With the vision of creating the Thailand 4.0, Thai government has introduced the Ministry of Digital Economy and Society (DE) in place of previous Ministry of Information Communications Technology (ICT). DE Ministry takes over all responsibilities of the ICT Ministry, National Statistics Office, Software Industry Promotion Agency, Electronic Transactions Development Agency, Thai National Meteorological Department and Thailand Post, as well as oversight of state-owned telcos TOT and CAT Telecom. The National Disaster Warning Centre, previously under the supervision of the ICT Ministry, is the only agency that was transferred to the Interior Ministry.
This change is brought about as previously ICT Ministry only covered communication technology but not the development of economic and social via digital technology. Therefore, Ministry of Digital Economy and Social is an important entity to encourage both public and private sector to employ digital technology in their operations to achieve the ultimate goal of social stability and economic growth.
In line with government’s digital economy policy, DE Ministry’s vision is to lead the transformation towards Digital Thailand. DE Ministry’s 10-years plan has the following goals:
- Raising the country’s competitiveness with digital innovation such that at least 25% of country’s GDP is from digital sector.
- Creating equal opportunities with information and digital service to ensure that all Thais have access to affordable (less than 2% of income) broadband internet.
- Developing human capital for digital era by improving Thai’s digital literacy
- Revolutionizing government operations for better transparency and effectiveness by using digital technology in all government operations.
Since last year, DE Ministry has rolled out multiple projects such the Smart City pilot in Phuket. Together with Financial ministry, Thailand also introduced the first-ever national e-payment, Promptpay, late last year. Minister of Finance Apisak Tantiworawong has remarked that this is the first and crucial step in the nation’s digital finance plan.
One notable plan that DE Ministry has introduced is Digital Park Mega Project. The project aims to encourage transfer of knowledge which can lead to Innovation in various areas such as IoT technology and data centre. Digital Park will be located in Sriracha, Chonburi with an area of 240 acres consisting of various zones: Research centres, innovation centres, education institutes, and housing. Companies and start-ups that set up business in the park will receive maximum tax exemption for 8 years and 50% reduction for the next 5 years. Income tax exemption is also given for researchers working in Digital Park to encourage the inflow of foreign skilled labour.
What does this mean for IoT industry?
Firstly, there will likely to be an increase in adoption of IoT technology in the banking and finance, as well as the manufacturing sectors as the government has provided a range of incentive and aid to help business adopt such technology in terms of both software and hardware. “We will encourage large-scale cloud computing for both the public and private sector,” said Ajarin Pattanapanchai, Senior Executive Investment Advisor with the Thailand Board of Investment (BOI).
Secondly, there is likely to be rapid growth in Thailand’s IoT industry due to government effort for both supply and demand side. On supply-side, various government incentives such as Digital Park mentioned above will attract both local and foreign investment into this industry. On demand-side, government has enabled digital literacy education and also made the internet accessible to all. This helps to create a larger market for IoT as more people has the means to use these technologies.
In conclusion, the government has put in a lot of efforts to develop a digital economy and allow IoT industry to grow further. It will be exciting times ahead for Thailand’s IoT industry.
We will be hosting the 13th edition of Asia IoT Business Platform in Bangkok, Thailand on 24 – 25 July 2017. This year, the program will focus on addressing the challenges and pain points of adopting IoT technology in businesses. If you are interested in finding out more about IoT in Thailand or if you are interested in exploring the market for your IoT solutions, contact us at firstname.lastname@example.org
by Ramon j.
In 2016, SMEs industry in Thailand has grown up to 5.3% to account for 41.1% of Thailand’s GDP. SME accounted for more than 80% of employment as well. This highlights the importance of SME in Thailand’s economy. Knowing this, Thailand 4.0 policy also encompasses the development of SMEs as well. With the aim to increase the value of SME GDP to be at least 50% of total GDP by 2021, the government plans to drive the growth of SME with three drivers: Active Cluster/Smart Farming, Smart SME and Global SMEs.
To boost the growth of traditional SME markets such as Agricultural and Community enterprises, Active Cluster/Smart Farming is introduced. First, it aims to promote cluster to tap into potential that external economy of scale has to offer. It also helps the SME access funding via Village and Community funding, while provide training to SME’s owner as well as encourage usage of technology and Frugal innovation. Additionally, it centralises marketing effort by promotion via “Pracharat” store as well as encouraging e-commerce usage.
For new growth industries, such as FoodTech, Health Tech, Auto Tech and Digital Tech, the government has put in place “Smart SME” project. The detail of this project is shown in the diagram below.
To increase the competitiveness of SME for them to venture abroad, Global SME is used. This is done so by giving them International Market Expansion Grant as well as providing other incentives. Another area of this project that should be highlighted is encouraged the usage of market intelligent and usage of e-commerce in the foreign market.
This is a good news for the IoT market.
Firstly, E-commerce in Thailand is expected to grow tremendously as it is heavily emphasised by the Thai government. Recently, the Thai government has signed a deal with Alibaba to provide its expertise with the government is in e-commerce area. This includes providing training for SMEs in e-commerce aspect as well as providing guidance for setting up Thailand’s National E-commerce platform. This shows that Thai government sees the potential that E-commerce has to offer in Thailand and thus putting in significant effort in this area.
