You thought that Singapore is the only country that is capable of harnessing technology to create a sophisticated and smart city? In my previous article, we have seen some great initiatives in Malaysia (Cyberjaya) and Indonesia (Jakarta Smart City Lounge). ASEAN remains to be ambitious in realizing its smart cities. Here, we look at the smart city initiatives in Philippines, Thailand, and Vietnam.
With the influx of Filipinos migrating into the cities due to the rapid changes in economic opportunities that many major cities in the Philippines offer, the obsolete infrastructure in these cities have been struggling to keep up with this growth in urban population, resulting in urban decay, severe pollution and overpopulation within the cities. For instance, 37% of over 12 million registered residents in Manila live in slums throughout the city.
A collaboration between Davao City, the biggest city in the Philippines, and IBM Philippines is the first smart city development that relies on technology to address issues of public safety. In 2013, Davao City implemented IBM’s Intelligent Operations Centre (IOC) solution as an additional support for its existing Public Safety and Security Command Centre (PSSCC), utilizing IBM technology, such as video analytics software, multi-channel unified communication, and GPS location tracking. Today, the IOC allows various government agencies, including the police, fire, anti-terrorism task force, and the K9 urban search and rescue services, to monitor operations in the city in real time and respond more quickly and efficiently to emergencies.
As a country suffering from the damage of numerous natural disasters from typhoons to volcano eruptions, Philippines have also adopted Smart City technology to improve disaster management and minimize damages from such natural disasters. Project NOAH was launched in 2012 as the Philippines’ key disaster risk reduction and management system, and has won an IDC award for the top smart city initiative in public safety at IDC’s Smart City Asia Pacific awards (SCAPA). Information, such as real-time weather data and high-resolution flood, landslide, and storm surge hazard maps, are collected on online platforms to help the relevant bodies to identify the occurrence and severity of the disaster and respond more rapidly.
With aims to transform Thailand into a digital economy and digital hub of ASEAN, the Thai Information and Communication Technology Ministry is looking to develop Phuket and Chiang Mai into smart cities as pilot projects due to their technology readiness, location and international ties. According to Thailand’s Software Industry Development Agency (SIPA) which is also managing the Phuket project, the Phuket smart city pilot project will focus on digital infrastructure development, the construction of a data centre and the enhancement of the city’s tourism industry through the use of sensors and analytics.
In addition to the two pilot projects, the ministry has identified the formulation of a solid digital economy master plan as their first task, which will consist of 5 main domain missions – hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion, and a digital society. The second task will involve other ministries in developing and delivering pilot projects across areas like e-commerce, e-education, e-industry, and e-government. For instance, the ministry would work with the Commerce ministry to create an e-commerce platform to help businesses, especially small and medium sized enterprises (SMEs) and those in agriculture, to go online.
To address the aging population in Thailand, Saensuk Smart City project was recently launched in 2016 in the Saensuk Municipality in Thailand, where 15% of the residents are aging citizens and most of them live at home alone during the day with minimal supervision or in nursing facilities. Collaborating with technology partners Dell, Intel and the IoT City Innovation Center (ICIC), a small Bluetooth-enabled smart device is distributed to all elderly patients to monitor the health condition of the patients, with the data collected and analysed by intelligent Intel-based gateway systems to provide insights to the municipal nursing headquarters cloud system. Healthcare practitioners and family members are also notified in instances of emergency or unusual activity or when the panic button is activated, allowing for a more efficient use of the limited human resource while providing more efficient and swift responses during emergencies.
The Vietnamese government has been extremely supportive and encouraging with its numerous efforts to promote its municipalities towards becoming smart cities in recent years, in order to address various socioeconomic issues such as traffic congestion, environmental pollution, and energy conservation. This has led to a smart cities race in Vietnam with several smart cities projects and initiatives being developed simultaneously to become Vietnam’s first smart cities.
Da Nang aims to be the first smart city of Vietnam by 2025, and has collaborated with IBM in their “IBM Smarter Cities” program to develop smart city infrastructure to address issues such as air control, water management, waste management, energy, and disaster warning.
As one of the latest cities to join on the bandwagon, Vietnam’s commercial capital Ho Chi Minh have developed plans for a new smart city program with these main components: smart services such as education, healthcare and traffic; enhanced citizen participation in city life; and a common database plan. This is in addition to an earlier collaboration between ETN Singapore and the Ho Chi Minh City’s People’s Committee to provide free public WiFi for the city with Altai’s Super WiFi Solution.
In line with the nation’s vision to turn Phu Quoc into a Special Economic Zone (SEZ) in 2010, the local government has also been working closely with Vietnam Post and Telecommunications Group (VNPT) to strengthen the network infrastructure by building a data centre and smart services, with the high-speed 4G network already successfully trialed on the island.
In Hanoi, the capital of Vietnam, an investment of USD 3 billion was planned for smart city developments in 2012 with a focus on transportation, healthcare, education, environment and urban development. Efforts to transform the city into a smart city have continued with public schools being equipped with Internet connection and trials for an Intelligent Transport System taking place.
