Technology_book (demo)

TECHNOLOGY TransformsBUSINESS AND INDUSTRY Thailand 4.0 Innovation 4.0 Dr. Banja Junhasavasdikul



TechnologyDisruption 1

TECHNOLOGY transformsBusiness and IndustryIFPInSiarBnsgNtoevP:sau:tb1iol0isn1hGedroiunpT(hTahailailandndb)yLtd. in August 2017Copyright © Dr. Banja JunhasavasdikulProofread: Preeyanun ThamrongthanakijComputer Graphic: Nuchsarawadee Waed-udomPublisher: S. Asia Press (1989) Co., Ltd.160 Baht 2

Foreword I’ve known Dr. Banja for severaldecades. It is impressive to see how -underhis guidance- the Innovation Group hasdeveloped. Today the company is deliveringmaterials and compounds worldwideand is acting as a technological bridgeconnecting South East Asia, Japan andEurope together. To achieve this, not only is technical competencerequired, but a holistic view on technological, environmental and evensocial developments is also necessary. The Innovation Group has organized several conferences in thelast years and it is remarkable that there had been presentations notonly about materials. I had the pleasure to join a conference, where wedeeplydiscussed preconditions for successful developments,considerations about the European Economy or employee participationin Germany. In another event, a very broad view on the challenges andchances of e-mobility was given. It had been Dr. Banja’s skill to bringtogether specialists from the financial sector, automobile producers,OEM-suppliers and Universities. In the book he is presenting today, Dr. Banja is following thisphilosophy. It gives a very broad view of technical developments over along period of time. The widespread considerations especially make thebook precious. We can read about the changes technology triggered interms of human and business behavior and the relating transformationsof world economy. We can analyse important inventions, which changesthe lives of all of us. A special insight into the important developments inthe automobile industry is given. This branch -being in a phase of big 3

changes- is quite influential in economic and social terms and thusthe general considerations as well as the detailed discussions aboutenergy storages are valuable and interesting. A general consideration of industrial revolutions is completing thepicture and helps the readers to better understand the big changeswe face looking at Industry 4.0. After these broad discussions, the local Thai developments are notforgotten and a special attention is given to the further developmentsof the Innovation Group. All in all, it has been a pleasure to read the book and a big honourto contribute a foreword to it. Prof. Dr.-Ing. Andreas Limper Freudenberg 12 August 2017 4

Preface In the past 15 years, Innovation Group has been growing itspolymer technology through research and development in its PolymerTechnology Centers with the goal of providing innovative products andservice to various industries. From our beginnings as a small researchlaboratory, we are continually expanding our knowledge of polymersutilizing techniques and equipment that enable us to stay in the forefrontof polymer technology on a global basis. However, during the past8 years of political unrest in the country and with the global economyslowing down, it has become more difficult for a company to sustainits growth without taking into consideration technology and businessdiversification. Therefore, to enhance its processing technology,Innovation Group is looking deeply into digital and automationtechnologies. As digital technologies and the Internet are increasinglyinfluencing daily life and business, businesses have to adjust to the rapidevolution of technology. Indeed, a number of companies and industrieshave already been shut down because they did not adapt to the newtechnologies. With the relentless advancements in electric andautonomous vehicles, Innovation Group’s heavy involvement in thesupply chain in the automotive industry means that our business hasto prepare itself for the changes. These are reasons I have studied the coming technologiesthat will impact our business. I started by catching up on digitaland automation technology with support from the Thai GermanInstitute. It is my hope that this work will contribute to gearingInnovation Group toward Industry 4.0 to sustain our technology andgrowth in the global market. Dr. Banja Junhasavasdikul 5

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Index SearchChapter 59TanhdethLeitHhyiudmro-gIoenn FBuaetltCeeryll 69ChapterIndustrial RevolutionsChapter 83TRehvaoilul ationnds; TI nhadiulasndt r4i a.0lChapter 91IoSnufnsotIavnianntaioobvnlea4t.iG0ornowGthr oPulapn; 9







Despite its advantages, however, technology does have itsdrawbacks, which often go unrecognized by digital media users.For example, nowadays young children are more likely to use theirparent’s cell phone for games and music than for actual communication.A survey conducted by Common Sense Census reported that childrenand adolescents spend approximately 6 hours and 9 hours,respectively, on their digital communication devices. An excessive use ofthese devices gradually builds up a relationship wall between eachfamily member when they cannot manage their time to include somefamily activities. Another problem is that a digital medium becomesthreatening when information spreads rapidly regardless of verification.The users should, therefore, be aware of using information that mightallow criminals to take advantage. With regard to education, digital media allows for multilevellearning in diverse branches of knowledge by means of an electronicdatabase, where people can readily access specific information viaa search engine. As a result of the increasing amount of informationand knowledge stored in electronic databases, several industries havebeen affected significantly. For example, utilizing a traditional card catalogsearch system at a library has become outdated. Similarly, as knowledgecan be acquired through online access, colleges have been affectedby a reduced number of enrolling students, and, in the United States,the need for lawyers has been reduced because IBM’s Watson canprovide adequate information about basic laws of which the citizensneed to be aware. 13

