This is a brief summary of some of the major differences between the New Normal and the Great Bounce Forward. I look forward with excitement and some trepidation towards this future. One where business success will be dictated not only by our customer obsession, but also the ability of our business to pivot, shift, change and adapt.
I can’t tell you what will happen in the future – a green revolution? Another pandemic? A major war? A global recession? Market hypergrowth? All the people living life in peace? Imagine that…
What I can tell you is what your organisation needs to do to be able to meet all of these challenges head-on and set yourself up for success. And to me, that won’t look like the new normal. There is nothing normal about these business capabilities at all.
The Need to enable Foundational Shifts. The younger generation is more aware of environmental, social and governance issues that the world continues to face. Many of the countries in the region are emerging economies, where these issues become more apparent. COVID-19 has also inculcated an empathy in people and they are thinking of future success in terms of impact. The desire to enable foundational shifts is giving direction to the transformation journey in the region. The wonderful new paradigm that is the Digital Economy allows us to cut across all segments; and technology and its advancements has immense potential to create a more sustainable and inclusive future for the world.
Realising the Power of Momentum. The pandemic has caused major disruptions in the region. But every crisis also presents an opportunity to perhaps re-imagine a brighter world through a digital lens.The other thing that the pandemic has done is made people and organisations realise that to succeed they need to be open to change – and that momentum is important. As organisations had to pivot fast, they realised what I have been saying for years – we shouldn’t “let perfect get in the way of better”. This adaptability and the readiness to fail fast and learn from the mistakes early for eventual success, is leading to faster and more agile transformation journeys.
Where are we seeing the most impact?
Industries are Transforming. There are industries such as Healthcare and Education that had to transform out of a necessity and urgency brought about by the COVID-19 pandemic. This has led to a greater impetus for change and optimism in these industries. These industries will continue to transform as governments focus significantly on creating “Social Safety Nets” and technology plays a key role in enabling critical services across Health, Education and Food Security. Then there are industries, such as the Financial Services and Retail, that had a strong customer focus and were well on their digital journeys before the pandemic. The pandemic boosted these efforts.
But these are not the only industries that are transforming. There are industries that have been impacted more than others. There are several instances of how organisations in these industries are demonstrating not only resilience but innovation. The Travel & Hospitality industry has had several such instances. As business models evolve the industry will see significant changes in digital channels to market, booking engines, corporate service offerings and others, as the overall Digital Strategy is overhauled.
Technologies are Evolving. Organisations depended on their tech partners to help them make the fast pivot required to survive and succeed in the last year – and tech companies have not disappointed. They have evolved their capabilities and continue to offer innovative solutions that can solve many of the ongoing business challenges that organisations face in their innovation journey. More and more technologies such as AI, machine learning, robotics, and digital twins are getting enmeshed together to offer better options for business growth, process efficiency and customer engagement. And the 5G rollouts will only accelerate that. The initial benefits being realized from early adoption of 5G has been for consumers. But there is a much bigger impact that is waiting to be realised as 5G empowers governments and businesses to make critical decisions at the edge.
Tech Start-ups are Flourishing. There are immense opportunities for technology start-ups to grow their market presence through innovative products and services. To succeed these companies need to have a strong investment roadmap; maintain a strong focus on customer engagement; and offer technology solutions that can fulfil the global needs of their customers. Technologies that promote efficiency and eliminate mundane tasks for humans are the need of the hour. However, as the reliance on technology-led transformation increases, tech vendors are becoming acutely aware that they cannot be best-in-class across the different technologies that an organisation will require to transform. Here is where having a robust partner ecosystem helps. Partnerships are bringing innovation to scale in Asia.
We can expect Asia to emerge as a powerhouse as businesses continue to innovate, embed technology in their product and service offerings – and as tech start-ups continue to support their innovation journeys.
Ecosystm CEO Amit Gupta gets face to face with Garrett Ilg, President Asia Pacific & Japan, Oracle to discuss the rise of the Asia Digital economies, the impact of the growing middle class on consumerism and the spirit of innovation across the region.
Last year Microsoft’s industry updates showcased several IoT implementations across industries and their edge-based solutions portfolio, customers and partner ecosystem. The tech giant revealed nearly 150% YoY growth with customers such as Starbucks, Chevron, Walmart, Walgreens, BMW and Volkswagen added to the Azure platform, leveraging IoT services to accelerate their digital transformation journey. Microsoft also announced more than 70 partnerships with some of the big names in the IoT ecosystem, such as Universal Electronics, SAP, and Cradlepoint to extend solutions and support for the Microsoft IoT business.
Extending IoT Capabilities with Strategic Partnerships
There were several recent announcements which indicate that Microsoft is focused on strengthening their IoT and industry capabilities – and this is a timely move. Ecosystm Principal Advisor, Kaushik Ghatak says, “COVID-19 has brought to the fore the need for managing risks better. And the key to managing risks is to have better visibility and drive data-driven decisions; the sweet spot for IoT technologies. IoT is at the core of the Industry 4.0 story where deep domain expertise in industry verticals is a pre-requisite to success. It is heartening to see that Microsoft is taking the lead in building a powerful ecosystem by developing key partnerships with leading providers of Industry solutions.”
