Without any surprise, Indonesia is considered to be one of the most prospective markets in Southeast Asia for enterprise Internet of Things (IoT) adoption. Gartner predicted that by 2018, Indonesia, together with other Southeast Asia countries, will have spent a total of $62 billion for technology.
Taking a closer look at the market, there are two upcoming sectors looking to tackle their problems and improve their business performance with the use of IoT technologies. These sectors are agriculture and property.
In the coming decade, farming industry will become more significant than ever. UN Food and Agriculture Organization forecast that the world needs to increase its food production by 70% in 2050 compared to 2006. As a key sector of Indonesian economy, will Indonesian agriculture be able to fulfill the growing needs?
According to World Bank, Indonesian agriculture comprises of 13.3% of the total GDP in 2014. Despite being a large contributor of Indonesian economy, the agriculture does not have the capacity to catch up to the escalated demand for food with its current farming performance. Take an example of cocoa farming. International Cocoa Organization (ICCO) foresee that demand for cocoa will exceed the supply by 2020. Being 3rd largest cocoa producer in the world, unfortunately, does not guarantee that Indonesia will reap all the benefits. The reason is that, as mentioned by Marc Donaldson, senior partner at On The Ball Consulting, limited sustainable network in Asia hampers its ability to fulfill future cocoa demand. However, the most important factor is due to the unpredictable climate change, causing inefficient production.
Indonesian farmers understand that they need to improve efficiency. Turning traditional agriculture into smart agriculture with IoT is definitely key to their survival in the industry. With application of technologies in the field, such as sensors and drones, not only will they be able to access climate forecasts but also to collect crop data. A number of studies on average farm done by OnFarm (connected farm IoT platform developer) showed the success of IoT in agriculture with revenue grew by 1.75%, energy cost fell by 35% to $13/acre, and use of water for irrigation dropped by 8%.
The use of IoT in property development sector has become more prevalent. Gartner predict that smart homes (a home equipped with lighting, heating, and electronic devices that can be controlled remotely by smartphone or computer) will use over 1 billion connected things in 2018. The reason for the rise of smart home is the greater value property developers can gain in terms of revenue. But how does that work?
IoT technologies allow developers to boost their competitive position in real estate market by going an extra mile to enhance resident living experience. According to Intel, houses with IoT guarantee a safer and more comfortable environment as well as lower energy consumption. It is proven by the survey conducted in the United States by Coldwell Banker Real Estate and CNET (consumer technology news and reviews website) which discovered 45% of smart home product users claim that these products helped them save $1,100 per year and 87% agree that their lives have been easier with everything controlled through their smartphone.
Understanding these benefits, several Indonesian developers have realized the importance of integrating technology to everyday life. With the aim to increase its market share, Indonesia’s biggest property developer, Agung Podomoro Land (APLN), has planned to equip smart home technology products for its residential properties in more than five estates. Homeowners may enjoy the connectivity of all devices at home from microwave to washing machine in just one click away.
To sum up, even though Indonesia is still a developing country, we believe that there is a potential to venture into the market. Both agriculture and property are upcoming sectors looking forward to improving their businesses with IoT.
Find out more about how IoT is impacting Indonesian enterprises at Asia IoT Business Platform Indonesia 2017, 7- 8 August, Jakarta.
The Golden Tweet
Do you know that the runner-up for Twitter’s 2014 Golden Tweet came from Indonesia?
Twitter recognizes the tweet with most retweets as the Golden Tweet. In 2014, the Golden Tweet went to famed American celebrity, Ellen DeGeneres for her legendary ‘selfie’ tweet which featured other celebrities present at the star-studded Oscars. What caught our attention though, was the runner-up for the Golden Tweet. Coming in second, a politically-charged tweet by an Indonesian– in-lieu with Indonesia’s presidential election in 2014–took the Twitterscape by storm. That particular tweet garnered more than a million retweets and a whopping 30 000 favourites.
The Twitter-user was nowhere near the status of Ellen DeGeneres as a public figure or in terms of followers. Yet, it managed to give DeGeneres a run for her money.
Indonesia’s Social Media Prowess
While this might come as a shock to many, we have no doubts about it. Despite being in Southeast Asia and APAC, which is often assumed to be less developed than many other regions in the world in many aspects, Indonesia is undoubtedly a social media-wired nation. Apart from managing to send a tweet propelling up to be a Golden Tweet runner-up, Indonesia’s capital city, Jakarta, was touted as the world’s most active city on Twitter. With 254.4 million tweets in 2014, the city contributed 2.4% of the world’s total tweets. The city also came in fourth in the world for Facebook activeness.
This makes Indonesia not only a social media giant, but also one of the most connected nations in the world. The rapid adoption of new technologies with the presence of a dynamic, young, and digital-minded population and workforce, on top of a consumer base of 170 million people, make Indonesia a nation with increasingly sophisticated expectations. This is evident from the emergence of Cloud Computing as a major element in Indonesia IT policies; a market that is set to reach more than $120 million b 2017. This is on top of the booming e-commerce (forecasted to hit $US18 billion in 2015), e-logistics, and Finance IT sectors.
Jakarta Smart City and the Internet of Things (IoT)
There is apparent effort in Indonesia to improve its infrastructure to meet the exigencies of a modern and tech-savvy social and economic landscape. Coupling regulatory mandates and burgeoning investments from regional and global tech enterprises, Indonesia’s efforts and progress in developing the country to be a ‘smarter’ nation will definitely be catalyzed.
This can be seen in the development of Jakarta Smart City, where IoT is being implemented to help improve public services and better utilize resources. Here are some of the applications that will be rolled out in 2016.
Jakarta One Card
Jakarta One Card is a “smart card ” that which is being created in collaboration with the city-owned lender Bank DKI. The card would function as an electronic ID card (e-KTP), a payment system for public transportation, shopping and Electronic Road Pricing (ERP) tolls, and as a Social Security Management Agency (BPJS) health insurance card. It is targeted that by 2019 , all citizens in Jakarta will have the Jakarta One Card.
Using the data obtained from the smart cards, the Jakarta Provincial Government can analyze the movement of people across the city, providing insights on traffic engineering and transportation.
City Surveillance System
To improve traffic and public safety in advance to welcoming the 2018 Asian Games in Jakarta, a monitoring system with over 6000 CCTVs have been installed throughout the city to monitor traffic and crowds.
Dump Truck Tracker
Garbage trucks owned by the Jakarta Provincial Government do not adhere to a predetermined route, as such a challenge faced is that the truck drivers utilize the trucks for personal use outside of their primary tasks. The solution undertaken to resolve the problem is to install GPS sensors on the government owned trucks, so that their positions can be monitored on a 24hour basis. With additional data analytics, the management of trucks can be made to work in a more efficient manner.
Heavy Equipment Tracker
In addition to garbage trucks , heavy equipment (Construction vehicles,etc) owned by Jakarta Provincial Government will also be installed with special sensors . In addition to knowing their location , the sensor will also be used to monitor wear and tear of the equipment and will flag out when maintenance and replacement of parts is required.
Smart Street Lighting System
In order to reduce the high electric consumption , the current street lighting will be replaced with “Smart” lamps . These lights can be controlled remotely and can provide notification when it should be replaced . 90,000 lamps are expected to be replaced in 2016.
Join Setiaji, Head of Technical Implementation Unit ( UPT ), Jakarta Smart City as he shares his insights at the 9th edition of Asia IoT Business Platform, which will take place this 15-16 of August in Jakarta.
