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THE CREATIVE PATHFINDER

How Pinar Kose Kulacz embraced private wireless
to enhance Arçelik’s manufacturing potential –
sidestepping infrastructure challenges
and stray cats along the way.

Arçelik is a large, multinational household appliances manufacturer founded in
Türkiye in 1955. With 40,000 employees throughout the world, Arçelik's global
operations include subsidiaries in 52 countries, and 30 production facilities in
9 countries and 12 brands. It’s fair to say that ensuring such a global network
runs smoothly while continually looking to the future takes some serious
joined-up thinking.




A CONSTANT DRIVE FOR IMPROVEMENT

Traditionally, Arçelik has always been a forward-thinking company, willing to
look towards innovative new technology to ensure it stays ahead of the game.
Several years ago, as part of its digital transformation strategy, Arçelik
installed Wi-Fi hotspots across its operations – and the results had been
significant. It has helped automate many critical factory processes. For
example, allowing Arçelik to use Automated Guided Vehicles (AGVs) for material
handling and load carrying.

So why, in 2019, was Arçelik’s Innovation Director Pinar Kose Kulacz so
determined to develop an even more robust network? Which, deciding after
exhaustive research, that a private wireless network was the answer even though
Türkiye didn’t yet have the 5G infrastructure in place to make the most of it?
The answer lies in open-minded leadership and a woman with an unwavering belief
in her vision. Oh, and a desire to work around some much loved – but
occasionally obstructive – stray cats.


COOL FOR CATS

Pinar takes up the story. “In Istanbul we have a lot of cats. We love them, we
take care of them, and they take care of us in return. We have stray cats
running around our plant, and sometimes they ran in front of the AGVs, causing
them to stop.”

Pinar and her team were determined to find a cat-friendly solution. “Our digital
manufacturing manager was asking me, ‘why can’t we implement a dynamic route
around these cats?’”

Of course, as much as Pinar and her team loved their feline friends, the case
for investing in expensive new technology needed to be more compelling. Pinar
would have to demonstrate that it could improve connectivity and make Arçelik’s
operations more efficient. And while dynamic routing is under consideration, it
has yet to be implemented.

“We constantly look at new technologies, so in that regard looking at 5G and
beyond was nothing special. It was natural that we looked at whether it could be
beneficial for our business. We soon decided that a private wireless network
could add great value for our manufacturing plants around the world.”

On this page
 * The challenge
 * The solution
 * The results
 * Words of advice
 * Further reading

 


A LACK OF INFRASTRUCTURE

Pinar and her team were convinced that private wireless could play a significant
role in Arçelik’s wider digital transformation strategy, allowing them to
automate and improve even more processes across their factories and warehouses.
The problem was that this type of network would require low latency and high
speeds. Yet Türkiye doesn't currently have 5G infrastructure available to
consumers or businesses – something Pinar initially thought would be necessary
to achieve her ambitions.

But it was here that Pinar’s leadership style came to the fore. “I believe in
flat organizations, and I believe in working together,” she says. “People are
what makes innovation possible. So I listen a lot and I talk also, but of
course, I have my opinions. I would say that I am a very collaborative person.”

That passion for collaboration – allied with a fierce determination to drive
Arçelik’s digital transformation – saw Pinar seek advice on how to make her
private wireless vision a reality.

In particular, she started discussing Arçelik’s ambitions with mobile operators,
who she would need to play a vital role in making progress. Turkish regulations
don’t allow enterprises to operate their own licenses. So Pinar needed a mobile
operator to dedicate part of its spectrum to Arçelik. That’s where Türk Telekom
agreed to provide Arçelik with the infrastructure to move forward. But Pinar
would need further expertise to bring her plans to fruition.




STRENGTH IN NUMBERS

Pinar’s open-minded approach to the project, together with the vision of
Arçelik’s global leadership team, brought her to seek out Nokia’s help. “We
discussed 5G technology with Nokia, and they invited us to their Executive
Experience Center in Finland. If you really want to understand the benefits of
any wireless technology, that’s the place to go.”

After talking through her ambitions – and the existing limitations of Türkiye’s
5G infrastructure – on her visit, Pinar was more convinced than ever that she
could make private wireless work from a technological perspective.

“At the beginning, we thought we needed 5G capabilities for implementing the use
cases we had in mind. But then we found we could start with a 5G-ready network
and go ahead with what is effectively 4.9G – and this would allow us to
implement whatever we wanted to implement.”




A STEP INTO THE UNKNOWN

But it would take a leap of faith to determine whether it would work from a
business or financial point of view. “At the beginning, you don't have a
business case because you have not implemented it yet, and you don't know if it
will pay off,” explains Pinar. “But we believed that this would give us a
competitive advantage. So we took a chance.”