Secondly, the government highlights IoT industry is one of the key industries in Smart SME and Global SME project. It is safe to expect growth in local IoT industry as there will be incentives, funding, and training going into this market. International players can benefit from the projects as well as these projects highlight the importance of usage of technology in SME operations such as in Agricultural and Healthcare. This is illustrated in Thailand 4.0’s focus on smart farmers. Under modernization program, farmers will have to adapt or lose government aid. This will definitely push most of agricultural SMEs in Thailand to adopt digital technology in their production.
The Thai government has invested a lot of effort in modernization and digitalization of SME to increase productivity and in turn promote digital economy. With government’s vision of transforming towards Thailand 4.0, it is safe to say that Thailand’s digital industry is in good hands.
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.
I was in Phuket for the past few days. Being a complete stranger to the island with a language barrier, what helped me get around Phuket was this application called Grab. Grab uses an IoT revolutionised fleet to operate their on-demand services. This has made it possible for people to simply tap their smart phone and have a cab arrive at their location in the minimum possible time.
So, how does this work? Simply in 3 steps. Firstly, you choose where you want to be picked up, dropped off and the type of pick up you want. Then, Grab will source a driver for you in the vicinity and you get to see where the drivers are located in real-time. Lastly, after a driver has accepted the booking, both parties will get each other’s’ contact details: Car plate number and mobile phone number and, you also get to track the route as well as the time taken which the driver takes to reach your pick up point.
The above sums up an example of how Internet of Things (IoT) is implemented into transportation. Such connected vehicles can be tracked and monitored using integrated broadband communication like cellular networks to deliver real-time information. The location sensors associated with both the passenger’s and the driver’s mobile devices (the actual “things” being monitored) are regularly broadcasting their location to a “back end” system on the “Internet Cloud”. When it receives such a request, the cloud service then uses near-real time analytics to determine which car is the best fit to service the request.
In essence, transportation IoT is about how the data is collected from the fleet, incorporated into the cloud system and finally producing mileage reports, route profitability analysis and trigger workflows based on rules such as geofences or time spent in a specific location. Also, the purpose of such a technological implementation is to keep vehicles on the road using the best routes, track and manage maintenance in a timely and cost-effective manner, and keep drivers safe by tracking behaviour and addressing issues with increased training.
There are also many other ways which IoT can be integrated into fleet management: Smart vehicle application – deploying IoT to enhance existing vehicle onboard technology, improve collision prevention, auto-parking and enabling driverless vehicle services; Vehicle security and recovery solutions – use of RFID, sensors and transmitting technologies to prevent vehicle theft or recover stolen vehicles.
According to a Frost and Sullivan report, the spending of IoT in Indonesia will increase to USD$1350.0 M and spending in Malaysia will increase to USD$916.1 M in 2020. Both Indonesia and Malaysia will have a forecasted spending in transportation IoT of USD$38.78 M and USD$73.9 M respectively.
In the ASEAN region, governments have launched initiatives that help to raise the awareness and adoption of IoT technologies. The impact of adopting these technologies will help to improve productivity and efficiency across industries. For example, Malaysia’s Ministry of Science, Technology and Information (MOSTI) and its National R&D ICT centre have released its National IoT Strategic Roadmap (in what year) aimed at moving Malaysia into becoming a premier regional IoT hub (by what year).
Despite the large spending pooled into this, it may not necessarily translate to fruitful results. There are many factors hindering the expansion of the IoT ecosystem such as the ICT infrastructure as well as lack of expertise in that area. Therefore, all telcos, government agencies and enterprises in the region are coming together to discuss the IoT ecosystem as well as the solutions available for the execution of digital transformation projects.
The 9th edition of Asia IoT Business Platform in Indonesia is happening from 15th – 16th August and the 10th edition of Asia IoT Business Platform in Malaysia from 18th – 19th August. Come join us and be part of the movement towards a more innovative IoT ecosystem.
These days, we see communication service providers (CSPs) getting increasingly actively involved in the IoT space. Being at the core of IoT value chain, telecommunications and IT service providers can bring together the large ecosystem of partners and speed up the time to market for IoT.
We interviewed some of our partners in Southeast Asia and summed up the main initiatives and efforts of telcos in the IoT sector.
What are the current focuses of CSPs in Southeast Asia?
According to JD Montelibano, the Head of Business Applications from the Globe Telecom IT Enabled Services Group, CSPs are in a good position to provide end-to-end and seamless IoT solutions for the Philippine market.
“We have been driving awareness on benefits of IoT primarily to businesses. Focus today is to drill into deeper and more specific use cases per industry that will solve specific pain points and problems,” said JD.
Meanwhile in Thailand, there are initiatives such as the collaboration between CAT Telecom, NIA, and TESA to promote IoT and smart city development by supporting tech companies and startups that have IoT/smart city innovation.
Yuttasart Nitipaichit, PhD, Assistant Vice President of CAT Telecom Data Center Department pointed out that CAT aims to provide IoT and smart city solutions as one of their main businesses.
“CAT’s main focus is to provide support on Telecom and IT infrastructure that would be the building block for developing smart city applications. We aim to provide support on mobile and Internet connectivity, IT infrastructure including Cloud platform and data center, and IT security solutions,” he added.