Tak bisa kita pungkiri, kota Jakarta telah benar-benar membenahi dirinya dalam beberapa tahun belakangan ini. Gedung gedung perkantoran, shopping malls bertaraf international, dan berbagai merek-merek ternama dunia telah melebarkan sayapnya ke ibukota. Namun, apakah yang terbesit di benak Anda ketika ditanya pendapat Anda mengenai kota Jakarta? Setidaknya beberapa dari kalian akan menyebutkan kemacetan yang luar biasa di kota Jakarta sebagai ciri khas dari kota Jakarta ini. MACET. Memang kemacetan lalu lintas tampaknya sudah menjadi hal yang mendarah daging bagi penduduk kota Jakarta. Antrean kendaraan yang tak kunjung mencair, terutama pada jam-jam sibuk seperti jam berangkat sekolah dan jam pulang kerja memang telah menjadi santapan sehari-hari bagi kita semua. Akan tetapi, pernahkah Anda terpikir bahwa kota Jakarta menduduki peringkat tertinggi di dunia dalam tingkat kepadatan lalu lintas?
Berdasarkan studi yang dilakukan oleh perusahaan oli Castrol, Jakarta merupakan kota dengan tingkat kepadatan lalu lintas tertinggi di dunia. Studi tersebut merilis bahwa rata-rata pengemudi di Jakarta mematikan dan menyalakan mesin sebanyak 33.240 kali per tahunnya. Angka yang sangat mencengangkan tentunya.
Seperti dikutip dari Presiden Jokowi, beliau menyatakan bahwa berdasarkan laporan yang diterimanya, kemacetan telah membuat Jakarta kehilangan sekitar 35 triliun setiap tahunnya. Berbagai upaya telah ditempuh untuk mengatasi permasalah kemacetan di Jakarta, termasuk di antaranya penghapusan sistem 3in1 di Jakarta, dan juga peningkatan jumlah armada Transjakarta untuk mengurangi penggunaan mobil pribadi di ibukota. Selain daripada berbagai peraturan baru yang diambil oleh pemerintah DKI Jakarta demi mengurangi kepadatan lalu lintas, tampaknya sudah waktunya bagi pemerintah Jakarta untuk memulai pemanfaatan teknologi informasi dan IoT (Internet of Things) untuk mengatasi permasalahan tata kota di Jakarta. Perkembangan teknologi di masa depan, khususnya IoT, akan memungkinkan adanya komunikasi antara mobil-mobil yang beroperasi untuk mengontrol tingkat kepadatan di jalan raya.
Kita dapat berkaca kepada kepada Inggris, yang merupakan salah satu negara pertama di Eropa yang mendukung pengaplikasian program M2M (Machine to Machine). Program ini memungkinkan adanya Artificial Intelligence, dimana mobil-mobil saling berkomunikasi satu sama lain melalui koneksi Wi-Fi. Pertama-tama, sensor akan dipasangkan pada mobil dan juga di berbagai tempat di titik-titik rawan kemacetan di jalan raya. Sensor ini akan memonitor tingkat kepadatan lalu lintas dan mengirim informasi kepada sistem pusat untuk diproses lebih lanjut, dan kemudian disebarluaskan kepada para pengemudi di jalan raya. Apabila tingkat kepadatan cukup tinggi, sistem pusat akan memberikan informasi via Wi-Fi untuk menetapkan batas kecepatan maksimum bagi para pengendara, dengan tujuan untuk menghindari menumpuknya kendaraan di berbagai titik rawan kemacetan.
Dengan adanya ‘smart transport system’ ini, tingkat kemacetan lalu lintas di Inggris telah berkurang sebanyak 15%. Terlebih lagi, sistem ini juga mampu menghemat sebesar lebih dari 1 juta poundsterling setiap tahunnya. Mengikuti trend tersebut, beberapa negara di Asia termasuk di antaranya Jepang telah mulai mengikuti jejak untuk mengeksplorasi lebih dalam penggunaan IoT (Internet of Things) untuk mengatasi tingkat kemacetan lalu lintas. Memang sekarang saatnya bagi ibukota kita untuk ikut serta dalam pembenahan tata kota dalam rangka mewujudkan kota Jakarta yang bebas kemacetan.
August had been a very busy month for us, but we’re happy to witness the growth of Indonesian and Malaysian enterprise IoT markets since we launched Asia IoT Business Platform 3 years back.
The 9th and 10th editions of Asia IoT Business Platform were held on the third week of August 2016 in Jakarta and Kuala Lumpur.
Continuous discussions to boost the economic growth of both countries via IoT were seen; while new collaborative efforts were formed between relevant parties to drive IoT adoption among public sectors and enterprises.
What’s new on both markets?
With telecommunications as a big portion of the national ICT industry, the government is taking a step further to tackle issues deemed important, namely Availability, Connectivity, Reliability and Capacity.
- Availability and Connectivity – Development of national infrastructure backbone to ensure that the whole of Indonesia can access the Internet. The government has set a target for all cities (514 provinces) to be connected with fibre optic infrastructure via the Palapa Ring Program.
- Reliability and Capacity – Distribution channel to cities as the last mile to end users. This include encouraging ICT facilities, data centers, hardware/software platforms and applications that are closely related to human resource capacity.
At the 9th edition of Asia IoT Business Platform, the Ministry of Communications and Informatics emphasized on Indonesia ‘s commitment to be the Digital Energy of Asia. Various initiatives have taken place, including rolling out of the e-Commerce Roadmap to support the digital economy ecosystem.
“The success of the Asia IoT Business Platform today makes me proud – it’s a concrete manifestation of the effort to strengthen the interaction between innovative players in the Indonesian ICT field.” – Mariam F. Barata, Directorate General for ICT Applications, Ministry of Communication and Information
Malaysia is in the midst of implementing a National Internet of Things Strategic Roadmap, in which the market potential has been determined to generate a GNI of RM9.5 billion by 2020 and achieve RM42.5 billion by 2025.
Since the launch of the IoT roadmap, several projects have been piloted including Smart Lock-Up implemented by the Royal Malaysian Police to monitor safety; I-Comm, a community social innovation platform was deployed to develop community applications such as flood monitoring.
Four focus market segments which align to the existing government initiatives have been identified as springboard for innovators use to leapfrog widespread adoption of IoT solutions:
MIMOS, as co-organiser of the 10th edition of Asia IoT Business Platform, graced the event opening by launching Mi-MIST, an Open Innovation Platform for rapid development of IoT applications to accelerate the IoT ecosystem.
“We encourage every party to join hands in seizing the IoT opportunities. To our guests from abroad, Malaysia will share our ideas and inspirations with our friends in the region, and I invite you to do the same. Let us have conversations on how collectively we can capture this enormous opportunity.” – YB Datuk Seri Panglima Madius Tangau, Minister, Ministry of Science, Technology and Innovation
For event highlights, please refer to our photo albums here.
For questions or post show reports, please leave a comment with your email address and we’ll send it over.
The team is grateful for the support we gained from all partners in the region. We will continue posting video interviews with participants on their insights and local initiativeshere.
As we continue to educate enterprises and drive IoT awareness in Southeast Asia, drop us a comment if you have some stories to share.
Enterprise IoT Business Potential – A lot of big numbers being thrown around, but where are the real opportunities?
It’s been well documented, and almost universally accepted (65% of enterprises using IoT for business purposes), that the Internet-of-Things (IoT) will play a big role in both individual lives (Pokemon Go, anyone?) and in the way enterprises conduct business in the future. On a macro level, there’s been a plethora of reports forecasting double, sometimes triple, digit growth dates in the number of connected devices (30 – 100 billion) and the total value that will be created by these devices.
