From hyper-personalisation, predictive analytics, content creation to fraud detection, we are seeing AI creep into our daily lives as both advertisers and consumers. According to Gartner’s survey of CIOs, “14 per cent of organisations employ AI and 50 per cent intend to do so in 2020”. 

At its core, AI pertains to the use of machines and their ability to continuously learn and solve problems. Algorithmic advances in AI like deep learning came at the right time for mobile advertising, these advanced techniques are immensely powerful and are capable of capturing complex non-intuitive patterns.

The key driver for AI is the huge amount of training data* and in mobile advertising, there are numerous touchpoints gain through views and engagements with users.

Hyper-personalisation

When one draws the progression of mobile advertising, it started with broadcasting common messages to all users, it then changed to targeting specific segments based on demographics like age, gender and location, with the help of AI mobile advertisement has now moved to hyper-personalization where decisions are made at the individual user level.

Also Read: A glimpse into the future of mobile crypto microtransactions

Hyper-personalisation means targeting the right user at the right time on the right channel with the right message. Hyper-personalisation creates a win-win situation for user and advertiser. 

Right channel: Mobile advertisement covers channels like search, display, video, social, push notifications, in-app notifications, text messages, emails etc. Each channel is unique in terms of visual appearance, cost, engagement potential and reach**. Different users have a different affinity towards each of these channels. AI helps to predict user affinity at the channel level and target accordingly. 

Right message: Message in Mobile advertisement context means content which includes text, images etc and creative which includes colour, design, look and feel etc. Traditionally advertisers have used intuition to come up with messages, it then moved to A/B test where again the evaluation is done at a set of users.

AI is able to proactively predict right messages for a user based on its demographics and previous interactions. AI goes one step further and is able to recommend user-specific cross-sell and upsell messages. Advanced AI techniques work on the principle of exploring and exploit this enables AI to correct mistakes and adapt to the changing optimal based on data. 

Ad fraud 

Ad Fraud is an increasing problem for the ad industry, eating into the ad budgets.  Some of these frauds come innocently in typically free applications, sometimes secretly displaying ads that are hidden to the user clicks on the ads, installs applications and even makes fake engagements.

All of these add to the costs that advertisers will have to pay to these non-human engagements. Ad fraud is like virus scanning, fraudsters are always coming up with ingenious ways of getting past fraud tools and systems. AI algorithms can learn the organic behaviour basis time of day, age, gender, location and other behavioural patterns and in real-time flag any anomalies.

We believe AI today has just scratched the surface in mobile advertising and the future has much more in store. 

Breaking siloed systems 

Advertisers have understood the value of Mobile Advertising and are spending huge budgets non-different channels with multiple teams. There are separate teams for social, user acquisitions, re-marketing and CRM marketing.

Today each of this channel is running individually in their own capacity, though each channel adds individual value they at some point are cannibalizing each other, plus there are many intuitive and non-intuitive synergies between these channels that exist and are not leveraged.

Also Read:  A call to end gatekeeping in Asias crypto community

Trivial synergies like use free channel before paid channel are easy to appreciate but there are many non-trivial synergies which go beyond intuition. We believe these siloed efforts have to come together. 

A common AI system which uses transfer learning where learnings from a single AI model can be used to train a second model. This shortens the time for the machine to learn, increase the pace of the learning, shortening the cost and ultimately improving user experiences.

Mobile advertisement for offline commerce 

On average people spend more than 3 hours a day on mobile and yet 90% of the commerce happens offline. Advertisers from offline commerce are already using mobile advertising focused on deriving footfall to offline stores and bringing offline users online. AI using hyper-personalization can solve both the use cases effectively.

AI is changing our world today, it already is with computers becoming beating grand-masters in chess, the game of go, becoming better than humans at detecting images, and detecting speech. 

All of this is powered with Moores law, whereby 2023, it is arguably said that it will approach the computational power of a human brain and by 2045 the computational power of all human brains combined.  While it is arguable that algorithms will be as efficient at the brain, there will be no doubt huge improvements in the capability of machines.

Hyper-personalisation is here to stay and will become more intelligent in the future, in predicting our needs and to become more relevant and serendipitous to us all.

* Training data is the one on which we train and fit our model basically to fit the parameters 

** Reach means how many unique users can be targeted using this channel 

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Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

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Image Credit:  Will Francis

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Orange you glad Apple cares about education?