While some businesses and careers have adjusted themselvesto accommodate the evolution and rapid development of technology,others have succumbed. Because technology provides fast andconvenient access via the Internet while printed media usually takesmore time from production to accessibility, several printed mediaand printing companies have shut down their businesses. To confrontincreasing Internet-based advertising, television advertising needs tocontinuously develop new strategies. As technology providesconvenient access at low cost, both human and business routinesare influenced by a growing online marketplace that is likely to replacethe traditional merchandising system. Therefore, people need to adjust toand make the most of the comparative advantages resulting fromtechnological developments.The Digital Revolution Marks the Beginning of theInformation Agewpdct eoericotnrhhidvtniuenthocduTelteohitosgeaendycDtohoiatgnpontiotthdiaoloedlngiRwgpioeeiitrdfsvaeeo,dlssleiiutgnpnetcirittcoealuhnadldn,dcaiotnoyhl.gumoesgCpcteyhehu,enatoetnbfcrrgaesotelgmhaatefnorpnodudmttthdieogiimrsgi,teaietrdslaeciclgvhloaoriategllanaucilicttcoeicoaredcnlilnialrukcnisleaudtehrittapehpnieanha1ngolm9odnt5gaheu0siatsessst, 14

asfoounfrcdcihnetfshoaersbmeItnhahtteieniordfnnoelsltoai.gwnBndiinefigccka:anunostweclehthdaegnyge,eesnthainebsleheuemtaesacynhnaaocncldoegsbiseusstoinaevresasstthbqeeuhadanrvitiviotiinresgs,saGrad eonredgicdvnueeia-cnbrXlseeu1,adrson)Ga.ifndtCeiTreonaodhsnp-nisegYissedi,tuBhslayam.ialfntebm.edmyrPeGbbdrBeeeaioasdnso.ee-dmGnCsinte,elgyhnrw,sa-thteYvhaeoceraheabnnnrdeboeuelemeovnisngebpgcryeyehrirncafeaoitnapomfglllayBteilhcidaaGeebredaryanosnb-uBdCaytoincocwtehomoiemllnliefbsefmroeseoreqtthfmuahahbeebsunleemmcbrwesaeajeinotoonhsrff asidosecnciatoilfnmy2s)etuhCdmeioaentrcassorugncmetorteinbrctuibnoteeunshesautotvmoitoredarrensmmstufoaadrrnimkedesintnhsgeemwhlpuomiinnsntadonleivkbtaeeetlryhimoaneivnsaioi.rnnrgI,nistsaacadlaleednssi.tbsioetrnua,stewegdhieitloes creolamtemd3u,n) tWircaaintthsiopananrweinnictchryeinainslainrbgguensiungmerosbuseprasonfdosf oppcoeilaiotlipcnsleetwwwiolhl robkseaarinellocnwr’teiannsgeecfdoe.rsrsaapriildy iensflsueennt4cia)eldMfoohruredmaaainlnydrliomvuinotgirne.eTsp.heuosp,leceolwl pnhcoenllesphhoanvees aalrnedadcyonssigidneifrictahnetmlydai nnafotaramcsa5tcot)uiroraCangltoeeouvadeanrndcathoalyemnsapIisnlyutsetoiirnsfngecttaha.nelBlobewinecsfaoimurfsomperraobetviiaogesndyd.ainstatotarhanegaelyctlaiocnusddc,asnhbauprsirniongveidsoesf aiccnoontmmdroppdwuau6nto)ceirereBksdsec.ohciaaenFusnloinscrieeenc,tathrhnemiesadasItnenreedytceahrrsInnanoeoptnetliod,ragnlyltyel,ohtweea-bxnspdanepsurneemteidoswbpeelaehcrpaatpovorleeficecbardoteimpigcoaimonttamhsuls-nethiefcaoacavrvthaeeunilatoeiblbilazoelesinegi.lgnyy 7) Digital technology enhances work efficiency whiledecreasing costs. 15

The Internet of Things According to a recent Bloomberg BusinessWeek article(“Tomorrow’s Cellular Networks Will Generate $3.5 Trillion in EconomicOutput,” by O. Kharif and S. Moritz, Feb. 16, 2017), today, “the wirelessstandard known as 4G has untethered us from our living rooms andoffices, allowing us to navigate unfamiliar roads and streets usingvoice direction from Google Maps . . . . The next iteration promises tobe even more transformative, because it will support communicationamong objects, as well as people.” Those “objects” include appliances,vehicles, and buildings in addition to personal mobile devices suchas handsets, tablets, and laptops. To make the “Internet of Things”possible, we foresee a leap in the requirements for network capacityand data transmission speeds. The current 4G service at a maximum ofabout 1 gigabit per second is too slow. A higher transmission speed of5G providing up to 10 gigabits per second, which would allowdownloading a high-definition movie in less than a second, will benecessary. In selected cities during the summer of 2017, AT&T and Verizoneach will begin trials of using 5G to wirelessly beam movies and TVchannels into homes. While Australia and South Korea will demonstratetheir own 5G networks in 2018, most deployments will start in 2020.Similarly, “Germany’s luxury automakers announced . . . that they [are]teaming up with Ericsson, Huawei Technologies, Intel, Nokia, andQualcomm to form the 5G Automotive Association . . . to define uses5G for next-gen networks” (“Tomorrow’s Cellular Networks”). Driverlesscars will talk to other cars, traffic lights, infrastructures, and trafficpassengers to exchange data such as speed and road conditions.Indeed, some envision a future in which a driverless vehicle can bedispatched to pick up customers at home and deliver them to theirdestinations. Is there any doubt that such capabilities will have huge impactson human and business behaviors? This author thinks not. 16

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2Chapter Technology Transforms the World Economy Who would have expected that the rapidly changingeconomy of the past 10 years would result from the developmentand the evolution of digital technology? The development of digitaltechnology has led to the growth of information technologycompanies and increasing evolution in many technology andmanufacturing companies, all of which have a great impact onbusiness, industry, and the world economy. Lawrence Summers,a former U.S. Treasury secretary and Chief Economist ofthe World Bank, is a financial and economic expert who has saidthat deflation and interest rates approaching zero or below zero arethe current economic problems in developed countries. The interestrate is a consequence of financial supply and demand. The decline ininterest rates is due to lower financial demand (investment), as supplycontinues to rise because of greater savings. Summers also saidthis is worrisome because the average income of the populationhas changed. Rich people earn even more since they havemore income than they will spend, resulting in higher savings.At the same time, asset investment decreases as theinformation and communication technology business is thecreator and developer of the software paradigm that doesnot need a lot of investment in factories or machinery.So, the financial needs are reduced and most of the largecompanies in this world are in the hands of the billionaires. 19

