IBM is offering IT infrastructure with a new level of security and reliability to fuel Malaysia’s AI digital transformation!
AI Digital Transformation In Malaysia Needs Better IT Infra!
Malaysia is at a pivotal point in its digital journey, with businesses future-proofing their organisations by leveraging AI and automation.
The digital economy is now a cornerstone of Malaysia’s economy, contributing 23.2% of the nation’s gross domestic product in 2021. The Malaysia Minister of Communications and Digital, Fahmi Fadzil, anticipates that this will increase to 25.5% by 2025, with a value of RM382 billion. The National Tech Association of Malaysia is even more optimistic, and believes that the digital economy will hit that economic contribution much earlier.
The increased urgency in adopting cutting-edge technologies like AI is driving demand for better IT infrastructure. Better not just in terms of performance and availability, but also security and reliability.
An IDC report forecasted that AI spending in the Asia Pacific region alone will skyrocket to US$78 billion by 2027. And these AI investments are predominantly being funnelled into infrastructure provisioning. That’s because ultimately, digital transformation in any nation is reliant on its IT infrastructure.
IBM To Fuel AI Digital Transformation In Malaysia!
There is no one-size-fits-all approach to AI infrastructure. Organisations must provision the right infrastructure for the AI task at hand.
They have to not only look at the size and scale of the AI models and tasks, they also have to consider security and privacy issues, as well as regulatory compliance. A resilient infrastructure by design is also critical, with AI workloads becoming essential backbones to mission critical applications and workloads.
To that end, IBM Power Systems offer a secure and reliable platform for enterprises to perform inference, and run AI algorithms on their most sensitive data and transactions.
IBM Power Systems run on the Power10 core, which is designed for AI acceleration. Each Power10 core on the IBM Power S1022 can process up to 42% more batch queries per second than a comparable x86 server with a peak load of 40 concurrent users, while running large language AI models.
IBM Power10 systems also offers enterprise out-0f-the-box low-latency transactional capabilities and throughput, resiliency, continuous availability (99.999%) and concurrent replace and repair.
The IBM Power10 is also designed for greater efficiency. The Power E1080, for example, offers 3X the capacity with 52% lower power consumption for the same workload, compared to the Power E880C. It also offers 33% lower power consumption than the Power E980 for the same workload.
IBM claims that, in general, Power10 systems offer 6X more throughput per container cluster, and 40% to 50% lower cost than comparable x86 solutions.
On top of that, the IBM Power Systems are built to be secure by design, with a fully-integrated secured stack from processor chip to operating system, offering quantum-safe encryption and fully homomorphic encryption (FHE).
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Microsoft Asia and IDC Asia Pacific just released findings of a study which suggests that higher education institutions in APAC can double their rate of innovation with AI (artificial intelligence)!
APAC Higher Education Can Double Innovation With AI!
The Microsoft-IDC study – Future Ready Skills : Assessing APAC Education Sector’s Use of AI – found that AI (artificial intelligence) will help double the rate of innovation for higher education institutions.
This involves using AI to better manage student performance and enhance student engagements, while optimising operations to reduce work amongst the faculty and administrative staff.
Based on the study, the top business drivers to adopt AI in higher education include better student engagement, higher funding, and accelerated innovation.
Institutions that have already adopted AI say that they are seeing improvements in the rate of 11% to 28% in those areas.
By 2021, Microsoft and IDC predict that institutions using AI will experience the biggest jump in funding – 3.7X, which is higher than most industry sectors in Asia Pacific.
AI In Higher Education Case Study
Developing a globally engaged citizenry is one of Japan’s key priorities. However, many students avoid studying or going abroad, as doing so can delay them from taking classes they need to graduate.
The Faculty of Engineering at Hokkaido University, for example, has chosen to implement AI as part of its mission to encourage students to study abroad.
They developed a Microsoft Azure-based e-learning system that leverages AI and automation capabilities. This system lets students keep up with coursework back home, with course preparation streamlined from days to mere hours.
