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Huawei Connect 2021: Diving Into Digital

Huawei Connect 2021: Diving Into Digital

Huawei unveiled breakthrough innovations in several different domains, providing a first look at its comprehensive digital infrastructure range. Several of these innovations are completely new and have never been seen before outside of Huawei’s labs. The release highlighted how these products and solutions are set to shape digital infrastructure for the next decade.


Huawei’s annual flagship event for the global ICT industry – HUAWEI CONNECT 2021 – officially kicked off on September 23, 2021 at Shenzhen, China. This year’s event, themed “Dive into Digital”, explores how digital technology can better integrate with business scenarios and industry know-how to address critical business challenges, and how stakeholders can work together more effectively to foster an open industry ecosystem and drive shared success.

The event schedules four keynotes, five summits, and 66 sessions, featuring more than 200 speakers, including industry visionaries, business leaders, top tech experts, and ecosystem partners. It is live-streamed in 11 languages on Huawei’s corporate website and by its media partners. The event also featured online exhibitions, remote visits to exhibition halls, and open panel discussions, enabling online interaction and one-stop experiences.

Huawei Rotating Chairman Eric Xu graced the event with a keynote speech titled “Innovating Nonstop for Faster Digitalization”.In his keynote, Xu spoke about how helping industries go digital is a critical aspect of Huawei’s mission to bring digital to every person, home, and organization for a fully connected, intelligent world.

Xu said, “Digital development relies on digital technology. For digital technology to stay relevant, we must continue to innovate and create value. Cloud, AI, and networks are three critical digital technologies.” Xu then shared some of the progress Huawei has made in these three areas, what Huawei is doing to enable low-carbon development, and where the industry as a whole is heading.

At the event, Xu launched the industry’s first distributed, cloud-native service called UCS – a ubiquitous cloud-native service available on HUAWEI CLOUD. With UCS, Huawei plans to provide enterprises with a consistent experience while using cloud-native applications that are not constrained by geographical, cross-cloud, or traffic limitations, thereby accelerating digital transformation in all industries.

Xu also introduced Huawei’s innovations in the network domain. As organizations go digital, they tend to see exponential growth in network complexity. To tackle this, Huawei has been innovating solutions for global networks based on the concept of autonomous driving network (ADN). The company has been working with customers in the finance, education, and healthcare sectors to innovate and deploy new applications, and build networks that are self-fulfilling, self-healing, self-optimizing, and autonomous.

Xu went on to explain how Huawei is using digital technology to support low-carbon development, as part of global efforts to achieve peak CO2 emissions and carbon neutrality.

Specifically, Huawei focuses on three key initiatives:

  1. Investing and innovating in energy-saving technologies to deliver more energy-efficient ICT products for a low-carbon ICT industry;
  2. Investing in innovations where power electronics and digital technologies converge to promote clean energy and the digitalization of traditional energy; and
  3. Providing digital technology to help all sectors go digital and low-carbon.

Zhang Ping’an, CEO of Cloud BU and President of Huawei Consumer Cloud Service, elaborated on HUAWEI CLOUD’s strategic initiatives and launched new services and products at the event. “HUAWEI CLOUD joins our customers and partners to dive into digital and explore the potential of Everything as a Service – Infrastructure as a Service for global accessibility, Technology as a Service for flexible innovation, and Expertise as a Service for shared excellence,” says Zhang.

Zhang also announced two new Regions in Mexico and China’s Ulanqab, and launched 10 new HUAWEI CLOUD services. The announcement included MacroVerse – HUAWEI CLOUD aPaaS, OptVerse AI Solver, HUAWEI CLOUD Stack 8.1, SparkRTC – a real-time audio and video service, and Pangu, a large model for drug molecules.

Customers and partners in attendance included Christophe Ozer, Head of Orange Cloud (Orange Flexible Engine) APAC; Wu Qiang, Vice President of Tianjin Port Holdings; Chen Haining, General Manager of IT Dept from Shanghai Pudong Development Bank; and Jiang Chuanrong, Chairman of Shanghai Mirror Pictures.

Xu concluded his speech with, “Nonstop innovation has been the driving force behind digitalization thus far. Moving forward, if we hope to reach more ambitious goals for digitalization, nonstop innovation will continue to be key. So let’s innovate nonstop for a better future.”

Huawei hosts HUAWEI CONNECT 2021 online from September 23 to October 31. 

