In Asia Pacific, the multi-cloud theme is being promoted heavily among integration providers with solutions that can plug into multiple clouds with virtual machine usage. Enterprises value enabled automated orchestration between cloud platforms. There will be a continued need for integrated tools across public and private clouds. This includes advanced analytics and AI as important aspects of an IT infrastructural investment.
Your choice of vendor for AI & Automation
In my opinion, AWS has the broadest AI service capabilities in the Asia Pacific cloud/ AI space, when compared to Microsoft, Google, and IBM. AWS provides users with pre-trained AI services for computer vision, language, recommendations, and forecasting to build, train, and deploy machine learning models at scale.
The Ecosystm VendorScope (Figure 1) rates the leading AI & Automation vendors in Asia Pacific based solely on quantifiable feedback from those who actually procure technology. It becomes clear from the responses that many organisations still start their AI journey through Automation.
Most organisations understand the importance of leveraging AI to gain competitive advantage. But they do not necessarily know where to start. The secret is that AI is about intelligent process automation, and the firms who understand this are not the ones automating tasks. The use of RPA with vendors such as Antworks, WorkFusion, Arago and Automation Anywhere, leverages automated reasoning using knowledge-based problem-solving engines. These vendors add RPA to AI, not the other way around.
And domain-specific service providers have been creating the synergies for enterprises to link intelligent automation software and industry knowledge to create the necessary end-to-end workflows. An innate understanding of the specific business process is key to leveraging intelligent automation.
Focusing on developing a modern data supply chain process, with actionable analytics insights built into the infrastructure, can aid the development of self-service business intelligence capabilities along with visual data discovery solutions.
Cloud enablement solutions generate maximum business value by enabling IT with scalability and flexibility. This can reduce maintenance and security costs. A focus on cloud intelligence and scalability allows IT departments to concentrate more on innovative solutions, insights and systems that drive significant business growth. Now is the time, and speed is of the essence.
Ecosystm Vendorscope: AI & Automation
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I’m really excited to launch our AI and Automation VendorScope! This new tool can help technology buyers understand which vendors are offering an exceptional customer experience, which ones have momentum and which are executing and delivering on their promised capabilities. The positioning of vendors in Ecosystm VendorScopes is independent of analyst bias or opinion or vendor influence – customers directly rate their suppliers in our ongoing market benchmarks and assessments.
The Evolution of the AI Market
The AI market has evolved significantly over the past few years. It has gone from a niche, poorly understood technology, to a mainstream one. Projects have moved from large, complex, moonshot-style “change the world” initiatives to small, focused capabilities that look to deliver value quickly. And they have moved from primarily internally focused projects to delivering value to customers and partners. Even the current pandemic is changing the lens of AI projects as 38% of the companies we benchmarked in Asia Pacific in the Ecosystm Business Pulse Study, are recalibrating their AI models for the significant change in trading conditions and customer circumstances.
Automation has changed too – from a heavily fragmented market with many specific – and often very simple tools – to comprehensive suites of automation capabilities. We are also beginning to see the use of machine learning within the automation platforms as this market matures and chases after the bigger automation opportunities where processes are not only simplified but removed through intelligent automation.
Cloud Platform Providers Continue to Lead
But what has changed little over the years is the dominance of the big cloud providers as the AI leaders. Azure, IBM and AWS continue to dominate customer mentions and intentions. And it is in customer mentions that the frontrunners in the VendorScope – Microsoft and IBM – set themselves apart. Not only are they important players today – but existing customersAND non-customers plan to use their services over the next 12-24 months. This gives them the market momentum over the other players. Even AWS and Google – the other two public cloud giants – who also have strong AI offerings – didn’t see the same proportions of customers and prospects planning to use their AI platforms and tools.
While Microsoft and IBM may have stolen the lead for now, they cannot expect the challengers to sit still. In the last few weeks alone we have seen several major launches of AI capabilities from some providers. And the Automation vendors are looking to new products and partnerships to take them forward.
Without the market momentum, Microsoft and IBM would still stand above the rest of the pack – just not as dramatically! Both companies are not just offering the AI building blocks, but also offer smart applications and services – this is possibly what sets them apart in an era where more and more customers want their applications to be smart out-of-the-box (or out-of-the-cloud). The appetite for long, expensive AI projects is waning – fast time to value will win deals today.