With a mobile penetration rate of 120% in Indonesia, Mirela Juravle, the head of M2M Projects in Indosat Ooredoo, believes that CSPs are trusted partners to help IoT adoption. Being in the driver seat, they want to lead the IoT development through an extensive portfolio of solutions and services ranging from connectivity, infrastructure, cloud services, data analytics to end-to-end IoT solutions and services; promoting innovation simple and open environments for local developers to build innovative IoT services; and Big Data.
One of Indosat success stories in 2015 is the launch of vehicle telematics solution which had greatly increased productivity for operational car fleets and logistic companies.
“We have done a lot of market educations in the last 2 years and this year we will continue to accelerate growth in banking, transportation and security, plus develop new markets in eHealth, user based insurance, business applications, industrial IoT, oil gas, Smart Cities,” said Mirela.
On the contrary, Malaysian CSPs have falled behind in taking the leap with IoT. Telcos in Malaysia have been criticized for being too conservative; and they are making big plans to grow their presence in the IoT sector and catalyze Malaysia’s Smart Digital Nation vision.
Digi has identified some key industry players that are at more matured stage such as the public services and logistic area leveraging on IoT adoption to drive customer experience and enhance business growth.
Lee Shin Mei, the Head of Enterprise Business in Digi, shared with us that Digi is exploring and always open for IoT as this is one of their main drivers moving forward.
“The current focus is really about creating the customer awareness, looking out for opportunities to collaborate and getting the right partners in place to support the initiative. Once we build the business value and can show to our customers the benefits of IoT, this would eventually build a sensible commercial value for all parties. In terms of segment or industry, there is really no hard rule about this part,” she added.
What are the advice for solution providers targeting Southeast Asia?
What do you have to identify and prepare beforehand? How to access the market and justify the right local contacts?
Southeast Asia countries are generally quite similar in the focus area and highlighted verticals for IoT, but slight different approach or key points have to be taken care of for each country.
Let’s have a look at the views of local CSPs from specific countries in the region.
JD Montelibano, Globe, Philippines:
IoT has huge opportunities and unlimited use case that are relevant to the Philippine market. What solution providers must do is to understand pain points and problems in a local micro level. They also need to have platforms that are inter-operable with other systems to drive seamless integration through readily available APIs.
Yuttasart Nitipaichit, CAT, Thailand:
Solution providers should study and truly understand problems of cities in Thailand in order to provide real solutions that could really solve the problems. In addition, they should consider partnering with infrastructure providers and end user device manufacturers as well to provide complete solutions. They should make sure that the value of their proposed solutions is higher and worth the proposed cost of investment.
Mirela Juravle, Indosat Ooredoo, Indonesia:
Indonesia market offers huge opportunities, and this is the top 3 advice I can give for solutions providers to be successful:
- Know the market, know the regulations
- Partner with a local company or establish local office
- Be flexible
Lee Shin Mei, Digi, Malaysia
Have creative ideas or products but also remember to be practical so as the end goal is to simplify and enhance customer experiences. Solution providers can also leverage on partnerships with telcos to create a more viable solution that offers end-to-end approach.
Receiving international IoT stakeholders with open arms
Over the comments and feedback I have received for my previous posts, there is one question that popped up frequently: Is partnership essential?
Southeast Asia is a dynamic market, with vibrant culture and varying work approach. Much work has to be done to be familiar with the ways businesses work in each country.
While telecommunication operators and governments are positively encouraging IoT solution providers from both local and abroad to help tackle local problems via technology, I believe having a contact point who has been around and understands the local market would be the most direct, fastest and safest way to access the pool of demand.
What do you think?
Asia IoT Business Platform partners with major telcos in Philippines, Thailand, Indonesia and Malaysia to educate enterprise on IoT adoption and raise awareness of the key business model transformation opportunities that can be tapped on.
Our telco partners include Smart, Globe, AIS, dtac, CAT, True,Telkomsel, Indosat, XL Axiata, Telkom Malaysia, Digi, Maxis, Celcom, etc.
If you are looking to connect to the local telcos in Southeast Asia, feel free to get in touch. Comments and feedback are greatly appreciated.
In our day and age technical advances are occurring in increasing frequency, making it harder for customers to understand which product or service or which combination of products and services can offer value to their business.
In this complex jungle of innovative applications, companies that specialize in bringing together component subsystems into a whole and ensuring that those subsystems function together are desperately needed. In the information technology (IT) field this role traditionally has been filled by System Integrators (SIs). The rising prominence of Internet of Things (IoT) applications in most industries, creates another sector that is in dire need of system integration. Especially challenges with interoperability, end-to-end performance and security need to be addressed.
IoT benefits of and for SIs
According to cms wire, SIs are at the ideal position to act as bridges, linking vendors and clients. As the worldwide IoT market is forecast to grow from $1.3 trillion in 2013 to $3.04 trillion in 2020 these bridges are needed more than ever and offering tremendous value for companies providing theses connections.
System integrator will benefit customers and vendors mutually, states Forbes Magazine. Customers in need of an IoT solution will be educated on how to find, integrate or combine solutions that cater best to their needs. For vendors on the other hand system integrator can help in accelerating adoption and usage of their product in segments which all have their own specific needs and problems. SIs are highly engaged with the end users and are built for stitching together solutions from multiple vendors to solve operational technology (OT) problems.