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CADS Additive And Designairspace Launch First SaaS Solution

CADS Additive And Designairspace Launch First SaaS Solution

3D metal printing software firm CADS Additive and virtual workstation provider designairspace has partnered that will let customers benefit from a Software-as-a-Service (SaaS) approach to 3D printing. The collaboration means CADS Additive customers can now use CADS Additive’s data preparation software AM-Studio online, on any device with an internet connection. Instead of buying an expensive workstation and licenses, this partnership means companies, employees, and freelancers can ‘rent’ the CADS Additive software for 3D printing in the cloud. They can choose a monthly or yearly plan that fits any budget. Subscriptions range from $282 per month to $10,000 per year.

The market for 3D metal printing is growing rapidly as more companies discover innovative ways of deploying this technology. CADS Additive’s software makes it much easier for any metal workshop in the auto, aerospace, rail or medical sectors to benefit from metallic additive manufacturing. However, until now they would also need to invest in a high-spec physical computer (typically costing several thousand dollars) and purchase a yearly subscription to run the software in their offices.

The new partnership with designairspace will make it more affordable and more flexible for companies to begin 3D metal printing. designairspace provides the underlying platform that is fine-tuned for the requirements of additive manufacturing software like from CADS Additive. A customer simply connects over the internet using any desktop, laptop or even tablet, and can begin using high-powered machines running CADS Additive from anywhere in the world.

The two companies will provide this solution as a service tailored to different budgets. If a customer only needs to use CADS Additive’s software for a few hours each month, the flexible fees mean they can find the right solution for their requirements. But if they need extensive access for multiple users, more comprehensive subscriptions are available. The subscription model makes 3D printing potentially more affordable than buying traditional licenses and installing it on local workstations.

“The cooperation with designairspace opens completely new ways for data preparation of metallic additive manufacturing. Providing our high-performance software in the cloud is a breakthrough milestone for 3D printing. We are proud to be part of this step towards the future of software deployment,” said Daniel Plos, Sales Director at CADS Additive GmbH.

A designairspace spokesperson added: “We partner with Independent Software Vendors of 3D printing, CAD, CAM and BIM to market and run their software as a pure SaaS model. Our mission is to be the world’s leading, born-in-the-cloud CAD and BIM reseller, making any CAD and BIM software available and affordable for anyone on the planet. We’re excited and honoured that CADS Additive has selected us for their SaaS journey”.

To try CADS Additive over the internet, please visit https://cads-additive.ondesignair.space/

Besides that, CADS Additive offers their software solutions AM-Studio and AM-Studio for Creo for traditional purchasing on yearly plans. CADS Additive is currently expanding its reseller network worldwide. Since start of 2021 CADS Additive has been working hand in hand with Aichi Sangyo as first reseller in Asia Region. Aichi Sangyo sells amongst other SLM Solutions machines in Japan and is responsible for our mutual customer HONDA Motorsports in Japan.

If you also want to become part of the CADS Additive reseller network visit the website https://www.cads-additive.com/en/become-reseller/ or contact CADS Additive via [email protected]

 

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Cloud-Edge And 5G Set To Propel Post-COVID-19 Value Creation

Cloud-Edge And 5G Set To Propel Post-COVID-19 Value Creation

More than ever, cloud compute and intelligence platforms should be as close to the source of data at the outer ‘edges’ as possible. The importance of cloud-edges is further highlighted in their relationship with 5G, which forms a symbiotic association with cloud-edge as a technological evolution of the cloud. Cloud-edge implementations promise new growth for the telecom industry. Revenue from cloud-edge AI chipset sales is set to grow from US$2.6 billion in 2020 to US$12 billion in 2025, at a compound annual growth rate (CAGR) of 36 percent , finds global tech market advisory firm ABI Research.

The synthesis of cloud-edge and 5G presents an opportunity for communications service providers (CSPs) to provide complete end to end solutions for enterprise verticals. For example, with their robust connectivity and 5G assets, the likes of AT&T, Telefonica, Verizon, and Vodafone could move up the value chain to service enablement layer for IoT, analytics, and other horizontal capabilities. “A combination of cloud-edge compute and 5G ultra-reliable low latency connectivity is going to be the bedrock to propel post-COVID-19 growth. This growth is not just for telecoms, but also for a multitude of asset-heavy industries as they embrace digital-first processes and operations,” says Don Alusha, Senior Analyst at ABI Research.

