As we celebrate 59 years of nationhood, I am reminded of the latest achievement we had 2 weeks ago in KL, where commitment to target IoT as a new national economic source was reiterated by the Minister of Technology, Science and Innovation himself.
Malaysia is one of only nine countries in the world to have developed a working roadmap on IoT.
We’re currently in the midst of implementing the National IoT Strategic Roadmap, in which interoperability has been identified to spur IoT in the country, and the market potential is set to generate a GNI of RM9.5 billion by 2020 and achieve RM42.5 billion by 2025.
Within one year, several IoT-based projects have been piloted and launched in Malaysia, including the following areas:
For Safety – IoT has been employed in Smart Lock-Up to monitor safety in the police lock-up (implemented by the Royal Malaysian Police.
For Community – A community social innovation platform called I-Comm has been deployed to develop applications like flood monitoring. Its scope will be expanded to cover tourism application as well.
For Agriculture – IoT plays a key role to assist the export of premium durian to China and other premium product.
For Transportation – Taxi booking applications have been enabled, e.g. iTeksi, GrabCar.
At the 10th edition of Asia IoT Business Platform two weeks ago, YB Datuk Seri Panglima Madius Tangau, Minister of Science, Technology and Innovation mentioned that following the maturing of IoT technologies in the country, they hope to expand local services to ASEAN markets and ultimately introduce top 5 Malaysian companies to the international stage.
In developing the industry ecosystem, we need all players to work together and demonstrate the value of these solutions in order to convince the end users and investors to adopt IoT technologies.
Over the two days conference, conversations with speakers, public sectors, companies from both solution providers and local end users, etc. led me to the 4 focus markets that have been identified for Malaysia:
Transportation – to improve efficiency and service level of transport operations. Companies like Prasarana Malaysia will gladly welcome solutions that can help improve public transportation and passenger info.
Manufacturing – to enhance supply chain efficiency and reduce the gap between SMEs and MNCs. With manufacturing taking up 30% of the whole IoT market potential in Malaysia, we’re seeing increasing number of services from ERPs, supply chain integration, Digital/Connected Factories to Industrial Automation and IIoT, etc.
Healthcare – to improve healthcare service delivery. Strongly encouraged by the government, solutions like predictive health analytics for hospitals and doctors to deliver better patient care; modernising healthcare with Artificial Intelligence, etc. are currently driven by local startups like AIME, Vital Synapse.
Agriculture – to boost income of the B40 community by enhancing sectorial productivity while preserving national food security. This is particularly seen to be a strategic segment.
With collaboration efforts between vendors and across industries being supervised by the government, it is without a doubt that IoT would play a big part in achieving our next stage of nation’s growth.
I am happy to facilitate further IoT initiatives and relationships in and across countries, and support MOSTI’s goal to help Malaysian companies expand into the whole of ASEAN region.
Feel free to drop me a note if you’re interested in the ASEAN IoT markets.
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
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.
Sue Yuin firstname.lastname@example.org
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: email@example.com 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.
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
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.
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.
[: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.
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]The Internet of Things (IoT) has been hailed as the innovation that will change the way companies work, altering our behaviour and offering potential for new business models.
The IoT market potential in Malaysia is predicted to register $2.2 billion by 2020. According to Prof. Dr. Sharin bin Sahib, the Vice Chancellor of the Universiti Teknikal, who spoke at the 6th Asia IoT Business Platform: IoT Malaysia, this development is expected to grow exponentially beyond 2020 to reach $10.5 billion in 2025.
Prof. Dr. Sharin bin Sahib states that Malaysia has an encouraging environment and a strong starting point to foster and spur on IoT within its market.
Mobile penetration in Malaysia reached 143.7% in 1Q2014
65.8% of Malaysians use the internet
Social networking penetration of 45%
Government support through National Strategic Roadmap for the Internet of Things
The main challenge for materialising the greater benefits of IoT is according to him the human capital challenge. A talent pipeline which contains potential candidates that can be continuously nurtured and approached when vacancies arise, needs to be implemented. With this in place the time to hire will be reduced, business disruption minimised, success in interviews increased, cost per hire reduced and the best talent made available.