This business evolution is an economic phenomenon.As mentioned, the two major financial events affecting the world’s largesteconomies are interest rates close to or below zero and deflation.Japan and many countries in Europe are experiencing these events,and the United States, with the world's number one economic base, isstill in a state of flux with its near zero interest rates. China, which is thesecond-largest economy after the United States, has to slow downinvestment and turn to the growth of domestic consumers due toconcerns about the existing heavy debts of government enterprises.Thailand, under Prime Minister Prayut Chan-o-char, is considered to bea country with a sustainable economic growth of GDP 3.5% However,to compensate for the slowing down or decline of exports in line withglobal economic trends, the Thai government is pushing for moreinvestment in infrastructure. The direction of digital technology willincreasingly have an impact on businesses and industries in the country,especially the automobile industry, which is one of its main industries.For example, the automobile industry’s supply chain will be greatlyaffected by the arrival of electric vehicles. As part of the strategy tomove Thai industry to Thailand 4.0, Prime Minister Prayut emphasizesdeveloping Thai technologies and innovations in order to add morevalue to Thai products. Thailand has to prepare for and adapt to thearrival of the digital technology that is essential for the success of thebusiness and industry of the country now and in the future. 20

Discoveries and Inventions—The Beginning of Changes As asserted in Chapter 1, the discoveries from the past were theinnate inspirations of human beings who wanted to overcome natureand obstacles to survival. The discoveries and inventions of the varioustime periods in human history were the beginning of changes in humanbehavior that are ultimately reflected in all of humankind’s social andeconomic developments. Let's take a look at some examples.Prehistory When the earliest humans invented stone tools, their huntingbehaviors naturally became more effective, and learning how to createand control fire changed the way they ate by enabling them to cooktheir food. Humans began to move out caves and to build houses.In the early days of the metal ages, steel weapons and arrows werebeing used for hunting and warfare. Archeological discoveries indicatethat spinning natural fibers and woven fabric dates as far back as30,000 years ago. By its colors and embellishments, or lack thereof,fabric used for clothing became a symbol of status.The Metal Ages Around 3000 BC, mankind started to become moresophisticated in its use of metals such as bronze, iron, lead, and brass.In Asia, China was known as the inventor of useful metal items such as 21

sewing needles. In addition to statues, metal weapons and arrows wereused in battles over territory where the victors took other tribes intoslavery. Metal brought glory, and misery, to civilizations east and west. At this same time, the Phoenicians invented the alphabet andthe Lebanese made metal coins for use in trade. They also learnedhow to make glass, which led to the invention of lenses by theancient Greeks. The invention of the wheel eventually came to beused on war carriages in ancient Egyptian, Greek, and Roman times.Persians learned about the wheel and converted it into a wind turbine.Ancient History There were many inventions in this era. Humans learned how tobuild simple machines for helping with work. They used the wheel tomove water from ditches to the household. The Chinese learned how tomake paper from bamboo pulp and invented fixed-type engraved printing.The Han people built furnaces for iron production, and during the Tangdynasty, sulfur was used to make gunpowder. During the Song Dynasty,the Chinese magnetized needles and created the first compass byfloating them in a basin of water. The Syrians developed algebra,which led to building a college in Morocco. Thus, it could be saidthat the Chinese, Arabs, and Greeks were the centers of civilization,knowledge, and invention in the early history of humankind.Wooden wheels were developed into the invention that brought water to farm and home. 22

The 10th to 17th Centuries Many of the inventions by the Chinese, Arabs, and Europeans duringthe era of ancient history were further developed as time moved on.Gunpowder, originally used for fireworks, became a weapon of war.Genghis Khan used gunpowder for bombs as he battled his way toestablishing the Mongol Empire, and the Europeans eventuallydeveloped other gunpowder-based weapons such as guns and artillery.The Syrian scholar, Hasan al-Rammah, designed a torpedo in 1275.Over time, gunpowder began to play an increasingly important role inindustries. Explosives were used for blasting in rock quarrying andore mining, as well as for road and railway construction. In the NewWorld, American pioneers needed gunpowder for war, hunting, andconstruction, prompting E.I. DuPont to set up a gunpowder plant inDelaware in 1801. Explosives made DuPont rich.The 17th and 18th Centuries,or the First Industrial Revolution The inventions of the 17th and 18th centuries led to the beginningsof industrial development. Zacharias Janssen invented the microscope,Evangelista Torricelli invented the barometer, and Otto von Guerickeinvented a vacuum pump. Christian Huygens invented the pendulumclock based on Galileo Galilei’s pendulum theory. James Watt’s inventionof an improved steam engine was regarded as an innovation becauseit allowed machinery to replace the labor of people and animals.The development of steam engines led to the creation of many kindsof machines, which gave rise to simple factories such as textile mills,grain mills, and sawmills. Steam engines needed coal to generate steam,and the demand for coal increased the need for coal miners, while thegrowing number of factories needed more laborers. As a result, farmersmigrated from the farm lands into the cities seeking work, and thesociety of early industrialized nations had emerged. It was during this period that Britain’s explorations in the FarEast resulted in increased trade volume, which required increased 23

mechanization to enable large-scale production. Producers needed newmachines in their factories and more efficient ways to transport theirraw materials and finished goods. New engines were invented. Roadsand canals were built. In 1776, John Wilkinson invented an air compressorfor industrial use. Claude de Jouffroy invented a steamboat in 1783,Edmund Cartwright invented a power loom in 1789, andRichard Trevithick built the first steam locomotive in 1804. The French inventor Joseph Nicephore Niepce, known for havingcreated heliography (a photographic process), invented the world’s firstinternal combustion engine, in 1807 with his brother, Claude. Their engine,which used fuel oil to combust inside the engine to create force indriving a machine, was a shift from steam power. At the same time,François Isaac de Rivaz developed an early automobile that used ahydrogen-oxygen mixture as fuel for the engine. In 1885, Karl Friedrich Benzinvented the first practical self-propelled automobile: a three-wheeledcar powered by an internal combustion engine using petroleum fuel. As described in this chapter, the inventions from prehistorythrough the First Industrial Revolution, from stone tools through thesteam engine to the development of Karl Benz's automobile, were thefoundations of significant changes in human behaviors and lifestyles.In the next chapter, we examine more closely some particular inventionsand developments from the past and present to show that changesare continual and must be prepared for to ensure survival and growth.The steam engine of James Watt The first car of Karl Benz 24