At present, there is no “right” business model for cloud-edge deployments. A key strategy for vendors like MobiledgeX, Ericsson, and Nokia is to target their products at the circumstances in which enterprises find themselves, rather than to enterprises themselves. In other words, the critical unit of analysis must be existing operations and associated commercial circumstances, not the customer. There is a mass of enterprise requirements that must be satisfied with cloud-edge implementations that do not fit the ‘one-size-fits-all’ profile. The ability to deploy edge-clouds across dispersed sites and supply chains in a uniform fashion is bound to be the defining feature to accelerate edge-cloud diffusion. This is particularly significant in a post-COVID-19 world where local compute, 5G, and fiber will continue to be the foundation for continued innovation and value creation.

As telecoms look closely at current market dynamics for cloud-edge opportunities, the key is to understand where it stands in terms of existing assets and complementary control points. The market for cloud-edge deployments promises growth, but it is composed of a plethora of players and technologies which must be intimately understood. At present, the industry does not have all the answers but should realize the choke points in the near term to obtain growth in the long run. For example, CSPs need a clear sense of the industry or industries) they currently serve and what additional opportunity falls within the boundary of cloud-edge as they take the lead to rejuvenate the global economy post-COVID-19.

“Lastly, hyper scale providers like Amazon and Microsoft are taking advantage of their lean operations to launch their cloud-edge offering. They have the vision to build capabilities close to the edge, but they do not necessarily have the penetration and distribution of network capabilities that CSPs have. Clearly, there is an opportunity to be addressed by somebody, but the jury is still out on who captures what parts of the emerging cloud-edge and 5G ecosystem,” Alusha concludes.

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Five Ways To Enhance CNC Machine Manufacturing With The Cloud

Five Ways To Enhance CNC Machine Manufacturing With The Cloud

Considering shifting your manufacturing into the cloud? Read the practical steps from Naveen Nadesan, ANCA Motion Global Marketing Manager, to make the most of the move.

Connectivity with the world is now something we take for granted in our everyday lives. We no longer need to be in the office to check emails, receive calls or even access our files. We can be anywhere in the world and, thanks to the cloud and mobile technology, still be connected. It’s a world of digital transformation that now applies to CNC machines.

READ: Taking metal to the cloud

New cloud-based management software, along with the Internet of Things – that is the networking of machines that send and receive data – are helping us design, test and produce parts no matter where we are, or where our facilities are. Pooling of live data in t  he cloud means we can now optimise our processes in real time, even from the other side of the world.

Here are five ways the cloud will enhance CNC machines.

1. The cloud improves CNC machine productivity

“We need more of it and faster.” Ever heard that one? Cloud-based management of CNC machines can improve productivity through the removal of complex workflows, reduced costs for installation and manufacturing and the big one… automation.

Think also of the productivity gains that are possible when operation staff can access information and collaborate remotely as well as make updates in real-time from multiple locations.

Automation on machines also means you can reduce the cost of doing business as manufacturers can run part batches ‘lights out’. This means that no matter where in the world you can be competitive – even in traditionally higher cost labour regions.

READ: Outlook For Cloud Computing Market

2. The cloud offers greater visibility

Cloud-based management of your machines gives you the ability to monitor them and production in real time and make faster, informed decisions about your capabilities.

This greater visibility provides insight into your supply chain and usage patterns including production levels, inventory, available capacity, quality levels and order status – without delay. This in turn will help you manage customer expectations around delivery.

3. Less downtime for more business continuity

How much time did you lose last year to unplanned machine downtime? CNC machines that are connected to the cloud provide constant data about their health and productivity. Sharing this information across the business can help identify production problems, including root causes, and also help predict machine failures before they happen.

The cloud is also your secure, offsite data backup. If and when something goes wrong there’s no need to worry about when the last manual back up was done – it’s automatically taken care of.

READ: Microsoft Announces Cloud And IoT Updates For Manufacturing Industry

4. More solid security

There is often a concern that the cloud may not provide the same IP protection as on-site data management. The truth is that the cloud may be less risky than your existing setup. Moving to the cloud means your business can access the policies and controls of your cloud host, without paying for the cost of maintaining facilities and hardware.