It therefore seems, that hardware and software vendors with the most robust SI channel will be the fastest to market and the quickest to create revenues. This puts SIs into the unique opportunity to be sought after by both solution providers and users, offering them great market potential. According to IDC Analysts an average of 40% of any IIoT system’s cost will be related to services (consulting, design, application development, integration, deployment, maintenance, etc.), constituting in an opportunity of 40% of a multi-trillion dollar market.
Asia IoT market
One market where the IoT potential is rising significantly is the Asian market. According to Business Korea large, SIs have been focused on internal stability in their domestic country, but now start to tap into global markets, being active mainly in Japan, South Korea, Taiwan and China. Especially in China you can find large SIs like Samsungs SDS, with its expertise in distribution and manufacturing or SK Holdings C&C and POSCO ICT who both have decided to accelerate the smart factory business in China by using IoT and Big Data.
ASEAN IoT market
Our Area of expertise is in the countries Philippines, Thailand, Indonesia and Malaysia. The 2015 Frost & Sullivan report expects IoT spending within those countries to rise by 1648% until 2020. With such an increase in spending SIs will be vital, but in our experience have not been particularly active yet.
Subin Bhatia, Chief Executive Officer of Suvitech, with its HQ located in Thailand, sees the full potential of IoT for SIs in the ASEAN region to develop within the coming 2- 3 years. He states that the ASEAN region is more of a follower with use cases coming mostly out of japan and South Korea. This is due to the fact that infrastructure and legislation in the ASEAN regions (with exception of Singapore) is not as advanced jet. Which is the cause for slower adoption and regulation. According to Mr. Bhatia these markets are nonetheless very interesting, as the ROI in these countries is higher than in further advanced nations. The only thing missing is a wider government support and company as well as government education about IoT possibilities for their country and company.
In our Asia IoT Business Platform conferences both the government and local companies looking for IoT solutions, have over the years shown increased interest in educating themselves about Iot products and services, leading to more attending government branches as well as decision makers of companies investigating IoT solutions in the verticals of healthcare, smart city, manufacturing, logistics & transport, banking & finance, automobile, cloud and data security. We expect a rise of participation of about 20% in these years events.
With the high potential and increasing interest in IoT it is time for system integrator to take an active stake in developing the IoT market in the ASEAN region. We would love to welcome you to our 2016 IoT stakeholder gathering in the Philippines, Thailand, Indonesia and Malaysia. Where you and your company can connect and educate the government and local companies about IoT possibilities and contribute your share to the development of the ASEAN IoT environment.
For more information please contact us under Jazon@industry-platform.com or +65 6733 1107
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 Philippines was 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.
The Ministry of Information and Communication Technology (MICT) will be giving the keynote address for Asia IoT Business Platform: IoT Thailand this May, sharing on the visions and opportunities on collaboration within the IoT sectors.(A brief snippet: South Korean government and companies are especially interested in sharing their expertise and solutions in the Phuket Smart City Project.)
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.
The Internet of Things (IoT), a concept that describes a state where every day physical objects will be connected to the internet and be able to identify themselves to other devices has become increasingly prominent in every industry. According to Gartner 6.4 billion connected “Things” will be in use in 2016, which is an increase of 30% to 2015.
One market that offers great possibilities but has not been exploited to its potential is the ASEAN market. Often companies are discouraged by perceived insufficient infrastructure within those countries, but in the relatively uncontested market of Thailand this is changing. The arrival of 4G wireless broadband networks as well as the proliferation and affordability of devices that are connected to internet will fuel the IoT technology adaption in Thailand. In an interview at the 2015 edition of Asia IoT Business Platform Sigvart Von Eriksen, CMO of DTAC stated that he is convinced that the IoT market in Thailand will explode in near future, featuring more than 400 million connected devices in Thailand alone in about 4 years’ time.
Numbers and sectors of IoT interest
According to a Frost & Sullivan report, Thailand’s IoT spending in 2014 amounted to US$ 57.7 M. This is forecasted to increase by over 1600% to US$ 973.3 M in 2020. The majority of this spending takes place in manufacturing and logistics. Thailand currently is the 17th largest global manufacturer and number 14 in auto production, according to Industryweek. A 2014 McKinsey report states that “Thailand has built a thriving ecosystem of manufacturers and assemblers, including BMW, Ford, Honda, Mazda, Mitsubishi, Nissan, and Toyota. Its long history of automotive manufacturing coupled with strong government support has created a relatively low-cost but skilled workforce in the sector.” As the government plans to position itself as the center of the ASEAN Economic Community, the prominence of manufacturing is forecasted to increase, which will also increase its potential for IoT. The value of IoT in logistics is also expected to rise, as a new law by the Department of Land Transport (DLT) has taken effect this January, which will require public buses, trailers and trucks with over 10 wheels to install GPS navigation systems, that provide real-time information to DLT service centers on the vehicles coordinates, travel speed and driving time. Due to these developments both manufacturing and logistics are expected to increase to a total value of around US$ 445M by 2020, according to Frost & Sullivan.
Future potential according to the same report and judging from developments in our event in Thailand can be observed also in the smart city and healthcare sector.
