ESG Seminar – How to Control the Bargaining Table

The Executive Study Group (ESG) seminar 2016 – Leadership Strategy series named How to Control the Bargaining Table to Build Your Influential Power was held by the ESG, Asia Pacific Institute for Strategy Limited (APIFS) and the Hong Kong Science and Technology Parks Corp (HKSTPC) on 30 Aug 2016.  I would like to summarize the seminar for sharing below. (The seminar is full!)

Dr. Mark Lee briefed the purpose of Executive Study Group (ESG) and he established 100 CEOs Peer Learning Group.  He told us the coming topics in the CEO Group included “Downturn Strategy”, “Design & Innovation Strategy”, “Re-Branding and Marketing”, “Alliance and Plug-and-Play Strategy” and “Organization Development Strategy”.  He then also quoted Steve Jobs statement that Creativity is just connecting things.

In the beginning, Dr. Mark Lee discussed that negotiation was not debating.  It was about Human Interaction that how might we engage with other human beings in a way that leads to better understandings and agreements?  The definition of Negotiation is “the process by which two or more parties who perceives a difference in interests or perspective attempt to reach agreement.”  Then he used a case about NFL Strike in 2011.  The revenue distribution between players and owners did not compromise as follows:
Owner offering: Demanded a $2 billion off-the-top credit to support investments before any split of revenues would take place.  After which the players would receive approximately 58% of what remained.
Players Offering: Player wanted no off-top credit for owners and a 50-50 split of all revenues.
There were two barriers making agreement difficult to reach and they were (A) The Audience Problem and (B) Zero-sum Problem.

Finally, one of clever man in owner’s team suggested three revenue buckets to solve the deadlocked situation.  Why?  We discussed and got the following reasons. First, it seems fairer.  Second, it changed the focus.  And third, players seem to get more through media.  

Dr. Mark Lee said the most important was Victory Claim in both parties!

Then Dr. Lee told us didn’t focus on stakes on the Table but the Bargaining Table itself.  To move the Bargaining Table could get the different result.  

After that Dr. Mark Lee explained the 8 Strategies to Control the Bargaining Table.

1)      Control the Frame on How Others Perceive the Proposal
The “Frame” of the Negotiation is Psychological lens.  The frame should set for everyone to win.  Dr. Lee raised an example about Diana’s funeral.  If only consider the daughter-in-law of Queen Elizabeth II, it was not important because she had no longer been Princess of Wales after divorce.  But if considered as the mother of the future king, the frame changed and the whole funeral was different!

2)      Help the Other Side to Sell Proposal to Their Audience
It is because negotiators are too concerned about their own image.  So we need to help other side to make a justification for the decision maker.

Then Dr. Mark Lee used a case about Royalty Rates on Licensing.  They got stuck on royalty rate because IP owner expected the production would increase after Market Validation.  But Licensee expected the royalty rates should go down over time.  Then IP owner proposed quantity sold and time two dimensions calculation to solve the problem.  If the quantity sold without increased, the royalty rates went down with time.  However, quantity sold increased to certain amount, the new royalty rates should be used. So that both sides were feel comfortable.

3)      Bring Multiple Issues to the Table Simultaneously
Dr. Lee said to avoid one-issue negotiation or issue one-by-one, because it was hard to feel winning.  Therefore, we needed to negotiate multiple issues simultaneously, so as to create more options for tradeoff.  Moreover, it could help to find out what each side really care about.

4)      Diffuse Spotlight of the Prominent Issue
Similar to strategy 3, negotiation party didn’t make one issue standing out (One issue). It was only to attract supporters for aggressive opening position through a single prominent issue situation.  We needed to avoid Win/Lose Outcome that splitting one issue into two or more.  

5)      Make It Safe for the Other Side to Ask for Help
Trust could reduce risk. How to build the trust?  Don’t take advantage when others are weak; and reciprocating on shared sensitive information.  Moreover, a healthy degree of professional respect between the negotiators could help them signal to each other.

6)      Explore and Comprehend Unnoticed Interests
Hidden interests could be reconcilable if we understand why they want it. If both parties met their underlying interests, please stop arguing about “What they want” (Positions) but start discussing their motivation for “Why they want it” (Interests).  Therefore, we could control the bargaining table by moving to Interests from Position.

7)      Firm on Substance, Flexible on Structure
Be Firm as what you deserve (Interests) but not stubborn (Position).  I know where I need to get; I’m flexible on how we get there.

