The client is a Malaysian technology company specialised in telecommunication industry. It provides providing services of multi-engineering contract works, maintenance and supply to telecommunication companies and government organisations. In view of the growing demand on customized technology solutions coming from its existing client base, the client has decided to venture into a new business line as the operator for a 4IR Application Centres.
FULL STORY
As the world has progressing into the 4th Industrial Revolution (4IR), the are increasing awareness among the business world to adopting 4IR technologies in business activities that will improve productivity and quality.
The client sees an opportunity to establish a 4IR Application Centres across the nation to provide end-to-end supports for SMEs in the 4IR digital transformation process. Due to the current business focus, the client has established strong partnership relationship with various overseas technology companies, research institutions & manufacturers. This gives the client a strong advantage to leverage on its partners’ technological strength for this business.
The establishment of these facilities at national scale would need massive investment and government supports. Realising the needs for a proper corporate set-up and implementation framework, the client had commissioned a study to prepare a robust business plan in support for its negotiations with investors and government authorities.
KEY OUTCOMES
The core idea of the 4IR Application Centres is to create a centralised ecosystem that bring together various digital technologies to demonstrate the possible applications in real life manufacturing process. This initiative will be able to educate the manufacturer and facilitate technology adoption which eventually improve their productivity and products’ quality.
The team started with a macro-economic analysis on the Malaysia manufacturing industry and its sub-sectors to establish a general understanding on the current digital maturity level of manufacturers in Malaysia. This included the assessment on business dynamics at regional, national and local context. Upon completion of this initial exercise, the study team managed to ascertain the current performance level of the local SMEs in terms of the digital adoption and digital literacy.
Subsequently, the study team selected one of the states in Malaysia as the site for pilot project of the 4IR Application Centres. Further analysis was done to determine the major businesses and manufacturing activities of the pilot site. Working with the technology specialists onboard, the study team had identified the possible technologies that could be introduced to local manufacturer. These technologies including industrial robotics, artificial intelligence, and industrial management systems that can automate and expedite manufacturing process while reducing the chances of errors in operations.
Based on the industry sectors and technologies selected, we have assisted the client to develop a draft physical layout plan and ascertain the key requirement for the facilities and machines required to conduct the demonstration. These formed a basis for the financial model which simulate the investment requirement and possible return to the client. We have developed a 20 years financial model which outlined several scenarios with different technological focus and operating model to determine the financial viability for the investment.
Supported by the financial analysis, we have recommended several options for the operating models of the 4IR Application Centres, which involves multiple collaboration mode with the government bodies. We have also outlined the key incentives, government support and approvals required in order to materialise the project. By the end of the study, we have developed a clear execution plan for the pilot project, which detailed out the key activities and timeline for the Client in implementing the business.
