As Southeast Asia celebrates the Independence Days of Singapore, Indonesia, and Malaysia, it’s a fitting moment to reflect on a critical component of true independence in today’s digital age: cybersecurity.

These three nations, each with their own rich histories and vibrant cultures, are also emerging as significant players in the global tech arena. To sustain this growth and ensure the tech startups that drive innovation can thrive independently, robust cybersecurity measures are imperative.

Singapore: A beacon of cyber resilience

Singapore, celebrating its National Day on August 9th, is often hailed as a global technology hub. The city-state’s commitment to cybersecurity is evident in its comprehensive Cybersecurity Strategy, which aims to create a trusted and resilient cyber environment. For tech startups in Singapore, this means operating in an ecosystem where their innovations are protected from cyber threats, allowing them to focus on growth and innovation without the looming fear of cyber attacks.

Singapore’s Smart Nation initiative is a testament to the importance of cybersecurity in fostering innovation. By integrating cybersecurity into the core of its digital infrastructure, Singapore ensures that its startups can develop groundbreaking technologies safely and securely. This proactive approach not only protects the intellectual property but also instils confidence in investors and consumers, driving further innovation and economic growth.

Indonesia: Safeguarding a growing digital economy

Indonesia, celebrating its Independence Day on August 17th, is experiencing a digital revolution. With a burgeoning tech startup scene, the largest economy in Southeast Asia is rapidly becoming a hotspot for innovation. However, with rapid digitalisation comes the heightened risk of cyber threats. Recognising this, Indonesia has been strengthening its cybersecurity framework to safeguard its digital economy.

Also Read: Cybersecurity in the AI age: How startups can stay ahead

For Indonesian tech startups, cybersecurity is not just about protection; it’s about enabling progress. A robust cybersecurity infrastructure ensures that startups can innovate without interruption, securing their intellectual property and sensitive data from malicious actors. This security is essential for maintaining trust in the digital ecosystem, fostering a culture of innovation, and driving sustainable growth.

Malaysia: Building a secure foundation for innovation

Malaysia, celebrating its Independence Day on August 31st, is another Southeast Asian nation making significant strides in the tech world. The Malaysian government’s commitment to cybersecurity is reflected in initiatives like the National Cyber Security Policy (NCSP), which aims to create a secure and resilient cyber environment.

For Malaysian tech startups, a secure foundation is crucial for independence and growth. Cybersecurity measures protect their innovative work from cyber threats, ensuring that their ideas can develop into successful enterprises. This security not only protects the startups but also contributes to a stable and trustworthy digital economy, attracting investment and fostering innovation across the nation.

The role of cybersecurity in tech independence

Across Singapore, Indonesia, and Malaysia, the critical role of cybersecurity in protecting innovation cannot be overstated. For tech startups, cybersecurity is the backbone of their independence, enabling them to operate in a secure environment where their ideas can flourish.

By investing in robust cybersecurity measures, these nations are not only protecting their digital assets but also fostering a culture of innovation. Startups can focus on what they do best—innovating—while having the confidence that their digital environment is secure. This protection is essential for building a resilient digital economy that can withstand the challenges of the modern world.

Celebrating independence through cyber resilience

As we celebrate the Independence Days of Singapore, Indonesia, and Malaysia, let us also celebrate the strides these nations are making in cybersecurity. By prioritising cyber resilience, they are not only protecting their innovative work but also ensuring the independence and growth of their tech startups.

In a world where digital threats are ever-evolving, the commitment to cybersecurity is a testament to the resilience and forward-thinking nature of these nations. It is this dedication that will continue to drive innovation and secure a prosperous future for Southeast Asia’s tech industry.

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Andrew Ng, the Founder of Deeplearning.ai and former Co-Founder of Google Brain and Chief Scientist at Baidu, explores the fundamental aspects of responsible AI through his Generative AI course. Within this discourse, the significance of data, particularly large datasets, in constructing expansive language models like Chat GPT and Bard becomes strikingly apparent.

In examining the sourcing and governance of this data, pertinent questions arise: Where does this data originate? Who regulates its flow? And how do businesses discern the inputs essential for optimising real-world applications? These inquiries resonate with practitioners in the realm of responsible AI, where the focus extends beyond mere technical prowess to encompass ethical considerations and societal impact.

By leveraging blockchain’s decentralised framework, coupled with transparent and reliable data streams from verified sources, companies of all sizes are redefining access to information. This democratisation of data not only fosters a more inclusive ecosystem but also reshapes the dynamics of how information is utilised across sectors.