Smart cities are not just a fancy word that governments and other stakeholders can be proud of. Smart cities mean much more to the people than just automatic public feedback and lesser road congestion. Smart cities make public services smarter for the benefit of the larger local population so that they can experience a better standard of living in the city. As these cities continue to experience an influx of migrants from the rural areas, more needs to be done to support not only the growing population, but the pressure placed on public infrastructure too.
ASEAN Smart City Projects will be discussed in Singapore on 14 February 2017, with speakers from Land Authority Singapore, Da Nang Department of Infocomm, Iskandar Regional Development Authority, Metro Cebu Development & Coordinating Board. If you’re interested to know more about the agenda, get in touch at email@example.com.
Even if the Internet of Things is still a rather remote possibility, in the next couple of years it’s predicted to invade our daily lives like no other technology before. The IoT is expected to change every single aspect of business, ranging from consumer relations to employee productivity. It will impact the economy at large by granting us access to new solutions, such as precise geo-location or remote mobile device management.
Michael Porter, an economist from Harvard, believes that the Internet of Things is the answer to a lag in enterprise innovation. But how will it translate into the daily lives of employees around the globe? Here, I have listed a few ways IoT will make us more productive by helping to save time on more activities than ever.
But first, what exactly is the IoT?
The Internet of Things (IoT) is basically a network of smart, connected objects. Still, many people find the idea hard to understand – and that’s perhaps because the name itself conveys very little meaning. The internet stands for the mechanism for communication – in this context, we’re talking about objects transmitting information.
Things are nothing else than objects which can connect to the web. They’re able to generate and send lots of valuable data to help companies assess anything from customer preferences to servicing requirements of objects. In the Internet of Things, it will be things, not people, to generate a constant stream of data, which will be then sent to a server and analyzed by appropriate tools with specific goals in mind.
1.More data than ever
If every object that surrounds us will be able to generate data, you can only imagine how much data will be floating in the air every second. It’s clear that enterprises will need to develop new strategies to deal with this surge of information. That’s why it’s likely that they’ll enforce new industry standards to help managers and employees to adjust to new forms of data intelligence. The daily reality of data analysts and architects will change radically.
Regular employees will possess much wider knowledge about data analysis tools – with so much data, every level of an enterprise will require new devices to help them make sense of the information, be it for the purpose of analyzing consumer relations or workforce trends.
This also means that supervisors will be able to monitor and analyze web habits of their teams. Seeing the way in which employees use technologies and smart objects will help managers to understand and modify work environments to be even more efficient and help employees improve their productivity.
With constant access to heaps of data, companies will be able to tailor their products to perfectly match consumer needs and trends, as well as the internal life-cycle of the product.
2.Daily commute revolutionized
With remote work on the rise, many employers realize that commuting involves a great loss of resources. On the employee level, commuting seriously hurts productivity – morning traffic jams or being squeezed like a sardine on the train does get on our nerves.
IoT is predicted to help us in daily commute through an intricate system of mobile devices, cars and road systems which will all be connected to each other and help professionals reduce travel time. Every single element of the street will be integrated into a whole. Sensors in stoplights will analyze traffic patterns and adjust their operation to minimize traffic jams. This will mean that getting to work will be faster and running errands more efficient than ever.
Car companies are already deploying such solutions, and you’ll see them grow to popularity within the next few years. AT&T joined manufacturers like GM and BMW in revolutionizing the connectivity of cars. Driving to work, the employee of the near future will have access to information ranging from real-time diagnostics to traffic information.
3. Improved time management
IoT will also help us to get the most from our time by educating our mobile devices and offering us the possibility of controlling various things in our lives in remote. Devices will learn what works for employees and help them save time – for instance, dedicated geo-location systems which will help us in daily commute or reaching a place we’ve never been to.
Our smartphones will constantly interact with the surroundings. And those, enriched with invisible sensors, will provide our mobile devices with heaps of valuable information and automize processes to avoid losing time on manual access.
Imagine the following situation. You’re rushing in the morning and you still need your daily dose of caffeine. You walk past the door of the cafe and the barista is instantly alerted about your order history and most common orders. All you’ll need to do is confirm the order and quickly pay for it with your smartphone. As you can imagine, this will limit the hustle of the morning rush, helping you to be more focused once you reach your desk.
4.Remote mobile device management (MDM)
This is an IoT powered technology expected to bring lots of benefits to IT departments. In the near future, IT managers will not only be able to remotely control desktop and mobile devices, but also other connected objects. Remote-access technologies will help executives to gain control over smartphones and tablets, and manage them in remote – including devices like Android cameras and set-top boxes.
If they need to pass key information to other team members, managers won’t need to wait until the device users read the message and respond to it. But remote MDM will also help employees – especially in collaboration, where their devices will communicate automatically, helping workers to establish stronger collaboration practices. Platforms for remote control of IoT devices will revolutionize every aspect of a digital workplace.