When it comes to enterprise IoT solutions & adoption, we look at the business opportunities for technology players across the IoT value chain. A McKinsey report estimated an economic impact of up to $11 trillion per year by 2025 – with more than 70% of this being derived from business-to-business (B2B) applications. What’s more, they expect most of this value to emerge from developing countries.
Frost & Sullivan took it a step further and forecasted IoT spending in APAC to be $79 billion in 2020, identifying Southeast Asia as a key area for growth.
While macro level reports have been extremely positive about the growth of IoT globally, we decided to take a step back and conducted a survey of local enterprises both in Indonesia and Malaysia. We’ve seen an exponential increase in interest within the Enterprise IoT space over the past 3 years in both countries and this has translated to increased awareness & adoption of IoT solutions.
We found that the numbers in both countries were extremely similar:
- Roughly 50% of enterprises are either not aware of enterprise IoT solutions or only have a basic understanding of it.
- ~45% of enterprises have explored and/or implemented enterprise IoT solutions
- Only 2% and 4% of enterprises have reported reaping the benefits of implementing IoT solutions
Which vendors do enterprises turn to for enterprise IoT solutions?
When it comes to familiarity with technology vendors which provide these solutions, IBM was named most frequently in our surveys – with Microsoft, Hewlett Packard and the Indonesian telcos (Telkomsel, Indosat & XL) also creating much brand awareness in Indonesia. Microsoft and Cisco were also cited frequently amongst Malaysian enterprises.
Potential for IoT spending in Indonesia & Malaysia
The results from the survey only begin to scratch the surface of the potential of the market in both countries, and we think educating enterprises about these solutions is the key for the market to realise/reap the benefits of IoT adoption. What we know for a fact is that enterprise adoption has been increasing and it’s almost a given that the segment of enterprises benefitting from IoT will continue to increase as they get used to systems and the amount of data being collected/utilized increase and get put to greater uses. It will be interesting to see which technology solution providers will take the lead over the next few years with the corresponding increased spending.
If you’re interested in the full report of the survey, please email to this address: firstname.lastname@example.org and we will be sending you the summary.
Network with local enterprises from Indonesia and Malaysia at the 9th and 10th edition of Asia IoT Business Platform in Jakarta (15 & 16 August 2016) and Kuala Lumpur (18 & 19 August 2016) respectively. Register here.
Smart cities continue to be a hot topic at this year’s Asia IoT Business Platform 2016 Jakarta and Kuala Lumpur. Graced by the presence of Ministry officials and city mayors, presentations and discussions on IoT technologies related to smart cities raise much interest in the conference participants. Interestingly, while technologies were extensively discussed, so was another aspect sometimes overlooked – engaging and educating smart citizens.
Technological innovations continue to play an important role in smart city initiatives across Indonesia and Malaysia. Applications like smart energy-saving lighting, vehicle tracker, all-in-one smart card have been implemented in Bogor, Jakarta and Kuala Lumpur to work towards a more efficient, innovative and sustainable urban community. These technologies continue to create small but powerful impacts on the daily lives of the citizens.
Smart Lighting Application in Bogor City
Current initiatives in Jakarta Smart City
Besides technology, education and citizen engagement have been identified as equally important – if not more – aspects for city governments to successfully implement smart city technologies into the daily life of ordinary citizens.
“The three main focus for Jakarta Smart City are: the government listening to the citizens, citizen participation, and mobile applications” – Pak Setiaji, Head of Jakarta Smart City, Indonesia.
Citizens need to be educated on what the city is doing in order to improve their livelihood, as well as give feedback for the city to improve on their current initiatives. One of India’s 100 smart city programmes, Bhubaneswar, has done so by establishing city-level Smart City Advisory Forum that includes District Collector, Mayor, CEO of Special Purpose Entity, local youth, technical experts, representatives from Associations, who will all contribute their insights and feedback about the city’s programs. Engagement starts from the beginning of establishing a smart city program, and will continue until the end. Through accessible channels such as social media, Bhubaneswar was able to reach out to 32% of the city’s population, garnering valuable feedback to the smart city planners.
Citizen Engagement in Bhubaneswar Smart City
The future of smart cities lies in the hands of not only city councils and city planners, but also the citizens. In order for citizens to truly benefit from smart cities, local governments need to not only have a clear direction for development through regional or national IoT initiatives, but also engage citizens effectively and ensure accountability to fulfill the actual needs of the citizens.
Smart city projects have been criticised for not addressing root issues of urban living, prioritising the privileged citizens, and detrimental to citizens’ personal privacy. Continued efforts from the local governments to overcome these challenges and understanding the needs of their citizens will help smart city initiatives proliferate and serve the citizens.
As a citizen, how do YOU think you can be involved in the process of creating a smart city/community where you live?
Photos credit: Asia IoT Business Platform 9th edition, Jakarta, Indonesia. Do not distribute.
Smart City will be discussed at the 11th edition of Asia IoT Business Platform held in Hanoi, Vietnam on 29-30 November, 2016. For more information, drop me an email at email@example.com or visit http://iotbusiness-platform.com.
It’s no surprise that Singapore is often in the limelight with regards to Smart Cities development in the Southeast Asia: with 100% urban population, strong ICT infrastructure and the highest smartphone penetration in the world, the government has successfully launched more than a dozen smart city projects as part of its Smart Nation Program.
However, if we look past trying to define smart cities and instead focus on measuring the desired outcome, smart city endeavours in ASEAN nations like Indonesia, Malaysia, Vietnam, Thailand and Philippines could potentially bring about a larger positive impact to the local community.
Smart City Solutions for the Developing Economy
For many of these countries, infrastructure is lacking. Smart City technology can help better utilize the existing resources (schools, hospitals, roads, public transportation) and extend its reach to the rural areas.
Digitalization of government services can also help to provide greater transparency and accountability and reduce the opportunities for graft and corruption. Smart utility solutions can help better manage energy use. IoT can even be integrated into natural disaster and risk management solutions for countries like Philippines.
In addition, with more than half of Southeast Asia’s 600 million people under 30, the potential for rapid uptake of smart city technologies
Smart Cities in Indonesia
Indonesia has been slow in implementing Smart City initiatives over the last decade due to lack of collaboration between the city government and the federal government.
However with the success of Smart City projects that are funded by the local/ regional governments, the pace has picked up dramatically.
Pak Setiaji, Head of Jakarta Smart City, spoke to the media at the Asia IOT Business Platform Media Day (June 16, 2016) about their plans to improve the lives of its citizens.
In addition to using Qlue as a platform to resolve public complaints, they are also using a monitoring system for over 6000 CCTVs to improve traffic and public safety in advance to welcome the 2018 Asian Games in Jakarta
The Jakarta One Card was also launched earlier in June and it aims to combine the functions of an electronic ID card (e-KTP), a payment system for public transportation, shopping and electronic road pricing (ERP) tolls, and a Social Security Management Agency (BPJS) health insurance card. It is targeted that by 2019, all citizens in Jakarta will have the Jakarta One Card.
A Smart Street Lighting system is also in the works to replace 90,000 lamps this year and reduce the high electricity consumption. These lights can be controlled remotely and can provide notification when it should be replaced.
The Indonesian newspaper, Kompas, recognized 15 Smart Cities in Aug 2015 based on criteria such as smart economy, smart society and smart environment. Currently there are 24 (and counting) smart city implementations across the nation from Bandung to Manado.