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3Chapter Important Inventions That Changed LivelihoodsWheel From the wooden pottery wheels of ancient times tothe spoked wheel of horse-drawn chariots, the wheel is oneof the most important inventions from thousands of yearsago still in use today. It is essential for most common meansof transportation in the form of four wheels and two axels.While there are alternatives for ground transport such asscrew-propelled vehicles and electromagnetic levitation (maglev)trains, there is no doubt that the wheel in its various forms—with axelsfor transportation or as gears in countless mechanized pieces ofequipment—will continue to play a part in human livelihoods fora long time. 27

Shanghai Maglev Train Incheon Airport MaglevMagnets and Electromagnets The discovery of magnetism and subsequent magnetic-basedinventions moved industry 2.0 to a new era of industry 3.0. A magneticcompass was invented during the Han dynasty and used by the Chinesefor navigation. Based on work that came before him, William Sturgeondeveloped an electromagnet in 1825. The discovery of electromagneticinduction by Michael Faraday in 1831 allowed Moritz von Jacob in toobserve that iron coils turning around between two magnetic polescaused electric current to move along the electric coils. This observationled to the invention of the first rotating electric motor and the inventionof the electromechanical relay by Joseph Henry in 1835. These discoveries, from magnetism to electromagnetic induction,were the foundations of the electric motors and the generation ofelectricity that are used in daily life today. Electromagnetic inductiontechnology has been developed for mass transportation in the way ofthe Shanghai Maglev Train working with speeds up to 430 kilometers perhour. Eric Laithwaite, referred to as the “Father of Maglev,” developedthe linear induction motor able to raise and push a car forward withonly one set of magnets. The Airport Maglev at Incheon city alsouses maglev transportation, the construction of which was recentlycompleted in 2016. 28

Internal Combustion Engine (ICE) An internal combustion engine is an engine that burns a mixtureof fuel and air to provide force that moves a component, typically apiston, that converts the chemical energy into mechanical energy.As mentioned previously, the Niepce brothers invented the Pyreolophore,the world’s first internal combustion engine in 1807, and ICEs eventuallyreplaced steam engines in factories. In 1885 Karl Friedrich Benz inventedthe first practical self-propelled automobile: a three-wheeled carpowered by an ICE using petroleum fuel that was considered asthe first manufactured car. Interest in automobiles burgeoned in theUnited States of America, where, in the early 1900s, Henry Ford builthis Ford Model T to replace the horse and carriage. Cars have used ICEs for decades. However, one cannot overlookthe fact that the emissions from 2 billion cars using ICEs are the causeof pollution in cities and the global greenhouse effect. To eliminate thoseeffects, electric vehicles have been invented using lithium ion batteriesthat have no emissions, and they are gradually replacing ICE-poweredvehicles. Moreover, with the developments in electromagnetic inductiontechnology, electromagnet systems (maglevs) are also beginning toreplace ICEs used in rail transportation.The Light Bulb In 1878, Thomas Alva Edison patented a light bulb using a carbonfilament. He went on to develop inventions to make the use of his lightbulb practical, including light switches to turn the bulbs on and off.His extensive work in that regard resulted in systems for electricitygeneration and distribution and had a significant impact in the modernindustrialized world. He founded many electricity-related businesses,and his Edison General Electric Company merged with theThomson-Houston Company in 1892 to become the General ElectricCompany. Indeed, his many inventions can be considered as thefoundations for electric instruments developed since his time. 29

Communications and Electronics Inventions Discoveries of how to transmit signals in the form of electromagneticwaves through media resulted in communications inventions thatsubstantially altered the lives of humans. As human civilization becamemore widespread and complicated, a means of rapid communicationsoon became an essential need. In 1793, Claude Chappe, a Frenchinventor, created a semaphore visual telegraph. This involved a mechanicalstructure of large movable arms whose different positions representedwords, letters, or numbers that required installations across thecountryside. In 1816, Francis Ronalds invented an electric telegraph,which eventually utilized Morse code for sending messages, a systemof dots and dashes invented by Samuel Mores and successfullydemonstrated around 1837. Subsequently, Alexander GrahamBell invented and patented the telephone in 1876, thus laying thefoundation for two-way communication over long distances.In 1897, Guglielmo Marconi invented wireless communication viaradio telegraphy, and in 1909, Georges Rignoux and A. Fournierdeveloped the technology for the transmission of images, which led tothe invention of the television. Then, the development of semiconductors, materials withconductivity between that of a conductor and an insulator, which effectwas observed and documented in 1833 by Michael Faraday, largelyhelped to establish and advance the electronics industry. Utilizingthe properties of semiconductors that can be altered in useful ways,William Shockley, John Bardeen, and Walter Brattain invented the firstcommercially successful transistor in the 1940s, which allowed electronicappliances to become small and inexpensive. In 1938, Konrad Zuseinvented Zuse1 (Z1), considered the first computer that could beprogramed, albeit on a limited basis. In 1941, Zuse completed his Z3,the world’s first fully functional programmable computer. At that time,Jack Kilby and Robert Noyce simultaneously developed the integrated 30

