part of ― to navigate its next steps in an orderly fashion.

"Demonstrating a systematic and consistent approach regarding data will help LGES with its overall brand and talent attraction. We ought to create teams and hire data professionals to organize and sort out data according to purposes, as I think data classification is the key in terms of improving production yields. Data professionals inside LGES need to collaborate by respecting different roles and tasks. This will be a challenging process. However, it should be a process that employees can understand," according to Pyun, adding that LGES needs to redefine what data processing is.

"Because LGES wants to become a service provider ― not just a mere manufacturer ― we need to refine data and to invest more into data. For example, when you are using cloud computing, you have no need to install required applications on the system, as these applications can be accessed on the cloud computing system based on different needs. It's also rentable. You don't have to own a vehicle if you can use a vehicle. This principle will be the same in the battery business, as the battery business will evolve into a battery-as-service platform."

But when it comes to the hiring of data professionals ― the core factor behind LGES' data management drive ― the executive said that he plans to tackle the top external challenge of a limited talent pool and competition among companies to hire the best and high-paid talent by creating a talent pool advisory group.

"Obviously yes, we hope to hire qualified data professionals. However, working at a manufacturing company isn't their top priority because these data professionals tend to follow the movements of their peers when making decisions about their jobs. This trend is being seen in many top manufacturers in the United States, such as GM, Ford and Honeywell. This is why I've launched an AI talent pool advisory group using my extensive network. I'm eyeing hiring an executive-level professional through the recommendations of the advisory group," he said.

Explaining that AI-driven automation is becoming mainstream, as AI begins to power sales tools and drive businesses to automate tasks for better productivity, Pyun elaborated on his plans to support various AI-related research projects both financially and academically.

"The manufacturing industry is one area where advanced AI technology can be best practiced. Comprehensively speaking, I believe practicing digital transformation in the battery business is where one can leave his mark. I'm also a believer that leading the digital transformation in the battery industry _ viewed as the most critical sector after semiconductors _ is meaningful, nationally. Making career choices is extremely personal, but I strongly recommend those interested to try working in the manufacturing environment."