Are you familiar with the three apples that changed the world?

First, the forbidden fruit from Adam & Eve’s story, then the apple that gave Newton a concussion (and later, gravity), and lastly Steve Jobs’ half-bitten apple.

Although in retrospect, the people wielding the fate of these apples were more responsible for the changes than mere fruit.

For optimists, it’s apparent that we hold the reins of our own future — albeit unknown — and technology is just a tool we need to navigate through this unknown future. Therefore, immersing it into our education system is vital and urgent.

Recently, e27 sat in for Apple’s Edtech talk centred around how education policies, institutes and new collaborative initiatives could help Singaporean students develop the digital skills they needed to succeed in the future workforce.

Apple was represented by Lisa Jackson, the VP of environment, policy and social initiatives. Guests included Professor Chong Tow Chong from the Singapore University of Technology and Design (SUTD), Helen Souness from RMIT online, Denise Phua from Pathlight School and Ong Ye Kung, Singapore’s Minister for Education.

Here’s what we gathered from the event.

Autism and coding

It’s clear that the world is rapidly changing, but the fact that it’s still a ‘world’ remains constant.

A ‘world’ encompasses all the people and societies of the earth — including the special needs community. And, the future does not discriminate. Everyone, regardless of background, will need to be prepared for it.

Pathlight School recognises this and seeks to future-ready its autistic students for the demands of an ever electrifying, ever ‘technifying’ world.

Arm-in-arm with Apple certified trainers, the school will run the Swift Accelerator programme for a selected group of students aged 13-18. The 144-hour coding programme will help deepen the skills and competencies of these interested and talented students.

Pathlight also has its six-year-old IT & Design Academy that was launched to stimulate students’ natural interest and aptitude for IT. The programme exposes students, as young as seven, to ICT skills via a slew of engaging techniques like learning to code with angry birds or expressing creativity through design and digital media.

Denise Phua said that Pathlight strongly advocates for the “nobody left behind” rule and that they are very heartened by this thoughtful and inclusive collaboration with Apple.

“Not just to survive, but to thrive” were Denise’s passionate parting words that fully encapsulated Pathlight’s strong conviction and commitment to upskilling its students for the digital age.

Advancing the curriculum

Education-meets-technology has to be the greatest crossover since The Jeffersons met The Fresh Prince of Bel-Air.

Tech is woven so intricately into the fabric of our lives that not being able to comprehend it would mean missing out on a major part of the esteemed human experience.

Mr Ong Ye Kung compared the digital language to English, explaining that digital literacy was a growingly significant mode of communication. He stressed that in order to enjoy a pleasant co-existence with technology, we had to “demystify it” first — and we all know that impressionable young minds are the perfect busting grounds for myths.

Also Read: Hostel startup Tribe Theory secures US$739,165 seed funding from Aurum Investments

Echoing his sentiments was Ms Lisa Jackson as she described coding as the “language of the future” and a skill that should be accessible to everyone.

Coupling the thought of accessibility with the pressing need for technological intervention, the Ministry of Education has partnered with Apple to see through programs like Everyone Can Code, Swift, Swift Playgrounds and even Teacher Guides. These programmes are all engineered to ease coding into the classroom setting for the benefit of both student and teacher.

In particular, App Development with Swift has been newly expanded across more schools in Singapore for students to build iOS apps from scratch. This presents a huge opportunity for budding app designers to cash in on a market that virtually enables their ideas to reach millions.

Everyone should have the opportunity to change everything and Edtech provides just that.

Adapting to the world

“Wisdom is not a product of schooling but of the lifelong attempt to acquire it”. This is a communal principle that Einstein and the many adults who are avidly interested in app design and development share.

Fortunately, SUTD has joined up with Apple and Skillsfuture Singapore to design two short courses that will cater to the pool of keen adult learners.

Just how short are they?

Also Read: This Singapore healthtech company just raised US$25 million for APAC expansion

In five days, the Swift App Development Fundamentals course can turn rookies to basic app designers. Also, the Augmented Reality with ARKit programme can take app designs to a whole new level in half a week.

SUTD looks forward to humanising advanced technology and helping working adults embrace digital transformation for enhanced employability under this collaborative move.

In tandem with SUTD’s mission to enhance employability, RMIT online will be expanding its successful iOS App Development with Swift course to Singapore. The course, jointly spearheaded by Tigerspike and Accenture, will offer self-paced opportunities for mid-career professionals to learn coding.

