>> Narrator: From around the globe, it's theCUBE with digital coverage of IBM Think 2021 brought to you by IBM. >> Well, hello everybody and welcome again to theCUBE. We continue our initiative here at IBM Think and now we're joined by two distinguished guests who are really going the extra mile for us, I might say. Here we are in the States at a very reasonable hour, in Korea, it's a little later in the evening so we certainly appreciate their time and their patience here. We're joined by Mr. Khee-Hong Song, who is the CEO and President of IBM Korea and Mr. Jung Sik Suh, who is the CEO of Hyundai AutoEver, which is an IT service company affiliated with the Hyundai Motor Group. And gentlemen (greeting in Korean) Thank you for joining this. We appreciate it. >> Thank you. >> Thank you for inviting us. >> Hi. >> Yes, hi, very good to see you there. And I hope I didn't do the greeting injustice there. First off, Khee, I'll start with you. Let's talk about first off, kind of this digital transformation that transpires not only here in the United States, but of course is global. And certainly, with an IT advanced company like Korea, give us just really kind of a calibration, where are you in terms of this transformation in Korea with regard to digital? >> A lot of people are interested in the post-COVID world and how it is going to look like. What changes this pandemic will bring. The Korean government is really focusing on growing the digital sector. Taking this advantage, and taking this opportunity as a chance to really upgrade the entire IT system of the nation. So for example, like a Korean economy had been contracted by -1% and industry players also faced difficulties. For example, discount stores are -20% Y2Y. department stores are lost 30% of their revenue. But the government is injecting money to really change the game, leveraging the digital technology. >> Yeah, and you mentioned COVID, and obviously that's had a global impact. Not only in your operations here in the United States certainly, but Africa in Europe, and certainly in Asia as we talked about. Can you go just a little bit deeper on that in terms of what those impacts have been and maybe a little more specificity on coming out of that. You mentioned the economic impacts that Korea is currently suffering, but looking for a bounce back, looking for a rebound with the government. Maybe a little more specifics about the impact of COVID. And then Mr. Sung, I'll turn to you for that as well. First off, Khee, if you will. >> Okay, in an effort to recover from COVID-19 economic recession, Korean government announced Digital New Deal, which is to lay a foundation for digital economy that will spur economic growth and innovation. Now the policy aims to create a new digital economy, which is underpinned by new technologies such as 5G, big data and artificial intelligence. According to IDC research, 55% of Korean companies have already overcome the economic downturn and are moving toward the growth in next normal. They have been very active in making investments to become the enterprise of the future. And this is higher than global average of 37% in terms of recovery rate. This indicates that leading Korean companies are quickly preparing for the next, even in the face of a crisis. >> Jung, We've been hearing from Khee talking about the digital and certainly the impacts of COVID. And I assume that at Hyundai, you have had to deal with this certainly, this impact and are now coming out the other end, some very positive news from numbers we're hearing from Khee. If you could talk about though, maybe from your perspective in terms of that impact. And then, what kind of a rebound do you see or kind of positive uptick do you see in terms of digital in your business, say, in the next 12 to 18 months? >> I think the 12 to 18 months, we are reinforcing the digitalization, not just the working environment, but also others, especially for in terms of sales. Until now most of the B2C sales changed to digital or the internet environment, but unfortunately, car manufacturing OEM companies are not too ready for the e-commerce environment. But Hyundai is very actively, and proactively, and preemptively starting the e-commerce. So I think, next to 12 to 18 month, two-digit percent of our sales are will be fulfilled by internet-based. I mean, we'll have to face the most biggest and most challenging but possible change after COVID. >> Yeah, what's driving that then, is it just that people are more likely to want to be at home whether it's as a consumer or whether it's your workforce, whatever the case may be, but you're talking about this kind of going from a physical world to a more digital-based world as I'm hearing you describe it. Is that accurate? >> Yes. So we are the digital world, from just communicate with customer, but also our internal operation. Like the manufacturing environment and also the sales environment, et cetera. >> And Khee, if you would talk about maybe how this is impacting your business and just in terms of IBM in general. Not just with Hyundai, but I'm sure you support a lot of healthcare initiatives, a lot of other e-commerce initiatives and what have you, What's kind of the bottom line impact there for you right now in terms of this massive shift over to digital? >> Well, in IBM, our goal is to work with industry clients and technology partners to accelerate this transformation through automation, transition to hybrid cloud, and help our clients to really gain some benefits from their change. So one area I can talk about is automation. We see increasing requirements from our clients on automation for operational excellence, amid the economic downturn, and for hygiene purposes as well. So Seoul Asan Hospital is one of the leading hospitals in Korea and has the largest number of beds. Asan hospital and IBM worked together to develop a bed allocation automation system based on design thinking, workshop and garage method. The automation system considers a patient's specific preferences, surgery schedule, customized treatment for each patient, and various reservation status in each department. The result was outstanding. The hospital could reduce the bed assignment lead time from 20 minutes to