AI Skills Required For The Future Of Higher Education
Both education leaders and their staff are equally positive about the impact of AI on higher education jobs.
A large majority (61%) of both segments believe that AI will either help them do their jobs better, or reduce repetitive tasks.
21% of education leaders, and 13% of their staff also agree that AI will help create new jobs in higher education.
However, the requisite skills for an AI future are currently in shortage. The top three skills that education leaders believe will face a shortage in the next three years include :
IT skills and programming
Quantitative, analytical and statistical skills
The Study also noted a disconnect with the perception of education leaders of their staff’s willingness to reskill to adapt to an AI future.
26% of education leaders believe that their staff have no interest to reskill, but in reality, only 11% of their staff had no interest to reskill.
Microsoft and IDC Asia Pacific just unveiled the results of their latest study of the AI growth potential for Malaysia. Here is a video of their briefing, and a summary of their key findings!
The Microsoft-IDC Report On AI Growth Potential For Malaysia
The Microsoft-IDC report on AI growth potential for Malaysia is based on their 2018 survey of 100 business leaders and 100 workers in Malaysia.
Presenting the key findings were K Raman, Managing Director of Microsoft Malaysia, and Jun-Fwu Chin, Research Director for IDC Asia Pacific Datacenter Group.
Increased Innovation + Productivity
Titled “Future Reader Business: Assessing Asia Pacific’s Growth Potential Through AI“, it revealed that Artificial Intelligence (AI) will almost double the rate of innovation, and boost employee productivity by 60% by 2021.
Low Uptake Of AI So Far
Even though 70% of the business leaders surveyed believe that AI is instrumental for their organisation’s competitiveness, only 26% of organisations in Malaysia have begun their AI initiatives.
The Top 5 Reasons For Adopting AI
For those companies who have already started their AI initiatives, these are their top 5 reasons :
Better customer engagements (31%)
Higher competitiveness (31%)
Accelerated innovation (12%)
Improved efficiency (12%)
More productive employees (8%)
Initial Results Of AI Initiatives
For those companies, their AI initiatives have resulted in some tangible improvements of between 17% to 34% in those 5 areas. They forecast a further boost of 60% to 130% over a three-year horizon.
Malaysia Not Prepared
The study also evaluated the six dimensions critical to developing Malaysia’s AI growth potential, and found them wanting. In particular, Malaysia is weak in data and investments.
Top Three Challenges
Business leaders who are already adopting AI cited these three top challenges in realising their companies’ AI growth potential :
Lack of thought leadership and commitment to invest in AI
Lack of skills, resources and continuous learning programs
Lack of advanced analytics or infrastructure and tools to develop actionable insights
Leaders + Workers Are Positive About AI
The study also found that 67% of business leaders and 64% of workers in Malaysia are positive about AI’s impact on the future of jobs.
In addition, the study claims that workers are MORE optimistic about AI creating jobs than replacing them, than business leaders!
Editor’s Note :We find the high favourability by workers to be highly questionable, and have requested more information about the type of workers surveyed by IDC.
It is possible that the workers they surveyed are high-level executives who see AI as a useful tool that will enhance their jobs, rather than the job killers that many low-level executives and blue-collar workers are worried about.
Lenovo sponsored an IDC research on the questions that are foremost on the minds of corporate IT decision makers when it comes to digital transformation. Find out what they found out in the Lenovo + IDC info brief on Powering Intelligent Enterprise Transformation!
Lenovo + IDC on Powering Intelligent Enterprise Transformation
IDC ASEAN Research Director, Jun Fwu Chin, gave us a summary of their findings, which we recorded for your viewing pleasure!
Here is a snapshot of the IDC report on Powering Intelligent Enterprise Transformation :
Automation: In 2019, 25 per cent of IT development and operationprocesses will be automated, resulting in a 15 per cent gain in IT productivity and requiring IT to redefine skills and manage digital workers.