Speaking eagerly on the subject, Helen Souness said that “the future of work will be governed by emerging technologies and data” and that such industry-relevant training would be key in pioneering the upskilling of a nation.

Digital literacy isn’t reserved for the creme de la creme of our population. With these initiatives, all anyone needs is a spoonful of enthusiasm and a dash of hard work to enjoy greater relevancy and employability.

The people of the future are the students of the now. Edtech is here to be endorsed, embraced and most of all — to empower.

Have fun kids!

—

This article was first published on March 14, 2019.

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Standard Chartered opens second eXellerator in Hong Kong- Press release
Standard Chartered opened its second eXellerator innovation lab in Hong Kong to inculcate an innovative culture across the Bank and to engage the fintech ecosystem to develop innovative solutions that meet the evolving banking needs of clients.

eXellerator will focus on leveraging emerging technologies and co-creating solutions for corporate, commercial and institutional banking clients. It aims to become a focal point for engagement with the stakeholders of the Hong Kong fintech ecosystem like regulators, government-backed organisations, business partners, clients, and technology companies.

Alex Manson, Global Head of SC Ventures, said: “The new eXellerator lab location in Central gets us to the heart of it [Hong Kong’s fintech ecosystem] and we look forward to many more engagements and partnerships.”

OBOR Capital invests in Cambodia’s Delishop.Asia- Press release

OBOR Capital closed an early-stage equity fundraising deal with Delishop.Asia, an online supermarket that is set to transform online shopping experience in Cambodia.

Funds raised will be utilised for developing a more user-centric and scalable web portal, as well as Android and iOS Apps, which are scheduled to be launched by the end of the year. They will also develop backend technologies for supply-chain management.

Additionally, funds will be used to purchase new motorcycles and to cover driver-training programmes as Delishop.Asia scales its business within Phnom Penh and towards newer frontiers in Cambodia.OBOR Capital’s investment includes fresh capital injection and acquisition of secondary shares.

OBOR Capital’s portfolio company CamboTicket has also acquired a minority stake in the business. As part of the deal, OBOR Capital and CamboTicket will provide strategic support to Delishop.Asia in some key functional areas.

Julien Nguyen, CEO, and Founder of Delishop.Asia exclaimed: “I am very excited to partner with OBOR Capital for our next phase of growth. The funds will be used to strengthen our team, offer more top quality products and improve user experience. OBOR Capital’s hands-on approach towards its investments is what we are looking for in an investor at this stage of our company’s lifecycle.”

Also read: Asia is giving the West a run for its money says Alex Manson of Standard Chartered’s investment arm

TikTok owner ByteDance to ramp up global operations before IPO- DealStreetAsia

ByteDance, owner of the popular video app TikTok is focused on hiring staff to beef up its international operations before considering an initial public offering in the US or Hong Kong in the near future according to a DealStreetAsia report.

It is considering Hong Kong as a listing destination but any float remains a long-term objective given ByteDance remains well-funded and still needs to hire a chief financial officer, the people said, stating its a private matter. On Tuesday, the company denied a Financial Times report that it planned a Hong Kong IPO in the first quarter.

One of the perennial issues for investors is its lack of a Chinese news-publishing license, which the company is trying to overcome by strictly adhering to news aggregating and diversifying into short video entertainment apps. ByteDance is unlikely to rush into an IPO in the middle of a bitter trade war and rising scrutiny from Washington.

Two US senators have urged investigations into TikTok, calling it a national security threat. “TikTok is a potential counterintelligence threat we cannot ignore,” Republican Senator Tom Cotton and Senate Minority Leader Chuck Schumer said in a letter Thursday to Acting Director of National Intelligence Joseph Maguire.

Alphabet in bid to buy Fitbit

Google owner Alphabet Inc has made an offer to acquire US wearable device maker Fitbit said Reuters. Google has joined Apple and Samsung Electronics in developing smartphones, but it has yet to develop any wearable offerings. Fitbit’s fitness trackers monitor users’ daily steps, calories burned and distance traveled. They also measure floors climbed, sleep duration and quality, and heart rate.

There is no certainty that the negotiations between Google and Fitbit will lead to any deal, the sources said, asking not to be identified because the matter is confidential. The exact price that Google has offered for Fitbit could not be learned.

Google and Fitbit declined to comment. Nevertheless, Fitbit shares rose 27% on the news, giving the company a market capitalization of $1.4 billion. Alphabet shares rose 2% to $1,293.49.