Why does society need responsible AI?

This will be immediately obvious to those who study or work with large language models, but the implications of how these models are developed have yet to reach the mainstream. What the public is familiar with today is the noise around AI investments, the potential of AI to obliterate jobs, and the danger of AI clouding our judgements as the public is fed streams of fake news. However, the value of AI and the repercussions around implementation don’t make sense without first considering the approach to development. 

Also Read: How AI and blockchain collaborate for a transparent Web3 future

Blockchain technology has a role to play in addressing ethical concerns and advancing the principles of responsible development outlined by Ng: fairness, transparency, privacy, security, and ethical use.

Let’s examine how blockchain contributes to each dimension of responsible AI.

Fairness

Bias in AI algorithms can stem from skewed or inadequate data sets, leading to discriminatory outcomes. Blockchain technology offers a decentralised and immutable ledger that transparently records data transactions.

By leveraging blockchain for data collection and storage, developers can ensure the integrity and diversity of data sets used for training AI models.“Flare allows applications to leverage diverse data sources. This enables businesses to make data-driven decisions and execute actions based on real-world events. The native protocol eliminates the need for third-party data oracle solutions, ensuring a highly decentralised and cost-effective infrastructure for accessing external data, ”says Nick Camion, Head of Marketing for Flare Network.

Transparency

Blockchain’s tamper-proof nature enhances the transparency of AI systems by providing an auditable record of data transactions and algorithmic processes. Through blockchain-based data provenance, stakeholders can trace the origins and transformations of data inputs, ensuring accountability and facilitating algorithmic transparency. Projects like Flare and SingulatityNET are driving access to data and the sharing of innovative AI capabilities using blockchain technology. 

Privacy

Privacy-preserving techniques are crucial for safeguarding sensitive data in AI systems. Blockchain technology offers cryptographic solutions such as zero-knowledge proofs that enable privacy-preserving computations while maintaining data integrity. 

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

Security

Smart contracts deployed on blockchain platforms can enforce access control policies and automate security measures, ensuring the resilience and robustness of AI systems against cyber threats and adversarial attacks. “We need the cost to disrupt the data supply to be greater than the benefit of doing so. Decentralised data access is far harder to disrupt, supporting the secure management of significantly greater value,” says Campion. 

Ethical use

Ethical considerations in AI development include societal impacts, human well-being, and responsible governance. Blockchain technology facilitates decentralised governance models through consensus mechanisms and decentralised autonomous organisations (DAOs), enabling transparent and participatory decision-making in AI development and deployment.

Incorporating blockchain technology into AI development and deployment processes holds promise for advancing the five dimensions of responsible AI. As we navigate the ethical landscape of AI, the integration of blockchain offers a pathway towards a more equitable, transparent, and responsible AI-driven future.

The responsible use of AI is no longer a choice but a necessity for corporations of all sizes. As AI becomes increasingly integrated into business operations, from customer service chatbots to predictive analytics for decision-making, the ethical implications of AI deployment come to the forefront.

Consumers, stakeholders, and regulatory bodies will continue to demand more transparency in AI practices, and unethical AI deployment can lead to reputational damage and long-term financial repercussions for businesses. 

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This article was first published on March 4, 2024

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Generative AI was firmly at centre stage throughout 2023, as individuals and businesses across multiple sectors implemented tools such as ChatGPT to perform various tasks, like information processing and content generation, with astounding speed and time savings. In fact, our internal organisational study last year revealed that implementing Generative AI boosted productivity by a staggering 62 per cent across different departments, saving us 26 hours in a week.

Furthermore, a Gartner study conducted in the third quarter of 2023, which involved 1,400 executive leaders, revealed a sharp uptick in the adoption of Generative AI. The study found that 45 per cent were in piloting mode, and an additional 10 per cent had already deployed Generative AI solutions into production.

This marks a substantial increase from an earlier study in April 2023, where only 15 per cent of respondents were piloting Generative AI, and four per cent were in production. This clearly indicates that there is a growing trend towards an increased adoption of Generative AI technology.

Generative AI grabs simultaneous global regulatory attention

As AI permeates every industry, concerns about bias, privacy, and unintended consequences loom large. In keeping up with these developments and risks,  companies and professionals must prioritise AI governance training even as they assess and develop Generative AI-enabled technologies. This allows them to appreciate the value of its use cases, assess the risks, and recommend appropriate constraints for the safe and responsible use of Generative AI.

