[Framework] Guide to Industry 4.0

1. Industry 1.0 was based on the introduction of mechanical production equipment driven by water and steam power. Industry 2.0 was based on mass production achieved by division of labor and the use of electrical energy. Industry 3.0 was based on the use of electronics and IT to further automate production. Industry 4.0 was based on the use of cyber-physical systems. 

2. The Smart Factory is quickly becoming a real place, where the technology and capabilities developed under Industry 4.0 will be put to work. Connecting real machines with information technologies and the Internet will increase productivity, add unprecedented levels of flexibility to manufacturing, and leverage the benefits of new business models and value creation networks.

Chinese Companies Expanding Abroad and the Challenges

1. China has the world’s largest supply of foreign currency reserve and Beijing’s easing restrictions on outbound cash has helped facilitate overseas investment. The government has also eliminated the need for companies to have their out bound investments approved by the State Administration of Foreign Exchange (SAFE).

2. The Chinese government monitors the outflow of foreign reserves and closes the gates if they see too much money leaving the country. However, the government has chosen to leave the gates open despite a massive outflow of foreign reserves making it easier for companies to go abroad.

3. The beginning of Q1 2016 recorded Chinese companies raking up acquisitions approximately $68 billion and $100bn of announced M&A transactions worldwide.

4. This was accelerated by the Government's initiatives such as China’s One Belt One Road (OBOR) inspired by the Silk Road trade path from China to Europe and is expected to build a huge economic corridor taking in almost two-thirds of the world’s population and accounts for one-third of the world’s wealth.


5. This initiative in China’s ‘going global’ objective was forseen when domestic growth slows down and is a major plank for many Chinese companies taking to the international stage.

Top Chinese Companies Going Global and PR in a Foreign Country

1. China’s outbound M&A activity for the first nine months of 2016 totaled $174 billion, (From Dealogic data) surpassing that of the United States for the first time.

[Framework] 10 Recommendations for Risk Management Improvements and 6 Useful KRIs

1. 10 actions to help firms better manage their risks.

2. 6 KRIs serving as a good tool for firms to summarise issues for management, the board, the non-executive Directors, the clients and the regulators.