circuit, or microchip, that led to many silicon innovations. In 1971,Marcian Edward Hoff invented and designed the microprocessor,which was considered the “brain” of computer. Also in 1971, Americanprogrammer Raymond Samuel Tomlinson, using the ARPANETnetwork, invented e-mail, now a widely used means of digitalcommunication throughout the world. Around 1980, Fujio Masuoka ofToshiba invented flash memory for data storage. In 1979, Sony & Phillipsdecided to cooperate, established an engineering team and, in 1984,developed the CD-ROM also used for information storage. They alsodesigned the compact disc, another data storage format first used tostore music and other sounds. They, along with Toshiba, Panasonic,and others, advanced the CD into the DVD with increased storagecapacity. While most recognize Dov Moran of M-Systems (now ownedby SanDisk) as the inventor of the USB flash drive, another storagedevice for data collected from a computer, Compaq, Microsoft, NEC,IBM, and Intel helped with its development and widespread marketing.The first cell phone was invented in 1973 by Martin Cooper whilehe was at Motorola, whose 1983 first commercially released mobilephone, the Motorola DynaTAC 8000X, was large-size cell phone witha weight of 1.1 kilograms. All of the aforementioned inventions and innovations, manyof which are being continuously developed today, led to the rapiddevelopment of digital communication technology. 31

Sources of Electricity The invention of the steam engine heralded the beginning of theindustrial revolution, using energy from steam to replace human andanimal labor thus allowing the mass production of goods and hugeimprovements in transportation of both goods and people. The inventionof the internal combustion engine, with its increased power, led tothe second industrial revolution. Then the discovery of electricity andthe invention of the electric motor made possible the third industrialrevolution with the development of more and more electric machinesand applications. Obviously, the discovery of electricity and thedevelopment of its many uses make it one of the most significantimpacts on human livelihood and industry.Cells and Batteries Before the heyday of alternating electric current, which isgenerated by electromagnetic induction, much research involveddirect electric current. The first direct electric current was generatedin 1800 by Alessandro Volta when he invented the voltaic pile, an earlyelectric battery consisting of two electrodes (one zinc, the other copper)and an electrolyte (either sulfuric acid mixed with water or a form ofsaltwater brine). In 1859 Gaston Plante created a lead acid battery,credited as the first rechargeable battery. In 1866, Georges Leclanchedeveloped a wet cell battery, and in 1887, Carl Gassner patentedthe first commercially successful dry cell. In 1839, Alexander Edmond Becquerel observed the physicalphenomenon of light-electricity conversion, which would lead to thedevelopment of photovoltaic (PV) technology and, eventually, solar cells.In 1922, Albert Einstein was awarded the 1921 Nobel Prize based onhis findings published in a 1905 paper on the theory behindthe photoelectric effect. Bell Laboratory exhibited the first high-powersilicon PV cell in 1954. The solar cell would become one of theimportant renewable energy sources for mankind. 32

The lithium-ion (Li-ion) battery, a rechargeable battery, is becomingmore common in home electronics as well as in electric vehicles. It hadits beginnings back in 1838 when Sir William Robert Grove inventedwhat he called a “gas battery” using a platinum electrode immersed innitric acid and a zinc electrode in zinc sulfate to generate 12 amps ofcurrent at 1.8 volts. It can be considered the first fuel cell. In the 1970s,M. Stanley Whittingham, while working at Exxon, used titanium disulfidecathodes and lithium metal as the electrodes in his research on an Li-ionbattery. The materials were expensive and not very stable, so the researchwas stopped. In 1979, Ned A. Godshall from Stanford Universityresearched using lithium cobalt oxide as the positive electrode.He demonstrated a rechargeable lithium cell with voltage in the 4 V range.Godshall’s development led to the invention of modern Li-ion battery(see Chapter 5).Power Plants Today’s main source of electricity is the power plant. Coal, fuel oil,and natural gas are used as the raw materials for generating electricity.Another source is hydropower, the use of moving water to produceelectricity. Water flowing from a higher level to a lower level travelsthrough the metal blades of a water turbine, causing the rotor ofgenerator to spin and produce electricity. Hydropower was one of themain sources of electricity in Thailand. However, since it has becomedifficult to find more large rivers to generate hydroelectricity in Thailand,coal and natural gas are mainly used now in its electric power plants.Laos, a neighboring country, produces hydroelectricity from the MekongRiver and supplies electricity to northeast Thailand. To meet the global requirement to reduce carbon dioxide emissions,nuclear power plants are considered as an option. Using nuclear fission,splitting the nucleus of an atom, energy is released. Otto Hahn discoveredthe theory of nuclear fission, for which he was awarded the Nobel Prizein Chemistry in 1944. He shared the outcomes of his research and 33

publication about nuclear fission with Lise Meitner. She fled fromGermany to Sweden and participated in USA Manhattan Project. Withnuclear fission technology, America made the first nuclear bomb in1944. Two nuclear bombs were dropped at Nagasaki and Hiroshimatowards end the Second World War. Besides the atomic bomb,scientists were also working on using a nuclear reactor to generateelectricity. In 1954, the USSR’s Obninsk nuclear power plant wasthe world’s first to generate electricity for a power grid, producing5 megawatts of electric power. During the oil crisis of the 1970s, manycountries invested in nuclear power plants. Because as of 2014, therehave been more than 100 serious incidents at nuclear power plantssince 1952 (the worst being at Three Mile Island accident in 1979,Chernobyl in the Ukraine in 1986 and Fukushima Daiichi nuclear disasterin 2011), scientists continue to study new nuclear power plant technology,Nuclear Generation IV. This new nuclear power plant has much higherenergy yield from the same amount of nuclear fuel. It is designed inclosed nuclear fuel cycle, nuclear waste that remains radioactive forfew centuries of millennia. This closed nuclear fuel cycle improvesoperating safety feature to achieve a very low risk of serious accidents.Renewable Sources Life cannot exist without energy. Life is made up of cells, and cellscreate energy in order to survive. It is required for metabolism andmovement. From walking to flying in an airplane, all transportation requiresconverting energy into movement. Electricity is one of the most versatile 34