Smart city and government IoT initiatives
Thailand is on the move to become ASEAN’s digital infrastructure hub by 2020, states Ms. Jeerawan, chairwoman of the Software Industry Promotion Agency. The government’s determination to drive digital growth finds its expression in multiple ICT and IoT initiatives. These initiatives include smart city plans in cities like Phuket, Chiang Mai and Bangkok as well as greater campaigns e.g. smart Thailand. The ICT Ministries vision for Phuket and Chiang Mai is that of a tech start-up community, that further supports the intention to turn Thailand into the digital hub of ASEAN, explains The Nation.
To further boost the country’s competitiveness ranking in the world Thailand is pushing its Smart Thailand project, which according to Anudith Nakornthap, the ICT minister, will further empower local stakeholders such as the education and business sector and will cut the costs of using ICT, herby improving the quality of life within the country. If realizing this plan broadband will increase its reach from 33% to 80% of the population in the next three years, reaching 95% in 2020, according to Nation Multimedia.
For its ambitious project, the ICT ministry has develop a digital economy master plan, which according to The Nation entails two phases:
- Main domain missions: hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion and a digital society.
- Pilot projects centered on e-commerce, e-education, e-industry and e-government.
To manifest these projects the country is actively searching for partners to collaborate with, which represents a great potential for IoT and ICT solution providers. According to the Bangkok Post the ICT ministries of three ASEAN members plus South Korea have expressed interest in participating in the development of Thailand’s digital infrastructure as well.
Although the healthcare infrastructure might on a nationwide scale have some shortcomings, especially in rural areas, Thailand still can boast with highly technical and advanced hospitals as well as educated doctors in urban areas. Compared to other countries like the US or Australia treatment in Thailand comes at a more reasonable price. This is the reason for Thailand’s prominence as one of the main medical tourism destinations in Asia. According to a CNN documentary 1.1 million foreign medical tourists visited the country in 2013. As hospitals have to compete for part of their clientele globally, they tend to be very active in looking for new services and devices to increase competitiveness as well as becoming more efficient internally. Recently the interest therefore has shifted to IoT applications.
Another challenge the Thai healthcare system has to tackle in the near future is an aging population. The median age has risen from 19 to 38 within the las 50 years and will continue to rise to 51 by 2050, according to Worldometer. In order to deal with the subsequent consequences, the Thai government, hospitals and consumers are looking for solutions within the healthcare sector, which presents an unprecedented chance for IoT companies.
Another indicator for the rising demand and prominence of IoT in Thailand is, that its largest private company Charoen Pokphand Group (CP) recently created an IoT subsidiary, to help with applications in the field of farming, agriculture and logistics.
If you like to participate in the Thai ICT and IoT development or want to meet key stakeholders and learn from relevant case studies at the 8th edition of Asia IoT BusinessPlatform in Manila, please feel free to contact us under Jazon@industry-Platfom.com or under +65 6733 1107[:]
Through conversations with IT executives from enterprises in the region since 2014, we saw great interest in cloud, data and the corresponding data analytics that can unlock most potential in businesses.
There have been huge advances in the amount of data we routinely generate and collect in pretty much everything we do, as well as our ability to use technology to analyze and understand it. The intersection of these trends, namely Big Data, is helping businesses in every industry to become more efficient and productive.
According to our interview with Dato Ng Wan Peng, COO of MDeC, Malaysia has rolled out the country’s Big Data framework. “We foresee a bright future ahead in this area. Among benefits we intend to realise for the country include talent development using public open data to produce useful applications, technology development; and creating awareness within the private and private sectors.”
Businesses that have benefited hugely from Cloud and Data include banking, insurance, smart cities, transportation and manufacturing sectors.
We are still seeing a growing number of dedicated teams led by senior management in exploring IoT and data services for their businesses.
Some examples include:
- Proton, Engineering Solution & IoT
- Petronas, Digital Innovation, Strategy & Architecture
- CEVA Logistics, GM Operations
- Provinsi DKI Jakarta, Head of Jakarta Smart City
- Bank Simpanan Nasional, Transformation Management Department
These companies were part of the 2015 Asia IoT Business Platform series in the Philippines, Thailand, Indonesia and Malaysia.
Healthcare is an increaseingly interesting sector that we foresee to benefit largely from cloud and data.
This could be seen through the heated discussions in the 6th Asia IoT Business Platform in KL. Dr. Dhesi, founder of AIME said, “There’re so many patients that it’s impossible to diagnose and analyse without data and IoT. By 2030, we’ll be using cloud brains to communicate, store and think – like an external hard disk. Smart and sustainable healthcare needs to be driven by new and disruptive IoT business models.”
As the momentum of IoT moves forward, data will be a key enabler of digital business transformation, driving tremendous value. IoT will mature from being a platform that improves enterprise efficiency and revenue streams into an entire ecosystem that changes the business model to be more digital and service centric through data analytics and algorithms.
However, security remains a challenge in business transformation.
Despite the apparent importance of IoT, widespread adoption of the technology is still slow. Our discussions with industry leaders and enterprises led us to attribute this phenomenon to security concerns: more or less everyone agrees that if data is not handled properly, the consequences could be devastating.
Connected devices are highly susceptible to penetration and infiltration by hackers. Its connected nature severely amplifies any malicious attacks on devices, and data associated with IoT devices can easily be stolen. As a result, businesses, government bodies, and consumers are wary of installing IoT devices in their cities and businesses.
According to BI Intelligence report, top security flaws of IoT devices include insecure software/firmware, insufficient authentication, lack of transport authentication, user identity, and un-encrypted network services.