A deal for Fitbit would come as its dominant share of the fitness tracking sector continues to be chipped away by cheaper offerings from companies such as China’s Huawei Technologies Co Ltd and Xiaomi Corp (1810.HK).

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Reefknot MD Marc Dragon

Reefknot Investments, a joint venture between Temasek and Swiss transport and logistics company Kuehne + Nagel, has announced its maiden investment in PROWLER.io.

Based out of the UK, PROWLER utilises Artificial Intelligence to help turn dynamic, real-time data into optimal decisions about business problems.

This strategic investment follows the launch of Reefknot’s US$50 million global fund and the think-tank The Centre of Excellence for Global Emerging Supply Chain Technologies.

Founded in 2016, PROWLER’s AI engine VUKU can process moving data in real-time, adapt to uncertainty, act on sparse information and learn from experience. It is data-efficient, not data-hungry, so does not need Big Data sets to be effective, and is designed to have broad application across multiple sectors.

“PROWLER.io’s AI platform and capabilities will greatly enhance decision-making in complex and uncertain environments that represents the type of transformational technologies Reefknot is committed to supporting in order to drive supply chain and logistics sector innovation,” said Marc Dragon, Managing Director of Reefknot.

Vishal Chatrath, Co-founder and CEO of PROWLER.io, added: “AI has huge potential to empower supply chain and logistics companies to operate more efficiently and grow more quickly. We already have great success in improving asset utilisation for our logistics clients through data-efficient AI. Through Reefknot, we have access to their ecosystem of domain partners and have the opportunity to combine their sector expertise with our leading technology platform.”

Also Read: Startups should adopt the glocalisation mode of design and thinking: Reefknot Investments’s Marc Dragon

Based in Singapore, Reefknot recently closed a US$50 million fund, which invests in high-growth technology companies pushing new frontiers within the supply chain and logistics space. Other domains the fund is actively exploring opportunities in include digital logistics and trade finance.

Reefknow also provides founders access to the business insights of Temasek, the logistics & supply chain expertise of Kuehne + Nagel, and an ecosystem of high-value partners who will bring added support to help accelerate business growth.

PROWLER.io has recently raised an investment led by Chinese technology giant Tencent Holdings, with participation from SGInnovate and Atlantic Bridge.

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Jungle Ventures Partners Amit Anand and Anurag Srivastava

Singapore-based early-stage investor Jungle Ventures today announced the closure of its third fund at US$240 million.

This also includes US$40 million raised in separately-managed account commitments for investments in innovative technology and digital-driven consumer businesses across Southeast Asia.

This is more than double the amount of its previous fund, Jungle Ventures II (2016).

More than 90 per cent of the new capital came from institutional investors spanning North America, Europe, the Middle East and Asia, with new investors accounting for nearly 70 per cent of the fundraise and returning investors for the rest.

Its backers include DEG, Germany’s development finance institution; IFC, a member of the World Bank Group; Bualuang Ventures, a corporate venture capital fund of Bangkok Bank; Dutch development bank FMO; Cisco Investments; and Singapore’s Temasek.

Also Read: Jungle Ventures closes US$175M of third fund, targets US$220M

Jungle Ventures III has already invested in Sociolla, KiotViet, WareSix and Engineer.ai.

Amit Anand, Co-founder and Managing Partner of Jungle Ventures, said: “The traditional view of Southeast Asia is that it’s a fragmented region of countries with more differences than similarities. Thanks to the rising internet penetration, demographic shifts and mobile-technology adoption over the last decade, the region is now home to a fairly homogenous addressable market of more than 250 million cyber-sophisticated young people comparable to any ‘developed’ market.”

“We saw the tide shifting and focused on companies that demonstrated an early leadership position in one market. Then, we supported these companies with capital, expertise and resources to help them become regional category leaders,” he added.

Jungle Ventures is one of the largest early-stage venture capital firms in Southeast Asia. Its portfolio broadly covers three verticals: consumer brands for the digitally native; digital platforms for transforming SMEs; global technology leaders born in Asia.

Jungle Ventures’s other portfolio companies include RedDoorz, Pomelo Fashion, Kredivo, and Deskera.

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Gathering the fiercest startups from the Asia Pacific, the 2020 TOP100 is bigger and bolder than ever!