types of energy. Coal, oil, and other fossil fuels are the main raw materialsused in generating electrical and mechanical energy in our dailylife. All energy sources have some impact on our environment, butfossil fuels do more harm than the sources of renewable energy.Renewable energy comes from sources that are naturally replenishedand can be used over and over again such as solar energy, wind energy,biomass energy, wave energy, thermal energy, geothermal energy, andnuclear energy. (There is some question as to whether nuclear energy isclassified as conventional or renewable energy. This author personallyconsiders it a renewable energy, especially since new technology atnuclear power plants provides a sustainable supply of electricitywithout putting the environment in danger.) Nowadays, scientists and engineers look upon the sky forsolar energy and wind energy. Renewable electricity costs have fallendramatically between 2008 and 2017. In the United States, the costof electricity fell 41% for wind, 54% for rooftop solar photovoltaic (PV)installation, and 64% for utility-scale PV. Such cost reductions are whyAmerican businesses are moving toward renewable energy sources.Google, for example, plans to power 100% of its operation usingrenewable energy in 2017. Walmart has set a goal of getting 100%of its energy from renewables. Microsoft has agreed to purchase237 megawatts of electricity from wind power. In USA, Amazon.com isinvesting in 417 megawatts of wind projects globally; Dow Chemicalhas agreed to buy 200 MW; 3M, 120 MW; Switch SuperNAP, 117 MW;and Johnson & Johnson, 100 MW. Currently, solar and wind firms inthe United States employ more than 360,000, compared to around160,000 Americans who work in coal-powered electricity generationand support. Because they produce no polluting emissions, these alternativeenergy sources are playing an increasingly important role in replacingthe use of fossil fuels. However, solar and wind energy are not ableto meet the full demand of electricity that we require. It is estimatedthat renewable energy can substitute for just 30% of our total electric 35

requirement by 2030. Thus, power plants are still the major sourcesof our electricity. Because they are the world’s second largest sourceof greenhouse gases (the first being automobiles), power plants arebeing adapted to use more natural gas as fuel rather than coal thatproduces more pollutants. These alternative energies are increasing important as greenenergies in replacing energy from fossil fuel. Solar Energy, energy fromLi-ion battery and energy from wind turbine (even the new technologyof nuclear reactor) are replacing energies from fossil.Developments in Biotechnology Biological research is nothing new; thousands of years ago peopleknew how to use microorganisms in their daily lives. They knew how tomake alcohol and liquor from the fermentation of yeast; how to uselactic acid from microorganisms in the production of yogurt, cheese,and tofu; and how to use yeast in baking bread. In the 17th century,people began studying microorganisms and their components. In 1670,the biologist Antonie van Leeuwenhoek started his studies of bacteriaand protozoa. In 1796, Edward Jenner administered the word’s firstvaccination after having observed that milkmaids who had previouslycaught cowpox did not later catch smallpox. In 1838, Gerardus JohannesMulder published a paper about having found proteins, a term coinedby Jons Jacob Berzelius who studied the detail of vivo cell anddiscovered that protein is a part of cells. In the 1860s, Louis Pasteur,a French biologist, invented a technique for treating milk and wine tostop bacteria contamination, a process now called “pasteurization.”He also invented vaccines for rabies and anthrax. In 1892,a Russian-Jewish bacteriologist, Waldemar Haffkine, developed thefirst cholera vaccine. In 1869, biologist Friedrich Miescher studied troutsemen and became the first person to isolate DNA. Subsequently,Walther Flemming pioneered cytogenetics, the study and analysis ofcell nuclei, by being the first person to study chromosomes. 36

During the twentieth century, education and research in the areasof both biology and genetics gained in popularity. In 1928, AlexanderFleming’s research on fungi with the ability to inhibit the growth ofbacteria led to the development of antibiotics such as penicillin andtetracycline. In the 1970s, Clyde A. Hutchison III and Marshall Edgelldid research in microbiology and immunology, while the basis for genecloning was established in 1973 by Stanley Cohen and Herbert Boyer.In 1990, a four-year-old girl in the United States was the first to receivegene therapy for an immune deficiency. In 1994, the U.S. Food andDrug Administration allowed the sale of genetically modified tomatoes,which encouraged advancement of genetically modified organisms(GMOs) by Monsanto, DuPont, and Bayer in plant seeds and vegetableseeds. Rice was the first plant seed that was genetically modified,followed by cotton, corn, and soybean seeds, all of which are majorgrains consumed by people. Genetic cloning is the process of producinggenetically identical copies of a biological entity by moving DNA froma donor cell into a recipient egg cell that has had its own nucleusremoved. It reached a major milestone in 1996 when British biologistSir Ian Wilmut of the Roslin Institute cloned a sheep that was namedDolly. This achievement certainly helped to pave the way for moredevelopments in animal genetic cloning and ultimately, perhaps, evenhuman cloning. From the simplicity of a wooden wheel to the many inventionsthat use electricity to the possibility of human clones, it is evident thathumankind’s drive to discover and invent continues to flourish andaffect our lives and environment, and will likely do so for as long aswe survive. 37

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4Chapter The Automobile Industry:From Detroit to Silicon Valley, and Destinations Unknown For the past 10 years, many digital-technology companies inSilicon Valley have made numerous notable achievements in digitaland Internet innovations, having a significant impact on the lives ofbillions of people around the world. Conversely, the increasein demand for digital technology and Internet advances leadto the rapid growth of technological companies. For example,Apple Inc. has become extremely profitable selling its innovativemobile phone to millions of people worldwide. These technologicalcompanies, such as Google with its self-driving car, are nowlooking to enter the automobile industry. Currently, then,automobile companies are not only competing with each other,but they also have to deal with digital technology in order tocompete with digital-technology companies from Silicon Valley.As a result, the automobile industry is moving into a new era thatbrought about autonomous vehicles, ride share, and electric andhydrogen fuel cell cars. So let’s take a look at the evolution ofthe automobile industry and try to foresee how it will unfold andwho will be at the top of the industry in the next 10 years. 39

