Companies with 'Digital Innovation DNA' Broke through COVID-19 Crisis

- KITA analyzed the 13 cases of Korean manufacturing-based companies that succeeded through digital innovation -

It is argued that manufacturing-based small and medium-sized businesses need to actively engage in digital innovation in order to lead the market change amid the COVID-19 pandemic.

According to a report titled ‘The Era of COVID-19, A New Marketing Weapon: Add Digital to Your Products’ issued by the Institute for International Trade (President: Choi Yong-min) of the Korea International Trade Association on December 28^th, small and medium-sized manufacturing companies that are expanding into overseas markets recently improve product functionality, convenience, and usability by adding digital innovation technologies such as information and communication (IT), Internet of Things (IoT) and artificial intelligence (AI), and quickly respond to consumer demand. It turns out that they are turning crisis into opportunity.

In the healthcare field, it is leading the digital medical device market by responding to the market demand brought by the pandemic and the paradigm is shifting toward customized preventive treatments. Philosys has exported a portable diagnostic test kit that can detect COVID-19 virus within 10 minutes and a blood glucose meter for smartphones, and Sugentech has introduced a device that analyzes and diagnoses five types of female hormones with a biosensor and a micro-analysis system. The companies awarded '20 Million Dollar Export Tower' on this year's Trade Day commemoration ceremony.

Products with various digital innovation technologies are also being introduced in the home appliance area. EveryBot's cleaning robot creates a spatial map and driving route by itself utilizing autonomous driving and IoT technologies to autonomously drive to a space that requires care. Everybot is currently exporting this cleaning robot to 27 countries and plans to expand its sales network to Europe in the future. Studio Cross Culture develops companion robots that respond to sounds and actions to help emotional comfort of dementia patients or the elderly, as well as provide safety services such as monitoring targets and 911 calls in case of emergency.

In addition, innovative products are also demonstrating their presence in the beauty, environment, and health fields, such as a smart mirror (Lulu Lab), which is a non-face-to-face skin analyzer based on image processing and artificial intelligence technology, a digital facial mask (Auguste 10) that has improved absorption rate by 20 times by combining wearable technology with the facial mask, an anti-snoring pillow (Metel) that automatically adjusts the height by analyzing body pressure and snoring, and an exercise system that recognizes and interacts with the user's motion (DRAX).

The report stated, "Companies that have succeeded in the era of COVID-19 have in common that they provide the most suitable products and services by identifying and analyzing new needs of consumers, and added, "In order to succeed in digital innovation, it is necessary to value technology, be agile in innovation, and have willingness to open, cooperate and change by focusing on customer and service as the goal.”

JungGui-il, a researcher at the Korea International Trade Association, “As the rules of survival and growth of companies change from expanding market share to expanding customer share, the economic structure in which companies that have succeeded in digital innovation will encroach on the market and the trend is likely to be fixed,” and added, “Companies are required to make effors for digital transformation in order to preoccupy the future market.”