If you are a tech startup based in the Asia Pacific with a working prototype or product which you have launched to a market already, then the 2020 TOP100 APAC may just be the right programme for you.

The 2020 TOP100 APAC is a curated programme designed to discover, showcase, and accelerate the next generation of up-and-coming startups. By joining the programme, startups can enjoy unique perks such as being able to showcase their startup visions at the Echelon Asia Summit in Singapore, getting direct access to investors who are actively looking for startups, finding and connecting with one’s possible business matches, and so much more.

On top of that, by joining the 2020 TOP100 APAC, your startup stands the chance to win incredible prizes and the honour of representing your country as the TOP100 2020 champion. By being part of the programme, your startup automatically becomes a part of the TOP100’s formidable alumni network — which is already a prize in itself, given the diversity and track records of those who are also part of the network being well-within one’s reach.

“After winning TOP100, Softinn gained traction across ASEAN countries and globally,” said Jess Shen Lee, founder of Softinn. He added, “We were approached by quality investors further spurring our growth. We’re now in Indonesia and Vietnam because of TOP100.”

This is only one of the many examples of how TOP100 impacts many startups from the region for the better.

Why choose 2020 TOP100 APAC

From being able to pitch in front of APAC’s tech ecosystem on the crowd favourite TOP100 Stage during Echelon Asia Summit, to being able to access exclusive regional and international partnered programmes — joining TOP100 is truly the gift that keeps on giving.

With over 300 startups in its alumni network, over $120 million raised, 600 investors, and 20 global cities, joining 2020 TOP100 APAC means being sure that you are in good hands.

This is the best way to accelerate your company across Southeast Asia because of the funding opportunities made available to those who make the cut. Top corporates will also be on the lookout for possible business matching through the Forge programme.

Ultimately, joining the TOP100 means getting well within the radar of APAC’s top stakeholders who will be watching out for raw talent brimming from the highly anticipated TOP100 Stage at the 2020 Echelon Asia Summit.

The best part of it all? You can start preparing your pitch today because while we are still months away before 2019 ends, we are already accepting applications to the programme.

Interested applicants can sign up today for the chance to represent their country in the TOP100 stage in Singapore this coming 2020. Tech startups from all stages are welcome to join, as long as you’re based within the Asia Pacific, ready to pitch in English, and you are able to commit to the whole TOP100 programme all the way to Echelon Asia Summit in Singapore.

If you fit the bill, then sign up here and go up against the region’s best and brightest tech startups today. For more information on the matter, you may visit the 2020 TOP100 APAC today.

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A group photo of the new cabinet. Makarim can be seen in the back row, the first person from the left.

It’s not an uncommon thing to see for a successful businessman making his way to politics as his final career destination (of doom?). But when it comes to gojek, an app we all love to use, really use, and now has come to a point where it’s impossible to go through the minutiae of daily life without it, the name Nadiem Makarim being announced as one of the sitting cabinets leaves such an aftertaste.

Here’s a 35-year old startup success story, an icon for all Millennials and Generation Z, someone whom they’re aspired to be and someone whom they look up to when catching an entrepreneurial bug. Makarim has been idolised and praised by the likes of generations that were born with technology as well as by those who catch up with technology to stay relevant.

It’s, quite simply, the one thing that makes all the fuss about religions and tolerance irrelevant. It gives a new perspective of what Indonesia can achieve if we put that aside.

Makarim’s move is a calculated one, albeit shocking for some. We gathered the sentiments we see around the media and our budding startup community to help you realise just how significant Makarim is and how he could be the dark horse that brings a new dawn to Indonesia’s education system in the next five years.

When your country calls you, you serve

Not sure where the quote was first heard or who said it first, but the quotes seem fitting.

In his own words to his staff, Makarim stated that him receiving the second term-elected President Jokowi’s mandate is “gojek’s next logical step”.

“We work together as a team for a greater good because as soon as it becomes about the individual, things begin to fall apart. Gojek thrives on talent and if Indonesia is to produce more high-quality talent, the country’s educational system is going to have to transform just like the one that began on the streets of Jakarta in 2010 (when gojek was first established),” Makarim is quoted saying.

Also Read: [Updated] Breaking: gojek CEO Nadiem Makarim resigns to join cabinet

“Our schools and academic institutions are going to have to meet the demands of our future economy. That’s why, when I received the mandate to be the Minister of Education and Culture, I knew it was something I had to do,” he concluded.