Taking a leap of faith – there’s still a bright side to data and security.
While the IoT is taking flight in the Southeast Asian region, security problems should not be taken lightly, but have to be addressed and faced head-on.
Security needs to be built in as the foundation of IoT systems, with rigorous validity checks, authentication, data verification, and all the data needs to be encrypted. At the application level, software development organizations need to be better at writing code that is stable, resilient and trustworthy, with better code development standards, training, threat analysis and testing.
While local governments are starting to establish security developments e.g Indonesia’s National Cyber Agency (NCA) and Indonesia Security Incident Response Team on Internet Infrastructure (ID-RTII), the notion of addressing security vulnerabilities of the IoT creates opportunity for security solutions to be implemented.
We came across many corporations and enterprises offering security solutions that undoubtedly boost the confidence of enterprises taking a step in IoT adoption. As the educational platform for government and businesses in the region, we are exploring for more and better solutions with case studies that will benefit our end users.
Drop us a message if you have relevant projects and solutions regarding cloud, data and security to share.
[:en]We spent a large part of the year in the cities of Manila, Bangkok, Jakarta & Kuala Lumpur speaking to local enterprises about this (too) broad & (too) overused term: the Internet of Things (IoT). We discovered very quickly that while IoT seems to be very much over/wrongly-used in the English speaking world, there really isn’t a direct local translation in these 4 countries. For local enterprises in these countries, they see IoT as an extension of Enterprise IT, without having a definition/term for it.
In our mid year review (Bringing IoT to a Population of 600 million), we summarized how IoT applications can be applied to these 4 countries, with some projects already being put in motion, while others remain quite far from realization. As we near the end of 2015 (with every Starbucks in the region starting to play Christmas carols and serve Peppermint mocha lattes, ha!), lets look back at the industries in the region where the conversations involving IoT projects are more pertinent.
This industrial segment was not something we focused on in 2015 but as we worked with local telcos & government agencies to invite enterprises to attend our events, we found the interest from the local manufacturing firms to be overwhelming. We should have known. In this part of the world, countries such as Thailand, Vietnam & Indonesia are increasingly important global players in the space. While granted, these countries are chosen because of low labour costs, locally run vendors & OEMs are very proactive when it comes to technology implementation within their factories (technology implementation is a lot more attractive when you’re experiencing double digit growths vs no/low growth environments). Plus, legacy IT systems/culture are a smaller problem in young, growing firms.
Among others, we had the opportunity to speak to several representatives from one of the world’s largest cigarette manufacturer. The local entity is owned by an international parent but because they produce a slightly different product (close to 90% of locals in Indonesia smoke kretek), they couldn’t implement manufacturing processes wholesale from their parent company. Another cliche with much truism:- Think Global, Act Local.
Manufacturing & Industrial Automation will be a big theme in 2016, especially in Thailand and Indonesia. Macroeconomic conditions (weaker local currencies, young workforces etc.) have also made these locales more attractive to international companies looking to set up manufacturing facilities – and technology, when used properly, can overcome (some) productivity inefficiencies usually associated with emerging countries.
In the more developed countries, the ageing demographics make Healthcare a natural topic of discussion. Remote monitoring/diagnostics is important not only in elderly care, but for archipelagos like Indonesia & Philippines. We found that in this part of the world, implementation of such systems are being driven largely by the government agencies and young startups.
Some notable implementation in the region: In Singapore, applications like Healthcare ATMs have been rolled out and in Philippines, local startup Medifi implemented a pilot earlier this year, with plans of expansion to other Southeast Asian markets soon.There’s always a buzz during the Healthcare segments of Asia IoT Business Platform, simply because it’s something which all of us relate to.
Distribution, Transportation, Logistics & Freight
I am reminded of a conversation I had with the owner of a logistics company in Manila who was a native English speaker but wasn’t familiar with the term “IoT”. But talk about telemetry, control software, sensors which track everything from his vehicle locations to petrol levels – and he’s in his element. His company was growing very quickly and he was in the process of modernizing its systems to:
1. Create efficiencies
2. Gain better control/insights
3. Account for future growth
(If #1 and #2 do not make up the classic definition of IoT, I don’t know what is!)
In countries like Indonesia & Philippines, the Distribution, Transportation, Logistics & Freight segment have employed M2M technology for years. On the other hand, because of the low cost of labour, many companies still use manual methods to achieve the same goals:- instead of sensors, some Indonesian freight companies send “spies” to follow the drivers of their trucks to ensure that they do not siphon off petrol in their vehicles to be resold!
Which types of companies do well in the Enterprise IoT space in Southeast Asia?
It’s a given that IoT will change business landscapes globally over the next 5 years, but it’s interesting to note that because of the uniquely local problems that enterprises face in this part of the world, the companies that are best positioned to take advantage are those with a big local presence.
Telcos: With the need to connect millions of devices, IoT provides a new revenue stream for the local telecommunications companies. This is reflected in the setting up of IoT/M2M teams in most local telcos in the four countries. These firms now run their own revenue targets (aggressive ones!) and we can only see this portion of their business growing over the next few years.
Large Multinational Vendors: This goes without saying. These companies have been deeply entrenched in the local infrastructure – the Microsofts, Intels & Schneiders of the world. They have established relationships with local enterprises and the advent of IoT technology will make them natural partners to enterprises looking to upgrade their systems to fully realise the benefits of IoT.