With Indonesian mayors making technology a priority for planning the best use of limited resources, and with large investments from telcos to bridge the funding gap from the federal government, we foresee big strides forward for Indonesia Smart Cities.
Smart Cities in Vietnam
As mentioned in a recent article by Dinh, our assistant project director for the 11th Asia IoT Business Platform in Hanoi, IoT and smart city solutions hold great promises in solving everyday life issues and improving the citizens’ quality of life for a less economically developed country like Vietnam.
Phu Quoc, an island off of Kien Giang Province, is one of the cities aiming to become the first smart city of the country, in line with the nation’s vision to turn Phu Quoc into a Special Economic Zone (SEZ) in 2020. Vietnam Post and Telecommunications Group (VNPT) is working closely with the local government to materialise the VNPT Smart City model in Phu Quoc by building network infrastructure, data centre, and smart services. High-speed 4G network has already been trialed successfully on the island.
Mr. Mai Van Huynh, Vice President of Kien Giang People’s Committee, believes that the smart city project is necessary for Phu Quoc to become a well-connected, sustainable and important SEZ for the country and the region. However, “to have a smart city, there must be smart citizens, smart government officials”, Mr. Huynh.
This is just one of many efforts by the Vietnamese government in recent years to promote its municipalities towards becoming smart cities, in order to tackle various socioeconomic issues such as traffic jams, environmental pollution, and energy conservation.
What we can learn from Singapore
While many ASEAN nations may not have the financial willpower of the Singapore government to spend S$19bn for Smart Nation R&D initiatives, there are three takeaways that could accelerate smart city developments in Southeast Asia.
1) Having a centralised Smart City program. Data and technical know-how are shared among the cities to identify more actionable insights.
2) Commitment to education. From nurturing a highly educated workforce to providing skills upgrade and training for older workers, education initiatives need to be in place to manage the changing demands of the workforce.
3) Delayed Gratification. Often smart city initiatives takes time to bear fruit and smart city stakeholders need to take a long term view when deciding investments.
To take part in the discussions for ASEAN Smart City developments, do share with me your story at firstname.lastname@example.org
These days, we see communication service providers (CSPs) getting increasingly actively involved in the IoT space. Being at the core of IoT value chain, telecommunications and IT service providers can bring together the large ecosystem of partners and speed up the time to market for IoT.
We interviewed some of our partners in Southeast Asia and summed up the main initiatives and efforts of telcos in the IoT sector.
What are the current focuses of CSPs in Southeast Asia?
According to JD Montelibano, the Head of Business Applications from the Globe Telecom IT Enabled Services Group, CSPs are in a good position to provide end-to-end and seamless IoT solutions for the Philippine market.
“We have been driving awareness on benefits of IoT primarily to businesses. Focus today is to drill into deeper and more specific use cases per industry that will solve specific pain points and problems,” said JD.
Meanwhile in Thailand, there are initiatives such as the collaboration between CAT Telecom, NIA, and TESA to promote IoT and smart city development by supporting tech companies and startups that have IoT/smart city innovation.
Yuttasart Nitipaichit, PhD, Assistant Vice President of CAT Telecom Data Center Department pointed out that CAT aims to provide IoT and smart city solutions as one of their main businesses.
“CAT’s main focus is to provide support on Telecom and IT infrastructure that would be the building block for developing smart city applications. We aim to provide support on mobile and Internet connectivity, IT infrastructure including Cloud platform and data center, and IT security solutions,” he added.
With a mobile penetration rate of 120% in Indonesia, Mirela Juravle, the head of M2M Projects in Indosat Ooredoo, believes that CSPs are trusted partners to help IoT adoption. Being in the driver seat, they want to lead the IoT development through an extensive portfolio of solutions and services ranging from connectivity, infrastructure, cloud services, data analytics to end-to-end IoT solutions and services; promoting innovation simple and open environments for local developers to build innovative IoT services; and Big Data.
One of Indosat success stories in 2015 is the launch of vehicle telematics solution which had greatly increased productivity for operational car fleets and logistic companies.
“We have done a lot of market educations in the last 2 years and this year we will continue to accelerate growth in banking, transportation and security, plus develop new markets in eHealth, user based insurance, business applications, industrial IoT, oil gas, Smart Cities,” said Mirela.
On the contrary, Malaysian CSPs have falled behind in taking the leap with IoT. Telcos in Malaysia have been criticized for being too conservative; and they are making big plans to grow their presence in the IoT sector and catalyze Malaysia’s Smart Digital Nation vision.
Digi has identified some key industry players that are at more matured stage such as the public services and logistic area leveraging on IoT adoption to drive customer experience and enhance business growth.
Lee Shin Mei, the Head of Enterprise Business in Digi, shared with us that Digi is exploring and always open for IoT as this is one of their main drivers moving forward.
“The current focus is really about creating the customer awareness, looking out for opportunities to collaborate and getting the right partners in place to support the initiative. Once we build the business value and can show to our customers the benefits of IoT, this would eventually build a sensible commercial value for all parties. In terms of segment or industry, there is really no hard rule about this part,” she added.
What are the advice for solution providers targeting Southeast Asia?
What do you have to identify and prepare beforehand? How to access the market and justify the right local contacts?
Southeast Asia countries are generally quite similar in the focus area and highlighted verticals for IoT, but slight different approach or key points have to be taken care of for each country.
Let’s have a look at the views of local CSPs from specific countries in the region.
JD Montelibano, Globe, Philippines:
IoT has huge opportunities and unlimited use case that are relevant to the Philippine market. What solution providers must do is to understand pain points and problems in a local micro level. They also need to have platforms that are inter-operable with other systems to drive seamless integration through readily available APIs.
Yuttasart Nitipaichit, CAT, Thailand:
Solution providers should study and truly understand problems of cities in Thailand in order to provide real solutions that could really solve the problems. In addition, they should consider partnering with infrastructure providers and end user device manufacturers as well to provide complete solutions. They should make sure that the value of their proposed solutions is higher and worth the proposed cost of investment.
Mirela Juravle, Indosat Ooredoo, Indonesia:
Indonesia market offers huge opportunities, and this is the top 3 advice I can give for solutions providers to be successful:
- Know the market, know the regulations
- Partner with a local company or establish local office
- Be flexible
Lee Shin Mei, Digi, Malaysia
Have creative ideas or products but also remember to be practical so as the end goal is to simplify and enhance customer experiences. Solution providers can also leverage on partnerships with telcos to create a more viable solution that offers end-to-end approach.
Receiving international IoT stakeholders with open arms
Over the comments and feedback I have received for my previous posts, there is one question that popped up frequently: Is partnership essential?
Southeast Asia is a dynamic market, with vibrant culture and varying work approach. Much work has to be done to be familiar with the ways businesses work in each country.
While telecommunication operators and governments are positively encouraging IoT solution providers from both local and abroad to help tackle local problems via technology, I believe having a contact point who has been around and understands the local market would be the most direct, fastest and safest way to access the pool of demand.
What do you think?
Asia IoT Business Platform partners with major telcos in Philippines, Thailand, Indonesia and Malaysia to educate enterprise on IoT adoption and raise awareness of the key business model transformation opportunities that can be tapped on.
Our telco partners include Smart, Globe, AIS, dtac, CAT, True,Telkomsel, Indosat, XL Axiata, Telkom Malaysia, Digi, Maxis, Celcom, etc.
If you are looking to connect to the local telcos in Southeast Asia, feel free to get in touch. Comments and feedback are greatly appreciated.
In our day and age technical advances are occurring in increasing frequency, making it harder for customers to understand which product or service or which combination of products and services can offer value to their business.