Pinar consistently downplays her involvement, but it’s clear that her
persuasiveness and diligence played a significant role in convincing the rest of
the organization. Suddenly, it was full steam ahead on this ambitious project.

Once the decision to implement a private wireless network had been made, work
began quickly, and just five months later, the business was able to see the
first AGV running. Given the scale of the project, this was seriously
impressive.

Working closely with Türk Telekom and Nokia, Arçelik’s first private wireless
use case was to transition from their current Wi-Fi solution and test AGV
connectivity with P-LTE. This test would give Pinar’s team and Arçelik the
“before and after” analysis and performance data they needed to understand the
real capabilities and future possibilities of a private wireless approach.

“Seeking assistance and asking for help is not only important for me, it's a
culture that we're trying to develop at Arçelik Global. We would like to always
collaborate when we're looking for solutions to the most serious problems facing
the world and ourselves.”




AN IMMEDIATE SUCCESS

Although Pinar and her team had done as much homework as possible, she admits
they were unsure whether their move to a private wireless network would work.
They chose the AGVs as the initial use case because it would be simple to
analyze whether the new network had made them more efficient. And the results
were clear. “We saw a 25% improvement in the cycle time of our AGVs, meaning
that they could get from A to B quicker.” Pinar was delighted. And the cats
could carry on as normal.

These results were extremely positive. But they were just the start. Pinar and
her team are not ones to rest on their laurels – they have big plans for
Arçelik’s private wireless future. “We’re investing heavily in flying drones in
the warehouses to count goods,” says Pinar. “That’s a demanding use case. And
we’ve also been looking into using drones for security and surveillance.”

And as AI grows increasingly advanced, Pinar sees a future in which Arçelik’s
factories become far more flexible – with “only the walls being fixed.” She even
has plans to explore using robots as tour guides - directing customers during
factory visits.

But with many of these potential use cases, it’s likely that the lack of 5G will
eventually become an issue. “If you want robots running around and drones flying
in warehouses all at the same time, then we will have to upgrade to 5G. But at
the moment it is not such a big barrier.”


DEVELOPING NEW TALENT

Before Arçelik looks to scale private wireless throughout its global network of
factories, Pinar and the team must put their use cases to life. To this end,
they have set up an innovation program, inviting start-ups to work with them to
solve the issues they have in their factories.

“We recruited thirteen start-ups to work with us on nine use cases. We’ve given
them training in the manufacturing industry to give them a better understanding.
And we’ve now seen working proof of concepts, seven of which went beyond even
our most positive expectations. So we’re now looking into how we can make them
work on a commercial basis.”




A HUMBLE VISIONARY

So what does the future hold? In a world of sometimes outlandish predictions
dressed up as fact, Pinar’s response shows refreshing humility. “Honestly, I
don't know. And I'm not afraid of saying I don't know, because everything is
changing so quickly. The one thing that I'm sure of is that we will relentlessly
pursue and understand new technologies and put it in the hands of the right
people.”

And what does she see in her own future? As befits a Director of Innovation,
Pinar doesn’t look like standing still any time soon.

“I see myself still pursuing a lot of new things. So for me, going after the new
is something I can't stop doing because I love learning, I love reading. But I
see myself doing things for humans.”

Pinar has already accomplished so much. She is an understated leader, yet her
courage, open-mindedness, vision and attention to detail mark her out as someone
any team would be lucky to work with. When asked what she’d like her legacy as
Director of Innovation to be, her answer is telling – direct and without fuss.
“As a person who worked really hard to bring innovation to all aspects of
Arçelik.”





PINAR’S THREE TIPS FOR CREATIVE, COURAGEOUS LEADERSHIP

TIP 1:

Put people first

You need to understand your own people and the needs of the people you serve. So
you have to be employee-centric and customer-centric.

TIP 2:

Do your homework

It’s vital to define the metrics for digital transformation. You need to put in
the work beforehand to know how to measure the success of your changes.

TIP 3:

Don’t be scared to fail

Even if you make everything people-centric and define your metrics, you can
still fail. But that doesn’t mean you need to give up.


BREAK YOUR OWN BOUNDARIES

“Nowadays, nothing is a one-man or woman show. We must work together to find the
answers to the world’s most wicked problems. We really need to help each other,
definitely.”
Pinar Kose Kulacz
Innovation Director, Arçelik



CONNECT TO NOKIA’S SOLUTIONS

Learn about the technologies helping Arçelik build towards a more connected
future.

INDUSTRIAL-GRADE PRIVATE WIRELESS

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ARÇELIK SELECTS NOKIA, TÜRK TELEKOM IN STRATEGIC DEAL FOR TURKEY’S FIRST
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