5.Geo-location data at our fingertips
Since the IoT is practically based on location functionalities, you can only imagine in what ways it will make office life much more productive. To put it simply, location tracking will be a piece of cake with IoT technologies – smart objects and devices will all be geo-tagged, saving employees lots of time on locating them. Enterprises will, on the other hand, save lots of money by reducing the loss rate.
With IoT geo-location functionalities, enterprises will be able to track their inventory, locate and deploy field service staff and realize orders in record time. Every single vehicle, tool or manufacturing center will be connected to one information system, reporting on their location and making the lives of employees much easier.
What does the future hold for IoT?
A significant factor in slowing down the commercialization of IoT technologies is the problem of security. Not only is the risk higher, but protection is relatively lower – devices which could be attacked have little processing power and no anti-virus software to protect themselves from hackers. It’s one thing to hack into an intelligent fridge, but quite another when it comes to a self-driving car.
Some companies have already adopted to the new ways, others are on their way. DHL launched its Asia Pacific Innovation Center (APIC) in Singapore last September to “offer a visionary view of the logistics world, and develop innovative solutions to meet evolving supply chain needs.” Ms. Pang, VP & Head of Innovation, Asia Pacific DHL will be sharing her insights on how DHL is using technology to differentiate themselves at our7th IoT edition in Philippines.
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.
To address urban challenges such as pollution, energy efficiency, security, healthcare, traffic, transportation, etc., smart city initiatives worldwide are increasingly (well – they have to be) focused on the IoT.
By providing real time and remote monitoring for different aspects of data management in areas such as transportation, communication, video surveillance, and sensors on devices and sensors distributed throughout the city, a community will have the ability to create intelligent environments with IoT.
Hence it does not come as a surprise when we see local governments competing (some collaborating) to build innovative and sustainable cities by utilising advanced technologies in data gathering and communications interconnectivity via the internet. IDC forecasted that over 25 percent of all local government external spending will go to deploy, manage, and realise the business value of the IoT by 2018.
So what are the solid efforts that have been initiated (or even better – have already taken place) by local stakeholders in Southeast Asia to catalyse the visions of Smart Cities?
Lets dive into specific countries for detailed analysis.
Smarter Philippineswas launched by the Department of Science and Technology (DOST) in 2013 with the aim of improving economic growth via technology.
As part of the programme, DOST Secretary Mario Montejo announced Cauayanto be the first of 144 cities in the Philippines to become a “smarter city”.
“A smart city should have ICT infrastructure to connect systems, and share and analyse data, resulting in faster, real-time responses to present situations”, said Montejo.
Cauayan’s initiatives include an e-government system, a computerised police clearance process and a city ID system. It also plans to use technology to improve its agriculture, businesses, jobs, healthcare and adapt to climate change.
We saw the Philippines working on the first step by providing municipal Wi-Fi to nearly 1000 cities in the country. In November 2015, the PHP 1.408 billion (US$31.6 million) project was tendered to set up Wi-Fi hotspots in 997 cities.
While the DOST’s ICT Office will lead the project, a steering committee with 15 other agencies will coordinate the project. These include the Departments of Tourism, Trade and Industry, Health, Budget and Management, Education, and the Metro Manila Development Authority.
As the supporter of Asia IoT Business Platform: IoT Philippines, DOST’s ICT Office has shared with us on further plans and explore strategic solutions to help local enterprises. We believe that the move towards technology advancement will be pushed along by corporations like Globe Telecom, Microsoft, PLDT and more.
On the move to become ASEAN’s digital infrastructure hub by 2020, the Thai government has demonstrated great determination through a solid digital economy master plan by the ICT ministry with main domain missions such as hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion and a digital society; and pilot projects centered on e-commerce, e-education, e-industry and e-government.
According to Jeerawan Boonperm, chairwoman of the Software Industry Promotion Agency (SiPA), 100 million baht has been allocated to develop the digital infrastructure and a data centre in Phuket. The plan is to turn Phuket into an innovation-driven smart city by 2016. This is a pilot project to promote digital-related investment and further development of the tourism industry.
“Phuket will be Thailand’s first smart city, with Chiang Mai tipped to be next in 2017,” said Ms Jeerawan said.
The e-government agency was playing a big role in the planned roll-out of the e-government pilot project.With 2,000 ICT centres nationwide, the e-industry pilot project focused on encouraging SMEs to benefit from using technology.
On the Part 2 of this article, we will explore similar smart city initiatives in the following countries: Indonesia and Malaysia.
Have a tip off on the latest local developments? Drop me a note.
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.
Is the Philippines ready for IoT? And how does the country fare compared to other member economies that also see the Internet as a strong factor in growing their respective states?
“I don’t think we are far off. Here’s how I look at it: if the Internet of Things were a race, the Philippines would be in the middle of the pack, compared to the likes of Japan who will always be among the front-liners. But at the pace that we’re going, and with the momentum we have established through the years, we are certain that we will soon be considered as one of the front-liners,” Joel R. Agustin, SVP-Service Management, Globe Telecom claimed.