Local Startups: We have had the pleasure of working with many new companies who understand local problems intimately and are flexible enough to work around the lack of standardization within IoT. They are providing innovative & cost effective solutions to small medium enterprises in these countries. There were a lot of enterprises interested in presentations given by companies like N’osairis, Versafleet & Medifi in 2015 – and the best part is, we are seeing projects being implemented.
International Vendors with a presence in Southeast Asia: Over the years, we’ve seen this group of companies increasing as they realise the potential of the market here. In 2015, we’ve had more interest from international firms than we’ve ever had. But we’ve noticed that those who have invested heavily in the region (companies like Thingworx, Axiros, Sigfox etc.) by being present locally and building a dedicated team have reaped the largest rewards. There will be an inflexion point in this market and it remains to be seen if the first movers stand to benefit more than latecomers. I believe they will.
There are other developments within the B2B2C space (of course – Southeast Asia has over 600 million consumers!) but that warrants a discussion of its own.
If you’re interested in IoT/M2M developments in Southeast Asia, do drop us a note with your thoughts. We are currently in the planning stages of our 2016 events to be held in Philippines (23 – 24 May 2016), Thailand (26 – 27 May 2016), Indonesia (15 – 16 Aug 2016) & Malaysia (18 – 19 Aug 2016). See you in the region if you do decide to drop by. [:]
Internet of Things (IoT) technology will be ready take off in Thailand next year, boosted by the arrival of fourth-generation (4G) wireless broadband networks and the proliferation and affordability of of internet-connected devices, say IT analysts.
The availability of IoT skills with knowledge of embedded systems will also be a major factor driving IoT development and adoption here. “The IoT will play a very important role in outlining the country’s digital path and support the government’s digital economy initiative,” said Vatsun Thirapatarapong, managing director of Cisco Systems (Thailand), the local operating unit of the California-based IT networking firm.
The IoT is a network of physical objects or “things” embedded with electronics, software and network connectivity, enabling these objects to collect and exchange data.
It allows objects to be sensed and controlled remotely across existing network infrastructure, creating opportunities for more direct integration between the physical world and computer-based systems, resulting in improved efficiency, accuracy and economic benefits.
“Cisco estimates 25 billion devices globally are connected to the internet in 2015, doubling to 50 billion by 2020,” Mr Vatsun said.
“It will create as much as US$19 trillion in global opportunities by 2020.”
Cisco sees a massive opportunity in Thailand for a wide range of industries to capitalise on IoT technology.
Next year, Cisco plans to collaborate with several local universities to introduce the Cisco Networking Academy, a global education initiative by Cisco Systems, which will offer networking courses to allow students to learn from IoT use cases.
In Asean, Mr Vatsun said Cisco invested $10 million in a venture-capital fund focused on the IoT and other emerging technologies.
Panutat Tejasen, president of the Thailand IoT Consortium, which gathers together 15 IoT-related private companies and state agencies, said the IoT presented startling opportunities for hardware makers in Thailand, especially wireless sensors and embedded systems programming.
“Given the country’s resources of highly technically skilled engineers and industrial manufacturing bases, the advent of the IoT will undoubtedly shake up things in a number of industries,” he said.
Mr Panutat said smart home automation or the connected home market was expected to enjoy mass adoption next year, driven mainly by a greater variety of wearable devices, more affordable embedded system programming and high-speed wireless broadband internet.
Thailand’s software market including mobile apps has matured. The IoT can widen ecosystems and create new value chain opportunities for the software industry.
The National Electronics and Computer Technology Center also plans to launch Net Pie, a network platform to provide support for IoT developers.
Amarit Charoenphan, co-founder of Hubba, Thailand’s first co-working space service provider, said investment in IoT start-ups in Thailand remained small.
As of the middle of this month, Thailand’s tech start-ups raised a total of $54.5 million for 53 projects, up from only three projects valued at $2.1 million in 2012.
Globally, Mr Amarit cited a report by venture capital database firm CB Insights that 887 IoE start-ups raised $7.4 billion in the past five years.
Kanchana Kanchanasut, vice-president for research at the Asian Institute of Technology, said a series of research activities had been designed to serve the wave of technological change that would bring unprecedented opportunities along with new risks to business and society.
This post was first published on the Bangkok Post
Key stakeholders of Thailand’s IoT industry will attending the 8th Asia IoT Business Platform: IoT Thailand which will take place in Bangkok, 26 & 27 May 2016.
This Article was written by Zaf Coelho and first published here. Follow Zaf on Linkedin for more intriguing information the Asia Iot Market[:]
Turkey is blessed with favorable geographical conditions, with 27% of arable land, the 3rd largest in Europe, and high volumes of fresh water resources. This has enabled Turkey to be one of the few countries in the world that is self sufficient in food production. In 2009, agriculture accounted for 29.5% of employment in the country and Turkey is considered to be one of the leading countries in the world in the field of food and agriculture, being the world leader in the production of dried figs, hazelnuts, sultanas/raisins and dried apricots.