Also Read: Riding the affluence surge: How Generative AI can power growth in financial advisory

Globally, regulatory bodies are taking proactive measures to address AI governance gaps. The immediate and widespread accessibility of this technology and the rate of it being embedded in daily use is unprecedented. ChatGPT alone reached 100 million users within months of its launch. Since then, there’s been an exponential increase in the introduction of large language models, with AI-embedded applications being launched daily. 

Furthermore, the EU’s forthcoming AI Act will set a global precedent when it comes into force within two years, while nations in ASEAN, like Malaysia and the Philippines, are crafting governance frameworks aligned with responsible AI principles. Meanwhile, Singapore has set itself as the frontrunner in AI adoption on the world stage, emphasising responsible governance through initiatives like the Model AI Governance Framework for Generative AI (MGF-GenAI). 

A new marketplace emerges

In 2024, Open AI’s Custom GPT Marketplace will further accelerate the use of Generative AI. Consequently, we will see increased instances of uploaded content being used with Generative AI, enabling GPTs to be customised in their knowledge and behaviour.

This, of course, will present challenges associated with the IP and copyright. Additional concerns about security and privacy have been raised on occasions where some of these new custom GPTs have been attacked with adversarial prompts that tricked the Custom GTPs’ prompts into leaking their instructions and even their uploaded files.

Also Read: How Generative AI will advance embedded lending

Companies hoping to cash in on this bandwagon of Custom GPTs, akin to the Apple App Store, should seek counsel from AI-informed or trained Data Governance Professionals for ethical and responsible development and deployment to protect their interests.

Emerging data professionals: New competencies required

AI deployment is imminently on the rise alongside regulatory guidelines and rules from regulators, particularly from Data Privacy-related agencies, which is changing the role of data governance professionals. A recent study by the Data Protection Excellence Network tracking Data Protection and Governance jobs in Singapore showed that there was a 173 per cent increase in demand for data governance roles year on year from 2022 to 2023. 

As AI becomes ingrained in decision-making processes, AI governance training becomes indispensable, and professionals should look at various training options, such as the Advanced Certificate in Generative AI, Ethics and Data Protection, which Straits Interactive recently launched in partnership with Singapore Management University Academy (SMU Academy). Another option is the AI Governance Professional Course, which was developed in collaboration with IAPP and includes training on different variations of AI, including Generative AI. 

Ultimately, there is a bright future for Data Governance professionals to augment their competencies in Generative AI, particularly in Singapore, where the government is looking to triple its AI talent pool in the next three to five years. This way, they can become trusted advisors who can advise their management and organisations with a more holistic governance framework that encompasses Generative AI and new applications coming into their workplace and in products being developed.

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This article was first published on March 4, 2024

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We are always in a continual state of ecosystem and category disruption.

Imagine jumping in a time machine back to your local supermarket 30 years ago.  Many of the categories from today wouldn’t exist.  There wouldn’t be an organic section or plant-based options for pasta or meat.  There wouldn’t be an energy drink section. Vegan or high-protein as an additional element to our regular foodstuffs wouldn’t have happened yet.

And if we do a reverse time journey to our supermarket 30 years in the future, it will be filled with new categories that we never thought of and never thought that we needed.

What is at the core of this evolution and constant change is a problem that has been redefined and explained to us.  It is a problem we didn’t even realise we had:

• Organic: I don’t trust the food supply chain and want additional assurances
• Vegan: I don’t want to make all of my vegetarian food from scratch
• High-Protein: I worry about getting enough protein (for myself or family members)
• Energy Drink: I want a pick-me-up, and regular sugar-based colas are not enough

These categories hide in plain sight across industries.

Switch gears from consumer to corporate, such as finance/investing, and it seems obvious that real estate as a capital asset should be available as an exchange-traded asset and be part of my portfolio (a REIT).

When I was working at a large bank and launching the first REIT product in the Asia-Pacific region, a huge amount of education and awareness was needed to explain this problem (and new category): “Real estate is expensive to invest in and can have significant risk, but an aggregated fund, linked to assets, and managed by experts enables me to solve this problem”.

I gained diversification in my assets, and this new category is very clearly explained and labelled for me.  And so: “I need to have a REIT in my portfolio”, and it becomes an established category.

Markets and categories are thus in continual flux and redefinition. And importantly, the ones who lead the change and define the category are usually the ones who dominate it. There’s plenty of data and precedence around this ‘Category King’ outcome and their consistent lion’s share of the market.

Also Read:  Leading the category, then losing it all: What WeWork can teach us

For example, have a look at Paul Gerovski and his Nobel-winning research on how markets and categories consistently evolve.