According to the World Intellectual Property Association, most IP data breaches occur internally as a result of access and privilege abuse. The cloud allows you to create levels of security and encryption to better protect your IP from internal abuse.

A proper cloud management suite can provide data encryption, automated software updates, automated backup and data centre grade security without the cost of having a full-time IT department.

5. Improved CNC Machine quality

Quality and precision are everything when it comes to high end CNC machined parts. Even small variances in performance can cause manufacturing disruption and costly recalls.

Cloud technology is helping tool manufacturers more easily develop customer scripting and maintain a high level of accuracy, even on large batches.

It also helps enable virtual simulation of tooling and modelling which can reduce waste and speed up trials.

Cloud-connectivity is the next big step for CNC machines. By taking the leap your business can reap the time, security, cost and productivity rewards, not to mention increasing visibility over operations no matter where you are in the world.

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Taking Metal To The Cloud

Taking metal to the cloud

Here’s a look at how cloud computing is transforming metalworking. Article by John Young, EU Automation.

Metalworking has played a pivotal role in the evolution of mankind, so much so that there are entire periods of history named after metals. While the Iron and Bronze Ages are behind us, society is framed by a whole other frontier of technology — The Information Age. But can the legacy of metalworking and the evolution of digitalisation work in unison?

Despite its deep-rooted history, metal fabrication remains an essential process in modern manufacturing. Rising urbanisation and industrialisation, burgeoning automotive and aerospace industries and new advancements in metal forming are just some of the many reasons why metalworking faces increased demand and expanding production.

As the Internet of Things (IoT) hits the shop floor, insight into its vast network of communicating machinery is accompanied by an ever-increasing access to the internet. The more machines ‘talk’, the more information they produce and as we enter the dawn of a data-driven era, managing this information is integral to its value.

Up in the Air

Also called ‘The Cloud’, cloud computing refers to software applications that run on remote servers instead of a user’s onsite IT infrastructure. The on-demand computing resource is gaining significant traction across industries that are looking to easily manage and access their data from anywhere in the world.

Regions all over the world are beginning to adopt the technology—and the Asia-Pacific region is no exception to the trend. In fact, the APAC region has been keen to reap the benefits of cloud computing across many of its industries.

Established in 2010, the Asia Cloud Computing Association (ACCA) represents the stakeholders of Asia’s cloud computing ecosystem and works to accelerate the growth of the technology across the region. According to ACCA’s 2018 Cloud Readiness Index (CRI), Singapore is APAC’s most cloud-ready region and, alongside Hong Kong, is a global leader in cloud readiness. Far ahead of larger economies such as the United Kingdom, Germany and the United States, Singapore represents the APAC region’s swift adoption of the technology.

Blue Skies Beyond

Effective implementation of cloud computing goes beyond connecting your shop floor devices to the sky—it means connecting your shop floor to the rest of the business. With one accurate record on hand, employees, suppliers and partners can all refer to a single source of reliable information to increase consistency.

The innate scalability of cloud computing means that manufacturers can easily accommodate changes and growth to their projects. Resources can be leveraged on a pay-as-you-go or on-demand basis, which gives access to additional assets when required and without the need to invest in an expensive network of internal infrastructure.

Cloud computing can also accommodate product development with ease by facilitating collaboration with engineers and other members of the product development team much earlier in the design process, reducing the time frame from conception to launch.

Pass the Test

Quality often overtakes quantity in metal working, as errors can jeopardise both the function and appearance of products. One hurdle that manufacturers in the metal industry need to overcome is passivity.

Stainless steel doesn’t rust—in theory. Stainless steel is often corrosion resistant, but that doesn’t mean that it is completely impervious to rusting. To combat corrosion, the metal undergoes a treatment process known as passivation, which involves using an acidic solution to remove the free iron from the metal’s surface.

Once the surface iron is removed, the other components of the alloy—namely chromium and nickel—are left behind as a surface layer over the steel. Once these elements react with air, they form a protective oxide layer that prevents the steel from rusting.

More frequently, customers are asking for a passivity guarantee to ensure the quality of their steel. But measuring, verifying and reporting on an invisible layer of protective coating can be difficult, time-consuming and expensive. During testing, a section of steel that has undergone the same treatment as the end product is sent for verification from an independent lab.

However, concluding that the results from this sample are the same as those of the finished component is little more than an assumption—leaving manufacturers with little choice but to hope that the product passes the test. What’s more, receiving the test results can take hours, which could delay shipping if correction is required.