8)      Use Lubricate Oil to Keep Wheels Turning
If no immediate effect during negotiation, find offers to keep the ball rolling through additional dimension. Then find other side’s audience needs and crafting proposals like Lubricant Oil to maneuver around troublesome issues.  It aimed to reduce time on deadlock so as to make it more likely to find out a mutually acceptable agreement.

Peer Learning
Last part was peer learning through 5 minutes sharing. At the end, Dr. Lee gave us a quick template using 8 strategies for audient team use before negotiation.

HKSTP - www.hkstp.org
Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org


HKQAA & The People’s Government of Xinhui District Visit to HKSTP

We were honor that HKQAA arranged The People’s Government of Xinhui District, Jiangmen City (江門市新會區人民政府) to visit HKSTP Incubation Program and Laboratories on 29 Aug 2016. Ms. Fanny Li and Mr. Nic Chan (HKQAA) led this trip to HKSTP.  In the beginning, Mr. Antony Chan briefed the background of HKSTP and our Incubation Programme services.  They were impressed that our incubation soft part support and achievement.  

And then I led them to visit our Technology Support Centre (TSC). Firstly, I briefed the Wireless Communications Test Laboratory and Reliability Laboratory.  Secondly, we visited the Material Analysis Laboratory.  Finally, we went to Probe and Test Development Centre to see the operation through the window of cleanroom.  We took a photo in the laboratory together.

(Left: Mr. Zhang Jian Ming (張鍵明) (Vice Director, Major Investment Projects Office (Xinhui, Jiangmen)), 劉炳練 (江門市新會區工商行政管理局局長), Ms. Huang Yue Chang (黃月嫦) (Vice-Director, The People’s Government of Xinhui District, Jiangmen City), I, 周志雄 (江門市新會區質量技術監督局局長), 余偉軍 (江門市新會區質量技術監督局質量股股長), Ms. Fanny Li (HKQAA) and Mr. Nic Chan (HKQAA))

At the end, we took a group photo in front of the Charles K. Kao Auditorium (Golden Egg) for memory.  

江門市新會區人民政府 - http://www.xinhui.gov.cn/
江門市新會區質量技術監督局 - http://qts.xinhui.gov.cn/


HKSQ Seminar on Future Manufacturing

The HKSQ seminar named “Future Manufacturing – Industry 4.0, Made in China 2025 and Internet+” co-organized by Hong Kong Society for Quality (HKSQ) and SEEM Dept., CityU on 27th Aug 2016.  Industry 4.0, Made in China 2025 and Internet+ are the trend of future manufacturing.  Dr. YC Chau was invited to share his view on those elements and update after HKIE seminar on Industry 4.0 held one year ago.  Before the seminar, I (HKSQ) took a photo with my old friend Ir. Dr. YC Chau and Dr. CF Luk.

Dr. KS Chin represented SEEM Dept., CityU to give welcome speech.  Dr. Chin encouraged industrial professionals could study for research degree like Dr. YC Chau.

Then Mr. Peter Fung (Chairman, HKSQ) gave an opening speech and introduced HKSQ to all participants.  This year is also our society 30th Anniversary.

After that I introduced Dr. YC Chau to all and briefed his background.  Dr. YC Chau graduated from PolyU and received MBA from University of South Australia, as well as, PhD from SEEM Dept., CityU.  Dr. Chau had been working in TDK (Tokyo Denki Kagaku) Corporation since 198, where he was currently the Vice President of China Operation Improvement Group.  He was also an Adjunct Professor and Industrial Adviser with CityU.  Moreover, he was member of HKIE, Senior member of IIE and member of IET.  

In the beginning, Ir. Dr. YC Chau (Vice President, China Operation Improvement Group, TDK) introduced the background of Industry 4.0.  He had written an article entitled “Industry 4.0 with Implications for Made-in-China 2025” in HKIE magazine named “Engineer” Vol 44, May 2016.  He also briefed the history from the 1st to 4th Industrial Revolution.  He said Industry 4.0 was not equal to the 4th Industrial Revolution but they happened at the same time.  Industry 4.0 was only Germany Manufacturing Strategy.  

Then Dr. Chau briefed USA stated White House SMART Manufacturing, Japan mentioned Factories Connected Together, China has talking about Made in China 2025, and Germany promoted German Manufacturing DNA. He mentioned China economic had achieved over England and reaching USA (超英趕美). Dr. Chow agreed with SIEMENS Vision of Industry 4.0 that “A vision of tomorrow’s manufacturing: Products finding their way independently through the production process.  In intelligent factories, machines and products communicate with each other, cooperatively driving production.”  