XaaS: By 2020, 90 per cent of large enterprises will generate revenue from data as a service—from the sale of raw data, derived metrics, insights, and recommendations—up from nearly 50 per cent in 2017 (Source: IDC FutureScape: Worldwide IT Industry 2018 Predictions)
Employee experience: By 2021, demand for top talent will result in 65 per cent of G2000 companies offering co-working and remote-work options that leverage pervasive access to enterprise and collaboration applications.
New revenue sources: By 2023, 30 per cent of G2000 companies will generate at least 20 per cent of their revenue outside their core industries, using crowdsourcing and agile aggregation models to source talent and business capabilities.
KUALA LUMPUR, 6 FEBRUARY – By 2021, digital transformation will add an estimated US$10 billion to Malaysia’s GDP, and increase the growth rate by 0.6% annually, according to a new business study. The research, Unlocking the Economic Impact of Digital Transformation in Asia Pacific, was produced by Microsoft in partnership with IDC Asia/Pacific.
Digital Transformation to Contribute US$10 Billion to GDP by 2021
The study predicts a dramatic acceleration in the pace of digital transformation across Asia’s economies. In 2017, about 7% of Malaysia’s GDP was derived from digital products and services created directly through the use of digital technologies, such as mobility, cloud, Internet of Things (IoT), and artificial intelligence (AI).
“Malaysia is clearly on the digital transformation fast track. Within the next four years, we expect to see approximately 45% of Malaysia’s GDP to be derived from digital products and services,” said K Raman, Managing Director of Microsoft Malaysia. “At the same time, organizations in Asia Pacific are increasingly deploying emerging technologies such as artificial intelligence as part of their digital transformation initiatives, and that will accelerate growth even further.”
The survey conducted with 1,560 business decision makers in mid and large-sized organizations across 15 economies in the region highlights the rapid impact and widespread disruption that digital transformation is having on traditional business models.
According to the research findings, business leaders expect to see more than 20% improvements in those key areas by 2020, with the biggest jump expected in customer advocacy.
Digital Leaders in Asia Pacific to Gain Lion’s Share of Economic Opportunities
The study indicates that while 85% of organizations in Malaysia are in the midst of their digital transformation journey, only 7% in the entire region can be classified as Leaders. These are organizations that have full or progressing digital transformation strategies, with at least a third of their revenue derived from digital products and services. In addition, these companies are seeing between 20 – 30% improvements in benefits across various business areas from their initiatives.
The study indicates that Leaders experience double the benefits of Followers, and these improvements will be more pronounced by 2020. Almost half of Leaders (48%) have a full digital transformation strategy in place.
“The pace of digital transformation is accelerating, and IDC expects that by 2021, at least 48% of Southeast Asia’s GDP will be derived from digital products and services, with growth in every industry driven by digitally enhanced offerings, operations and relationships. The study shows Leaders seeing double the benefits of Followers, with improvements in productivity, cost reductions, and customer advocacy. To remain competitive, organizations must establish new metrics, realign organization structures, and re-architect their technology platform,” said Daniel-Zoe Jimenez, Research Director Digital Transformation Practice Lead, IDC Asia/Pacific.
The Study identified key differences between Leaders and Followers in Asia Pacific, which contribute to the improvements tracked:
Leaders are more concerned about competitors and emergence of disruptive technologies: The digital economy has also given rise to new types of competitors, as well as emerging technologies such as AI that have contributed to the disruption of business models.
Business agility and culture of innovation are key goals: When addressing business concerns, Leaders are focused on creating a culture of agility and innovation to counter competition. Followers, on the other hand, are more focused on improving employee productivity and profitability.
Measuring digital transformation successes: Organizations across Asia Pacific are starting to adopt new key performance indicators (KPI) to better measure their digital transformation initiatives, such as effectiveness of processes, data as a capital, and customer advocacy in the form of Net Promoter Score (NPS). As organizations realize the potential of data as the new oil for the digital economy, Leaders are much more focused on leveraging data to grow revenue and productivity, and to transform business models.
Leaders are more aware of challenges in their digital transformation journeys: In addition to skills and cybersecurity threats as key challenges, Leaders have also identified the need to bolster their data capabilities through the use of advanced analytics to develop actionable insights in fast-moving markets.