One sector where IoT already has a noticeable effect is healthcare. The Billionaire investor Vinod Khosla stated that “In the next 10 years, data science and software will do more for medicine than all of biological sciences together” Bearing this in mind, the Forbes magazine estimated the market value of the Internet of Things in Healthcare at $117 Billion globally by 2020.
This was consistently brought up at the 6th Asia IoT Business Platform: IoT Malaysia, by regional healthcare experts such as Dr. Yau Teng Yan, Chief Medical Officer at Holmusk, Dr. Phua Kok Soon, Senior Research Engineer at A*STAR and Dr. Dhesi BR form the Singularity University NASA AMES Research Center Silicon Valley.
These experts also shared the belief that benefits of IoT in healthcare, e.g. remote monitoring, remote diagnosis, use of big data analytics and integrated healthcare solutions could combat the rising challenges of our healthcare systems – such as an ageing population with increased healthcare needs, increasing prevalence of chronic diseases and increasing incidence rates of cardiovascular diseases and strokes. Dr Yau Teng Yan stated, that IoT & Big Data offers the chance to part with traditional ”Trial and Error medicine”, making it possible to make decisions based on real-time data as well as a holistic view of the patients environment and history.
Dr. Dhesi appealed for a transformational use of IoT & Big Data in the healthcare sector, where patient care changes from “curative towards preventive medicine”. He adds that this transformation would need to be driven by new and disruptive IoT business models in order to be sustainable.
In Malaysia the Ministry of Science, Technology and Innovation and its applied research agency MIMOS, who was our key partner at the 6th Asia IoT Business Platform, has taken the initiative to foster new businesses in the IoT sector, by unveiling the National Strategic Roadmap for the Internet of Things. This roadmap offers a clear idea of how the government is planning to nurture the local ecosystem towards becoming the preferred regional hub for IoT implementation.
The 10th edition of Asia IoT Business Platform: IoT Malaysiawill return to Kuala Lumpur on 18 -19 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.[:]
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
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. [:]
The Malaysian government is pushing for a large-scale implementation of Internet of Things (IoT), expecting IoT to contribute RM9.5b (US$2.5b) to the country’s Gross National Income (GNI) by 2020, and create 14,270 high-skilled job opportunities. (Read: Malaysia Releases IoT Roadmap: S$11B Income Boost Expected)
To achieve this goal, the government is actively pursuing the National Strategic IoT Roadmap, with 3 main goals:
1.Creating a conducive IoT industry ecosystem
2.Strengthening technopreneur capabilities; and
3.Positioning Malaysia as the Regional Development Hub for IoT.
As one of the leading economies in Southeast Asia, the Malaysian IoT market has a large potential, and the government plays an important role in pushing for IoT to be more widely understood and adopted in organisations, enterprises and businesses in the country.
Initiatives by the government agencies
To ease the adoption of IoT, the Ministry of Science, Technology and Innovation (MOSTI) and MIMOS (the National R&D Centre in ICT under MOSTI) have embarked on various projects to boost innovation competitiveness, nurture and grow IoT talent, and groom IoT services in the country. The country’s first IoT cloud data centre and research lab was established in 2015, where the government collaborated with companies such as Cisco, Dell, IBM, Intel and Kontron to provide opportunities to design, develop and commercialise innovative, market-driven IoT products and solutions.
Adopting IoT successfully requires entrepreneurs and enterprises to understand IoT’s potential and capabilities. To accelerate this process, Malaysia Digital Economy Corporation (MDEC) – a government-sponsored initiative to create a hi-tech business corridor in Malaysia – holds several programmes to help local companies grow their businesses and go global. For example, MDEC’s Immersion Programmes have exposed the companies to other successful efforts within the ASEAN region, China and Japan. According to Norhizam bin Abdul Kadir, Vice President of MDEC Infotech Industry Development, MDEC accepted the task from the National IoT Strategic Roadmap to spearhead industry development in proliferating IoT adoption and growth, by connecting industry players within the IoT value chain and facilitate collaborations among impactful projects within and across verticals.