Farmers in Turkey rely on transformers to generate electricity on farms and to power irrigation systems that provide water to their crops. In recent times, farmers were experiencing a widespread problem of transfomer theft. The thieves steal parts of the transformer or in some instances, the entire transformer, strip it down and sell it for cash. To replace a transformer, a farmer might take a financial loss of up to 10,000 Euros. However, in most instances, the loss is much greater. In the town of Kahramanmaras Elbistan, 2 transformers used to irrigate the land were stolen. The incident left thousands of acres of land dehydrated , affecting the crops growing in the area. Replacement of the transformers would take days and the dying crops would affect the livelihood of the villagers.
Turkcell, Turkey’s leading telecommunication company embarked on a journey to utilize M2M/IoT technology to solve the problem of transformer theft for Turkish farmers.
Join Metin Nuroglu, Mobile Device Expert at Turkcell as he shares the casestudy of utilising M2M/IoT technology for theft prevention of transformers for Turkish farmers during the 8th edition of the Asia IoT Business Platform which will take place this 26-27 May in Bangkok.
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.
By: YY Fong
[: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: Ernest Ho[:]
By now you would have heard of the Internet of Things (IoT)—billions of devices connected and communicating with each other and with businesses—and how it promises dramatic enhancements in efficiency, opportunities for new products and business models, and the potential for greater customer intimacy.
IoT solution providers are at the forefront of this brave new world which Gartner predicts will grow at a 31.7% CAGR from 2013 through 2020. However for IoT to deliver its promise, solution providers have an important role to play in articulating the positive business outcomes that can result from IoT implementation. Just selling technology to the CIO is shortchanging the potential economic value that IoT technologies can create in the long run for both the customer and the solution provider.
The right solution providers are able to “connect the dots” for the enterprise customer and create value by collecting data, validating it, enriching it with analytics, mixing it with other sources, and then exposing it to the applications that enable enterprises to have actionable insights.
Moving beyond “silo” implementations, the solution provider must integrate heterogeneous technologies across multiple environments and ensure the data remain usable and secure.
In Southeast Asia where IoT is still in the early stages of development, a consultative approach in guiding enterprises on how they may apply IoT to their business could greatly accelerate this growth.
According to HPE, 3 objectives that enterprises can look forward to achieving with IoT include:
1. Enable innovative new offerings
IoT technology can turn products into services and sales transactions into subscriptions. For example, HPE Instant Ink service integrates sensors into printer ink cartridges to automatically resupply ink when customers run low.
2. Increase business efficiency
Connected sensors and actuators provide data that can reduce waste and adjust operations to changing conditions. Labor-intensive monitoring and meter reading can be delegated to Internet-connected smart meters. In the energy industry, for example, operators use data from in-pipeline sensors and aerial surveys—integrated with operational databases—to increase the efficiency and safety of employees and the community.
3. Enhance decision making
IoT solutions can provide the data to make data-driven decisions based on what’s really happening. Product developers can design smart, connected products that report exactly which features their users are using and how. Utilization and wear data for assets lets managers determine where they should be deployed for best return and when they should be retired and replaced. Manufacturers can measure process yields and reject rates and make corrections quickly.
While positive business outcomes can drive IoT adoption, it is also important that solution providers keep in mind the following selection criteria as highlighted by Enterprise Strategy Group on their Whitepaper on choosing the right IT platform provider:
a) Ease of use – enterprises should not need to hire data scientists to carry out IoT
b) Reducing system complexity – interoperability between the different technology stacks is important and finally
c) Managing the quantity and quality of data for actionable outcomes – real time analytics for data driven insights.
Are you an enterprise looking to drive business value from IoT implementation? Or perhaps a solution provider looking to share your IoT experience?
Let us know and we look forward to welcoming you at Asia IoT Business Platform.
by: YY Fong[:]
[: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.[:]
[:en]According to Sigvart Von Eriksen, CMO of DTAC in an interview at the 4th edition of Asia IoT Business Platform, in 4-5 years’ time we will see more than 400 million connected devices in Thailand alone – while we are still below 1 million right now. He is convinced that the IoT market in Thailand will explode in near future, which would not come as a surprise given the active role government is playing.
ICT Ministry Minister Uttama Savanayana confirmed that the Information and Communication Technology Ministry is eyeing Phuket and Chiang Mai as ‘smart cities’ that focus on tech start-ups as part of a move to turn Thailand into the digital hub of ASEAN. Under the policy the ministry planned to roll out pilot projects to drive the country forward, with the “smart city” plan one of them.
The first task was to formulate a solid digital economy master plan, which consists of 5 main domain missions – hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion, and a digital society.
The second task involved delivering the pilot projects including projects centred on e-commerce, e-education, e-industry, and e-government. The Ministry would work with other ministries, such as Commerce, to set up an e-commerce platform to help businesses go online, especially small and medium-sized enterprises and those in agriculture.The national e-payment platform is believed to play a crucial role in driving e-commerce, while making it easier for government to verify online merchants through the Trust Mark.
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.
With the startup scene in Thailand exploding right now, it is foreseen that there will not only be massive increase of new ideas and IoT inventions coming up, but also growing demand for solutions to increase efficiency and decision making maturity within enterprises.
The 8th edition of Asia IoT Business Platform: IoT Thailand will be held at Bangkok, Thailand on the 26-27 May 2016. It is a platform for the ICT industry to gather in Thailand to discuss M2M/IoT sector developments, gather information and establish strategic business relationships. Download your brochure here.[:]