Learning from Trat’s ecosystem

With digital technology, relationships between companies are more complex and interdependent, writes James Wu

Our world is growing more intelligent by the day, and with it, the business landscape is changing. New ways to manage and operate organisations are emerging, along with fresh business models and opportunities. To keep up, companies face mounting pressure to go digital and fully connect all their assets.

There are tools for doing t his. Innovations in domains such as big data, the Internet of Things (IoT), mobility and cloud services are advancing rapidly, enabling more connections and new forms of interaction between businesses and their customers. These technologies help organisations of all shapes and sizes monitor their assets in real time, improve efficiency and make more informed operational decisions.

But technology is only one side of the equation. While greater connectivity presents new opportunities, it also changes the role of organisations in their respective value chains.

There was a time when business ran in a straight line — suppliers, manufacturers, distributors and customers formed a mostly unidirectional supply chain. With advances in digital technology, however, organisational boundaries are expanding and evolving. Relationships between companies — and between companies and their customers — are also being redefined.

Simply put, business ecosystems aren’t what they used to be. They are more complex, dynamic and interdependent. To better integrate and stake their claim in the digital economy, enterprises need to more actively embrace the digital transformation process. In the meantime, the information and communication technology (ICT) industry needs to build a more sustainable ecosystem for everyone involved.

In this regard, the ICT industry can learn from Trat province in eastern Thailand. Linked to Chanthaburi to the northwest, Cambodia to the east and the Gulf of Thailand to the south, Trat is a relatively small province but also one of the country’s most prosperous. It is famed for its beautiful islands and beaches, rich natural resources, diverse flora and fauna, and an open and inclusive environment, all of which nurture a healthy, successful and sustainable ecosystem.

On the business side, Trat is known for its gemstone mining and trade. It maintains good relations with Cambodia through tourism, trade and business. These lead to ongoing cultural exchange and shared interests, which in turn gives birth to more opportunities and greater diversity.

Like Trat, the ICT industry needs to promote a more open approach to ecosystem development. Open collaboration leads to inclusive and sustainable partnerships and is necessary to thrive in a complex digital world.

In the past, enterprises chose suppliers based on quality and price alone. However, in a digital age where technology evolves overnight and consumer expectations are on the rise, more enterprises are choosing partners based on the ecosystems they belong to. Invariably, open ecosystems with a strong mix of participants are the most attractive option.

Take a look at the iOS and Android mobile operating systems. Openness is the key to the success of these platforms. A large number of developers create applications for both platforms, which greatly expands the capabilities of mobile phones and enhances the user experience. Microsoft is also beginning to embrace other platforms including iOS, Android and macOS. These thriving ecosystems provide greater value to everyone involved, which leads to more solid and lasting partnerships.

Create value and share success: Within a single enterprise, employees, technology, processes and organisational structures are all factors of value creation — and they are all expected to play their part in the business. The enterprise itself is expected to create value for its customers, and the same goes for different enterprises working together across the larger business ecosystem.

Every company has its own strengths, whether it’s operational technology in manufacturing, or specialised knowledge in domains such as agriculture, finance and tourism. These strengths are what each company should bring to the ecosystem. In return, the ecosystem provides expertise, skills and technology that help each company maximise the returns on its own strengths.

In the natural environment, the composition and health of the soil affects the growth of plants and the overall wellbeing of the ecosystem. Likewise, in the digital era, a solid, end-to-end platform will nurture the long-term prosperity of the business ecosystem as a whole. Like the robust business ecosystem in Trat, building out adaptive and long-lasting platforms takes active collaboration across sectors and across borders.

(Huawei Asia-Pacific Innovation Day 2018 will be held on June 6 at the Siam Kempinski Hotel in Bangkok. For more details, see https://bit.ly/2khUlGb)

James Wu is the president of Huawei Southeast Asia Region.

Invariably, open ecosystems with a strong mix of participants are the most attractive option. JAMES WU President, Huawei, Southeast Asia