IoT Malaysia: the market trend
IoT is set to overtake mobile phones as the largest category of connected device in Malaysia by 2018, according to Todd Ashton, head of Ericsson Malaysia and Sri Lanka. “IoT is coming to life within many industries and we already see that in Malaysia with the Connected Mangroves project,” said Ashton. “In Malaysia, smartphone subscription surpassed basic phone subscriptions in 2015. By 2021, smartphone subscriptions for Malaysia will almost double, from almost 25 million in 2015 to more than 40 million.” – meaning more than one subscription per person on average. This implies greater connectivity and accessibility to infrastructure that enable IoT technologies to proliferate and benefit the economy.
Collaboration on smart and connected cities
Smart and connected cities is one of the verticals that are being heavily focused – by engaging partners locally and internationally. An MOU was signed by the Malaysia Industry-Government Group for High Technology (MIGHT) and Agensi Inovasi Malaysia (AIM) through its subsidiary company PlatCom Ventures Sdn Bhd, to ensure the delivery of SME development in Clean Technology via the Global Cleantech Innovation Programme (GCIP). As mentioned by Datuk Dr Mohd Yusoff Sulaiman, President and Chief Executive Officer of MIGHT, it is important for MIGHT to continue facilitating and preparing stakeholders along with other agencies to embrace the technology disruption issues. “It is important that we are ready and the ecosystem is supporting it,” said Datuk Dr Yusoff.
The national vision following the IoT roadmap
Government regulations are crucial in the decision to adopt IoT, especially in the public sector. With the Malaysian government, particularly MOSTI and MIMOS aggressively pursuing IoT developments, Malaysia is poised to be a forerunner in the Southeast Asian and Asia-Pacific region in adopting IoT in to the public and private sectors. Continued enthusiasm, supportive policies and maintaining standards will allow more investors, companies and entrepreneurs to embrace the multi-faceted potentials of IoT, and putting Malaysia one step closer to achieving its Vision of becoming the Regional Development Hub for IoT.
As part of the national MyIoT week, Asia IoT Business Platform will be working together with MOSTI, MIMOS, MiGHT and MDEC to facilitate collaborations and create opportunities for IoT to reach more organisations and enterprises in Malaysia and Southeast Asia.
To be a part of this initiative, get in touch and drop us a note.
A recent study by analyst firm IDC showed that Malaysian organisations are lagging behind their ASEAN counterparts in the digital transformation stakes.
With the creation of the AEC corridor, it has become more important that organizations revamp their business processes and re-look at how they can remain competitive as digitally savvy customers demand more.
In the report, the driving forces for digital transformation projects are the increasing need to find new revenue streams, reduce expenses and using technologies to “deliver superior customer service and create competitive advantage through product differentiation.”
However, without the internal IT skills and lack of clear understanding in building business cases and measuring ROI, Malaysia enterprises are still very much at the early stage of digital transformation.
While the report predicts that spending of digital transformation technologies which consists of Cloud, Mobility, IoT, Big Data and Analytics will grow an average of 13% through 2020 in Malaysia, regional countries like Philippines, Thailand and Indonesia are actively stepping up their game and challenging the status quo.
Through our last two events in Philippines and Thailand last week, we saw great interest from end user participants in exploring the benefits of IoT technologies in their businesses: from CP Food and their IT team looking at ways to monitor their high value agricultural products and streamlining their supply chain operations, to Manila Water exploring ways to manage leakage and wastage.
As we move our focus to Indonesia and Malaysia this August, what we know for sure is that in this rapidly changing technology landscape, a “wait and see approach is reckless.
First movers like Maynilad Water Services CIO Francisco Castillo, one of the keynote contributors for our last two events in Philippines, enjoy the efficiency that IoT brings to their water networks, driving growth and creating value in their company. (Winning many outstanding awards for the company and for Dr. Castillo like the Most Outstanding CIO in ASEAN 2013).
