The new normal for the technology world is digital transformation, which gives us a chance to “rejuvenate” traditional industries, through which the real business pain points are solved and real values are created, said Dr. Min Wanli, founder and CEO of North Summit Capital, during an online venture capital event on Tuesday, November 17, 2020.
Speaking at the 33rd Annual AVCJ Private Equity & Venture Forum, one of the premier private equity and venture capital events in Asia, Dr. Min, a leading expert in industrial intelligence and business innovations in China, shared his thoughts on new trends beyond the COVID-19 pandemic and delivered a keynote speech titled “Parachuting Technology to Value Ground of Evergreen Industries”.
“(COVID-19 pandemic) is not a crisis, but rather a window of opportunities for all traditional industries, today we have to embrace digital transformations and the latest digital technologies,” he said.
Dr. Min went on to share how the application of big data, AI and other digital technologies help very traditional industries, such as manufacturing and agriculture, to create new values.
One of the cases he revealed publicly in detail for the first time is to help Mengniu Dairy, one of the biggest manufacturing and distribution company of dairy products in China, save hundreds of millions of Chinese yuan of distribution costs.
He said in the old days, the company had the raw milk produced and delivered to their production line on a daily basis with a fixed schedule, while their advanced planning and scheduling, or APS, is highly dynamic, which means very often, the company have the last-minute modification of the production plan. As a result, raw milk is often oversupplied and has to be dumped.
“Now imagine you have all these 3 data set together – the production of raw milk, the delivery of raw milk, and the production line scheduling, together in sync, in real time, which is able to help the customer to reduce the wastage of the raw milk at the production site.
“The result is very straightforward – 9% reduction in the distribution cost, which translates to around one hundred million Chinese yuan per year,” said Dr. Min.
Another case he shared is when he served as chief scientist in Alibaba Cloud, also known as Aliyun, a leading Chinese cloud computing company which is a subsidiary of Alibaba Group, he led the team to utilize the traffic data collected by Hangzhou city, and make traffic signal “predict” and show green lights to ambulances.
As a result, they were able to reduce the travel time of the ambulance by half. “The 50% reduction of travel time could be a difference of life versus death,” he said.
“These sectors and reference cases have something in common,” Dr. Min explained. “They are data intensive, and capital intensive. They have a lot of data already accumulated, and then we just deploy our solutions, our capabilities together to turn that data reserve to value generators.”
Dr. Min said he had led his team to deliver about 100 reference cases covering 8 industries.
“Through the experience I had the opportunity to project how the big data add values to the smart city, the smart manufacturing and agriculture. So one year ago, I found North Summit Capitalwith a mission of advancing technology for social good,” he said.
“As long as we have technology, we have to show the value creation in the context of the industries,” he added.
This year, the AVCJ event was held hybird due to the pandemic and was joined by more than 1,500 general partners, limited partners and high-end industry players globally.
Other keynote speakers include Kok Yew Tang, founding chairman and managing partner of Affinity Equity Partners; Steve Moseley, deputy CIO and head of Private Markets and Alternative Investments for the US$65 billion Alaska Permanent Fund, an endowment formed in 1980 to provide for all current and future generations of Alaskans; and so on.