But now, all indications are that we are in an extraordinary time of accelerated change and new categories are being defined and monetised.

Consider these four accelerants and ecosystems being impacted:

Supply and value chain disruption

The reverberations of the pandemic are still being felt.  Given that it is one of the biggest black swan events of our lifetime, the changes and impact will resonate with us for the rest of our careers. In particular, it exposed the fragility of our global value chains.

These established GVCs account for 70 per cent of global trade.  For three decades, we saw the primary driver around lowering cost, and in this era of trade liberalisation and the ‘world is flat’ mentality, the concentration of value chains became extreme.

Now, we are seeing radical changes to the ecosystems that were built up. Nearshoring or friend shoring is changing value chains.  A swing to the right and nationalism have also led to increased tariffs, requirements, and trade disputes. It is more difficult for smaller companies to conduct cross-border trade today than it was 10 years ago!  Customs documentation is more complex.  Shipping, cost, and predictability are more challenging.

Asia-based innovators such as Cogoport are great examples of companies seizing this opportunity and defining a new category around a global trade platform.   Small to mid-size companies that don’t have dedicated internal teams for overseas trade and complex shipping decisions, customs documentation, or insurance can be guided on optimal decisions.  This drives confidence for these companies to expand their business and horizons.

It also leads to innovators creating new categories to deal with this changed environment.  It is an area prime for disruption and new Category Kings to emerge!

Web3

Web3, at its heart, is a new level of decentralisation compared to what the internet represents to us today.

It is decentralised across computer networks (and data), finance (with crypto and blockchain as core elements), and identity.

Consider the evolution and current state of identity that we find ourselves in.  Web1 was built upon username and password. Web2 evolved to login via Google, Apple, Facebook, or Twitter.

The ramifications for identity, as well as data, have been monumental.  We find ourselves in a time of almost outrageous concentration of data and analytics in a few massive technology players (FANG or The Magnificent Seven).

Now, contemplate the Web3 emerging vision around privacy, security, and freedom, and connect through your digital wallet by logging in via a Web3 ID (which can be real-world or anonymous).  This means control of your own data, and you are not reliant on centralised corporations or institutions.

This current imbalance of too much data and power in too few hands is a beacon for innovators and for new categories to form.   If this seems too far-fetched, consider that two decades ago, the biggest tech players were IBM, Cisco, HP and Dell!

Climate and sustainability

Could there be a bigger elephant (ecosystem) in the room?  Climate and sustainability will necessarily be at the top of the geopolitical and increasingly business agenda.  It is the ultimate ecosystem play, resulting in a plethora of new categories and ways of thinking that:

Measurement is key

And is evolving rapidly. Carbon measurement, tracking, valuation, and trading will formalise and create tremendous new solutions and categories. New models and metrics are forming across innovations and start-ups in the sustainability space. Linear models for growth and development are being challenged with sustainable boundary prototypes (sometimes called ‘doughnut economics’). Innovators will eventually crack this problem, driving new thinking and aligning new categories.

ESG is broken

Speaking and interacting with leading players and startups in the carbon footprint space, it’s clear that ESG is an unwieldy combination of measurements from carbon to diversity and inclusion. ‘It is the best we have’ is a common lament and is ripe for disruption and a new model to emerge.

Also Read: Darryl Dickens: Shaping success through Category Design

Cities are critical

Climate and sustainability is a global issue, but we have to solve them at the city level:

• Cities account for 75 per cent of global CO2 emissions (but are only three per cent of total land mass).
• 50 per cent of all global waste is concentrated in cities and 75 per cent of natural resource consumption.

Southeast Asia’s Atlas Capital and their Adaptive Cities Challenge for startups is a great example of the increasing understanding and focus on the city as a lab.

Climate and sustainability are thus primed as a key source of new categories and a radically modified ecosystem of players.  Not only is this inevitable, but we need it to happen faster!

AI and work as we know it

Imagine the implications for work itself changing, how big is that? Even before the hype and explosion of AI discussion, key Asia-based players like Laiye were looking at the practical yet massive impact of AI on work and the new category of a ‘Work Execution System’.

Existing categories, such as intelligent document processing (machine learning combined with computer vision), now combined with massively enhanced large language models, will further remove low-productivity areas of our work. Invoice processing, timesheets, expenses, purchase orders, tax filings, business trip bookings, and project management are examples of the massive areas of day-to-day work that are manual, repetitive, and tedious.