While each country has their own advocates (Jakarta Governor Ah-Hok and Jakarta Smart City Head Pak Setiaji for Smart City development in Indonesia), we hope to see more from Malaysia as we move closer to the objective of achieving a Smart Digital Nation by 2020.
As identified by IDC, perhaps one of the ways to drive industry specific digital transformation solutions is for service providers to take the lead. Through consulting and integration services, service providers can create awareness, build use cases and deliver value to these enterprise, said Sreenath Kandarpah, IT Services research manager, IDC Asia Pacific.
In our work across Southeast Asia, we often engage in conversations with industry stakeholders to find out how they are implementing IoT solutions in their country. As our conferences focuses on how end users may benefit and apply IoT technologies to their business, it is often refreshing to find new local case studies: for Malaysia, their innovation in using IoT for the Agro-food Sector is one such development we look forward to.
Since we heard about MiTrace and how it have helped durian plantations reach ready buyers in China (Durian and the Internet of Things article here), we’ve been keeping our ears peeled for relevant examples. With Intelligent Plantation a confirmed track in our upcoming 10th Asia IoT Business Platform in KL on 18 & 19 Aug, we were happy to see that Malaysia’s National Key Economic Areas (NKEA) for the agro-food sector in 2015 has recorded US 2.36 billion in committed gross national income (GNI), 28,645 additional jobs and close to US 2M billion in committed investment.
In the National Transformation Programme (NTP) Annual Report, they have identified the use of IoT within the industry as one of the ways to enhance productivity and rise up the value chain. Agriculture is among the four key sectors chosen to pilot the use of sensors under the 11th Malaysia Plan (2016-2020).
With a potential output of US 319M by 2020 through integrating IoT in the agriculture sector, MIMOS has developed a framework to link agricultural producers, traders and suppliers.
Ministry of Agriculture and Agro-based Industry (MOA) has initiated Entry Point Projects (EPP) for segments like high value herbal products, rice paddy farming and the production of premium fruits and vegetables (durians!).
They hope that with these initiatives in place, very soon Malaysia will be be exporting more than IoT tracked durians, putting the agricultural sector in a more strategic position to contribute to the diversification of Malaysian economy and ensure stability of the Ringgit.
Durians are native to South East Asia and widely known as the “King of Fruits”. Alfred Russel Wallace, a 19th century British naturalist described durian flesh as ‘a rich custard highly flavored with almonds’.
For the uninitiated, this is a fruit which you either love or hate, ones’ relationship with the durian would sit on either side of the spectrum and rarely in between.
From South East Asia to China
Durians are grown commercially for export in South East Asia. In Thailand, durians account for 41% of the Thai fruit exports to China and the value of exports have increased 285% from 2007 to 2014 levels of 361 Million USD. In comparison, Malaysia only received approval to export durians to China in 2011. By 2014, frozen durian exports to China stood at 5 Million USD. Philippines is a relatively smaller producer of its durians exporting approximately 1.2 Million USD of Durians in 2015.
To put things into perspective, the cost of Malaysia’s “Musang King”, one of the tastiest variants of durian costs 7USD/KG in Malaysia, however its frozen pulp retails for a whopping 77USD/KG in China, almost 11 times the price.
China’s Food Safety Concerns
China has been dogged by multiple food scandals in recent years and its citizens have concerns relating to all stages of food production, from processing back to the growing of vegetables and breeding of livestock. One of the most shocking and high profile cases was in 2008, when melamine-tainted milk powder led to the deaths of six infants and hundreds more being admitted to hospital. This has led the middle class to turn to organics and are willing to pay a premium for good quality safe food.
On October 1 2015, China’s new food security law took effect, emphasizing the importance of detection, traceability and anti-counterfeiting technologies and pushing to establish a food quality traceability system. This has created opportunities for companies who can built a system to trace the entire process of food and agricultural products going from field to table.