“The role of Globe in improving the digital arena and achieving great gains from the IoT is really important, thus we always make sure that all the necessary fundamentals are covered and provided for,” he further said.
According to Agustin, Globe has long started to lay down the groundwork for IoT as the company has always kept pace with global technological advances and bring these in the country.
“When Globe participated in this year’s discussion on the IoT, it was an affirmation that we are doing the right things. We may not be as sophisticated as Japan, but I believe that it’s just a matter of time before we get there. What is essential has already been put in place to jump-start the IoT as a potential economic driver and at Globe, we have made a commitment to keep improving and delivering everything else that will be needed,” he added.
For Agustin, key fundamental areas must be addressed to maximize the benefits of the IoT. These include improving coverage and connectivity, latency and capacity, affordable devices, big data and analytics, and security.
“To make the IoT a success we need to have a robust wireless coverage and connectivity and a complying performance. This has to be supplemented by affordable devices that users can utilize either for business or for networking,” Agustin said.
“These are the things important to make IoT a success. Those fundamentals that I’ve mentioned are the fields that we at Globe have made available, and we keep improving and expanding on these areas to ensure that consumers from all around the country will benefit and be covered,” Agustin concluded.
This post was extracted from the article, Globe helps unlock gains of ‘IOT’, which was published on the Inquirer.net
Globe Telecom is the Platinum sponsor for the 7th Asia IoT Business Platform: IoT Phillipines which will take place in Manila, 23 & 24 May 2016. This national industry gathering is supported and endorsed by The Information and Communications Technology Office of the Department of Science and Technology, Philippines
– by Zaf Coelho, Project Manager of Industry Platform
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. [:]
Lets face it, when thinking of IoT markets that are of interest, most companies go for the automatisms of naming the USA, Europe and maybe China. There are very few of who would mention the Philippines. But could those view be right? When looking at the percentage of spending by country in the ASEAN IoT market in 2014, Singapore was the undisputed leader, with 44.25% of the total spending, whereas the Philippines only totaled 12.65%, according to the 2015 Frost & Sullivan report.
This is no surprise. Singapore offers modern infrastructure, is internationally connected and one of the main logistical hot spots in the world. It therefore constitutes a market ready for IoT implementation. The Philippines on the other hand have in numerous parts insufficient infrastructure, problems with connectivity and insufficient educational facilities. So why should companies focus on this market? Two words “uncontested potential”.
According to the same report there is going to be a shift in total spending in the ASEAN IoT market, while Singapore’s share will drop by close to 50% the Philippines share will increase by 12%. This means that Philippine spending in IoT is forecasted to grow from US$ 55.1M in 2014 to US$ 766.8M in 2020. Potential alone though does not always justify investments into a certain market. It is also a question of how heavily this market is contested over by competitors. Will you have to outperform the competition in existing market or do you rather follow a Blue ocean strategy, entering a new market thereby making the competition irrelevant.
If we take Singapore as an example it is obvious that it has an particularly competitive environment, the same is the case for the US and European market, which makes market entry as well as earning profits much harder. The Philippines on the other hand are a country with a young population that is in the process of building its ICT/IoT market, which creates a government and companies that are actively looking for partners in the IoT/ICT space.
In 2014 manufacturing and logistics accounted for the lion’s share of the spending in IoT. But the sectors of banking, healthcare and smart city hold a lot of promise for future investments of IoT solution provider.
According to a study of the World Bank, 69% of Filipinos did not have bank accounts of their own or maintained one with someone else in 2014. Because of this void 10% of adults seek loans from private informal lenders, the world average stands at only 5%.
This presents an enormous opportunity for money-transfer operators in the IoT space, as they could claim roughly two thirds of the Philippines population of 98 million as their potential customers. At our Philippine event las year we had the mobile phone-based money transfer company ItsLikeCash participate and this year M-Pesa is on of our speakers. It is not only the business opportunity that promises value, but also its impact. The World Bank report further states, that “Studies show that when people participate in the financial system, they are better able to start and expand businesses, invest in education, manage risk, and absorb financial shocks”
Another industry that contains a lot of promise for the Philippines is healthcare. With a population close to 100 million inhabitants, rural areas with inadequate healthcare structures and spread-out island communities, it is difficult to provide a sufficient level of healthcare to all citizens.
Both the Chairman of Southeast Asia Continua Health Alliance as well as Product Manager at SMART Enterprise expressed their confidence at our last event, that IoT services could be the solution to these Problems. The Philippine government in an effort to support this channeled large funds to the healthcare sector, nearly doubling its budget within the last 2 years. It has been also actively looking for healthcare solution providers at our events.
Smart City and Infrastructure
Furthermore the Government has been pushing smart city programs in both Manila and Davao. In Manila a smart city venture is planed with Centios, a joint venture of Korea Telecom and Cisco. Hung Song, CEO and president of Centios, said the smart city involves the integrated operation and management of safety and security; energy, transport, education, health, environment, administration and energy management.