Cloud computing can provide a solution. With the help of a wireless tester, smartphone and cloud-based technology, data can be captured and reported from any location. Not only can IoT-enabled remote testing speed up the passivity process, but uploading the results to the cloud means that they can be shared with other departments and customers in an instant.

One surface technology company has already developed a cloud-based solution to streamline passivity testing. Walter Surface Technologies helps machine shops and fabricators leverage IoT technology with its cloud-based passivation app, which allows technicians to chart oxidation levels of stainless steel to measure its passivation state and seamlessly communicate it with the company’s customers.

Maintaining Efficiency

Perhaps one of the best uses of the cloud is as part of asset maintenance. Sensors that collect data on the health of equipment can send this information to the cloud for analysis. There, a streaming data processor transmits the sensor data to storage, otherwise known as a data lake.

The data is still raw at this point, so may contain irrelevant items. To turn the data into insightful information, it is sent to the big data warehouse where it is analysed with machine learning algorithms. These algorithms reveal correlations in datasets and detect any abnormal patterns.

This data collected can then be fed back into planned predictive maintenance (PPM) schemes and remote monitoring of equipment. Unlike reactive maintenance, which involves waiting for a piece of machinery to break, PPM can be used ahead of time to prevent breakdowns and downtime.

For example, a brake press used to bend sheet metal into complex shapes requires accurate control for precise bending. To maintain a high level of product quality, it is crucial that all the machines’ components are in perfect working order.

Let’s say a motor in the brake press is running at an abnormally high temperature. Data in the cloud would be able to flag this abnormality to prompt plant managers to get in touch with a parts supplier such as EU Automation before a breakdown occurs, drastically reducing the amount of associated downtime.

The days of the Bronze Age are long gone—but there’s no questioning that we’re in the golden age of digital manufacturing. Cloud computing boasts several benefits that allow the technology to deliver a scalable and insightful solution to a variety of industries. Metalworking may be one of society’s most ancient processes, but cloud-based solutions can help breathe life into the sector by monitoring its core processes, improving product quality and providing workers with actionable insight to increase efficiency.

 

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Microsoft Announces Cloud And IoT Updates For Manufacturing Industry

Microsoft Announces Cloud And IoT Updates For Manufacturing Industry

Microsoft announced a series of updates to help bring the promise of intelligent manufacturing closer to its customers and partners. Product updates include:

  • New enhancements to Azure Security Center, Azure Sentinel and Azure IoT Hub – Provides advanced threat protection to help Azure become the first major public cloud with end-to-end security for IoT for devices, hubs and cloud resources.
  • New digital twin capabilities for Azure IoT Connected Factory solution – Enhances security and certification management, providing manufacturers a digital twin of their OPC UA-enabled machines.
  • An expansion of Azure IP Advantage to IoT – Extends Azure IP advantage benefits to Azure customers with IoT devices connected to Azure.

In addition, Microsoft is announcing new solutions with industry-leading customers and partners. More than 25 innovative companies will join Microsoft including:

  • Electrolux, the Swedish home appliance manufacturer, launched a new Azure IoT smart connected air purifier and app. The Pure A9 removes ultra-fine dust particles, pollutants, bacteria, allergens and bad odors from indoor rooms.
  • Siemens Gamesa, the leader in renewable energy, is streamlining how technicians inspect industrial wind turbines and announced it is migrating its autonomous drone process to Microsoft Azure and Azure AI.
  • Bühler, one of the world’s largest provider of food processing solutions, is leveraging Microsoft blockchain technology to improve global food safety standards and reduce food poisoning rates, while increasing production efficiencies.
  • Intel is working with Microsoft on a new modern industrial PC reference design for factories and industrial applications. Using the reference design, device partners can build fully provisioned and customised industrial PCs that can be connected to a range of devices to discover, manage and analyse data in real time, using AI on the machine or in the Azure cloud.

Additional business updates include the newest book to our Future Computed book series: The Future Computed: AI and Manufacturing. The book will explore how manufacturers around the world are embracing AI in its businesses, sharing insights from Microsoft customers.

