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Third Industrial Revolution Consulting Group to a digital infrastructure brings with it new business models and business practices that converge products and services in an economy that is moving from conventional ownership in markets to nontraditional access to services and networks. The Working Group emphasizes the fact that the shift to a digital infrastructure will bring with it not only new business practices, but also significant challenges including the country’s lack of qualified engineers and other technical personnel. With this in mind, the Industry Working Group has adopted a set of guiding principles that will take the Grand Duchy of Luxembourg into an Internet of Things Third Industrial Revolution economy. The guiding principles are the set of values that will guide Luxembourg Industry in all circumstances, irrespective of changes in its goals, strategies, type of work, or governance. By pursuing the path based on values and holding one another accountable to the sector’s standards, the values become the fabric of the industrial culture. Those guiding principles are also essential in order to encourage the right behavior while advancing the transition into the Third Industrial Revolution. The values are derived from the history and culture of Luxembourg and are linked to the size of the country and existing interactions with neighboring countries. Multi-lingualism: Luxembourg’s strength is a versatility of spoken languages on a daily basis, three of which (Luxembourgish, French, and German) are official national languages, with English and Portuguese spoken by many people. Open-mindedness: receptively and actively chasing new ideas, new concepts and new industries; adopt an open approach towards the views and knowledge of others. Collaboration: the process of working together to the same end (e.g. public-private partnerships). Drive and embrace change: change is the only constant. We must learn not to fear change, but to embrace it and even encourage and drive it and have the courage to give up what cannot be sustained. Companies come and go, and have to be resilient and embrace continuous improvement. Pursue growth and learning: reflect on the areas where you excel or have an interest and try to learn more about those areas but also means to reflect on areas where you can further improve. Do more with less: eliminate/reduce “waste.” Lean principles – save on resources, time, money and energy. 210
Third Industrial Revolution Consulting Group Luxembourg Industry Vision As the Industry Working Group emphasizes, Luxembourg industry exports about 85% of its production, exceeding 90% for some sectors. The accompanying graph from the MIT Atlas of Economic Complexity highlights these product exports. Graphical depiction of Luxembourg's product exports in 28 color-coded categories. Source: Haussmann, Robert, Cesar Hidalgo et al (2014) The Atlas of Economic Complexity, Mapping Paths to Prosperity, Electronic Complexity Observatory, MIT Media Lab and the Center for International Development. A multitude of factors are continuously challenging the competitiveness of these products and firms: global market turbulence, technology disruptions, intra-industry rivalry, extra-industry forces, regulatory requirements in production processes and product attributes, taxation changes, fluctuations in factor input cost and availability, alterations in risk insurance, etc. 211
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