Another Interesting development in the Philippines that could be beneficial in regards to connectivity is TV White Space (TVWS) technologies. This low power technology is a new wireless data communications standard and is supported by the Information and Communications Technology Association which partners with our event. Executive Director Louis Casambre said “TVWS is an ideal wireless data delivery medium for the Philippines, with its long distance propagation characteristics and the ability of its signals to travel over water and through thick foliage, we are hopeful that this will be the technology to bring connectivity to rural areas and bridge the digital divide” though he admits that, “Right now TVWS is still very much in the experimental phase both in terms of technology as well as the policy regime, but we are confident that we can make this happen and are excited about what TV White Spaces can do for the Philippines.”
The Philippines thus represent a growing and less contested market with great opportunities in the IoT sector. It recently posted a GDP growth of 6.3% as well as a sustained IT spending growth of 10.1%. According to IDC the telecom services market will also show a positive performance in 2015, growing by 4.7% and an increase in IoT spending by Philippine companies is forecasted by an IDC survey.
If you like to participate in the Philippines ICT and IoT development or want to meet key stakeholders and learn from relevant case studies at the 7th edition of Asia IoT Business Platform in Manila, please feel free to contact us under Jazon@industry-Platfom.com or under +65 6733 1107
Fintech is all the rage now, major technology companies from the west (Google, Apple and Facebook) and the east (Line and QQ) are rolling out new services to transform our smart phones into a digital wallet.
Before all the tech companies got into the action, Kenyans have been using millions in mobile money for daily transactions. Majority in this African nation do not have a bank account, but 8 in 10 people have access to mobile phones. To solve this problem, M-Pesa was born, providing financial inclusion to the unbanked.
M-Pesa is a mobile phone-based money transfer, financing and microfinancing service launched in 2007 by Kenyan mobile operator, Safaricom. Users are able to deposit money into an account stored on their cell phones and send balances using SMS text messages (pin-secured) to purchase goods and services. The mobile money can also be used to redeem deposits for regular money and be transferred to other users. A small fee is charged for users to send and withdraw money. M-Pesa is a branchless banking service where customers can deposit and withdraw money from a network of agents that includes airtime resellers and retail outlets acting as agents.
Since its initial launch in Kenya, M-Pesa has seen expansion to countries such as Tanzania, Afghanistan, South Africa and India. In December 2015, BBC ran a story on 60 minutes featuring the M-Pesa story, introducing M-Pesa to the world.
Located in the Western Pacific Ocean, Philippines is a country with more than 7,000 islands. According to 2014 World Bank Statistics, only 30% of its 98.4 Million population has a bank account. This is a country where mobile money could potentially be able to help facilitate financial inclusion.
Join Lesley-Ann Vaughan , Project Manager at M-Pesa as she shares the M-Pesa story and her experience on building a reliable mobile banking platform for developing markets during the 7th edition of the Asia IoT Business Platform which will take place this 23-24 May in Manila.
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.
The 7000 over islands of the Philippines are geographically split into 3 regions, Luzon, Visayas and Mindanao. The capital of the Philippines, Manila, is located on the Luzon island, and surrounding the capital is Metro Manila, a metropolitan area that is the most populous metropolitan area in South East Asia.
Outside of Metro Manila, Metro Cebu is the 2nd largest metropolitan area. Historically, Metro Cebu has been a regional trading hub and recognized for its world-class marine resorts. It is considered the economic center of Central Visayas and as such that it has been experiencing high levels of private business investments and industrial expansion in recent years.
Along with this rapid urbanization and population growth, Metro Cebu’s current population is expected to triple in size by 2050, and various interrelated urban issues have emerged across the sectors of transport, traffic, drainage, water, and waste management. To address these issues, it was decided that a comprehensive and sustainable development approach is required.
To address challenges arising from rapid urbanization, the Metro Cebu Development and Coordinating Board (MCDCB), a coordinating body for metro-wide planning and development led by the Cebu Provincial Government (Governor), with the LGU (Mayor) and the private sector/civil society as co-chairs, and the National Economic and Development Authority (NEDA) serving as MCDCB secretariat embarked on the Mega Cebu Program.
The Ramon Aboitiz Foundation Inc. (RAFI), through the Eduardo Aboitiz Development Studies Center (EADSC), facilitates the Mega Cebu program. It anchors the Research, Program and Organizational Development (RPOD) of the MCDCB, and serves as coordinating and operations unit and process facilitator of the various functions, structures, plans, programs, and efforts of the MCDCB.
The Mega Cebu program is considered and anchored at a provincial level (Visayas) and seeks to promote long-term and collaborative planning and action towards a more sustainable, smart, and inclusive city-region. The vision for Mega Cebu is a Wholesome, Advanced, Vibrant, Equitable, Sustainable (W.A.V.E.S.) development by 2050. At present, there are 13 Local Government Units involved in the program and due to the number of interested parties, the level of complexity in the program is higher a project like Clark Green City which is administered by a single authority, the Bases Conversion Development Authority (BCDA).