Leaders are looking to invest in AI and Internet of Things: Emerging technologies such as AI (including cognitive services and robotics) and IoT are areas where Leaders are investing in for 2018. Besides these emerging technologies, Leaders are also more interested in investing in big data analytics to mine data for actionable insights than others.
Digital Transformation in Malaysia Will Ultimately Benefit Citizens
According to the business leaders surveyed, digital transformation will bring about these top benefits to society:
Potential increment to personal income through freelance and digital work
Creation of more higher value jobs
Increased educational and training opportunities
Smarter, safer and more efficient cities
Respondents in Malaysia felt that 96% of jobs will be transformed in the next three years due to digital transformation, and more than half of the jobs in the market today will be redeployed to higher value roles or reskilled to meet the needs of the digital age.
“The rise of digital transformation in Asia Pacific economies will affect the labour market where many types of jobs will evolve and change. What is encouraging is that 76% of the study’s respondents are confident that their young professionals already have future-ready skills that will help them transition to new roles. Governments and organizations should still focus on reskilling and upskilling, because continuous learning will be important in ensuring a successful workforce transformation for the digital age,” said K Raman.
In Malaysia, Microsoft has been empowering the digital transformation journey of the nation by providing cutting-edge technology to many leading organisations including primary healthcare provider, BP Healthcare. Doctor2U, its on-demand healthcare app which is built on Microsoft Azure and Microsoft Bot Framework, aims to create an entire healthcare ecosystem a single platform. The app features Doctor House Call service that brings a doctor to your doorstep within 60 minutes, video call or Live Chat with doctors, pharmacists and nutritionists for free, as well as medication delivery services, teleradiology platform and hospital information system, among others. As a result, Doctor2U has set themselves as a digital transformation leader by empowering clinicians, patients and care teams, effectively reducing delay and waiting time by 54%.
Riding the Wave of Digital Transformation
Organizations in Asia Pacific need to accelerate their digital transformation journey to reap the full benefits of their initiatives, and to address the invisible revolution brought about the mass adoption of AI. More importantly, companies need to focus on capitalizing their own data in order to gain new market insights, create new digital products and services, and monetize data through data sharing securely, and in collaboration with its ecosystem.
Microsoft recommends organizations to adopt the following strategies to become a digital transformation Leader:
Create a digital culture: An organization need to build a culture of collaboration where it is connected across business functions, and has a vibrant and mature ecosystem of customers and partners. Data can then be embraced across organization and functions, where better decisions can be made and ultimately serving the needs of customers and partners better.
Build an information ecosystem: In a digital world, organizations are capture more volumes of data internally and externally. The key to becoming a Leader is for organizations to be able to convert data into capital assets, and enable data sharing and collaboration internally and externally in an open yet trusted manner. In addition, a proper data strategy will allow businesses to start their AI initiatives to identify connections, insights and trends.
Embrace micro-revolutions: In most cases, digital transformation efforts do not start with widespread change, but a series of micro-revolutions. These are small, quick projects that deliver positive business outcomes and accrue to a bigger and bolder digital transformation initiatives.
Develop Future Ready Skills for Individuals and Organizations: Organizations today must relook at training and reskilling its workforce so that workers are equipped with future ready skill sets such as complex problem solving, critical thinking and creativity for the digital economy. More importantly, they need to rebalance the workforce to attain and attract key digital talents, as well as be open in creating a flexible work source model where they tap into skills-based marketplace. From a digital skills perspective, LinkedIn’s latest study outlines the ABCs of digital talents required for future economies in the region – artificial intelligence, big data and cloud computing. In Malaysia, the top in-demand skills are big data, software and user testing and mobile development.
MALAYSIA, JULY 17 2017 – Red Hat, Inc. today announced the results of a survey on enterprise mobility adoption in Malaysia, Singapore and Indonesia. The survey, conducted by IDC and commissioned by Red Hat, includes responses from 275 IT professionals across the three countries.