In this complex jungle of innovative applications, companies that specialize in bringing together component subsystems into a whole and ensuring that those subsystems function together are desperately needed. In the information technology (IT) field this role traditionally has been filled by System Integrators (SIs). The rising prominence of Internet of Things (IoT) applications in most industries, creates another sector that is in dire need of system integration. Especially challenges with interoperability, end-to-end performance and security need to be addressed.
IoT benefits of and for SIs
According to cms wire, SIs are at the ideal position to act as bridges, linking vendors and clients. As the worldwide IoT market is forecast to grow from $1.3 trillion in 2013 to $3.04 trillion in 2020 these bridges are needed more than ever and offering tremendous value for companies providing theses connections.
System integrator will benefit customers and vendors mutually, states Forbes Magazine. Customers in need of an IoT solution will be educated on how to find, integrate or combine solutions that cater best to their needs. For vendors on the other hand system integrator can help in accelerating adoption and usage of their product in segments which all have their own specific needs and problems. SIs are highly engaged with the end users and are built for stitching together solutions from multiple vendors to solve operational technology (OT) problems.
It therefore seems, that hardware and software vendors with the most robust SI channel will be the fastest to market and the quickest to create revenues. This puts SIs into the unique opportunity to be sought after by both solution providers and users, offering them great market potential. According to IDC Analysts an average of 40% of any IIoT system’s cost will be related to services (consulting, design, application development, integration, deployment, maintenance, etc.), constituting in an opportunity of 40% of a multi-trillion dollar market.
Asia IoT market
One market where the IoT potential is rising significantly is the Asian market. According to Business Korea large, SIs have been focused on internal stability in their domestic country, but now start to tap into global markets, being active mainly in Japan, South Korea, Taiwan and China. Especially in China you can find large SIs like Samsungs SDS, with its expertise in distribution and manufacturing or SK Holdings C&C and POSCO ICT who both have decided to accelerate the smart factory business in China by using IoT and Big Data.
ASEAN IoT market
Our Area of expertise is in the countries Philippines, Thailand, Indonesia and Malaysia. The 2015 Frost & Sullivan report expects IoT spending within those countries to rise by 1648% until 2020. With such an increase in spending SIs will be vital, but in our experience have not been particularly active yet.
Subin Bhatia, Chief Executive Officer of Suvitech, with its HQ located in Thailand, sees the full potential of IoT for SIs in the ASEAN region to develop within the coming 2- 3 years. He states that the ASEAN region is more of a follower with use cases coming mostly out of japan and South Korea. This is due to the fact that infrastructure and legislation in the ASEAN regions (with exception of Singapore) is not as advanced jet. Which is the cause for slower adoption and regulation. According to Mr. Bhatia these markets are nonetheless very interesting, as the ROI in these countries is higher than in further advanced nations. The only thing missing is a wider government support and company as well as government education about IoT possibilities for their country and company.
In our Asia IoT Business Platform conferences both the government and local companies looking for IoT solutions, have over the years shown increased interest in educating themselves about Iot products and services, leading to more attending government branches as well as decision makers of companies investigating IoT solutions in the verticals of healthcare, smart city, manufacturing, logistics & transport, banking & finance, automobile, cloud and data security. We expect a rise of participation of about 20% in these years events.
With the high potential and increasing interest in IoT it is time for system integrator to take an active stake in developing the IoT market in the ASEAN region. We would love to welcome you to our 2016 IoT stakeholder gathering in the Philippines, Thailand, Indonesia and Malaysia. Where you and your company can connect and educate the government and local companies about IoT possibilities and contribute your share to the development of the ASEAN IoT environment.
For more information please contact us under Jazon@industry-platform.com or +65 6733 1107
[:en]Throughout the 6 editions of Asia IoT Business Platform in emerging Southeast Asian countries, we observed differing levels of engagement from the governments and local stakeholders in pushing out smart nation and smart city initiatives.
In Part 1, we looked at how Thailand and the Philippines are investing heavily in smart city projects.
Governments (some call it city governments to be exact) are exploring new ways to deliver services and we see most of them forming teams mainly in the following 2 units:
- teams using sensors, data and cameras to improve operations
- teams using digital tools to create new services and apps for citizens
Lets take a closer look at the smart city teams in Indonesia and Malaysia – the countries that have generated most interest within the IoT community today.
We believe Indonesia boasts the most opportunities and success in general, seeing the huge growth of smart city units with new operations centres being launched seemingly every week.
The most recent smart city initiatives include planning of the following:
- Jakarta Smart City Lounge – the headquarters for all smart city activities, with command centre that will become the coordinate hub for all emergency responses across the city. Instead of building its own apps. It is now working with startups to provide digital services. One of the startups, Qlue (maker of complaint apps) will be showcasing their solutions in the 9th edition of Asia IoT Business Platform: IoT Indonesia.
- Makassar Mayor’s War Room – brings together data from health, sanitation, transport and emergency services. The city’s Mayor was awarded the 2015 IoT Leader by Telkomsel and Jasper in the 5th edition of Asia IoT Business Platform to applaud Makassar’s initiative of using data to improve public services. (One of its first initiatives will be a new plan to get public transport data. The government will pilot smart minivans with GPS trackers that can report location back to the command centre. The Mayor wants to reduce traffic congestion by persuading more people to use public transport.)
- Banda Aceh Smart City Centre and Bandung Command Centre – formed to respond to citizens’ complaints on public services by having them report their feedback directly to the unit via an app. The command centre will monitor data from across agencies, including transport, health, education and social welfare.
These cities are on the lookout for smart and data solutions to help in these projects, with government and telcos such as Telkomsel, Indosat, XL Axiata, etc. actively exploring partnerships with vendors from within and out of Indonesia.
Malaysia had emerged strong as a leading digital economy among developing countries, ranking 4th for the Online Service Index in the United Nations E-Government Survey 2015.
Under the 11th Malaysia Plan, Malaysia aimed to move to the top 15 in the Online Service sub-index of the United Nations’ e-Government Development Index and top 10 in the Government Efficiency sub-index of the World Competitiveness Yearbook.
The Ministry of Science, Technology and Innovation (MOSTI) was mandated by the government to develop the National IoT Strategic Roadmap to drive IoT as a new source of growth in catalysing Malaysia’s Digital Economy.
As part of the initiatives in driving the Smart Nation vision, the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) was established to improve digital services across the government. One of the current key projects is to build a single government portal that will give access to information and services from across local and federal agencies. There are also plans for a new digital unit to work on this portal.
To achieve these targets and transform public service productivity, the government would introduce several transformative changes focusing on 5 major areas: enhancing service delivery with citizens at the centre; rationalising public sector institutions for greater productivity and performance; strengthening talent management for the public service of the future; enhancing project management for better and faster outcome; and, capitalising on local authorities for quality services at the local level.
In the IoT leaders panel of the previous Asia IoT Business Platform: IoT Malaysia, communication service providers such as Telkom Malaysia, Digi and Maxis were being urged to grow their presence in the IoT sector to catalyse Malaysia’s vision of being a Smart Digital Nation. We are expecting to see new level of engagement among telcos this year.
Moving forward: the “Smart Southeast Asia”
Over the past couple of years in the region, the word “partnership” have always popped up when it comes to developing and making smart cities happen.
The reality is that governments and telcos can’t do it all themselves: While governments devise the overarching roadmap, telcos provide the backbone of connectivity and data transport technology that underpin Smart City developments, external partnership with solution providers from all areas is almost a must in developing Smart Cities.