To mitigate risk and the challenges posed by elections / changes in administration in Mega Cebu, a move has been made towards institutionalizing it through the Mega Cebu Development Authority (MCDA). This will thus provide permanency, continuity and provide assurance to private partners that the projects will have longevity. The bill creating MCDA has already been filed in Congress and was approved by the Committee on Government Enterprises. It is has now been referred to the Committee on Appropriations, however with the elections looming, there is limited time for Congress to tackle the bill and it would have to be refiled in the next Congress. Although the creation of MCDA can contribute to the continuity of the Mega Cebu Project, a key ingredient for success will have to be the active participation and leadership of the private sector and civil society.
Mega Cebu has been seeking out partnerships at multiple levels. At the bilateral level and City level, the MCDCB, with the assistance of the Japan International Cooperation Agency (JICA) and leveraging on theYokohama’s Smart City experience finalized the Roadmap Study for Sustainable Urban Development and is now pursuing flagship projects that have been identified under the 7 sub Road Maps. Mega Cebu has also signed a strategic partnership agreement with Yokohama, working together at the corporate level with Japanese firms on projects including waste management, septage management and water supply / treatment.
What are some of the processes and platforms used to engage the public and private sector in smart urban development and planning in Mega Cebu? What are some challenges faced in the Mega Cebu Program and how were they overcomed? What are some of the project opportunities in Mega Cebu?
Meet and network with Executives from the Ramon Aboitiz Foundation Inc. (RAFI), who facilitate the Research, Program and Organizational Development of the Metro Cebu Development and Coordinating Board (MCDCB) to learn more about the Mega Cebu Program during the 7th edition of the Asia IoT Business Platform which will take place this 23-24 May in Manila. Also presenting at the conference is Kimihiro Kuromizu, Deputy Executive Director, Climate Change Policy Headquarters, City of Yokohama, who will share experiences from the Yokohama Smart City Project.[:]
The Philippines is situated in the western Pacific Ocean, consisting over 7000 islands. There are 3 main geographical regions that are categorized broadly under from north to south: Luzon, Visayas, and Mindanao. The capital city of the Philippines is Manila and the most populous city is Quezon City, both part ofMetro Manila on Luzon island.
Metro Manila is the 10th most populous metropolitan area in Asia and the 1st in South East Asia, ahead of Jakarta, Bangkok, Kuala Lumpur and Ho Chi Minh. According to the Japan International Cooperation Agency (JICA), it is estimated that Metro Manila’s traffic jams alone are costing the economy USD 51 million a day in potential income, a figure that JICA warns could balloon to USD 128 million a day by 2030.
JICA highlighted that the government had to be more mindful of environmental impact and disaster management in large cities as the population increases and suggested that economic activity should be spread to other potential growth areas in the country.
To mitigate further migration into Metro Manila, Bases Conversion and Development Authority (BCDA) came up with a brilliant plan to build a new city, Clark Green City, in central Luzon, right in Clarkfield area, under its subsidiary Clark Development Corp.
The BCDA is a government instrumentality vested with corporate powers signed into law by former President Corazon C. Aquino in 1992. BCDA is mandated to transform former US military bases into force in creating economic opportunities in the country into alternative productive civilian use. BCDA engages in public-private partnerships to push forward vital public infrastructure such as tollways, airports, seaports, and also major real estate developments. It has successfully developed economic centers such as the Bonifacio Global City and the Newport City and Since its creation in 1992 until March 2015, the BCDA has generated Php65.348 billion from the disposition of former Metro Manila camps.
Clark Green City, a 9,450-hectare area located inside the Clark Special Economic Zone in Tarlac, is located 75 kilometers from the West Valley Fault Line, where Metro Manila sits on, is an ideal site for long-term development. Its favorable geological conditions includes neighboring mountain ranges the Zambales Mountain Range and the Sierra Madre Mountain Range which serves as natural barriers against super typhoons. Flooding will be remote due to its high elevation. Clark is connected to all major cities in Central Luzon through the country’s expressways and it will have a direct link to the Clark International Airport and is just a breeze away from the Subic Freeport Zone.
At full development, Clark Green City will be home to companies, retail outlets, offices, residential parks, accommodating 1.12 million residents and 800,000 workers and contribute a gross output of approximately P1.57 trillion per year to the national economy or roughly 4 % in the county’s Gross Domestic Product (GDP).
Similar to the strategy under taken at the development of Bonifacio Global City, BCDA is looking to attract educational institutions to kick start economic activity and this can be seen through the signing of a Memorandum of Agreement (MOA) with the Technological University of the Philippines and the Philippine Science High School to establish a center to specialize in industrial and technology skills development and large-scale fabrication laboratories. In addition to local institutions, a 3 million euro donation from the German government, will enable Clark Green City to host a regional climate change knowledge and training center, serving the 20 most climate-vulnerable (mostly island) nations called the South-South Center of Excellence for Climate Information and Services.
To supplement its strategy with educational institutions, Clark leverages on its ideal geographic conditions and offers free land for government agencies to occupy within the city as part of the government’s disaster recovery mechanism should a big earthquake or a super typhoon hit Metro Manila.