Dr. Chau introduced three Key Technology of Industry 4.0 and they were Big Data, Internet of Things (IoT) and Cybert Physical Systems (CPS).  He said we collected big data within workshop which could be changed from Preventive Maintenance to Predictive Maintenance.  Then he showed video of Pizza example (In Chinese) in which demonstrated how accuracy sale in future.  

IoT connected among Supplier, Manufactor, Distributor and Customer; and formed IoT supply chain migration with cost opportunities.  He used Video of Intel’s Vision of IoT to demonstrate IoT concept.

He then stated Cyber Physical System (CPS) in which 3C model of CPS was mentioned where 3C for Computation, Communication and Control. Dr. Chow said employing CPS was very expensive and one example was MTR Operations Control Centre.  

He told us MTR should be no need to have driver actually but citizen had not ready to accept it. Another application was Off Line Equipment Diagnostic such as CPS Opportunities in Jet Turbine.  He said airplane could be hijacked through internet theoretically; therefore, airplane companies hadn’t shared all information online. 

Another example was Baidu Smart Chopsticks.  Many applications were related sensor.  So the sensors would become smaller, cheaper, more versatile and it could measure more data and interact with each other.

Dr. Chau said from the integration of Big Data, IoT and CPS, we got from Industrial 4.0 was “4S” where 4S stands for Smart Factory, Smart Products, Smart Process and Smart Services.  Dr. Chow concluded that Industrial 4.0 goal was seamless manufacturing through a merging of industry and IT, machines and systems would gain the flexibility to adapt to today’s rapidly changing processes.  

In addition, he said Real Time Overall Equipment Effectiveness (OEE) System would be achieved using the Framework included Vertical and Horizontal Integration Manufacturing Execution System plus ERP system.  After that he introduced the further business opportunities through “System of Systems” (SoS).  Dr. Chau asked us two things should be considered in Industry 4.0 that was Human Position and Quality Role.  

The 2nd part introduced Internet+ and Made in China 2025.  Dr. Chau quoted China’s Premier Li Keqiang announcement about Made in China 2025 in earlier March 2015 in Beijing.  The program was created to drive smart technology in China’s manufacturing plants.  He said China was pursuing an “Internet Plus” action plan that seek to drive economic growth by integration of Internet Technology with Manufacturing and Business.  Then Dr. Chau explained the reason of Internet+ using Asia Pacific Internet Speed data that China was very low speed in 2015.  Singapore and Hong Kong were number 1 and 2.  Therefore, Hong Kong had our own advantage using internet.

Based on Premier Li’s report, “Internet Plus” entailed integration of Mobile Internet, Cloud Computing, Big Data and Internet of Things (IoT); which included modern manufacturing, fostering new industries and business development (e.g. e-Commerce, Industrial Internet and Internet Finance).  That transformed from “+ Internet” to “Internet +”.  The following diagram demonstrated what Internet + different industries which created different products / services.

After that Dr. Chau introduced “Made in China 2025” that was the first 10-year action plan designed to transform China from a manufacturing giant into world manufacturing power.  The three step strategy was shown as follows:
2015-2025: From Manufacturing Giant (工業大國) to World Manufacturing Power (工業强國)
2025-2035: Form Elementary Level to Medium Level
2035-2049: Leading Manufacturing Power which marks (the 100th anniversary of the founding of PRC)
“Made in China 2025” had 5 key engineering areas, included “Innovation Center”, “Smart Manufacturing”, “Self-sufficiency in Infrastructure”, “Green Demonstration Projects” and “Indigenous R&D”.

Dr. Chau said Hong Kong had many SMEs but they hadn’t capability to implement Industry 4.0 but one thing his suggested to following the China strategies and used our advantages to find opportunities.  The 10 sectors of “Made in China 2025” were “New Information Technology”, “Numerical Control Tools”, “Aerospace Equipment”, “High-tech Ships”, “Railway Equipment”, “Energy Saving”, “New Materials”, “Medical Devices”, “Agricultural Machinery” and “Power Equipment”.  

Moreover, Dr. Chau also mentioned the Nine Tasks as follows:
-          Improving Manufacturing Innovation
-          Integrating Technology and Industry
-          Strengthening the Industrial Base
-          Fostering Chinese Brands
-          Enforcing Green Manufacturing
-          Promoting Breakthroughs in 10 Key Sectors
-          Advancing Restructuring of Manufacturing Sector
-          Promoting Service Oriented Manufacturing and Manufacturing-related Service Industries
-          Promoting International Manufacturing

And then Dr. Chau compared Germany Industry 4.0 and Made in China 2025 that they were same as National Strategy.  The difference was showed as follows:
For Industry 4.0, it focused on the development of fully-automated “Smart Factories” that made products fully customization.
For Made in China 2025, it span the whole manufacturing industry to apply advanced idea not only form Germany but also from the US and Britain among others.   
Dr. Chau told us China government had draft the National Smart Manufacturing Standard consultation paper in October 2015 and the guideline (國家智能製造標準體系建設指南) was published in August 2016.  