The survey results, detailed in the IDC InfoBrief – The Maturing Mobile Journey for Enterprises – ASEAN Perspectives, commissioned by Red Hat in February 2017, found that while a significant number of respondents claim to have a strategy in place around mobility, quite a few still struggle when it comes to processes, including execution. Furthermore, the survey also revealed that mobile-specific skills can be difficult to acquire and develop in Malaysia, Singapore and Indonesia.
Key Insights From The 2017 Enterprise Mobility Survey
1. Respondents in Malaysia, Singapore and Indonesia are moving beyond devices towards workflow mobility
Fifty-six (56) percent of survey respondents consider mobility strategic to their business, while 40 percent plan to focus on mobile application-related projects in the next 12 to 24 months.
Demand for mobile applications across the three countries is growing with legacy system integration being a priority
Seventy-six (76) percent of survey respondents either have budgets in place or plan to invest in mobile app projects within the next 24 months; 58 percent plan to deploy between one and five mobile apps within the next 24 months.
2. Survey respondents from Singapore view mobility as transformative
Forty-four (44) percent of survey respondents from Singapore consider mobility a strategic business priority; 24 percent have already deployed more than 10 apps in their organization; and one-third believe they have a mature mobile IT organization that can consistently deliver solutions to support their businesses.
3. Acquiring the right skill set is viewed as a challenge across the region
Nearly 50 percent of survey respondents believe their organizations have minimal or contracted skills to support mobile projects—this challenge was noted by 60 percent of respondents from Malaysia.
The IDC InfoBrief concludes that in today’s increasingly digital era, having a clear mobility strategy is an essential for organizations. As organizations continue to expand their mobile-related projects, having the requisite mobile-specific skills internally is expected to become a necessity, as managing and supporting these projects will require dedicated resources. Investing in this competency can help enable successful mobile deployments.
View On The The 2017 Enterprise Mobility Survey
”Mobility presents an opportunity for organizations to revisit business processes and engage customers in new ways. Red Hat Mobile Application Platform is well-poised to support this strategy by providing an agile approach to developing enterprise mobile applications, enabling enterprises to meet their mobile requirements and turn their mobile-first strategy into reality.” – Damien Wong, vice president and general manager, ASEAN at Red Hat
“Enterprise mobility remains high on the boardroom agenda for business leaders across most of the Asia/Pacific region, as organizations move past the experimentation stage to treating mobility as a key driver for digital transformation. The coming years will be an inflection point for mobility in the region as more enterprises continue to mobilize their core business processes through apps and related services to help drive sustainable business value and better user experience.” – Avinav Trigunait, associate director for enterprise mobility research, IDC Asia/Pacific
The 2017 Enterprise Mobility Survey Methodology
On behalf of Red Hat, IDC interviewed 275 IT managers and above from organizations in Malaysia, Singapore and Indonesia with more than 500 staff and a dedicated IT team focused on mobile, identifying insights related to mobile enterprise application strategy, budgeting, technology consideration, and implementation challenges. Survey respondents represented several verticals, including financial services (including banking and insurance); manufacturing and construction; communications and media; trading; transportation and utilities.
by Damien Wong, Vice President and General Manager, Red Hat ASEAN
2016 proved to be an eventful year for Red Hat. As the world’s leading provider of open source solutions, Red Hat plays a key role in helping organizations around the world transform as open source becomes a de facto standard for innovation in IT. As a nod to the role we play, Red Hat was again named to Forbes’ list of the “World’s Most Innovative Companies” earlier this year.
Red Hat’s innovativeness was manifested in several ways this year. We advanced the company’s open hybrid cloud portfolio with key innovations in containers, OpenStack, virtualization, application development, cloud management, storage, and more. Underscoring this, we were also recently recognized as a “Leader” in Gartner’s 2016 Magic Quadrant for Full Life Cycle API Management and in The Forrester Wave Report for Hybrid Cloud Management Solutions and Mobile Infrastructure Services.
In open source, the ecosystem plays a key role in offering customers broader choice. We are pleased to share that Red Hat advanced collaboration with key industry leaders, including Ericsson, Google, and Microsoft this year.