seven minutes with a 0% error rate. And currently, more than a hundred hospitalization registration procedures are being processed every day without human intervention. And patient satisfaction and productivity of medical staff have improved significantly. That is just one great example of automation which is taking place in many other industries as well. Second is transformation to cloud. A large credit card company in Korea has chosen IBM as a partner to convert enterprise wide systems including the most complex account system to a managed private cloud using cloud technology from IBM and Red Hat. >> Khee, you talked about these key factors, if you will, about cloud transformation and different kinds of operational efficiencies and all these very fundamental. But very important factors to consider, when you're talking to your clients right now, what are their, I wouldn't say hesitations, but I guess maybe their challenges in deciding what tasks will go where and to what degree they're good with the cloud environment, to what degree they want it still on prem, to what, where the hybrid comes into play. I mean, these are all are fairly crucial decisions that your clients are making. >> Well, I think the barrier to any decision, like quick decision or sort of complete understanding is the technology itself is changing very quickly. I mean, last year, two years ago, versus now, when all technology companies, should we say something different. And that is not because it changed the position itself. The technology itself changed, and technology companies are responding to the trend. So that's why some clients get confused, and that confusion slows down the adaption of digital technology. But as I mentioned earlier, this pandemic situation, I'm pretty sure they're, like Mr. Sung can talk about some changes in Hyundai motors. Many companies realized that doing nothing or slowing down is not the best answer in this environment. And they are now proactively embracing those changes. >> So Jung, if you would then follow up on that, I would like to hear from you about Hyundai and the factors that you've considered in your digital decision making in terms of workloads, and capacities, and just where you house information, where you house your data, where you process it. What are some of those factors that you have thought about and then maybe going forward, how much more are you going to do? What are you considering right now in terms of future transformations? >> I think the other, our competitor, the other OEMs also think like that the car itself should be changed to digital. It means that, currently, the software portion of the car is just a seven to 10% of total our, the procurement. But it'll be changed to 20 to 30% in five years. It means that some portion will be to increased by three times There is a one our research changed. The other one is that kind of a software mostly located and not just in the car, which means that car is just a software edge activity. It means that just that the input and output, or some real-time transaction, or other computation and calculation analysis and decision could be the car cloud. Therefore, the cloud is main party of the car software. And also the car is it's just to edge. We have edge cloud and main cloud. It will be occurred just to within just several years. First, really, Hyundai has currently more than 40% of the car is connected in listening. And also cumulatively, we are connected by around the four million car in the word. It will be changed to 10 million car would be connected within one years. >> So 10 million Hyundai cars will be connected to cloud generating information and also- >> Yes, collecting information. And we are ready for the OTA, which means over-the-air software update for the 10 million car within one years. And also, it will double up year by year. >> Okay. >> Which means that all of the car, all the operated by cloud. >> Okay. >> And cars, it says to input and output an edge activities, therefore car is on cloud. >> Okay. >> John: Right? Khee: Interesting. >> Jung: That is the major driver for our digital transformation. >> And if you would, just what role is IBM having that? You're talking about a massive increase of 10 million cars is a very impressive number. >> And the data, the 10 million cars are producing are will be enormous. So IBM's role is actually helping clients in this kind of situation. To help those companies collect data and then like a seamless communication with the cloud. So that at the real time, the 10 million cars get the information timely. And also, like all those cars are communicating with each other that is made possible upon a hybrid cloud platform. And I think that is IBM's contribution to Hyundai Motors. Not just Hyundai Motors, but industries who have similar challenges and desires. >> One more thing, lately, IBM helped us our all IT operation in US and Europe, which composed of our 50% of our revenue come from. Therefore it means that dozens of billion of revenue operation is located in US and Europe. All over the US, Europe IT operation conducted by the IBM India and orchestrated by IBM Korean people. >> So it's amazing as Mr. Suh mentioned, IBM Korea is leading the project. All the service delivery is done in India leveraging IBM India. And we are serving Hyundai motors in the United States and Europe. So it's a truly a global IT operation environment. And that is made possible based upon IBM's cloud technology. >> Well, your summary was spot on. I couldn't say it any better, Khee. Thank you for that. Jung, thank you as well. Talking about this impressive global impact and really partnership that Hyundai is taking with IBM in the several continents. And making it work for millions of consumers around the world. Thank you both for your time today. I appreciate it. >> Khee: Thank you very much, John. >> Jung: Thank you. >> All right, we've been talking about Korea as an IT power country for the IBM perspective. And certainly, using Hyundai is a beautiful example of just how this partnership is working and growing, and providing great service for consumers at the end of the day. You've been watching "theCube" and IBM Think. (upbeat theme music) (upbeat theme music) (humming)

