HD Hyundai Construction Equipment Co Ltd - Digital Transformation Strategies

HD Hyundai Construction Equipment Co Ltd - Digital Transformation Strategies

Summary

This report provides insight into Hyundai Construction Equipment's tech activities, including its digital transformation strategies, its innovation programs, its technology initiatives, its estimated ICT budget, and its major ICT contracts.HD Hyundai Construction Equipment (HCE) carries out the business of manufacturing construction equipment and material handling. Its product portfolio includes hydraulic excavators, backhoe loaders, wheel loaders, and skid steer loaders. It manufactures and sells machinery used for excavating, transporting, and crushing in large-scale infrastructure projects, such as roads and buildings, of various sectors including mining, agriculture, and forestry. In December 2021, HCE invested $170 million in its Ulsan factory, to strengthen its competitiveness in rapidly expanding construction equipment business. The investment, to be delivered over the next four years, aims to increase production by 4,800 units a year, bringing annual capacity to 15,000 excavators, wheeled loaders, and other construction models. This initiative will support Hyundai’s growing presence in global construction equipment market, while providing a manufacturing base for a new generation of electric and hydrogen-powered equipment.In November 2020, HCE completed TIC, investing EUR57.4 million ($65 million). The new TIC includes 16 laboratories, employing more than 100 researchers. It is involved in research and development projects focused on eco-friendly technologies, high efficiency and noise reduction technologies and a virtual verification system. The site also performs quality research and verification of components and completed equipment.

Scope

• HCE continues to invest in customer service tools using digital technologies. Using telematics information applied to the equipment, the company operates Hi MATE system that checks operating status and status of equipment around the world in real-time. It has also been operating a remote diagnosis program ProAct Care. These efforts enabled it to offer prior customer equipment diagnosis and on/offline service, thereby maximizing customer equipment uptime.
• HCE held a metaverse-based virtual-reality conference with approximately 155 overseas dealers from 73 countries, participated by accessing virtual space. Through the 2022 Global Dealer Conference held in metaverse environment, HCE further strengthened communication between dealers and HCE, and to find opportunities to expand information, communication, and experience in virtual reality. HCE also seeks to enhance communication with its customers through its digital showroom, where equipment can be viewed from all directions in a digital environment.
• HCE is foraying into AI-based equipment that utilizes AI technology to achieve optimum stand-alone productivity while emphasizing safety, beyond smart equipment. To this extent, HCE established a digital technology vision called Hyundai Connect to evolve into a provider of AI equipment. Under this, it is continuously developing Hi ASSIST that supports operators, Hi DETECT that enhances safety, and Hi CARE that improves equipment uptime. It recently development include Hi SITE technology that controls survey and analysis results of on-site terrain and the status of equipment fleet operation.

Reasons to Buy

• Gain insights into HCE's tech operations.
• Gain insights into its tech strategies and innovation initiatives.
• Gain insights into its technology themes under focus.
• Gain insights into various product launches, and partnership strategies.