While designing the conference agenda for the benefit of local public sectors and end users, we are always on the look out for solutions that could be brought in and implemented, and case studies to educate enterprises on how IoT has impacted various sectors and will drive improvement and growth.
We are excited and looking forward to being part of the movement towards a more collaborative ecosystem to drive smart nations in the region.
Drop us a quick note if you have an IoT/Smart City story to share.
According to IDC, manufacturing is the sector that will lead the way in worldwide IoT spending with $165.6 billion total in 2015. Vernon Turner, SVP and IoT Research Fellow states that “manufacturing has been connecting his supply chains, products, customers, and even workers for some time now, which makes a good fit for IoT deployments, as they really embrace the value of business outcomes”.
The main benefits for IoT applications in manufacturing according to Asia Manufacturing news are increasing production efficiency by reducing cost and achieving the desired quality product with minimal wastage, reducing time-to-market, reducing operations and maintenance expenditure, increasing asset-life and monitoring the supply chain in real-time. As this influences competitiveness of manufacturers immensely, Asian manufacturers set themselves up to invest extensively to improve their global standing and become more competitive, according to the same source.
ASEAN manufacturing market
The following takes a closer look at the ASEAN market, to gain an indication of its potential for IoT implementations. In their 2014 report McKinsey stated that even though economies in the ASEAN region are at vastly different stages of development, they all share immense growth potential.
The report illustrates that the region is already a major manufacturing hub, with three developments which will further fuel its potential:
- Implementation of the AEC integration plan, which aims to increase intra-regional and global trade, attracting more production from multinationals
- Rising labor costs in China
- Application of big data and mobile Internet, disruptive technologies where many ASEAN manufacturing firms lag behind their multinational counterparts.
The technology opportunity is still waiting to be harnessed in ASEAN. But manufacturers in Asia are increasingly searching for theses competitive solutions, as research by MGI stated that, disruptive technologies could increase profit margins and lower costs, potentially creating US$25 billion to US$45 billion of annual economic impact in ASEAN by 2030.
Numbers and market composition
When consulting the 2015 Frost & Sullivan IoT report, it becomes apparent, that manufacturing is one of the main IoT drivers in the APAC market. It is and will be the biggest sector in IoT spending. According to the report it contributed 30% of the IoT spending in 2014 and is expected to rise up to 32% of total spending in the APAC region by 2020, which equates to about US$ 79 billion.
The following graph displays current and expected IoT expenditure in manufacturing industries in the Philippines, Thailand, Malaysia and Indonesia. We find these markets of high interest, as they are not as fiercely competed over yet, but nonetheless offer huge potential and stakeholders that look–for partners and solutions to boost their competitiveness.
In its 2014 report “Understanding ASEAN: The manufacturing opportunity” McKinsey illustrated the main manufacturing industries of these four countries who could benefit from IoT solutions. In the following these points will be summed up in brief form.
- The Philippines other than its neighboring economies has been slow in the transition from agriculture to manufacturing, which results in lower levels of investment, which are spread across a broader set of industries. The semiconductor and electronics industry accounts for the majority of the country’s exports, led by large foreign investors such as Amkor, Canon, Samsung, Sunpower, and Texas Instruments. But due to its deep pool of skilled labor and a sizeable local market the Philippines has the potential of immense growth despite its relatively low levels of manufacturing investment.
- Malaysia’s economic growth can be traced back among other things to heavy investments in transport equipment and electrical machinery which represents 40 percent of its manufacturing FDI from 2009 to 2013. It might be less known for being also a hub for aerospace manufacturing, with investors such as Honeywell, JMI Aerospace, and Spirit AeroSystems establishing plants in the country. In 2013 the country’s principal investment promotion agency, MIDA, identified the following key manufacturing sector industries: Aerospace, biotechnology, advanced materials and intermediate goods manufacturing.
- Thailand is the manufacturing hub for motor vehicles and components in the ASEAN region. It currently is the 17th largest global manufacturer and number 14 in auto production, according to Industryweek. In the automotive sector the country has gained a relatively low-cost but skilled workforce through its long history of automotive manufacturing coupled with strong government support. Additionally, it has built a strong cluster of local suppliers and supporting vehicle component industries.
- Indonesia boasts an abundance of mineral resources. Therefore its main focus is primarily on basic metals manufacturing and mineral-based production, which accounted for 42 percent of the country’s manufacturing FDI from 2009 to 2013 and triggered especially Chinese investments in iron and alumina smelters in Indonesia. Other leading manufacturing sectors include automotive, fabricated metal products, plastics, and rubber. The government has additionally been pushing for an increase in foreign and domestic direct investments in sectors such as pharmaceutical manufacturing.
As we work with local telcos & government agencies to invite enterprises to attend the Asia IoT Business Platform, we found interest from the local manufacturing firms to be overwhelming.
Manufacturing & Industrial Automation will be a big theme in 2016, especially in Thailand and Indonesia.
If you would like to meet the local stakeholders or would like to discuss this issue please feel free to contact us.
[:en]World Population Review clocked Jakarta at 10.2 million residents at the end of last year. If the surrounding metro area is also included, the population exceeds 28 million. Each day, Jakarta residents cope with a variety of infrastructure challenges, including sluggish traffic, shaky power grids, slow internet speeds, and floods brought on by inadequate drainage systems.
Indonesian Smart Cities
Indonesian government launched the Smart City vision Indonesia 2015 -2045, with ICT at the heart by enabling the 3 stages of the cities of the future: Decent Cities (comfortable, liveable and safe), Greener Cities (resilient to climate change and disasters), and Smarter Cities that are competitive and technology based.
Various stakeholders are working together towards developing smart cities, as seen by the smart city index that was initiated to answer challenges around how to wisely manage a city and increase residents’ welfare and quality of life. Depok, Tangerang, Pontianak, Surakarta, Madiun and Bontang are among the 15 winners announced for the 2015 Indonesian smart cities awards based on surveys conducted by Kompas daily newspaper and the Bandung Institute of Technology (ITB) with the support of state-owned gas firm PT Perusahaan Gas Negara (PGN). The awards were given to the cities to highlight their achievements as well as to encourage others to follow their leads and applied smart city concepts.
Major local operators working towards growing Internet of Things (IoT) network
Beyond providing connectivity, telcos in Indonesia are actively exploring ways to grow the IoT ecosystem. This can be seen through the heated discussions in the Indonesia IoT Leaders Panel in the 5th edition of Asia IoT Business Platform: IoT Indonesia. The panel was formed by Telkomsel, Indosat, XL Axiata and the Ministry of Communication and Information Technology, with Oracle as moderator.
Based on our interviews* with Indosat, partnership is important to drive the development in various verticals.
*Blog post: Indosat’s Head of M2M identifies KEY opportunities in Indonesia
*Video interview: Indosat on IoT Indonesia: Asia IoT Business Platform 5th edition
Actions were taken; earlier this October Indosat signed an agreement with Google to test Project Loon in Indonesia, supporting the Indonesian government’s efforts to provide last mile digital connectivity in remote and rural areas across the country. Indosat plans to continue to actively participate in the government’s Smart City programs by supplying end-to-end products and solutions specifically designed to fit the need. M2M services embedded within Smart City services include E-Tax, Smart Street Lighting and surveillance.
IoT Indonesia: Automotive sector is booming
At the 5th edition of Asia IoT Business Platform: IoT Indonesia this August, a new breakthrough in automotive sector was showcased by Telkomsel: T-drive, which is designed to monitor driving behaviour performance for safety. This new technology is on top of the current car tracking and fleet managemnet solutions they had developed, and Alan Manullang mentioned that they are working at the 2016 roadmap for connected car (Watch Telkomsel to push M2M Indonesia – Asia IoT Business Platform 5th edition).