Opportunities for Cooperation in Smart City Development
Clark Green City will be characterized by a cutting-edge ICT infrastructure that will integrate city-wide services for infrastructure, transport, utilities, security and public safety. An advanced communications and digital infrastructure will serve as the backbone of the entire metropolis to facilitate data processing and transfer through high-speed Internet connectivity.
Clark Green City will follow green standards such as green building codes, low carbon footprint and renewable energy will take center stage in powering the city. Last December, a lease agreement with Sunray Power, Inc. (SPI) for the lease of a 260-hectare area in Clark Green City to build a 100-megawatt solar power facility.
BCDA President and CEO Arnel Paciano D. Casanova has emphasized that this new development should be well-planned to make it sustainable, disaster resilient, environment-friendly, and to answer for the need of a modern metropolis. To support the planning and development of the city, a 100-man BCDA delegation funded by Singapore-based Temasek Foundation, an organization which supports training and capability-training programs in public administration and disaster-response, health care, and education across communities in Asia, attended an executive training program in Singapore to ensure a world-class output for the project.
In addition to building internal capabilities, BCDA has been actively looking for partners and foreign investors to realize its vision to build a Smart, Green City. A cooperation agreement with the government of Japan through the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN) was forged. The agreement included the blueprint for a rail system from Bulacan to Tarlac and is expected to lead to multiple joint venture partnerships that will serve as a vehicle for the formation of Japanese consortium and investments in the field of power, transportation, tollways, industrial zones and economic centers.
In addition to the Japanese, the European community has also expressed keen interest in Clark Green City. BCDA signed separate Memorandum of Understandings (MOU) with France and Sweden to foster technical cooperation and identify future collaborative opportunities in the development of Clark Green City.
Perhaps one of the possible reasons for active foreign participation could be due to Clark Green City being insulated from politics . BCDA chief mentioned that, with BCDA sitting directly under the Office of the President, no president would want his office to fail in anything, especially on a project this important. However as Philippines is weeks away from choosing its next president, he also said that the signing of new agreements might take a while.
What are some of the experiences and challenges that BCDA and Clark Development Corp face in the Clark Green City Project?
Meet and network with members of BCDA and Clark Development Corporation at the 7th edition of the Asia IoT Business Platform which will take place this 23-24 May in Manila.[:]
[:en]The King of Fruits
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.
DHL was founded in 1969 to deliver documents between Honolulu and San Francisco and by the late 1970s, the company had expanded its services world wide. Today DHL, is one of the leading logistic companies in the world and a thought leader who continues to structurally invest in trend research and solution development through the DHL innovation center.
The DHL innovation center provides a central platform where the company can collaborate and engage customers, research and academic institutions, industry partners, and logistics experts within the business divisions. Located in Germany and Singapore, the innovation center develops a variety of technologies such as self-driving vehicles, robotics,internet of things and augmented reality.
Big Data in Logistics is a topic that the innovation team worked on and they have gone beyond thebuzz words, looked into real-world use cases, and revealed what’s happening now with Big Data, and provided insights into what’s likely to happen in the future. The team’s opinion is that sophisticated data analytics presents an exciting and important role to consolidate the traditionally fragmented logistics industry and successful logistics providers are likely to seize pole position as “search engines in the physical world”.
The team proposes and explores three different categories of information exploitation:
Operational efficiency: real-time route optimization, crowd-based pickup and delivery, strategic network planning, and operational capacity planning
Customer experience: customer loyalty management, continuous service improvement and product innovation, and risk evaluation and resilience planning
New business models: market intelligence for small and medium-sized enterprises, financial demand and supply chain analytics, address verification, and environmental intelligence
How will Big Data Impact the Logistics Industries? What are some of the Insights from DHL’s Innovation team? How will this impact you and your business?
Join Mei Yee Pang, Vice President, Head of Innovation, Solution Delivery and Service Management- Asia Pacific, DHL as she discusses insights into Big Data in Logistics during the 7th edition of the Asia IoT Business Platform which will take place this 23-24 May in Manila.
[: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 [:]
[:en]IoT is nothing fundamentally new as an invention. It has been there for ages in limited avatar. The closest or easiest examples to pick up will be various equipment’s in thermal power plants monitored and controlled through control systems; Centralized traffic control systems changing signal times based on volume of traffic or capturing shots of traffic law violation. Certainly these use cases were circumventing on industrial or large scale set ups with connections limited to LAN or WAN in the past.
The newer version is to pick up to reach Internet and scale from industries to fields to homes to handheld devices, as we all know. While business pragmatic experts feel that as of today IoT = Smart phones (meaning the scalability and realization of IoT ) in reality, now it is time for integrated industrial and social change for tomorrow to make it more scalable and useful. Look at RFID wave which was touted as big wave 8 years ago, it never picked up momentum because of limited industrial drive to commercialize it at an affordable cost, funding on a long term to drive large scale innovation as it takes years to bring changes and social risk or belief of snatching the privacy.
Why IoT, Why Now?