One of our group chat members pointed out a fairly good point about Makarim’s decision, saying it’s a “tricky timing for Gojek”. “Just as they’re trying to expand to new countries, their CEO left. It seems like slow progress over the year, especially with their Go-Viet head just left the company (again),” the person, who wishes to remain unnamed, said.

However, Rama Mamuaya, founder and CEO of DailySocial, Indonesia’s tech media company, pointed out that Makarim hasn’t been involved in a lot of days to day operations of Gojek for a long time anyway. “Andre Soelistyo, who is the CEO of Gojek Indonesia, does. Makarim was the CEO of Gojek Group. I don’t think it will impact the company as a whole,” Mamuaya said.

The sentiment is proven to be right, as Makarim’s staff email also pointed out Soelistyo as his successor, along with Kevin Aluwi. “I will leave Gojek in the capable hands of Andre Soelistyo and Kevin Aluwi as co-CEOs, both of whom have played central roles in moving the company along its path from that office in South Jakarta onto the global stage. They have been running this company for several years and I have complete faith not just in their technical skills and ability to execute flawlessly, but also in their integrity and their desire to do the right thing every step of the way,” the email reads.

Public and private sector’s intersection

On a more positive note, the Indonesian new cabinet just gained a fresh, forward-thinking mind, an original product of its tech industry.

The placement of the gojek’s CEO into government just sent a huge signal to investors about how open the country is to this kind of thinking. With Indonesia’s plenty of compelling business cases, the pairing of government and disruptive tech makes sense given Makarim’s position as an enabler for other new and young founders.

Critics also have been raving about the fact that Makarim has zero background in education. President Jokowi addressed the issue himself during a press conference on Thursday, October 24.

“There are around 300.000 schools and 50 million students in Indonesia. Makarim’s ability in management and applicative technology could help meet many needs of our country’s education system. Technology makes what used to be impossible possible, and this is something our education needs, a breakthrough,” said the President, as reported by Kompas.

However, some still need convincing that Makarim’s placement is not without a hidden agenda. Some pointed out that it could potentially end the long-standing competition between gojek and another unicorn that dominates Indonesia, Grab, with gojek taking the market as a whole, home.

Grab shared their official congratulations saying, “We congratulate our fellow industry disruptor, Nadiem Makarim on his appointment as Minister of Education & Cultural Affairs. As an inspiring figure to Indonesian youth, we believe he will bring innovative thinking and fresh ideas to elevate Indonesia’s education system.”

Highlighting on how education is the first sector to take care of if we want to see a change in a nation, Makarim also said that he’s looking forward to still carry gojek’s ethos into the government placement. “From the start, gojek’s ethos is all about acting in the best interests of Indonesia and Southeast Asia and making it an even better place to call home,” he ended his statement.

Transparency is more crucial than ever

Panhavuth Chan Heng, Chief Commercial Executive at BookMeBus Cambodia, bus ticket booking startup, pointed out that even if this is a hopeful move, lack of transparency is not tolerable at this point.

“This high-profile transition could set the scene for the new Public-Startup partnership in Southeast Asia as the region is becoming more dependent on the digital economy. I believe this joint force could be the cornerstone of exponential and sustainable growth. It remains interesting to see how it plays out as the market is still very competitive and any sign of bias could become highly sensitive if there is a lack of transparency within the cabinet,” Heng said.

Therefore, Makarim resigning is a good optic, said another anonymous thought leader in our startup group’s conversation.

“Makarim still needs to state that he will not exercise voting rights during his time in government’s office and that any decisions his office makes that can impact his company will have to be approved by the president. That way he can show that he doesn’t profit off it,” the person noted.

The move might be more convenient than the rest of us thought, but Makarim would be one of the firsts to secure such a role in the government, confirming the rumours that have been out there for quite some time.

Minister of Education and Culture

Despite the rejection from gojek’s drivers who made news on Tuesday, October 22, stating that gojek drivers aren’t in a relatively good state income-wise, Makarim was announced as Minister of Education and Culture on Wednesday, October 23.

Another member of our startup group further points out that indeed, education is one part of the bigger picture.

Also Read: [Updated] Breaking: Nadiem Makarim named Minister of Education and Culture of Indonesia

“In a sense, you need a golden trinity – education (mindset), infrastructure (ecosystem), and environment (government regulation) for a good startup to thrive. I’d say to get each factor to close to 10/10 takes significant time, with mindsets being the hardest, since it’s generational,” the anonymous member said.