After the invention of the internal combustion engine (ICE) byNicephore Niepce in 1807, Karl Benz used one in the world’s firstpractical automobile that he built in 1885. In the early 1900s, theautomobile industry was growing rapidly in the United States; there were30 automobile companies in Detroit. In 1903, Henry Ford incorporatedthe Ford Motor Company and built his Ford Model T to replace the horseand carriage. With the goal of producing a good quality car at the pricethat Americans could afford, he developed a mass-production process.The Ford Model T, available only in black, started out at a price of $850.Within a year, Ford’s assembly-line production process enabled himto lower the price to $350 per car, and it became the best-sellingcar in the United States while also being sold in Europe. Meanwhile,William C. Durant co-founded General Motors in 1908. Durant realizedthe importance of many new technologies of those days and installedthem into his GM cars, such as the electric self-starter that made itsfirst appearance on a 1912 Cadillac. In the early 1900s, the DuPontfamily cooperated with General Motors, using its engineering knowledgeto improve GM’s technology. In 1928, General Motors pioneered thesynchromesh transmission, which brought about easier gear shifting,and installed it in Cadillac. In the early 1930s, GM cars featured radiosand coil spring suspension. However, due to the low price and goodbrand name of Ford, the Ford model T continued to own high marketshare in the United States. 40

During World War Two (1939–1945), GM developed the Jeep formilitary transportation. In contrast with the rapid growth of the Americanautomobile industry, the German automobile industry, which haddeveloped its Volkswagen, or “the people’s car,” shortly before the war,became derailed. Also during the war, rubber came to be considereda strategic material for the war by the U.S. government, who set up aresearch unit on synthetic rubber to replace the natural rubber suppliedfrom Asia. After World War Two, the United States became the leaderof synthetic rubber production. Because of the growing automotiveindustry, rubber technology and tire factories became well developed,particularly in Ohio. From 1937 to 1956, Alfred P. Sloan was the Chairman and CEOof General Motors. Well known as an excellent marketer, he changedAmerica's automotive history by introducing four new car models intothe market with designs and prices that satisfied a wide range ofconsumers. GM also installed automatic transmissions and powersteering in all of its cars. As a result, General Motors was able to gainmarket share from Ford and became the largest automobile companyin the world. However, the development of the automobile wasn’t limitedto the United States. Ten years after World War Two, the Europeanand Japanese automotive industries started to grow again with thedevelopment of their own technologies. In 1958, the three-point seatbelt, invented by a Swedish engineer, Nils Bohlin, was installed in everyone of Volvo’s cars. Back in the United States, a transmission systemthat drew power from the engine and electrical battery was inventedat TRW between 1968 and 1971. In the early 1970s, automobilemanufacturers began offering cars with air bags, and the first catalyticconverters were produced to reduce automotive emissions. Also in the1970s, Japan’s automobile industry rapidly expanded with the intentionof making low energy consuming and durable Japanese cars with alow price and excellent service for owners. Toyota and Honda becamethe best-selling small cars in the United States. 41

TInedcuhsntorileosgy Causes Changes in the Automobile and Related With innovations being developed continuously in the automobileindustry, electronic engine control, such as fuel injection that resultedin highly efficient combustion, was introduced and installed in carsin 1980. In the late 1990s, Toyota built the first mass-produced hybridcar, its Prius, which is powered by a combination of electric battery andan internal combustion engine. In 2001, a communication system usingBluetooth to connect a mobile phone with the vehicle was installed incars. In 2003, Tesla Motors was founded with the goal of perfectingall-electric vehicles (EVs). Its Tesla Roadster was introduced in 2008with sales of 2,500 vehicles in 31 countries. In 2009, Uber Technologieswas established to develop a ride-sharing service accessible by amobile application. Also in 2009, Google started a project to createself-driving vehicles with the expectation of launching the automateddriving system onto the market in 2017–2021. This is the beginning ofSilicon Valley’s technological companies, which plays a significant rolein the evolution of the automobile. To gain a competitive advantage,the automobile companies are looking for alliances with the sourcesof the new digital technology necessary for the development ofautonomous cars. In addition to self-driving technology, most automotive companiesare on the lookout for business partners to help with developingmotor technology and electrical driving systems. When Tesla Motorsdeveloped electric car using lithium-ion battery propulsion, it initiatedsignificant changes in the automobile industry, giving rise to electric cars,the car of the future. Moreover, the European Union has ramped upits emission regulations, making it very expensive to adapt ICEs tomeet those regulations. Indeed, an EU High Court recently mandatedthat production of ICE cars stop by 2035. Both Toyota and NissanRenault have announced that they will soon halt production ofdiesel-engine vehicles. Consequently, because the one-ton pickup truckis a major product of Thailand’s automotive industry, the industry will 42

need to adapt to the phasing out of diesel engines. Instead of buildinghigh-power engines, technology will focus on building a lower costand more efficient Li-ion battery and improving the efficiency of electricmotors. In the long run, the electric car will replace cars with ICEs, resultingin increased demand for electricity and lower demand for petroleum fuel.Oil companies will need to change their sourcing of raw material,refinery process, and business direction. Furthermore, they will have toreduce volume in their refineries and focus on finding more natural gas tobe used in electric power plants - replacing high pollutant - emission coal.Shell and Esso, who are currently the top oil companies, are also sourcingmore natural gas instead of crude oil. Another consequence of endingthe use of ICEs is that the companies that produce ICEs, as well ascatalytic converters and turbochargers, will no longer exist. Likewise,companies that produce high performance synthetic rubber andvarious engine parts will also be affected. Even other business not directly involved in the manufactureof ICEs will face changes. With the developing technology, cars inthe future will communicate with other cars and with traffic signals.Autonomous technology will improve driving safety while allowing“drivers” to do many things like watching the news or commercialson a screen in front of them. Digital companies such as Google andFacebook will have a business advantage in providing digital information.Because road accidents will be reduced, insurance companies will beforced to change their business direction. With ridesharing, the necessityto own cars will decrease, and as a result, Uber, currently the biggestride-sharing agent, will gain advantage in the business. In turning their interest to the car industry, big companies inSilicon Valley have taken several approaches. Google has been testingits autonomous car for years and has logged more than a million miles.It has been very successful despite a number of accidents, whichGoogle stated were not resulted from the system or software. Onthe other hand, Apple also started working on its own car, but the 43