>>Good afternoon everybody. I'm John Walls and welcome back to our coverage here on the cube of AWS Reinvent 22. We are bringing you another segment with the Global Startup Program, which is part of the AWS Start Showcase, and it's a pleasure to welcome two new guests here to the showcase. First, immediately to my right Han w lre. Good to see you Han. Good to see you. The leader of the Enterprise Solutions Architecture at aws. And on the far right, Rolin Lee, who is the co-founder and CEO of Heim Doll Data. Roland, good to see you. Great >>To be here. >>All right, good. Thanks for joining us. Well first off, for those at home, I may not be familiar with Heim Doll. What do you do? Why are you here? But I'll let you take it from there. >>Well, we're one of the sponsors here at AWS and great to be here. We offer a data access layer in the form of a proxy, and what it does is it provides complete visibility and the capability to enhance the interaction between the application and one's current database. And as a result, you'll, the customer will improve database scale, database security and availability. And all these features don't require any application changes. So that's sort of our marketing pitch, if you will, all these types of features to improve the experience of managing a database without any application >>Changes. And, and where's the cloud come into play then, for you then, where, where did it come into play for you? >>So we started out actually helping out customers on premise, and a lot of enterprise customers are moving over to the cloud, and it was just a natural progression to do that. And so aws, which is a key part of ours, partners with us to help solve customer problems, especially on the database side, as the application being application performance tends to have issues between the interaction between the application database and we're solving that issue. >>Right. Sohan, I mean, Roan just touched on it about OnPrem, right? There's still some kickers and screamers out there that, that don't, haven't bought in or, or they're about to, but you're about to get 'em. I, I'm sure. But talk about that, that conversion or that transition, if you would, from going OnPrem into a hybrid environment or to into the, the bigger cloud environment and and how difficult that is sometimes. Yes. Maybe to get people to, to make that kind of a leap. >>Well, I would say that a lot of customers are wanting to focus more on product innovation experimentation, and also in terms of having to manage servers and patching, you know, it's to take away from that initiative that they're trying to do. So with aws, we provide undifferentiated heavy lifting so that they can focus on product innovation. And one of the areas talking about Heim is that from the database side, we do provide Amazon rds, which is database and also Aurora, to give them that lift so they don't have to worry about patching servers and setting up provisioning servers as well. >>Right. So Roland, can you get the idea across to people very simply, let us take care of the, the hard stuff and, and that will free you up to do your product innovations, to do your experimentations to, to really free up your team, basically to do the fun stuff and, and let us sweat over the, the, the details basically. Right? >>Exactly. Our, our motto is not only why build when, when you can buy. So a lot of it has to do with offering the, the value in terms of price and the features such as it's gonna benefit a team. Large companies like amazon.com, Google, they have huge teams that can build data access layers and proxies. And what we're trying to do here is commercialize those cuz those are built in house and it's not readily available for customers to use. And you'd need some type of interface between the application and the database. And we provide that sort of why build when you can buy. >>Well, I was gonna say why h right? I mean what's your special sauce? Because everybody's got something, obviously a market differentiator that you're bringing into place here. So you started to touch on a little bit there for me, but, but dive a little deeper there. I mean, what, what is it that, that you're bringing to the table with AWS that you think puts you above the crowd? >>Well, lemme give you a use case here. In typical events like let's say Black Friday where there's a surge traffic that can overwhelm the database, the Heim doll data access layer database proxy provides an auto scaling distributed architecture such that it can absorb those surges and traffic and help scale the database while keeping the data fresh and up to date. And so basically traffic based on season time of day, we can, we can adjust automatically and all these types of features that we offer, most notably automated query caching, ReadWrite split for asset compliance don't require any code changes, which typically requires the application developer to make those changes. So we're saving months, maybe years of development and maintenance. >>Yeah, a lot of gray hairs too, right? Yeah, you're, you're solving a lot of problems there. What about database trends in just in general Hunt, if you will. I mean, this is your space, right? I mean, what we're hearing about from Heindel, you know, in terms of solutions they're providing, but what are you seeing just from the macro level in terms of what people are doing and thinking about the database and how it relates to the cloud? Right. >>And some of the things that we're seeing is that we're seeing an explosion of data, relevant data that customers need to be able to consume and also process as well. So with the explosion of data, there's also, we see customers trying to modernize their application as well through microservices, which does change the design patterns of like the applications we call the access data patterns as well. So again, going back to that, a differentiated heavy lifting, we do have something called purpose built databases, right? It's the right tool for the right purpose. And so it depends on what their like rpo, rto their access to data pattern. Is it a base, is it an acid? So we want to be able to provide them the options to build and also innovate. So with that, that's