Durian and the Internet of Things
At the 6th Edition of Asia IoT Business Platform in Malaysia, I found out that there was an ongoing pilot project to put sensors beneath durian trees. The reason for doing so, was so that the farmers would know in real time, that freshly ripe fruit have fallen off the tree. It is said that durians that ripen and fall off the tree naturally have the best taste as compared to durians who are harvested. The fruits are then sent for flash freezing, to retain its flavor before being prepared for export for China.
In preparation for export, the durian’s are tagged on MiTrace. The MiTrace system would enable Chinese consumers to trace the origin of the durian, which they regard as a premium product.
Every safety label on the exported frozen durian boxes consist of a unique code, consumers can check the purity and the originality of the product by using a QR code. This gives assurance to the Chinese consumer.
On the other hand, data is also collected from the Chinese consumer and analysed. The analysis provides an insight into the durian demand patterns of the Chinese consumers which will improve decision making in the export of durians.
IoT has enabled enterprises to gain access to more real-time data from “things” they never had access to. Armed with the data, enterprises would be in a better position to manage risks and create new revenue generating opportunities.
Imagine your business having access to data that you never had before, what would be the opportunities?
Join us in the discussion on IoT developments in Manila and Bangkok this May and hear what the local IoT stakeholders have to say about market trends and outlook in Southeast Asia.
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.
[:en]With Industry 4.0. becoming a widely known term, conversions about IoT in manufacturing are taking place in more and more companies.
Developments in IoT manufacturing
The manufacturing segment of the IoT market is forecasted to increase to USD 13.49 Billion globally by 2020 with a compound annual growth rate of 26.9%. The expectations for IoT in manufacturing are mainly centered around the IoT’s impact on lowering operational costs of companies. Other reasons for IoT investments include advantages in retaining customers, attracting new customers, improving service and support.
Current IoT investments that are unique to the manufacturing environment are taking place in three major initiatives:
Smart manufacturing to increase production output, product quality, or operations and workforce safety as well as lower resource consumption
Connected products to impact product performance, including collecting detailed information on products in the field, remote diagnostics and remote maintenance
Connected supply chains to increase visibility and coordination in the supply chain, tracking assets or inventory for more efficient supply chain execution
IoT in Southeast Asia
In the APAC countries the IoT adoption is in the early stages of growth, but this adoption is forecasted to mature rapidly between 2014 and 2020. The total spending on IoT in APAC countries is forecasted to grow from more than USD 10 Billion in 2014 up to USD 79 Billion in 2020. Not only will the amount of money spend on IoT solutions change, but also its distribution. Within the next years Singapore’s market share of IoT expenditure is supposed to shrink by half until 2020, while Thailand, Philippines, Malaysia and especially Indonesia’s market share will increase.
IoT manufacturing in Southeast Asia
When looking at IoT spending in APAC countries, manufacturing is and will be the dominant Industrial sector with 30% of total spending. According to the Frost & Sullivan IoT report, the investment in IoT solutions for manufacturing in the Philippines, Thailand, Indonesia and Malaysia is and will be as follows:
As we worked with local telcos & government agencies to invite enterprises to attend our current Asia IoT Business Platform edition, we found the interest from the local manufacturing firms to be overwhelming. 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.
For more information on how you can participate in the IoT development in Southeast Asia please contact us directly here [:]
After a promising conference in KL last year, Asia IoT Business Platform made its return to Kuala Lumpur for the 6th edition after having explored the markets in Philippines, Thailand , and Jakarta)in 2015.
The 6th edition Asia IoT Business Platform was held in Pullman KLCC, Malaysia on 3-4 November 2015, with the support of MIMOS (Malaysia’s national R&D centre in ICT). The two-day event saw264 industry stakeholders and 76 companies from government, telcos, multinational solution providers to end users gathering to exchange knowledge, share and learn from a comprehensive conference, with sessions covering market trends, smart city, healthcare, banking and finance, transport and logistics.
The distinguished speaker faculty consisted of 20 local, regional, and international experts in the IoT and M2M industry; with discussions primarily dedicated to plans of government, telecommunication companies and other IoT stakeholders. Case studies were brought up as IT divisions from end users were invited to share their experience in implementing IoT strategies.
