Image credit: NS Business
KUALA LUMPUR: The fourth Industrial Revolution (IR4.0) is, no doubt, revolutionising the way companies manufacture, improve and distribute their products. Manufacturers are integrating new technologies, including Internet of Things (IoT), cloud computing and analytics, and artificial intelligence (AI) and machine learning into their production facilities and throughout their operations.
These smart factories are equipped with advanced sensors, embedded software and robotics that collect and analyse data and allow for better decision making.
IBM Asia-Pacific general manager Paul Burton is steadfast in his belief that businesses which do not embrace digital transformation and latest technologies would not survive beyond the next two to five years.
"The world is becoming real-time as now there are instruments everywhere, data everywhere, and the computing power is huge compared to 10 years ago," he said.
He gave an example of the term Homo Economicus, which is the perfect man or woman who has the perfect and real-time information, unlimited computing ability and can scale in real time and because of that they can come up with the optimal results.
"But that was never real back then, but now if you think about it, we have clouds that scale linearly. We have all this information that comes from the edge and all the information can be processed in real time and with all the analytics model and the data science that we have, you can actually get to an optimal result in real time. So the idea of Homo Economicus was never real until now," said Burton.
"And now with data science, cloud computing, and with all the tools and technologies, we can actually deliver to decision makers unbelievable telemetry that helps them make the best decisions," he said, adding that those decisions can be automated, which means "as a leader, a decision maker, you just take your pick. You don't have to worry about the mundane routine things because all that is done automatically by technology."
Burton said all the data science, automation, and cloud computing that is happening is freeing the executives up to think creatively and long term on where we want to be.
"So this is so much different from what it was 20 years ago. Before this the Homo Economicus was just an idea but now it is real," he said.
"And IBM is well positioned to bring cloud computing technologies, decision science, quantum computing all of these together to realise the promise of Homo Economicus," he added.
IR4.0
Burton said that today's IR4.0 environment is an unforgiving one that has created a 'wide gap' between visionary businesses (which embrace digital transformation and latest technologies) and others which are 'set to fall further behind' due to lack of digitisation.
"In the 1990s when the internet was introduced to the world, everything started to revolve around it leading to the emphasis on analytics and cloud," said Burton. "Technology is the transformative engine of everything."
Now that the world is moving into the IR4.0 era of 5G and more powerful connectivity, Burton foresees technologies like artificial intelligence (AI) and internet-of-things (IoT) would further accelerate disruption for governments and businesses.
"Back in the 2000s, it was all about harnessing data and what the industry termed then as the 'information agenda'," said Burton. "With 5G, the IR4.0 vision is now coming to reality – and how they can be applied appropriately for governments and businesses," said Burton.
Time for Asia
Asia Pacific has 2.6 billion people, a third of the planet in this planet, currently the GDP of the US and EU is bigger than Asia, but not for long.
"The demographics in the US and EU are old, but in Asia the demographics are bottom loaded with many young people. So the young people consume and spend money. What that means is that the economic growth in Asia should be much bigger in the US or Europe. So this is definitely a decade for Asia to move into a leadership position," said Burton.
He said the big data, data science and analytics, which is part of IR4.0 has been evolving and what makes IoT interesting as part of IR is that now we have 5G.
"So that's going to light the IoT on fire because you have low latency, high bandwidth communications with 5G, and your devices at the edge plus all the analytical capabilities are mature enough to deal with all that data to give real-time decision making, so in a sense we're closing the circle," he explained.
However, Burton the IR4.0 doesn't mean anything if you don't have the vision to use it.
"The technology is there, but what is the application for the technology? So if businesses and governments need to define the use cases to consume or apply the technology," he said.
In Malaysia's case, two-thirds of the GDP comes from digitising the government and enterprises, and Malaysia probably coming closer to 25 per cent, so the consumption of technology is big.
"The use case scenario can be as a government, how do it provide digital services to the citizens, and as a business how do I automate, and digitally transform the business to decrease cost, increase the velocity of the business and provide more value," he said.
For the manufacturing industry especially, Burton said that latest technologies like hybrid cloud, analytics, AI and IoT would be instrumental for manufacturers to realise greater operational efficiencies and productivity.
"These core technologies that encapsulate IR4.0 coupled with a strong security framework builds a solid foundation for manufacturers to 'survive and thrive' in a post-pandemic environment," said Burton.
For Malaysia to move forward
Burton viewed Malaysia as being 'ripe for modernisation'.
"There's a lot of upside for Malaysia. Day-to-day operations can be automated, enabling leaders and executives to think and act creatively about possibilities moving forward," said Burton.
He said that other industries could learn from Malaysia's electronics and electrical (E&E) industry which is 'well ahead of the curve in embracing the latest technologies.
At IBM's end, Burton said that the company was committed to helping Malaysia with its IR4.0 aspirations.
"IBM can bring 'best of breed' practices into Malaysia and to help the country with use cases and proofs of concept, while our local ecosystem can work with government and businesses to have them deployed locally," said Burton.
On the Malaysian workforce, Burton emphasised the need for reskilling – such as computer programming skills – relevant to IR4.0.
NST had previously reported how IBM had embarked on a collaboration with Politeknik Balik Pulau (PBU) and Universiti Malaysia Terengganu (UMT) to set up the IBM SkillsBuild program to increase industry-relevant high-value talent.
"In the digital economy, the 'new collar' worker is required to both perform technical and non-technical skills, workplace trends, and professional skills such as presentation skill, effective communication, and collaboration can be acquired which can build up students' portfolios.
"There's an urgent need to bridge the skills gap, and to empower people with relevant IR4.0 living skills. We need the right people, with the right skills in the right job," said Burton.
"This way, Malaysia would be in a stronger position to consistently evolve and adapt with the times."
Burton reiterated that IBM would continue to be a 'partner in growth' for Malaysia.
"Our continued partnership with the government and businesses with emphasis on digital skills and digital infrastructure development would further strengthen Malaysia's competitiveness, bolster the economy and contribute to overall growth," he said.
"To further strengthen Malaysia's innovation ecosystem, it is imperative for national level policies to be focused on digital trade policies built on the principles of trust and transparency," said Burton.
Source: https://www.nst.com.my/lifestyle/bots/2022/08/825407/tech-ibm-expresses-commitment-help-malaysia-ir40-aspirations