why we have the Amazon rds, the also the, we also have Redshift, we also have Aurora and et cetera. The Rediff is more of the BI side, but usually when you ingest the data, you have some level of processing to get more insight. So with that, that's why customers are moving more of towards the managed service so that they can give that lift and then focusing on that product and innovation. Yeah. >>Have we kind of caught up or are we catching up to this just the tsunami of data to begin with, right? Because I mean, that was it, you know, what, seven, eight years ago when, when that data became kind of, or becoming king and, and reams and reams and reams and all, you know, can't handle it, right? And, and are we now able to manage that process and manage that flow and get the right data into the right hands at the right time? We're doing better with that. >>I would say that it, it definitely has grown in size of the amount of data that we're ingesting. And so with the scalability and agility of the cloud, we're able to, I would say, adapt to the rapid changes and ingestions of the data. So, so that's why we have things like Aurora servers to have that or auto scale so they can do like MySQL or Postgres and then they can still, like what you know, I'm trying to do is basically don't have to co do like any code changes. It would be a data migration. They still use the same underlying database on also mechanisms, but here we're providing them at scale on the cloud. >>Yeah. Our proxies, they must have for all databases. I mean, is that, is that essential these days? >>Well, good question John. I would say yes. And this is often built in house, as I mentioned, for large companies, they do build some type of data access layer or proxy and, or some utilize some orm, some object relational map to do it. And what again, what we're trying to do is offer this, put this out into the market commercially speaking, such that it can be readily used for, for all the customers to use rather than building it from scratch all the time. >>You know what I didn't ask you was Roy, how does AWS come into play for you then? And, and as in the startup mode, the focus that they've had in startups in general, but in you in particular, I mean, talk about that partnership or that relationship and the value that you're extracting from that. >>The ad AWS partnership has been absolutely wonderful. The collaboration, they have one of the best managed service databases. The value that it that adds in terms of the durability, the manageability, what the Heim doll data does is it compliments Amazon rds, Amazon Redshift very well in the sense that we're not replacing the database. What we're doing is we are allowing the customer to get the most out of the managed service database, whether it be Redshift or Aurora Serverless, rds, all without code changes. And or the analogy that I would give John is a car, a race car may be very fast, but it takes a driver to get to those fast speeds. We're the driver, the Hyundai proxy provides that intelligence so that you can get the most out of that database engine. >>And, and Hfi would then touch on, first off AWS and the emphasis that you have put on startups and are obviously, you know, kind of putting your money where your mouth is, right? With, with the way you've encouraged and nurtured that environment. And they would be about Heim doll in general about where you see this going or what you would like to have, where you want to take this in the next say 12 months, 18 months. >>I think it's more of a better together story of how we can basically coil with our partners, right? And, and basically focusing on helping our customers drive that innovation and be collaboration. So as Heim, as a independent service vendor isv, most customers can leverage that through a marketplace where basically it integrates very nicely with aws. So that gives 'em that lift and it goes back to the undifferentiated heavy lifting on the Hein proxy side, if you will, because then you have this proxy in the middle where then it helps them with their SQL performance. And I've seen use cases where customers were, have some legacy system that they may not have time to modernize the application. So they use this as a lift to keep, keep going as they try to modernize. But also I've seen customers who use are trying to use it as a, a way to give that performance lift because they may have a third party software that they cannot change the code by putting this in there that helps optimize their lines of business or whatever that is, and maybe can be online store or whatever. So I would say it was a better together type of story. >>Yeah. Which is, there's gotta be a song in there somewhere. So peek around the corner and if you wanna be headlights here right now in terms of 12, 18 months, I mean, what, you know, what what next to solve, right? You've already taken, you've slayed a few dragons along the way, but there are others I'm sure is it always happens in innovation in this space. Just when you solve a problem you've just dealt or you have to deal with others that pop up as maybe unintended consequences or at least a new challenge. So what would that be in your world right now? What, what do you see, you know, occupying your sleepless nights here for the next year or so? >>Well, for, for HOMEDALE data, it's all about improving database performance and scale. And those workloads change. We have O ltp, we have OLA with artificial intelligence ml. There's different type of traffic profiles and we're focused on improving those data profiles. It could be unstructured structured. Right now we're focused on structured data, which is relational databases, but there's a lot of opportunity to improve the performance of data. >>Well, you're driving the car, you got a good navigator. I think the GPS is working. So keep up the good work and thank you for sharing the time today. Thank you. Thank you, joy. Do appreciate it. All right, you are watching the cube. We continue our coverage here from AWS Reinvent 22, the Cube, of course, the leader in high tech coverage.

