 On 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. Ki Hong-Sung, who is the CEO and president of IBM Korea and Mr. Jung Sik-Soo, who is the CEO of Hyundai Auto-Ever, which is an IT service company affiliated with the Hyundai Motor Group. And gentlemen, Anyang Haseyo, thank you for joining us. We appreciate it. Thank you. Hi. Yes, hi, very good to see you there. And I hope I didn't do the greeting injustice there. First off, Ki, now 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 negative 1%. And industry players also face difficulties. For example, discount stores, negative 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. Sa, I'm gonna turn to you for that as well. First off, Ki, 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. 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 a growth and 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 a recovery rate. This indicates that leading Korean companies are quickly preparing for the next, even in the face of a crisis. John, we've been hearing from Ki talking about digital and certainly the impacts of COVID. And I was assumed that at Hyundai, you have had to deal with this, certainly this impact and are not coming out the other end, some very positive news and 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 uptake do you see in terms of digital and your business say in the next 12 to 18 months? I think the next trip to 18 months, we are reinforced the digitalization, not just the working environment, but also other aspects, 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 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 12 to 18 months, two digit percent of our sales, let me fulfill by internet base, I mean, the tech base. This is the most biggest and most challenging but possible change after COVID. Yeah, what's driving that then is 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, the 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 to communicate with the customer but also our internal operation, like the manufacturing environment and also the sales environment, et cetera. And Key, if you would talk about maybe how this is impacting your business in 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 digital 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 work together to develop a bed allocation automation system based on design thinking, workshop and garage method. The automation system considers our patients 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 a seven minute with a 0% error rate. And currently more than 100 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. Can you talk 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 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 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 they say something different? And that is not because they changed the position. It's like 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 that like Mr. Saul can talk about some changes in gender 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, Jong, 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, we're competing at 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 just seven to 10% of total are the procurement, but it'll be changed to 20 to 30% in the next five years. It means that software portion will be increased by three times, that is one of our digital changes. The other one is that kind of software mostly located not just in the car, which means that car is just a software edge activity. It means that just the input and output and or some real time transaction or other computation and the calculation analysis and decision could be the car cloud. Therefore the cloud is the main body of the car software. And also just car is just edge, therefore edge cloud and main cloud. It will be occurred just within just several years because firstly Hyundai has currently more than 40% of the car is connected in listening. And also the cumulatively we are connected by around the four million car in the world. It'll be changed to 10 million car would be connected within one year. 10 million Hyundai cars will be connected to cloud generating information. Yes, collecting information and we are ready for the OTA which means that over the air software update for the 10 million car within one year. And also it'll be double up, double up, double year by year. Which means that all of the car will be operated by cloud. Great. And car is just input and output and edge activities. Therefore car is on cloud. Okay, right. Interesting. There is a 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 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 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 that already IBM helped us our all IT operation in US and Europe which composed of our 50% of revenue come from. Therefore it means that dozens billion revenue operation is located in US and Europe. All of that the US-Europe IT operation conducted by the IBM India and orchestrated by IBM Korean people. So it's amazing as Mr. So 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 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. Keith, thank you for that. Jung, thank you as well. Talking about this impressive global impact and really partnership that Hyundai is taking with IBM into 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 power country from the IBM perspective and certainly using Hyundai as 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 thing.