Last week, Microsoft and Hitachi announced a strategic alliance to accelerate the digital transformation of the Manufacturing and Logistics industries across Southeast Asia, Japan and North America. The first solutions are expected to be made available in Thailand as early as this month. Hitachi brings to the table their industry solutions, such as Lumada, and their IoT-ready industrial controllers HX Series. These solutions will be fully integrated with the Microsoft cloud platform, leveraging Azure, Dynamics 365 and Microsoft 365.
The three areas where the Hitachi solution is expected to bring strength to Microsoft’s industry offering are:
Process optimisation and increased manufacturing productivity. Hitachi Digital Supply Chain and Azure IoT leveraged to analyse 4M data collected from manufacturing sites for visualisation/ analysis of production processes
Logistics optimisation. Digital technologies such as Azure Maps and Hitachi Digital Solution for Logistics/Delivery Optimisation Service to analyse data on parameters such as traffic congestion, storage locations and delivery locations, to enabling smart routing
Predictive maintenance and remote assist. HoloLens 2, Dynamics 365 Remote Assist and other smart devices, to empower first-line workers
Ecosystm Principal Advisor, Niloy Mukherjee feels that with projections of 43 – 100 billion IoT connected devices in the next few years, IoT is obviously a hot space. “We can think of IoT as a stack with four layers – the devices/sensors, the connection layer, the cloud and computing layer and the business apps layer. With Azure, Microsoft is very well positioned in the cloud and compute layer and can grab a large chunk of this fast-growing market. Tying with players like Hitachi allows Microsoft to integrate with the business apps layer and perhaps also some devices. It is absolutely the right strategy and I would expect them to go for many more such alliances. With Microsoft’s strength in the enterprise market, IoT gives them a great opportunity to increase their share of cloud workloads with customers.”
Addressing the Challenges of IoT Adoption
Ecosystm research shows that the biggest challenges in IoT adoption are security and integration concerns (Figure 1).
In 2018, when Microsoft started actively focusing on IoT, they also launched the Azure Certified for IoT program to maintain consistency and enhanced interoperability across their device partner ecosystem. This addresses the integration challenges that organisations face when deploying IoT. Microsoft continues to grow their IoT ecosystem, ensuring faster IoT deployments, with hardware and software that has been pre-tested and verified to work with Microsoft Azure IoT services. Last week also saw Cyient joining Microsoft Azure as a certified partner for IoT. Cyient IoT Edge Gateway 5400, their flagship IoT gateway product is now Microsoft Azure Certified for IoT. This is expected to accelerate IoT deployment for Cyient customers and enable a seamless integration of edge devices to the cloud.
Ghatak says, “To scale up their IoT business, Microsoft would need to develop a substantially large ecosystem, beyond few key players such as Hitachi, who dominate at the large enterprise segment of the market. That is where partnerships with smaller and niche industry solutions providers such as Cyient fits in. More niche providers such as Cyient will increase Microsoft’s reach into medium and smaller segments of the enterprise market.”
Addressing the Increasing Threat Landscape
Recent cyber-attack trends and security breach statistics reveal a huge increase in cybercrime activities, in the wake of the COVID-19 pandemic. As the number of IoT sensors, devices and gateways increase, so does the risk of security breaches. As shown in figure 1, cybersecurity concerns are real and can act as a barrier to IoT adoption, despite the benefits that the technology brings. Automated vulnerability management capabilities, that allow risk assessment and patch installation where necessary will see an increase in IoT adoption.
To complement Microsoft Azure IoT security, Microsoft acquired IoT security specialist CyberX, last month. The acquisition will enable greater security for the IoT devices connected to the Microsoft network and will help their customers to gain visibility through a map of devices thus allowing them to gather information on security risks associated with thousands of sensors and connected devices. This will enhance smart grid, smart manufacturing and digital assets and profiles and reduce vulnerabilities across production and supply chain.
Mukherjee says, “The key concern for the expansion of IoT into more and more use cases in the next few years is really going to be security. New areas like VR and AR are emerging from futuristic fantasy to real-world reality. These will tempt many enterprises – but security will be the key concern to address. And so, Microsoft’s simultaneous push on security completely aligns with this. As the Ecosystm MSSP VendorScope results show Microsoft’s strategy on cybersecurity seems to be working.”
Talking about Microsoft’s go-to-market strategy, Mukherjee adds, “Microsoft is obviously spreading its net far and wide for all cloud applications including IoT, to go-to-market with partners. One of the key focus area here is the SME segment, which is forecast to be one of the hot growing segments for IoT in the next few years. The more offerings from the business apps layer that Microsoft integrates, the more they enable their partners to sell to their customers.”