(bright theme music) (humming) >> From around the globe, it's "theCUBE" with digital coverage of IBM Think 2021 brought to you by IBM. >> Well, hello everybody and welcome again to "theCUBE." We'll continue our initiative here at IBM Think and now we're joined by two distinguished guests who are really going the extra mile for us, I might say. Here we are in the States at a very reasonable hour, in Korea, it's a little later in the evening so we certainly appreciate their time and their patience here. We're joined by Mr. Ki-Hong Song, who is the CEO and President of IBM Korea and Mr. Jung Sik Suh, who is the CEO of Hyundai AutoEver, which is an IT service company affiliated with the Hyundai Motor Group. And gentlemen (speaking foreign language) Thank you for joining this. We appreciate it. >> Thank you. >> Thank you for inviting us. >> Hi. >> Yes, hi, very good to see you there. And I hope I didn't do the greeting injustice there. First off, Ki, I'll start with you. Let's talk about first off, kind of this digital transformation that transpires not only here in the United States, but of course is global. And certainly, with an IT advanced company like Korea, give us just really kind of a calibration, where are you in terms of this transformation in Korea with regard to digital? >> A lot of people are interested in the post-COVID world and how it is going to look like. What changes this pandemic will bring. The Korean government is really focusing on growing the digital sector. Taking this advantage, and taking this opportunity as a chance to really upgrade the entire IT system of the nation. So for example, like a Korean economy had been contracted by -1% and industry players also faced difficulties. For example, discount stores are -20% Y2Y. department stores are lost 30% of their revenue. But the government is injecting money to really change the game, leveraging the digital technology. >> Yeah, and you mentioned COVID, and obviously that's had a global impact. Not only in your operations here in the United States certainly, but Africa in Europe, and certainly in Asia as we talked about. Can you go just a little bit deeper on that in terms of what those impacts have been and maybe a little more specificity on coming out of that. You mentioned the economic impacts that Korea is currently suffering, but looking for a bounce back, looking for a rebound with the government. Maybe a little more specifics about the impact of COVID. And then Mr. Sung, I'll turn to you for that as well. First off, Ki, if you will. >> Okay, in an effort to recover from COVID-19 economic recession, Korean government announced Digital New Deal, which is to lay a foundation for digital economy that will spur economic growth and innovation. Now the policy aims to create a new digital economy, which is underpinned by new technologies such as 5G, big data and artificial intelligence. According to IDC research, 55% of Korean companies have already overcome the economic downturn and are moving toward the growth in next normal. They have been very active in making investments to become the enterprise of the future. And this is higher than global average of 37% in terms of recovery rate. This indicates that leading Korean companies are quickly preparing for the next, even in the face of a crisis. >> Jung, We've been hearing from Ki talking about the digital and certainly the impacts of COVID. And I assume that at Hyundai, you have had to deal with this certainly, this impact and are now coming out the other end, some very positive news from numbers we're hearing from Ki. If you could talk about though, maybe from your perspective in terms of that impact. And then, what kind of a rebound do you see or kind of positive uptick do you see in terms of digital in your business, say, in the next 12 to 18 months? >> I think in this 12 to 18 months, we are reinforce the digitalization, not just the working environment, but also others take this, especially for in terms of sales. Until now most of the B2C sales changed to digital or the internet environment, but unfortunately, car manufacturing OEM companies are not too ready for the e-commerce environment. But Hyundai is very actively, and proactively, and preemptively started the e-commerce. So I think, next to 12 to 18 month, two-digit percent of our sales are will be fulfilled by internet-based. I mean, we'll have to face the most biggest and most challenging but possible change after COVID. >> Yeah, what's driving that then, is it just that people are more likely to want to be at home whether it's as a consumer or whether it's your workforce, whatever the case may be, but you're talking about this kind of going from a physical world to a more digital-based world as I'm hearing you describe it. Is that accurate? >> Yes. So we are the digital world, from just communicate with customer, but also our internal operation. Like the manufacturing environment and also the sales environment, et cetera. >> And Ki, if you would talk about maybe how this is impacting your business and just in terms of IBM in general. Not just with Hyundai, but I'm sure you support a lot of healthcare initiatives, a lot of other e-commerce initiatives and what have you, What's kind of the bottom line impact there for you right now in terms of this massive shift over to digital? >> We'll, in IBM, our goal is to work with industry clients and technology partners to accelerate this transformation through automation, transition to hybrid cloud, and help our clients to really gain some benefits from their change. So one area I can talk about is automation. We see increasing requirements from our clients on automation for operational excellence, Meet the economic downturn, and for hygiene purposes as well. So Seoul Asan Hospital is one of the leading hospitals in Korea and has the largest number of beds. Asan hospital and IBM worked together to develop a better allocation automation system based on design thinking, workshop and garage method. The automation system considers a patient's specific preferences, surgery schedule, customized treatment for each patient, and various reservation status in each department. The result was outstanding. The hospital could reduce the bed assignment lead time from 20 minutes to seven minutes with a 0% error rate. And currently, more than hundred hospitalization registration