Then Dr. Chau showed the video about the bearing made in Germany and China that indicated the level difference.  We need to catchup the gap as soon as possible.

Finally, Dr. Chau said the road to be Manufacturing Power was difficult.  When others walk, we need to run.  Others run, we need to fly!  

In Q&A Session, many questions were discussed.
Mr. Edmond Cheung asked how SMEs started Industry 4.0 because of resource limitation.  Dr. Chau said it depended on their need.  The start part could be some existing manufacturing equipment data such as micro real time OEE.

Dr. Aaron Tong said the short product life cycle and system changed so fast that could be difficult to adopt such standardization.  Dr. Chau agreed that we needed more flexibility and customization.  He quoted Nike sport shoes as example that they could employ 3-D printing technology and tail-made a sport shoes for each customer. 

Mr. Peter Fung asked how Hong Kong achieved reindustrialization.  Dr. Chau said most SMEs in Hong Kong seek for surviving and he advised SMEs based on their own capability to adopt different position under China policy.

Finally, I gave close remark and added a comment that quality consultant could provide a service for evaluating manufacturing plant to achieve which industry level and could adopt what kind of Industry 4.0 technology.

At the end, Mr. Peter Fung (Chairman, HKSQ) presented a souvenir to Dr. YC Chau.  It was a very successful seminar and there were 50 participants.

HKSQ – www.hksq.org
What is Big Data? Pizza example (In Chinese) - https://www.youtube.com/watch?v=bSANNsqfy6E
Intel’s Vision “Transform Manufacturing with the Internet of Things” - https://www.youtube.com/watch?v=5OQQZ9eWF-4
Hong Kong MTR Operations Control Centre (TVB Program) - https://www.youtube.com/watch?v=lUpJFy-pOmg
Industry 4.0: Integrated Industry reaches the next level - www.youtube.com/watch?v=ccB6e18VwsQ
Differences between made in China & made in Germany - https://www.youtube.com/watch?v=RepARd6db7c
20150820: HKIE Seminar on Industry 4.0: The 4th Industrial Revolution - https://qualityalchemist.blogspot.hk/2015/08/hkie-seminar-on-industry-40-4th.html


HKSTP APAC Innovation Summit 2016 Series – Sensors

The APAC Innovation Summit series was a flagship innovation conference of Hong Kong Science and Technology Parks Corporation (HKSTPC) and the topic entitled “Sensors” was held on 25 August 2016.  APAC Innovation Summit (“AIS” in short and formerly known as InnoAsia) aimed to provide an exchange platform on the trend of specific technology sectors.  In the beginning, Dr. HL Yiu (Head of Electronic Cluster, HKSTP) gave a welcome speech and he pointed out that sensor played an important role in different field under smart city and robotic.  He hope todays keynotes would give some insight for all participants.

The first speaker was Prof. William C. Tang (University of California, Irvine) and his topic entitled “Micro-electromechanical Systems (MEMS) Technology and Applications”.  Firstly, he reviewed IEEE publication from 1995 to 2015.  He observed that the publication in Circuits decreased in percentage and Sensors increased as much as Circuits in 2015.  Then he briefed the MEMS advantages included Integration, Miniaturization and Batch Fabrication.   It included Anisotropic Wet Etching of Silicon, Surface Micromachining, Deep Reactive Ion Etching (DRIE), TI Digital Light Processor and Accelerometer. 

Prof. Tang briefed some applications on sensor included Automative Sensor and Smart Phone Sensor.  However, Biomedical Applications would be the one of key areas using Sensor.   Those application for better tools on Drug Delivery, Monitoring, Bio-analyses, Prosthesis and Minimally Invasive Surgery.  Bio-sensor separated In-vitro and In-vivo Sensors.  

Prof. Tang briefed some applications on sensor included Automative Sensor and Smart Phone Sensor.  However, Biomedical Applications would be the one of key areas using Sensor.   Those application for better tools on Drug Delivery, Monitoring, Bio-analyses, Prosthesis and Minimally Invasive Surgery.  Bio-sensor separated In-vitro and In-vivo Sensors.  