Modern IoT technology offers multiple advantages and capabilities not easily available to remote diagnostic devices of past decades. Wireless TCP/IP communication is available virtually anywhere around the globe at very low cost, and cloud services offer globally distributed storage and computing resources. Essentially, the entire communication infrastructure is owned by third parties that manage access, devices and data security, allowing service organizations to focus on the content rather than on setting up and manage the conduits.
Not only is the cost of setting up and managing the communication dropping, but also the cost of sensors, data acquisition and communication hardware continues to drop, making instrumentation and communication affordable.
Practically every piece of equipment is becoming a smart data-collecting node in an always-connected network. Secure connectivity and data exchange are no longer a challenge; they are a commodity.
Predictive diagnostics models, machine learning and other techniques that attempt to extract knowledge from complex machine data and provide proactive service advice are difficult to build and maintain. One of the more interesting and complex challenges stems from the broad variability in the installed equipment, even among similar pieces of equipment. A couple of examples will illustrate this point.
Consider a fleet of trucks rolling off the assembly line and delivered to different operations. Some of these trucks are used for long distance cargo hauling, covering great distances cruising long hours at highway speed. Other trucks make short trips, some in urban areas and frequently in start-stop traffic. Over time, the different traffic conditions, cargo loads and even the operator’s driving patterns cause these trucks to wear differently. Add to those the inconsistent service and maintenance practices that often do not follow the manufacturer’s recommendations, and the trucks are no longer close facsimiles of the original truck that was used as the model for the predictive data analysis.
Building reliable failure prediction models for highly engineered assets has proven difficult. These models require large data sets that are continually updated to reflect that ongoing changes caused by built-in variability, wear and tear, and configuration changes over the life of these machine.
Manufacturing industry is one of the early adopters of IoT. Philippines and Thailand have already invested USD27.60M and USD 28.44M by 2014 in manufacturing. This number is expected to rise to USD144.06M and USD 327.87M respectively by 2020.
At Asia IoT Business Platform, we focus on bringing together the best-in-case examples of enterprise IoT, and localising the IoT discussion for the needs of the country. Manufacturing is one of the key focus areas for Philippines and Thailand. For the original article click here and for more informative articles on Iot visit Talha at Linkedin.[:]
Francis Puno, Chairman of Southeast Asia Continua Health Alliance summarised the challenges of global healthcare as follows:
Missing healthcare Access
Lack of doctors
Especially in Southeast Asian countries, such as Philippines which has close to 100 million inhabitants yet many rural areas and inadequate healthcare structures, it is difficult to provide a sufficient level of healthcare to all their citizens.
According to Gio Abaquin, Product Manager at SMART Enterprise, the solution to these challenges could be the Internet of things.
Puno and Abaquin both spoke at the 3rd edition of Asia IoT Business Platform: IoT Philippines on 10-11 February 2015, promoting the use of big data analytics, remote care, flexible patient monitoring and integrated healthcare solutions. IoT was regarded as the solution to lower the costs of healthcare dramatically while improving efficiency of treatment.
The implementation of these technologies can unlock new business opportunities for startups as well as existing solution providers who are extending their services in healthcare. Unfortunately, many governments tend to shy away from such implementations as they require considerable investments. Not Philippines though, where most funds are being channeled to the healthcare sector, nearly doubling its budget within the last 2 years. This provides a strong foundation, where investments into new healthcare practices are made possible.
Manufacturing sector also looking to increase efficiency at lower costs
Beyond healthcare, JD Montelibano, Head of Product Management for Business Applications, Globe Telecom Inc. pointed out that the potential of IoT in manufacturing is substantial. He mentioned that the number of things connected to the internet surpassed the number of people on earth in 2008. “By 2020, there will be about 50 to 75 billion connected devices around the world.”
So how is the situation of manufacturing in Asia?
Also at the 3rd edition of Asia IoT Business Platform: IoT Philippines in Manila, Montelibano cited the IDC Asia Pacific manufacturing insights 2014 survey, which stated that “manufacturing in Asia is at a tipping point where traditional enterprise IT applications…have attained basic levels of maturity in isolation”. It further suggested that “it is time for a seamless integration between them”. Montelibano sees IoT solutions joined by the network capability of the telco providers as the possibility for this seamless integration, which could improve the performance of manufacturing in Asian markets immensely.
We are seeing a growing number of dedicated teams led by senior management in exploring IoT for their businesses in Asia. Maynilad Water Services, Singapore Power Telecommunications, Continua Health Alliance SEA WG have shared their local success stories at Asia IoT Business Platform events this year.
By focusing on senior decision makers from end users to our conference, we aim to increase the number of CIOs leading IoT adoption in Southeast Asia.
Gavin Barfield, SVP & Chief Technology Advisor to Manila Electric Company and Dr. Francisco Castillo, SVP & CIO of Maynilad Water Services are part of the Advisory Board for the 7th Asia IoT Business Platform: IoT Phillipines in Manila, 23 & 24 May 2016. The Board is responsible for advising on the content, themes, objectives and speakers for the conference to ensure what is presented is highly relevant and educational.