procedures are being processed every day without human intervention. And patient satisfaction and productivity of medical staff have improved significantly. That is just one great example of automation which is taking place in many other industries as well. Second is transformation to cloud. A large credit card company in Korea has chosen IBM as a partner to convert enterprise wide systems including the most complex account system to a managed private cloud using cloud technology from IBM and Red Hat. >> Ki, you talked about these key factors, if you will, about cloud transformation and different kinds of operational efficiencies and all these very fundamental. But very important factors to consider, when you're talking to your clients right now, what are their, I wouldn't say hesitations, but I guess maybe their challenges in deciding what tasks will go where and to what degree they're good with the cloud environment, to what degree they want it still on prem, to what, where the hybrid comes into play. I mean, these are all are fairly crucial decisions that your clients are making. >> Well, I think the barrier to any decision, like quick decision or sort of complete understanding is the technology itself is changing very quickly. I mean, last year, two years ago, versus now, when all technology companies, should we say something different. And that is not because it changed the position itself. The technology itself changed, and technology companies are responding to the trend. So that's why some clients get confused, and that confusion slows down the adaption of digital technology. But as I mentioned earlier, this pandemic situation, I'm pretty sure they're, like Mr. Sung can talk about some changes in Hyundai motors. Many companies realized that doing nothing or slowing down is not the best answer in this environment. And they are now proactively embracing those changes. >> So Jung, if you would then follow up on that, I would like to hear from you about Hyundai and the factors that you've considered in your digital decision making in terms of workloads, and capacities, and just where you house information, where you house your data, where you process it. What are some of those factors that you have thought about and then maybe going forward, how much more are you going to do? What are you considering right now in terms of future transformations? >> I think the other, our competitor, the other OEMs also think like that the car itself should be changed to digital. It means that, currently, the software portion of the car is just a seven to 10% of total our, the procurement. But it'll be changed to 20 to 30% in five years. It means that some portion will be to increased by three times There is a one our research changed. The other one is that kind of a software mostly located and not just in the car, which means that car is just a software edge activity. It means that just that the input and output, or some real-time transaction, or other computation and calculation analysis and decision could be the car cloud. Therefore, the cloud is main party of the car software. And also the car is it's just to edge. We have edge cloud and main cloud. It will be occurred just to within just several years. First, really, Hyundai has currently more than 40% of the car is connected in listening. And also cumulatively, we are connected by around the four million car in the word. It will be changed to 10 million car would be connected within one years. >> So 10 million Hyundai cars will be connected to cloud generating information and also- >> Yes, collecting information. And we are ready for the OTA, which means over-the-air software update for the 10 million car within one years. And also, it will double up year by year. >> Okay. >> Which means that all of the car, all the operated by cloud. >> Okay. >> And cars, it says to input and output an edge activities, therefore car is on cloud. >> Okay. >> Right? >> Interesting. >> That is the major driver for our digital transformation. >> And if you would, just what role is IBM having that? You're talking about a massive increase of 10 million cars is a very impressive number. >> And the data, the 10 million cars are producing are will be enormous. So IBM's role is actually helping clients in this kind of situation. To help those companies collect data and then like a seamless communication with the cloud. So that at the real time, the 10 million cars get the information timely. And also, like all those cars are communicating with each other that is made possible upon a hybrid cloud platform. And I think that is IBM's contribution to Hyundai Motors. Not just Hyundai Motors, but industries who have similar challenges and desires. >> One more thing, lately, IBM helped us our all IT operation in US and Europe, which composed of our 50% of our revenue come from. Therefore it means that dozens of billion of revenue operation is located in US and Europe. All over the US, Europe IT operation conducted by the IBM India and orchestrated by IBM Korean people. >> So it's amazing as Mr. Suh mentioned, IBM Korea is leading the project. All the service delivery is done in India leveraging IBM India. And we are serving Hyundai motors in the United States and Europe. So it's a truly a global IT operation environment. And that is made possible based upon IBM's cloud technology. >> Well, your summary was spot on. I couldn't say it any better, Ki. Thank you for that. Jung, thank you as well. Talking about this impressive global impact and really partnership that Hyundai is taking with IBM in the several continents. And making it work for millions of consumers around the world. Thank you both for your time today. I appreciate it. >> Thank you very much, John. >> Thank you. >> All right, we've been talking about Korea as an IT power country for the IBM perspective. And certainly, using Hyundai is a beautiful example of just how this partnership is working and growing, and providing great service for consumers at the end of the day. You've been watching "theCube" and IBM Think. (upbeat theme music) (upbeat theme music) (humming)