Taking a look back, in 2016 and the year prior, we also saw local enterprises signing on for Red Hat’s Training and Certification programs to help their IT teams be well-prepared to tackle critical real-world scenarios. In addition, we also recognized a local customer, Tenaga Nasional Berhad (TNB) as the 2016 Red Hat Innovation Awards APAC winner for Malaysia. TNB was awarded for embarking on an IT transformation journey to modernize its IT environment that was previously based on proprietary UNIX systems, into a modern open source platform based on Red Hat solutions.
Aside from that, in 2016, we also witnessed many organizations in Malaysia being receptive to the idea of embarking on a digital transformation journey by using new ways of developing, delivering and integrating applications as a response to the digital disruption we are seeing across industries. Through digital transformation, organizations are meeting growing customer expectations for digital services, and moving to technology solutions – including open hybrid cloud solutions – that can help them improve business agility, flexibility and scalability.
IDC also predicts that digital transformation in Asia Pacific (excluding Japan) may attain macroeconomic scale over the next three to four years, changing the way enterprises operate and reshaping the global economy. According to IDC, by 2020 half of the A1000 (APAC 1000 enterprises) will see majority of their business depending on their ability to create digitally-enhanced products, services and experiences. 2017 is expected to be a defining year for digital transformation.
I am optimistic that in the coming year, many organizations will make moves in order to better compete in the digital economy. Knowing there is a need to transform, I believe many CIOs will develop a holistic digital strategy in the upcoming year. This should not only focus on IT infrastructure, but more so around the remodeling of their businesses to be more agile and innovative. In relation to this, open source technologies present an ideal approach in terms of flexibility, a reinvention of processes, faster innovation through ecosystem collaboration, and scalability.
Open source is fundamentally about being part of an ecosystem of IT leaders, advocates, developers, and partners who work together to build the future of IT. We believe that businesses in Malaysia will continue to see Red Hat as an enabler – delivering the speed, flexibility, and innovation that they need in order to thrive in the age of the customer.
On 24 November 2016, SAP and IDC hosted an exclusive briefing on the future of the Malaysian Internet economy. The timing is impeccable because the Malaysian government has declared that 2017 should be the “Year of the Internet Economy“.
Their analysis and opinions on how Malaysian businesses and entrepreneurs should chart their courses going into 2017 are invaluable for anyone who wants to stay relevant in the new age of the Internet economy. We all need to stay on top of the wave of new developments, or risk having it crash on us.
2017 – The Year Of The Internet Economy
In 2015, the Malaysian Internet economy contributed 17.8% to the GDP (Gross Domestic Product), just shy of the 18.2% target set for 2020. On the back of this rapid growth in importance, Prime Minister Datuk Seri Najib Tun Abdul Razak called on Malaysians to “embrace, adapt to changes and explore new areas of growth to accelerate the economy“.
SAP Malaysia is in full agreement of this view. In the past decade, the rate of adoption of new technologies has accelerated and technology is changing the rules of business with disruption becoming the norm. This will accelerate in 2017 and local businesses need to absorb, understand and adapt to these underpinning seismic shifts taking place, particularly with regards to Internet of Things and Big Data Analytics.
SAP Malaysia Managing Director Terrence Yong kicked off the session with his view on the Malaysian digital economy, and how IoT and big data analytics are changing the way we make, buy and sell products and services.
IDC Asia-Pacific Research Director Chin Jun Fwu then shared his findings on the adoption of the latest IoT and big data analytics here in Malaysia, before SAP (Southeast Asia) Head of Analytics Kathleen Muller touched on the impact of data analytics and the Internet of Things, particularly for SMEs (Small and Medium Enterprises).
Unfortunately, the current adoption of big data analytics and IoT in Malaysia is low. The key takeaway is that price is not really the issue, but rather inertia. Even if they are aware of what they must do to adapt to the changing world, there is resistance to learning new ways.
That will have to change, soon. Otherwise, even the most established businesses may lose out to their more nimble competitors.