But when the very nature of work experiences a radical, accelerated change, how does the ecosystem of existing technologies and players change?  When we each have a personalised digital assistant, how will our work patterns change?  What are the new categories that will emerge?

These four examples of ecosystems being disrupted should then catalyse our next big questions:

What new categories will form, and how will I seize these opportunities?

If I don’t seize them, then what are the ramifications when someone else does?

Lead, don’t follow! Those who design the Category are best poised to dominate it!

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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This article was first published on March 19, 2024

The post Lead, don’t follow: The essential guide to category creation and market domination appeared first on e27.

The acquisition of emerging businesses in Vietnam is a well-planned strategy that regional companies and large corporations employ to enrich their ecosystems with the least amount of resources. 

The M&A sector has been witnessing a rebound in recent years 

According to KPMG Vietnam, the Vietnamese merger and acquisition (M&A) market is anticipated to surpass US$4.4 billion in 2023 and continue to increase in the years ahead. It is important to note that M&A are not only occurring in traditional sectors such as finance, real estate, and retail but are also gaining significant momentum in emerging sectors like technology and the digital economy. 

Technology is undergoing accelerated development and evolution. Any company — big and long-standing, or tech giants like Google, Meta, Microsoft, etc. — is struggling to keep ahead of rivals in terms of technology. 

In the past, large corporations invested billions of USD annually in research and development (R&D) to reduce the technology disparity. However, R&D is a long-term investment process that may have potential hazards if the research results are not commercialised. Consequently, large corporations are accelerating the adoption of new technology by pursuing startups that offer emergent technology solutions and pursuing mergers. 

According to Mrs. Le Hoang Uyen Vy, Co-Founder and CEO of Do Ventures, the Vietnamese technology industry has experienced a resurgence in M&A activities in recent years, indicating a dynamic consolidation and expansion. 

This is also the reason why the Vietnamese M&A market has also witnessed the emergence of new buyers, such as regional companies, big tech companies, and domestic corporations. Each organisation implements its own unique acquisition strategies. 

Also Read: M&A in Asia: A strategic roadmap for venture builders

Merging with like-minded partners and venture capital funds through M&A 

The most prevalent M&A strategies for reginal large-scale companies involve the acquisition of market leaders by regional mega apps to fortify their ecosystems. SEA Group’s acquisition of Foody (2018) and the acquisition of a majority stake in Giao Hang Tiet Kiem (2017) are two typical examples. Furthermore, they acquire market-leading companies in the same industry to strengthen their positions. For example, Mynavi acquired IT Viec (2020), Woowa Brothers acquired Vietnammm (2019), and Traveloka acquired Mytour (2018). 

In order to conserve time and resources, large regional technology companies frequently acquire licensed businesses in regions with stringent legal regulations rather than pursuing new licenses independently. Typically, Grab acquired Moca (2018), Ant Financial acquired eMonkey (2019), Gojek acquired Wepay (2016), or Truemoney acquired 1Pay (2017). 

In additon to the “big guys” in the region, significant domestic technology companies also have a strategy to acquire early-stage startups to upgrade and expand their business ecosystem. For example, FPT’s acquisition of Base.vn (2021), Momo’s acquisition of Nhanh.vn (2022) and Pique AI (2021), and Tiki acquired Ticketbox (2019).

Alternatively, they pursue digital startups with the objective of expediting the digital transformation process, as evidenced by the acquisitions of Vicare (2018) by Vinmec (a subsidiary of Vingroup), Mobicast (2021) by Masan, and Hocmai (2020) by Galaxy Media & Entertainment. 

As the domestic tech market grows, local startups are also emerging as a new destination for large corporations. Local businesses, which possess substantial resources, have also undergone a transformation from passive participants to key architects in the development of the M&A market. They have actively improved their technological capabilities and market presence through strategic transactions. 

“Through M&A activities, numerous domestic enterprises have initiated engagement in open innovation.” Mr. Do Tien Thinh, Deputy Director of the National Innovation Center, Ministry of Planning and Investment, is aware that certain large corporations have established a distinct M&A committee. The committee will select enterprises to begin merging monthly to acquire technology and market share. 

Conclusion 

According to a projection, startups will constitute 44 per cent of the innovation sources for corporations and businesses of all sizes within the next five years.  

This development is advantageous for both corporations and entrepreneurs. The tech giants will provide startups with additional resources (finance, human resources, infrastructure, customer network, etc.) to facilitate their expansion. Corporations and organisations will have access to new technology and solutions that will enhance their competitiveness against rivals. 

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