(upbeat music) >> From around the globe, it's theCUBE! With digital coverage of IBM Think 2021 brought to you by IBM. >> Well, hello everybody. and welcome again to theCUBE. We continue our initiative here of IBM Think. and now we're joined by two distinguished guests who are really going the extra mile for us, I might say. Here we are in the States at a very reasonable hour, in Korea, it's a little later in the evening so we certainly appreciate their time and their patience here. We're joined by Mr. Kheehong Song, who is the CEO and president of IBM Korea and Mr. Jung-Sik Suh, who is the CEO of Hyundai AutoEver which is an IT service company affiliated with the Hyundai Motor Group. Gentlemen, (speaks in foreign language) thank you for joining us. We appreciate it. >> Thank you. >> Thank you, hi. >> Hi, it's very good to see you there. And I hope I didn't do the greeting injustice there. First off, Khee I'll start with you. Let's talk about first off, kind of this digital transformation that transpires not only here in the United States, but of course, is global. And certainly with an IT advanced company like Korea, give us just really kind of a calibration, where are you in terms of this transformation in Korea with regard to digital? >> A lot of people are interested in the post COVID world and how it is going to look like, what changes this pandemic will bring. The Korean government is really focusing on growing the digital sector, taking this advantage. And taking this opportunity here as a chance to really upgrade the entire IT system of the nation. So for example, like a Korean economy had been contracted by negative 1%, and industry players also faced difficulties. For example, discount stores, negative 20% Y2Y department stores lost 30% of their revenue, but the government is injecting money to really change the game, leveraging the digital technology. >> Yeah, and you mentioned COVID. And obviously that's had a global impact, you know, not only in your operations here in the United States, certainly, but Africa, in Europe and certainly in Asia as we talked about. Can you go just a little bit deeper on that in terms of what those impacts have been, and maybe a little more specificity on coming out of that? You mentioned the economic impacts that Korea is currently suffering, but looking for a bounce back, looking for a rebound with the government, maybe a little more specifics about the impact of COVID. And then Mr. Song, I'm going to turn to you for that as well. First off, Khee, if you would. >> Okay. In an effort to recover from COVID-19 economic recession, Korean government announced digital new deal which is to lay a foundation for a digital economy that will spur economic growth and innovation. Now, the policy aims to create a new digital economy which is underpinned by new technologies, such as 5G, big data and artificial intelligence. According to IDC research, 55% of Korean companies have already overcome the economic downturn and are moving toward across the next normal. They have been very active in making investments to become the enterprise of the future. And this is higher than global average of 37%, in terms of recovery rate. This indicates that leading Korean companies are quickly preparing for the next even in the face of a crisis. >> Jung, we've been hearing from Khee talking about the digital and certainly the impacts of COVID. And I've assumed that at Hyundai, you know, you have had to deal with this, certainly this impact, and are not coming out the other end some very positive news from numbers we're hearing from Khee. If you could talk about though, maybe what from your perspective, in terms of that impact and then what kind of a rebound do you see, or kind of positive uptake do you see in terms of digital and your business say in the next 12 to 18 months? >> I think the next 12 to 18 months, the reinforcers of digitalization, not just the working environment, but also other respect especially for the... in terms of sales. You know, until now, most of the B2C Series changed to digital or the internet environment, but unfortunately, car manufacturing OEM companies aren't ready for the E-commerce environment. But Hyundai is very actively and proactively, and preemptively started at E-commerce. So I think next 12 to 18 month, two digit percent of our sales, I mean fulfilled by internet (mumbles), I mean the objective is the most biggest and most challenging, but possible changing after COVID. >> Yeah, what's driving that and then, it's just that people are more likely to want to be at home whether it's as a consumer or whether it's your workforce whatever the case may be, but you're talking about this kind of going from a physical world to a more digital-based world, as I'm hearing you describe that, is that accurate? >> Yes. So we are, the digital world, from just communicate with the customer, but also the, our internal operation, you know, like the manufacturing environment, and also the sales environment, et cetera. >> And Khee, if you would talk about maybe how this is impacting your business and just in terms of IBM in general, not just with Hyundai, but I'm sure you support a lot of healthcare initiatives, a lot of other E-commerce initiatives and what have you. What's kind of the bottom line impact there for you right now, in terms of this massive shift over to digital? >> In IBM, our goal is to work with industry clients and technology partners to accelerate these trends maybe mention through automation, transition to hybrid cloud and help our clients to really gain some benefits from their change. So one area I can talk about is automation. We see increasing requirements from our clients on automation for operational excellence, meet the economic downturn, and for hygiene purposes as well. So Seoul Asan hospital is one of the leading hospitals in Korea and has the largest number of beds. Asan hospital and IBM worked together to develop a bed location automation system, based on design thinking workshop and garage method. The automation system considers our patient's specific preferences, surgery schedule, customized treatment for each patient, and various reservation status in each department. The result was outstanding. The hospital could reduce the bed assignment lead time from 20 minutes to seven minute with a 0% error rate. And