 

Future Of IT Infrastructure Is Always On, Always Available, Everywhere

Future Of IT Infrastructure Is Always On, Always Available, Everywhere

As more organisations embrace digital business, infrastructure and operations (I&O) leaders will need to evolve their strategies and skills to provide an agile infrastructure for their business. In fact, Gartner, Inc. said that 75 percent of I&O leaders are not prepared with the skills, behaviours or cultural presence needed over the next two to three years. These leaders will need to embrace emerging trends in edge computing, artificial intelligence (AI) and the ever-changing cloud marketplace, which will enable global reach, solve business issues and ensure the flexibility to enter new markets quickly, anywhere, anytime.

IT departments no longer just keep the lights on, but are also strategic deliverers of services, whether sourced internally or external to the organisation. They must position specific workloads based on business, regulatory and geopolitical impacts. As organisations’ customers and suppliers grow to span the globe, I&O leaders must deliver on the idea that “infrastructure is everywhere” and consider the following four factors:

Agility Thrives On Diversity

Bob Gill, Vice President at Gartner, said the days of IT controlling everything are over. As options in technologies, partners and solutions rise, I&O leaders lose visibility, surety and control over their operations. “The cyclical, dictated factory approach in traditional IT cannot provide the agility required by today’s business,” Mr. Gill said. “The need for agility evolved faster than our ability to deliver.”

Despite agility placing among their top three priorities for 2019, I&O leaders are faced with conundrum as a diverse range of products is available to them. “The ideal situation for I&O leaders would be to coordinate the unmanageable collection of options we face today — colocation, multicloud, platform as a service (PaaS) — and get ahead of the business needs tomorrow. We must reach into our digital toolbox of possibilities and apply it to customer intimacy, product leadership and operational excellence to establish guardrails around managing the diversity of options in the long term,” Mr. Gill said.

The need for agility will only increase, so the two key tasks of I&O leaders will be to manage the sprawl of diversity in the short term and become the product manager of services needed to build business driven, agile solutions in the long term. “I&O has the governance, security and experience to lead this new charge for the business,” Mr. Gill said.

Applications Enable Change

Infrastructure can save money and enable applications, but by itself, it does not drive direct business value — applications do. Dennis Smith, Vice President at Gartner, said that there is no better time to be an application developer. “Application development offers an opportunity to jump on the express train of change to satisfy customer needs and build solutions composed of a tapestry of software components enabled through APIs,” Mr. Smith said.

Gartner research found that by 2025, 70 percent of organizations not adopting a service/product orientation will be unable to support their business, so I&O engineers must engage with consumers and software developers; integrate people, processes and technology; and deliver services and products all to support a solid infrastructure on which applications reside.

Boundaries Are Shifting

Digital business blurs the lines between the physical and the digital, leveraging new interactions and more real-time business moments. As more things become connected, the data center will no longer be the center of data. “Digital business, IoT and immersive experiences will push more and more processing to the edge,” said Tom Bittman, distinguished Vice President at Gartner.

By 2022, more than half of enterprises-generated data will be created and processed outside of data centers, and outside of cloud. Immersive technologies will help to light a fire of cultural and generational shift. People will expect more of their interactions to be immersive and real time, with fewer artificial boundaries between people and the digital world.

The need for low latency, the cost of bandwidth, privacy and regulatory changes as data becomes more intimate, and the requirement for autonomy when the internet connection goes down, are factors that will expand the boundary of enterprise infrastructures all the way to the edge.

People Are the Cornerstone

I&O leaders are struggling to deliver value faster in a complex, evolving environment, hindering the ability of organisations to learn quickly and share knowledge.

“The new I&O worker profile will embrace versatile skills and experiences rather than reward a narrow focus on one technical specialty,” said Kris van Riper, managing vice president at Gartner. “Leading companies are changing the way that they reward and develop employees to move away from rigid siloed career ladders toward more dynamic career diamonds. These new career paths may involve experiences and rotations across multiple technology domains and business units over time. Acquiring a broader understanding of the IT portfolio and business context will bring collective intelligence and thought diversity to prepare teams for the demands of digital business.”

Ultimately, preparing for I&O in the digital age comes down to encouraging different behaviors. Building competencies such as adaptability, business acumen, fusion collaboration and stakeholder partnership will allow I&O teams to better prepare for upcoming change and disruption.