The second speaker was Ms. Clarie Troadec (Yole Développement) and her presentation named “MEMS & Sensors for Smart Cities”.  In the beginning, Ms. Troadec briefed her company’s business models included “Consulting and Analysis”, “Reports”, “Financial Services” and “Media”.   MEMS & Sensors was one of their 30 analysts operated areas.  She said Smart City was key facts to employ sensors.  The definition of Smart City was “Resilient, Safe, Sustainable and More Connected” (The United Nations Economic Commission for Europe - UNECE).  

Ms. Troadec introduced MEMS was a semiconductor technology thus enabling miniaturization and lower cost manufacturing of existing products.   She predicted gas sensors as the next MEMS success. Then she summarized the technologies of IoT as following diagram.  

After that she identified three important hubs for Smart Cities included Inertial, Environmental and Optical.  However, she focused on Environmental hub using different gas sensors because she believed the gas sensors became more and more important due to global air quality deterioration, new regulations and new technology development that combined multiple sensors in a single package.  

During the tea break, some incubatees demonstrated their sensor product such as eNano. 

The third speaker was Dr. Mike Daneman (InvenSense, Inc) and his topic was “Fabless Model for the MEMS Industry”.   Firstly, he reviewed MEMS markets by applications included Automotive, Consumer, Industrial and Telecom.  It was found that Consumer product employed in highest percentage.   His company was founded in 2003.  They had unique technology and Intellectual Property (IP).  

Then Dr. Daneman introduced their Fabless Business Model and they employed TSMC for twice shuttles per year.  He told us the advantages of wafer-level integration included Low Parasitics, Minimize Routing & External Interconnect, Wafer Level Sealing/Packaging, Testing and Designed for Test.  The benefit of application from CMOS integration included High Sensitivity, Complexity, Integration, Low Cost and Small Size.  

Finally, Dr. Daneman briefed InvenSense Shuttle Processess included Standard (SOI) Shuttle and Piezo Shuttle.  He summarized that InvenSense Shuttle was bringing the CMOS fabless model to MEMS industry so as to increase MEMS value through system integration and reduce time to market.

Prof. Muhammad Mustafa Hussain (King Abdullah University of Science & Technology, Saudi Arabia) was the fourth speaker and his presentation topic was “Skin Like Multi-Sensory Platform for Bio and Environmental Applications”.    He said his research on smart skin was inspired from human skin functionalities.  Prof. Hussain said the trend would be the development of E-skin towards Paper Electronics.  

He quoted one example from Advanced Materials’ Paper Skin – 3D Multi-Sensory Platform.  The sensors would include Temperature, Humidity, pH, Pressure, Force / Tactile Sensing, Flow & Proximity Sensing, Matrix Simultaneous, etc.

Finally, he summarized the E-skin sensors characteristics and found that it had higher performance and functionality per cost compared with existing electronic artificial skin.  He concluded paper skin was the first demonstrated an affordable and customizable lightweight health monitor artificial skin.

Prof. Wen J. Li (City University of Hong Kong) was the last speaker and his presentation entitled “Intelligent Sensors for Cyber Physical Human Systems”.   In the beginning, Prof. Li introduced himself with research experience in CUHK, Shenzhen Academy of Robotics and CityU.  Then he mentioned the important characteristics of Cyber Physical Systems (CPS) which directly connected between the physical and digital world with new systems functions through information, data, and function integration.  (e.g. Google car)  Then he introduced Cyber Physical Cities and one testing city was in Longgang which was intelligent and green city.

Then Prof. Li briefed the future factories should be IT systems built around machines, storage systems and supplied that were linked up as cyber-physical systems (CPS).  He also quoted Cyber Physical Farms as example.  

Prof. Li also mentioned different example employed CPS and one of interested sampel was Palpation Sensing Robotic Han to measure rate and regularity of human pulse for simulating Chinese Medicine Practitioner (CMP) fingers.    Lastly, Prof. Li summarized that the development of Cyber Physical Systems technology was a key driver for the “4th Industrial Revolution” and new paradigms for industrial and manufacturing engineering would be created.  MEMS and Nanotechnology were fundamentally important he said.  In future, highly interdisciplinary among robotics, sensors, modelling, virtual reality, wireless communication, system engineering, control, computer science and biomedical engineering would be new direction of CPHS research and education. 

APAC Innovation Summit - http://www.apacinnosummit.net/aboutus
20150642: HKSTP APAC Innovation Summit 2015 - Robotic - https://qualityalchemist.blogspot.hk/2015/06/hkstp-apac-innovation-summit-2015.html


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