IoT Indonesia is advancing rapidly. There are hopes to transform the chaotic mega-city of Jakarta into a “smart city,” in near future, one which uses ICT solutions to address mobile, transport, energy sustainability, infrastructure, governance, and security issues.
The 9th edition of Asia IoT Business Platform: IoT Indonesia will return to Jakarta on 15-16 August 2016 to gather the government, telcos and rest of the ICT industry for discussions on M2M/IoT sector developments, educate enterprises on IoT implementations and foster strategic business partnerships. Request for a brochure here.
Also view our take on The Role of Government and Partnerships in Driving IoT[:]
Through conversations with IT executives from enterprises in the region since 2014, we saw great interest in cloud, data and the corresponding data analytics that can unlock most potential in businesses.
There have been huge advances in the amount of data we routinely generate and collect in pretty much everything we do, as well as our ability to use technology to analyze and understand it. The intersection of these trends, namely Big Data, is helping businesses in every industry to become more efficient and productive.
According to our interview with Dato Ng Wan Peng, COO of MDeC, Malaysia has rolled out the country’s Big Data framework. “We foresee a bright future ahead in this area. Among benefits we intend to realise for the country include talent development using public open data to produce useful applications, technology development; and creating awareness within the private and private sectors.”
Businesses that have benefited hugely from Cloud and Data include banking, insurance, smart cities, transportation and manufacturing sectors.
We are still seeing a growing number of dedicated teams led by senior management in exploring IoT and data services for their businesses.
Some examples include:
- Proton, Engineering Solution & IoT
- Petronas, Digital Innovation, Strategy & Architecture
- CEVA Logistics, GM Operations
- Provinsi DKI Jakarta, Head of Jakarta Smart City
- Bank Simpanan Nasional, Transformation Management Department
These companies were part of the 2015 Asia IoT Business Platform series in the Philippines, Thailand, Indonesia and Malaysia.
Healthcare is an increaseingly interesting sector that we foresee to benefit largely from cloud and data.
This could be seen through the heated discussions in the 6th Asia IoT Business Platform in KL. Dr. Dhesi, founder of AIME said, “There’re so many patients that it’s impossible to diagnose and analyse without data and IoT. By 2030, we’ll be using cloud brains to communicate, store and think – like an external hard disk. Smart and sustainable healthcare needs to be driven by new and disruptive IoT business models.”
As the momentum of IoT moves forward, data will be a key enabler of digital business transformation, driving tremendous value. IoT will mature from being a platform that improves enterprise efficiency and revenue streams into an entire ecosystem that changes the business model to be more digital and service centric through data analytics and algorithms.
However, security remains a challenge in business transformation.
Despite the apparent importance of IoT, widespread adoption of the technology is still slow. Our discussions with industry leaders and enterprises led us to attribute this phenomenon to security concerns: more or less everyone agrees that if data is not handled properly, the consequences could be devastating.
Connected devices are highly susceptible to penetration and infiltration by hackers. Its connected nature severely amplifies any malicious attacks on devices, and data associated with IoT devices can easily be stolen. As a result, businesses, government bodies, and consumers are wary of installing IoT devices in their cities and businesses.
According to BI Intelligence report, top security flaws of IoT devices include insecure software/firmware, insufficient authentication, lack of transport authentication, user identity, and un-encrypted network services.
Taking a leap of faith – there’s still a bright side to data and security.
While the IoT is taking flight in the Southeast Asian region, security problems should not be taken lightly, but have to be addressed and faced head-on.
Security needs to be built in as the foundation of IoT systems, with rigorous validity checks, authentication, data verification, and all the data needs to be encrypted. At the application level, software development organizations need to be better at writing code that is stable, resilient and trustworthy, with better code development standards, training, threat analysis and testing.
While local governments are starting to establish security developments e.g Indonesia’s National Cyber Agency (NCA) and Indonesia Security Incident Response Team on Internet Infrastructure (ID-RTII), the notion of addressing security vulnerabilities of the IoT creates opportunity for security solutions to be implemented.
We came across many corporations and enterprises offering security solutions that undoubtedly boost the confidence of enterprises taking a step in IoT adoption. As the educational platform for government and businesses in the region, we are exploring for more and better solutions with case studies that will benefit our end users.
Drop us a message if you have relevant projects and solutions regarding cloud, data and security to share.
[:en]We spent a large part of the year in the cities of Manila, Bangkok, Jakarta & Kuala Lumpur speaking to local enterprises about this (too) broad & (too) overused term: the Internet of Things (IoT). We discovered very quickly that while IoT seems to be very much over/wrongly-used in the English speaking world, there really isn’t a direct local translation in these 4 countries. For local enterprises in these countries, they see IoT as an extension of Enterprise IT, without having a definition/term for it.
In our mid year review (Bringing IoT to a Population of 600 million), we summarized how IoT applications can be applied to these 4 countries, with some projects already being put in motion, while others remain quite far from realization. As we near the end of 2015 (with every Starbucks in the region starting to play Christmas carols and serve Peppermint mocha lattes, ha!), lets look back at the industries in the region where the conversations involving IoT projects are more pertinent.
This industrial segment was not something we focused on in 2015 but as we worked with local telcos & government agencies to invite enterprises to attend our events, we found the interest from the local manufacturing firms to be overwhelming. We should have known. In this part of the world, countries such as Thailand, Vietnam & Indonesia are increasingly important global players in the space. While granted, these countries are chosen because of low labour costs, locally run vendors & OEMs are very proactive when it comes to technology implementation within their factories (technology implementation is a lot more attractive when you’re experiencing double digit growths vs no/low growth environments). Plus, legacy IT systems/culture are a smaller problem in young, growing firms.
Among others, we had the opportunity to speak to several representatives from one of the world’s largest cigarette manufacturer. The local entity is owned by an international parent but because they produce a slightly different product (close to 90% of locals in Indonesia smoke kretek), they couldn’t implement manufacturing processes wholesale from their parent company. Another cliche with much truism:- Think Global, Act Local.
Manufacturing & Industrial Automation will be a big theme in 2016, especially in Thailand and Indonesia. Macroeconomic conditions (weaker local currencies, young workforces etc.) have also made these locales more attractive to international companies looking to set up manufacturing facilities – and technology, when used properly, can overcome (some) productivity inefficiencies usually associated with emerging countries.
In the more developed countries, the ageing demographics make Healthcare a natural topic of discussion. Remote monitoring/diagnostics is important not only in elderly care, but for archipelagos like Indonesia & Philippines. We found that in this part of the world, implementation of such systems are being driven largely by the government agencies and young startups.
Some notable implementation in the region: In Singapore, applications like Healthcare ATMs have been rolled out and in Philippines, local startup Medifi implemented a pilot earlier this year, with plans of expansion to other Southeast Asian markets soon.There’s always a buzz during the Healthcare segments of Asia IoT Business Platform, simply because it’s something which all of us relate to.
Distribution, Transportation, Logistics & Freight
I am reminded of a conversation I had with the owner of a logistics company in Manila who was a native English speaker but wasn’t familiar with the term “IoT”. But talk about telemetry, control software, sensors which track everything from his vehicle locations to petrol levels – and he’s in his element. His company was growing very quickly and he was in the process of modernizing its systems to:
1. Create efficiencies
2. Gain better control/insights
3. Account for future growth
(If #1 and #2 do not make up the classic definition of IoT, I don’t know what is!)