Our favourite quotes from the conference sessions:
Keynote and IoT leaders panel:
“In the world of ICT, collaboration is the key. With an estimate market worth of $2.4bil by 2020, IoT in Malaysia has an encouraging prospect. SMEs are urged to take up the challenge and exploit the opportunities.” – Toh Swee Hoe, Advisor, MCMC Academy
“It’s not only about addressing the supply of IoT, we also want to raise the current awareness among end users and create demand to drive digital adoption and economy growth. We aim to turn Malaysia into a matured digital economy by 2020 – to connect and empower government, business, people.” – Dato Ng Wan Peng, COO, MDeC
“The mission of the recently released national IoT agenda is to create a national ecosystem to enable use ofIoT as a new source of economic growth. Supporting industry ecosystem must be established for Malaysia to be global class player in IoT.”
– Helmi Halim, Senior Director (Corporate Strategy), MIMOS
“Telcos in Malaysia generally still seem to be holding back; they must grow their presence in the IoT sector to catalyze Malaysia’s vision of being a Smart Digital Nation.” – Anuj Pandey, DGM-Business Development (Strategic Deals Group), Bharti Airtel
Market Trends & Outlook:
“There is big potential in healthcare, automotive and retail; sinking costs is a driver of IoTin future; in order to have enough trained workforce we need new curriculums at training institutions.” – Prof. Dr. Shahrin, Vice-Chancellor, Universiti Teknikal Malaysia
“What we can achieve in telehealth: remote monitoring, remote diagnosis, healthcare provider support. Global telehealth is expected to grow at compound annual rate of 18.5% through to 2018. To begin your venture, my advice is to work with a partner and go through a trial.” – Phua Kok Soon, Senior Research Engineer, A*STAR
“There’re so many patients that it’s impossible to diagnose and analyse without data andIoT. 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.” – Dr. Dhesi, Epidemiologist & Exponential Medicine Physician, Singularity University, NASA Ames & Ministry of Health, Malaysia
Banking & Finance:
“Banks need to take further advantage of IoT to prevent shortening of business models, which can be lost to operators. The reality is that IoT will not change the way you do things, you will have to change it yourself.” Mikael Lindholm, VP M2M Growth, Telenor
“Success for banking in the IoT field comes not from technology or security, but user experience that makes lives easier.” – Kerem Abuc, Mobile Financial Services Supervisor, Garanti Bank
Transport & Logistics:
“Key factors for Indosat’s success include: (1) good business opportunities, (2) right product, (3) right go-to-market.” – Mirela Juravle, Head of M2M Project,Indosat
Exhibition area and technology showcase during breaks saw conversations carried on from the conference that aroused much interest within key IT executives who are exploring effective IoT implementation strategies with the solution providers present. Diversity of participants in terms of verticals, complimented by the relevance of invited delegates provided a remarkable networking opportunities to all decision makers in the IoT sector seeking for partnership and new insight.
IoT Malaysia: A Summary of Asia IoT Business Platform 6th edition
We would like to thank all sponsors, advisors, partners, speakers, and delegates for making the 6th edition of the Asia IoT Business Platform a resounding success. It would not have been possible without the support we received.
We look forward to welcoming you again for the Asia IoT Business Platform 2016 series, which will be held in Manila (23-24 May), Bangkok (26-27 May), Jakarta (15-16 May) and Kuala Lumpur (18-19 Aug).[:]
[:en]Have you missed our Event or just want to refresh your memory?
Our very own Yue Yeng Fong, Vice President Business Development at Industry Platform has summarized her 3 key observations from our 6th Asia IoT Business Platform event in Kuala Lumpur last week.
In her article she elaborates on 3 key observations which are crucial to IoT and which we would like to expand on for the coming year
Innovation Business Models
The IoT ecosystem
The IoT User Experience
Click here for the full article and visit Yue Yeng Fong on LinkedIn to checkout further informative articles on the topic of IoT.[:]