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Stronger Public Private Partnership Required To Drive Industry 4.0 In Malaysia

Stronger Public Private Partnership Required to Drive Industry 4.0 in Malaysia

KUALA LUMPUR, MALAYSIA: IDC believes that the 2019 Malaysia National Budget recently announced by Lim Guan Eng, the Finance Minister of Malaysia, was an important incremental step in achieving Malaysia’s vision to become a fully connected digital economy. The recent budget focused on the Industry 4.0 blueprint, titled “Industry4WRD”, which aims to make Malaysia the prime destination for high-tech industries in the region. The government plays a central role in the successful implementation of a robust Industry 4.0 strategy by creating clear policies and priorities to support the private sector. Initiatives like Industry4WRD focus the energy and creativity of the private sector around a common mission to create an era in which AI, robotics, 3D printing, and IoT will take centre stage and lead to digital transformation in Malaysia. IDC believes that direct support for Public-Private Partnerships (PPP) is necessary to focus Malaysia’s resources and boost the economic growth of the country.

The Malaysian government is continuing to adopt the necessary policy changes and budget priorities to strengthen the economic foundation for digital transformation and technology investments. For example, on November 7th, Malaysian Technology Development Corporation (MTDC) Sdn Bhd invited small and medium enterprises (SMEs) to embrace the fourth industrial revolution with the launch of the Centre of 9 Pillars (Co9P) initiative. This centre creates a physical location for ecosystem partners to interact for the development and incubation of solutions based on nine technology pillars including; Big Data Analytics, Autonomous Robots, Simulation & Augmented Reality, Horizontal & Vertical Integration, Internet of Things (IoT), Cybersecurity, Cloud, Additive Manufacturing and Supply Chain. IDC forecasts the size of the Big Data/Analytics investment in Malaysia will be $US670 million in 2019 led by the Banking industry while spend on IoT will be US$2.2 billion with the largest investment going into Manufacturing (2018 Big Data Spending Guide, 2018 IoT Spending Guide).

For almost a decade, IDC has been chronicling the emergence and evolution of the 3rd Platform of technology; the drive into Cloud, Mobility, Social and Big Data/Analytics technologies. The adoption of these technologies has accelerated as enterprises commit to the 3rd Platform and undergo Digital Transformation (DX) on a massive scale. Malaysia’s digital economy is in the early stages of creating an infrastructure with key core technologies (cloud, big data/analytics, artificial intelligence [AI], mobility, social business, robotics, internet of things [IoT], and 3D printing) for better public services and an economic boost. Rapid advances in cloud computing, connected devices, mobile, social media and data analytics are contributing to the growth of SMEs in Malaysia. SMEs constitute 98.5% of the total businesses and will spend US$2.7 billion on new technologies in 2019, according to IDC’s 2018 Small and Medium Business Spending Guide.

“The growth of digital economies is becoming an ever more impactful part of the global economy. The transition to a digital economy is a key driver of growth and development because it can provide a boost to the country’s productivity across all sectors and it creates an attractive environment for new investments from outside Malaysia. As the fourth industrial revolution becomes a key driver of the digital economy, entrepreneurs and SMEs need to assess fundamental aspects of their business, including what products and services they sell, how they deliver them to the market, the new skillsets required and how they need to organize to support their operations. Now is the time to take advantage of the new policies of the government and partner to accelerate new digital businesses,” said Randy Roberts, Research Director IoT and Telco, IDC Asia Pacific.

IDC strongly supports the new government’s plan to launch the National Fibre Connectivity Plan in 2019. This plan aims to develop broadband infrastructure to achieve a target of 30 Mbps speed per customer in rural and remote areas of the country within 5 years. This plan follows the implementation of the Mandatory Standard Access Pricing (MSAP) announcement from MCMC earlier this year that has successfully lowered broadband prices in order to connect more citizens to the digital economy.

“The high cost of a broadband connection in Malaysia has been one of the reasons small enterprises have delayed moving their business online. Government policies that improve the affordability, access and speed of broadband connectivity will increase the adoption of digital services and show the readiness of the economy to support digital initiatives” said Randy Roberts, Research Director IoT and Telco, IDC Asia Pacific.

IDC has documented examples of successful Public-Private Partnerships in the region, including Indonesia and Singapore, where the combination of public policy and entrepreneurship is driving the digital economy including smart city and mobile commerce services. In order to ensure the success of the digital initiatives in Malaysia, the government needs to consistently communicate the country’s digital priorities. The private sector should then follow with investment and development of resources in those areas, including development of key skillsets in the workforce to retain local talent.

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