currently more than a hundred hospitalization registration procedures are being processed every day without human intervention. And patient satisfaction and productivity of medical staff have improved significantly. That is just one great example of automation which is taking place in many other industries as well. Second is a transformation to cloud. A large credit card company in Korea has chosen IBM as a partner to convert enterprise wide systems including the most complex account system to manage it private cloud using cloud technology from IBM and Red Hat. >> Khee, you talk about these key factors, if you will, about cloud transformation and different kinds of operational efficiencies, and all these you very fundamental but very important factors to consider. When you're talking to your clients right now, what are their I wouldn't say hesitations, but I guess maybe their challenges in deciding what tasks will go where, and to what degree they're good with the cloud environment, to what degree they want it still on prem, to what where the hybrid comes into play. I mean, these are all are fairly crucial decisions that your clients are making. >> I think the barrier to any decision, like a quick decision or sort of complete understanding is the technology itself is changing very quickly. I mean last year, two years ago versus now when all technology companies should say something different. And that is not because they changed the position. Itself, the technology itself changed and technology companies are responding to that trend. So that's why some clients get confused, and that confusion slows down the adoption of digital technology. But as I mentioned earlier, this pandemic situation, I'm pretty sure they're like Mr. Suh can talk about some changes in Hyundai motors. Many companies realize that doing nothing or slowing down is not the best answer in this environment. And they are now proactively embracing those changes. >> So Jun, if you would then follow up on that, I would like to hear from you about Hyundai, and the factors that you've considered in your digital decision-making, in terms of workloads and capacities, and you know, just where you house information, where you house your data, where you process it. What are some of those factors that you have thought about and then maybe going forward how much more are you going to do? What else do, what are you considering right now in terms of future transformations? >> I think the other well, competitor the other OEMs also think like that, the, you know, the car itself should be changed to digital. It means that, you know currently the software portion of the car is just seven to 10% of total our, the procurement, but it'll be change it to 20 to 30% in near to five years. It means that software portion will be increased by three times. That is one our, that is to change it. The other one is that kind of a software mostly located not just in the car, which means that car is just a software engine activity. It means that just that the input and output, or some real time trajection. All other computation and calculation analysis and decision could be the car cloud. Therefore, the cloud is main body of the car software. And also just car it's just to edge. We have edge cloud and main cloud. It will be occurred just within several years. Because first of all, firstly, Hyundai has currently more than 40% of the car is connected in listening. And also cumulatively, we are connected by around four million car in the world. It will be change to 10 million, car would be connected within one years. >> So 10 million Hyundai cars will be connected to cloud generating information? >> Yes, collecting information, and we are ready for the OTA, which means that all over the air, software update for the 10 million car within one years. And also it will be double up, double up, double, year by year. >> Okay. >> Which means that all of the car will be operated by cloud. >> Okay. >> And car is test to input and output, and activities. Therefore car is on cloud. >> Okay. >> Right? >> Interesting. >> That is the major driver for our district transformation. >> And if you would just, what role is IBM have in that? You're talking about a massive increase of 10 million cars is a very impressive number. >> And the data, the 10 million cars are producing will be enormous. So IBM's role is actually helping clients in this kind of situation. To help those companies collect data and then like a seamless communication with the cloud. So they're like at the real time, the 10 million cars get the information timely, and also like all those cars are communicating with each other, that is made possible upon a hybrid cloud platform. And I think that is IBM's contribution to Hyundai Motors, not just Hyundai Motors, but industries who have similar challenges and desires. >> One more thing, already, IBM helped us, our IT operation in US and Europe, which composed of our 50% of our revenue come from. Therefore it means that (mumbles) billion revenue operation is located in US and Europe. All over the US, Europe, IT operation conducted by the IBM India. And orchestrated by IBM Korean people. >> So it's amazing as Mr. Suh mentioned like IBM Korea is leading the project. All the service delivery is done in India, leveraging IBM India. And we are serving Hyundai Motors in the United States and Europe. So it's truly a global IT operation environment, and that is made possible based upon IBM's cloud technology. >> Well, your summary was spot on. I couldn't say that any better. Khee, thank you for that. Jun, thank you as well, talking about this impressive global impact and really partnership that Hyundai is taking with IBM and the several continents. And making it work for millions of consumers around the world. Thank you both for your time today. I appreciate it. >> Thank you. >> Thank you very much, John. >> Thank you. >> All right, we've been talking about Korea as an IT powered country for the IBM perspective. And certainly using Hyundai is a beautiful example of just how this partnership is working and growing and providing great service for consumers, at the end of the day. You've been watching theCUBE and IBM Think. (upbeat music)