The biggest change in AI over the next few years will hopefully be more buyers demanding that their applications are smart out-of-the-box/cloud. AI and Automation shouldn’t be expensive add-ons – they should form the core of smart applications – applications that work for the business and for the customer. Applications that will deliver the next generation of employee and customer experiences.
Ecosystm Vendorscope: AI & Automation
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A survey conducted by United Overseas Bank (UOB) in November 2019 illustrates that SMEs in Singapore are focusing on boosting productivity as they grapple with macro-economic and socio-political uncertainties this year. The UOB survey included 615 local SMEs with a revenue of less than S$100 million. Nearly half of the SMEs surveyed have a positive outlook for their business in 2020, while nearly a third are not so optimistic about it.
While cost reduction and new streams of revenue generation are top business priorities, more than half of the SMEs polled, mentioned increasing productivity as their top priority. Technology adoption has often been linked to an increase in productivity. SMEs in Singapore appear to be on the right track as currently 65% use digital solutions, mostly geared towards accounting, HR and customer relationship management. Digitalisation involves a widespread adoption of cloud and automation solutions. If we look at the key drivers of cloud adoption across all global organisations (Figure 2), we find that optimisation and productivity are key incentives.
Interestingly, the UOB survey also finds that more than half of SMEs in Singapore have sustainability goals. Resource optimisation and energy efficiency will also see higher adoption of technology in the future.
Government Initiatives Empowering SMEs
Government agencies and industry bodies have always been proactive in empowering SMEs with technological knowledge. There are various programs and initiatives to promote digitalisation, which have made Singapore SMEs competitive at a global level.
The Infocomm Media Development Authority (IMDA) is helping Singapore SMEs to scale and improve their digital capabilities, expand their network and go global through collaboration with multinational companies (MNCs). The SMEs Go Digital program launched in 2017, has seen an estimated 4,000 SMEs adopting pre-approved digital solutions.
Several organisations in Singapore – such as A*Star and Enterprise Singapore – have targeted programs for the SME community. One of the key challenges for SMEs that impacts their ability to invest in technology is a lack of internal IT skills. Initiatives such as the Technology Adoption Programme (TAP) recognise this and bring in multiple industry and technology stakeholders to translate new technologies into Ready-to-Go (RTG) solutions, aimed at SMEs.
Apart from technology, access to financing is a key factor that determines the success of an SME and remains a key focus of Singapore’s banking and financial sector. The digital wholesale licenses are also aimed at SME financing, especially targeting those that are unable to procure funds from traditional sources.
Technologies Enabling Digitalisation in Singapore SMEs
As mentioned earlier, cloud is the key enabler of digitalisation, giving organisations the ability to access solutions anywhere and anytime. Ecosystm research shows that 80% of SMEs in Singapore use an IaaS solution, while more than 75% use a SaaS solution.
There are programs that boost cloud adoption in Singapore SMEs as well. As an example, SMECEN, developed by the Association of Small & Medium Enterprises (ASME), and supported by Enterprise Singapore, Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS) is a SaaS solution with accounting, HR and compliance modules – integration with other business tools is on the cards.
Digitalisation will eventually involve investments in Automation and AI. For Singapore, AI is a key technology as it continues to focus on IoT, smart buildings, smart electricity, autonomous electric vehicles and other smart city solutions. The Government is working to open up access to data and AI tools so everyone can experiment. It especially wants to encourage SMEs to adopt AI and work on government use cases.
Singapore SMEs are ramping up their AI investments, especially in IoT sensor analytics (27%), machine learning (21%) and robotic process automation (16%), according to the Ecosystm AI study. Their key short-term drivers are insights into the competition and enhanced internal process monitoring. However, in the longer term, they are looking at cost reduction and better profit margins.
According to an OCBC survey in 2018, which polled 200 such companies, two-thirds of SMEs in Singapore are likely to go cashless by 2023. It is estimated that over 75% of Fintech transactions in Singapore are digital payments and it receives over a quarter of Fintech funding. Government initiatives such as FAST and SGQR, have opened up digital payment options for consumer use as well as for SMEs.
However, the UOB survey notes some concerns that SMEs have over digital payments adoption, including customer/supplier acceptance and security. This is an encouraging sign, which indicates that SMEs are not just adopting technology because of the hype – but are evaluating the pros and cons of tech adoption before embarking on a digitalisation project.
By creating a free account on the Ecosystm platform SMEs can benchmark their tech priorities and investments against their country, industry and global peers.