In countries like Indonesia & Philippines, the Distribution, Transportation, Logistics & Freight segment have employed M2M technology for years. On the other hand, because of the low cost of labour, many companies still use manual methods to achieve the same goals:- instead of sensors, some Indonesian freight companies send “spies” to follow the drivers of their trucks to ensure that they do not siphon off petrol in their vehicles to be resold!
Which types of companies do well in the Enterprise IoT space in Southeast Asia?
It’s a given that IoT will change business landscapes globally over the next 5 years, but it’s interesting to note that because of the uniquely local problems that enterprises face in this part of the world, the companies that are best positioned to take advantage are those with a big local presence.
Telcos: With the need to connect millions of devices, IoT provides a new revenue stream for the local telecommunications companies. This is reflected in the setting up of IoT/M2M teams in most local telcos in the four countries. These firms now run their own revenue targets (aggressive ones!) and we can only see this portion of their business growing over the next few years.
Large Multinational Vendors: This goes without saying. These companies have been deeply entrenched in the local infrastructure – the Microsofts, Intels & Schneiders of the world. They have established relationships with local enterprises and the advent of IoT technology will make them natural partners to enterprises looking to upgrade their systems to fully realise the benefits of IoT.
Local Startups: We have had the pleasure of working with many new companies who understand local problems intimately and are flexible enough to work around the lack of standardization within IoT. They are providing innovative & cost effective solutions to small medium enterprises in these countries. There were a lot of enterprises interested in presentations given by companies like N’osairis, Versafleet & Medifi in 2015 – and the best part is, we are seeing projects being implemented.
International Vendors with a presence in Southeast Asia: Over the years, we’ve seen this group of companies increasing as they realise the potential of the market here. In 2015, we’ve had more interest from international firms than we’ve ever had. But we’ve noticed that those who have invested heavily in the region (companies like Thingworx, Axiros, Sigfox etc.) by being present locally and building a dedicated team have reaped the largest rewards. There will be an inflexion point in this market and it remains to be seen if the first movers stand to benefit more than latecomers. I believe they will.
There are other developments within the B2B2C space (of course – Southeast Asia has over 600 million consumers!) but that warrants a discussion of its own.
If you’re interested in IoT/M2M developments in Southeast Asia, do drop us a note with your thoughts. We are currently in the planning stages of our 2016 events to be held in Philippines (23 – 24 May 2016), Thailand (26 – 27 May 2016), Indonesia (15 – 16 Aug 2016) & Malaysia (18 – 19 Aug 2016). See you in the region if you do decide to drop by. [:]
By now you would have heard of the Internet of Things (IoT)—billions of devices connected and communicating with each other and with businesses—and how it promises dramatic enhancements in efficiency, opportunities for new products and business models, and the potential for greater customer intimacy.
IoT solution providers are at the forefront of this brave new world which Gartner predicts will grow at a 31.7% CAGR from 2013 through 2020. However for IoT to deliver its promise, solution providers have an important role to play in articulating the positive business outcomes that can result from IoT implementation. Just selling technology to the CIO is shortchanging the potential economic value that IoT technologies can create in the long run for both the customer and the solution provider.
The right solution providers are able to “connect the dots” for the enterprise customer and create value by collecting data, validating it, enriching it with analytics, mixing it with other sources, and then exposing it to the applications that enable enterprises to have actionable insights.
Moving beyond “silo” implementations, the solution provider must integrate heterogeneous technologies across multiple environments and ensure the data remain usable and secure.
In Southeast Asia where IoT is still in the early stages of development, a consultative approach in guiding enterprises on how they may apply IoT to their business could greatly accelerate this growth.
According to HPE, 3 objectives that enterprises can look forward to achieving with IoT include:
1. Enable innovative new offerings
IoT technology can turn products into services and sales transactions into subscriptions. For example, HPE Instant Ink service integrates sensors into printer ink cartridges to automatically resupply ink when customers run low.
2. Increase business efficiency
Connected sensors and actuators provide data that can reduce waste and adjust operations to changing conditions. Labor-intensive monitoring and meter reading can be delegated to Internet-connected smart meters. In the energy industry, for example, operators use data from in-pipeline sensors and aerial surveys—integrated with operational databases—to increase the efficiency and safety of employees and the community.
3. Enhance decision making
IoT solutions can provide the data to make data-driven decisions based on what’s really happening. Product developers can design smart, connected products that report exactly which features their users are using and how. Utilization and wear data for assets lets managers determine where they should be deployed for best return and when they should be retired and replaced. Manufacturers can measure process yields and reject rates and make corrections quickly.
While positive business outcomes can drive IoT adoption, it is also important that solution providers keep in mind the following selection criteria as highlighted by Enterprise Strategy Group on their Whitepaper on choosing the right IT platform provider:
a) Ease of use – enterprises should not need to hire data scientists to carry out IoT
b) Reducing system complexity – interoperability between the different technology stacks is important and finally
c) Managing the quantity and quality of data for actionable outcomes – real time analytics for data driven insights.
Are you an enterprise looking to drive business value from IoT implementation? Or perhaps a solution provider looking to share your IoT experience?
Let us know and we look forward to welcoming you at Asia IoT Business Platform.
by: YY Fong[:]
Jakarta Smart City portal was introduced in 2015 by the DKI Jakarta Provincial Government as a platform for citizens to complain about problems that occur in the surrounding area, such as traffic violations, the damage done to public facilities, rubbish, beggars, street vendors wild, floods, etc.
This portal integrates all data and information from related SKPD using algorithms and visualization mapping. All reports and issues brought up by citizens will be able to reach to the right government departments quickly (if not immediately) for actions to be taken.
Jakarta smart city portal combines efforts of new technology applications including:
- Qlue – a social media application that allows citizens to contribute and participate actively for a safer and more enjoyable neighbourhood.
- CROP – an application only for Jakarta Provincial Government officials and police officers to accommodate the content of Qlue.
With the explanation of Pak Setiaji St., Head of Jakarta Smart City Management Unit, we saw examples of citizens submiting real time reports in forms of complaint notes and photos via the smart city portal. Reports from the public are then digitally mapped and integrated with the dashboard smartcity.jakarta.go.id.Last week we had the pleasure of visiting the Jakarta Smart City Lounge (thanks for the invite, Qlue!)
(If you look at the left panel closely) The whole process from information being received on the spot (there’ll a red box appearing when a complaint is filed), monitored and managed (yellow means problem is on the process of being dealt with) and then completion (green for problem solved!) can be monitored at at the control panel of Smart City Lounge.
According to Pak Setiaji, there are around 200-300 reports/complaints each day for each departments. With Jakarta Smart City Portal , central government is able to track the efficiency of responsible officials in dealing with city problems.
This portal also helps citizens track the locations of relatives and friends. With the help of 900 CCTVs installed in the whole of Jakarta, users can check the traffic and avoid paths that are filled with vehicles. Social information such as hawkers, food truck locations, and other businesses can also be shared. This provides great convenience to the Indonesian as the app enables them to check commodities price online and order services/food delivery from the usual traditional market.
Pak Setiaji also shared with us more government initiatives such as the plan to replace 90,ooo street lights by December 2016. Jakarta one payment card will be doing a soft launch this June as well.
We are excited to have Pak Setiaji as part of the advisory board of IoT Indonesia, sharing more government initiatives at the conference and hosting a delegation visit to Jakarta Smart City lounge for demonstration after our event.
If you’re interested to join us at the offsite visit to Jakarta Smart City lounge, drop us a note. (Rest assured, it’ll be fun!)