project was eventually scrapped. While companies like Apple couldcertainly afford to buy a European car company, doing so isn’t easy.Volkswagen has Porsche and Piech Foundation protecting its ownership.In the same way, BMW has Quandt and the Klattan family looking afterits ownership as well. It would only be possible for Apple to acquireDaimler, with stakeholders from Kuwait, the Emirates, and the Renault-Nissan Group. Companies like Google, Apple, Uber, and Lyft (another ride-sharingbusiness) will still have significant roles in the automobile industry of thefuture, as existing automobile companies will want partner with them.GM invested $500 million in Lyft and bought Cruise Automation formore than $1 billion even though it was a new technological companyestablished in 2013. GM, Lyft, and Cruise will cooperate in creatingsoftware to build their future car. Meanwhile, Toyota also negotiatedwith Uber to expand its capability in auto-driving, and Volkswageninvested $300 million in Gett, an on-demand transportation service.Chrysler will be installing Apple’s CarPlay, Smartphone technologyimplemented in cars. Additionally, while there have been rumors aboutApple working on its own model of a self-driving car, it has invested$1 billion in Didi Chuxing, a ride-sharing service in China, and is workingon the software for automobile industry. Similarly, Google has invested$258 million in Uber. 44

Innovation Group's Growth StrategiesLeadership Value to Technology Innovation Customer Leader To create value business, the organization needs leaders who canforesee market and technology trends and able to create technologies,innovative products and services to serve customers and industries. The following are not only th examples of individuals whose ideasmade them become very wealthy, but they are also the ones whorepresent some of the most successful bussiness leaders in today'sdigital world.Kyle Vogt and Daniel Kan Silicon Valley has given birth to many new young billionaires,including Kyle Vogt and Daniel Kan. In 2016, General Motors bought theircompany, Cruise Automation, for $1 billion, and they become the youngestsenior directors of GM. Vogt and Kan started Cruise Automationin 2013 to develop software for self-driving cars and devise a system toretrofit any car with partial autonomy. The kits were planned to sell for$10,000. In 2015, they revised their plans and decided to build softwarefor fully autonomous vehicles instead. Their activities attracted theattention of GM who was seeking out a software company to strengthentheir future cars. However, Cruise Automation was not the first business byVogt and Kan. They had previously pioneered live-streaming video platformwith Justin.tv and Twitch, a video game streaming site that were soldto Amazon in 2014 for $970 million. They had also developed anothervideo-sharing platform that were sold to Autodesk in 2012 for $60million. 45

Mark Zuckerberg Mark Zuckerberg is another intelligent American programmerand Internet entrepreneur. He is the Chairman, Chief Executive Officer,and co-founder of Facebook. While in Harvard at the age of 22,he invented Facemash on which pictures of two students on campuswere shown simultaneously so that users could vote for the moreattractive one. Later on, the site was shut down by the schooladministration after it was deemed inappropriate. After that, he andhis friends worked on a social networking site, called Facebook,which allowed users to create their own profiles, upload photos, andcommunicate with other users. Zuckerberg dropped out of Harvard in hissophomore year to work on this social networking site, and within a year,Facebook had over 1 million users. In 2016, he was ranked by Fortunemagazine as one of the world’s most powerful people and was chosenas its Businessperson of the Year. With nearly 1.8 billion users worldwide,Facebook’s net worth today is $190 billion and its earnings are $1 billiona year. Always looking to the future, Zuckerberg bought Instagram in2012 and WhatsApp, a popular messaging app, in 2014. He is alsobuilding drones that power with solar energy and fly for more than90 days. He wants to use these drones to deliver Wifi to rural areas inorder to for the whole world to be connected with the Internet.Steve Jobs Rather than to rehash Steve Jobs’ background, which is easilyaccessible to anyone interested, this author provides the followingdescription to illustrate Jobs’ genius. When Apple’s iPhone was firstreleased, Steve Jobs knew that it still had issues needed to be fixed.The first generation of iPhone was simply a communication device justlike other mobile phones in the market; it had no camera, its batterywas inefficient, and it performed at low speed. However, Jobs was surethat the mobile phone would become a very important communicationdevice in everyone’s daily lives. Therefore, he decided to produce evenbetter products than his competitors’, the ones that responded to 46

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In 1995, Elon Musk, together with his brother, Kimbal Musk,established Zip2 Corporation, a web-software company that developedan online city guide for big newspapers and magazines. It eventuallyreached a deal with the New York Times and Chicago Tribune. In 1999,Compaq computer bought Zip2 for $307 million. With proceeds fromhis share of that money, Musk set up X.com, providing online financialservices and e-mail payments. One year later, it merged with Confinity,a company that created a money transfer service called PayPal. In 2002,PayPal was acquired by eBay and $165 million goes to Musk. With moneygained from his early endeavors, Musk has been able to pursue hisvision for changing the world and humanity through his establishmentof and involvement in the following ventures. SpaceX. After a failed attempt in 2001 to buy from Russiarefurbished ICBMs that could send into space the payloads needed tobegin realizing his dream of colonizing Mars, he established SpaceX(Space Exploration Technologies) in 2002. With the focus on advancingrocket technology, the company develops and manufactures spacelaunch vehicles. In 2006, SpaceX had won a contract from NASA tofurther develop the company’s Falcon 9 launch vehicle and Dragonspacecraft to carry cargo to the International Space Station (ISS). 48