Anisa Menur, our Chief Editor, pointed out the obvious. “Indonesia’s ministry of education has been run by baby boomers for so long that they have lost sight of what is important for the future. With a fresh young mind like Nadiem, hopefully, it can come up with policies that fit what the students need.”

Deputy Chief Executive Officer of NTUitive, Alex Lin also gave the nod on the sentiment. “Indonesia is working on mindset change on the country level. This hopefully can be a wakeup call to all the old politicians in the region.”

“What Indonesia will ignite is not just a war for tech talent, but talent. Good talents will see that Indonesia is now a place to change, to build, to be. Talents will flow there to build new business, to find like-minded people, and be with the growth,” Lin added, fueled with optimism.

The country has been considered as a huge growth machine for the Southeast Asia region, and it is coming out of its stealth mode. Some concerns were raised over the country’s notoriety in religious views that’s been blamed for delayed acceleration.

Jiaquan Lu, a freelance writer weighed in on the issue. “So long as religious and racial harmony and tolerances are in place, Indonesia is on a fast track of tech growth,” Lu said.

Aryo Ariotedjo, CEO of wellspaces group, a community-focussed property and service with wellness goal and investor from Indonesian B2B e-procurement startup Bizzy Group, also praised Makarim’s decision.

“Great move for the government! Makarim’s success in building gojek in less than 10 years to become our country’s unicorn will help him to develop more breakthroughs within the Ministry of Education. Hopefully, he will inspire a more agile and responsive style of governance within his department and other governmental bodies too.”

If you want to become a part of our Southeast Asia’s startup talks, please join our Telegram group here.
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When my co-founder, Fiona and I started SHOPLINE in 2013, we were fascinated by the potential of e-commerce and online marketplaces. With digital penetration rates rapidly increasing across the Asia Pacific region, we knew it wouldn’t be long before the trends of the West made their way to the East – and perhaps, with even greater force.

But I’d be lying if I said we imagined SHOPLINE would turn into what it is today. Our original concept was to create an online marketplace for Hong Kong businesses – yet in a few short years, our business shifted to become a smart commerce solutions provider, as opposed to a web-builder platform.

We branched into omnichannel and point-of-sale services to offer a more holistic shopping experience. Meanwhile, as of 2019, we have offices in Hong Kong, Taipei, Shenzhen, Ho Chi Minh City and Kuala Lumpur– and are even providing our merchants with the opportunity to expand into global markets.

We’d considered international expansion from as early as 2014, when we were selected as a member of the 500 Startup accelerator in Silicon Valley. After all, in our increasingly interconnected world, it only makes sense to think cross-borders.

But the prospect of expanding beyond your native market is daunting – particularly as a startup or small business. How do you know when the timing is right, or where to go? And how do you sustain momentum once you’re there?

Asia Pacific markets also present a unique challenge. Unlike Europe, which is united by regulatory frameworks, currency and is overall digitally mature, while APAC is fragmented. Our consumer habits, cultures and currencies are all different. Even the biggest multinational companies can struggle when entering the region because you cannot have a one-size-fits-all solution.

But then, it’s therein that lies opportunity. Startups and SMEs on the ground are more nimble, agile and culturally aware, leaving them better poised than the giants to charge ahead. Look no further than Grab’s successes against Uber. Internationalisation could well be your chance to beat competitors to the punch.

Based on our own experiences —both good and challenging – and the lessons we learned along the way, here are some tips I’d like to share for going global.

Learn everything about your new market

For each of our international office launches, there was a significant amount of preparation we undertook, including identifying local market needs, conducting foreign market research, and structuring a business plan while staying flexible to adjust product features and adapt to local customer needs.

1. Listen to your customers

When Fiona and I first launched the business, we would search for potential leads on Instagram to introduce our services, and ask questions on how we could better support their growth ambitions. We wanted to involve them in the shaping of our business and ensure they felt like they were part of the SHOPLINE story.

To this day, we still engage with our customers on a 1:1 basis to get their thoughts on what our next steps should be – this should go for any business pursuing aggressive growth. Listen to your customers and get feedback, treat them as collaborators and partners, and take the time to understand their challenges. It may sound obvious, but it’s easier said than done. It requires a close relationship and time commitment.

Indeed, one of the reasons we eventually chose to expand our global footprint was based on feedback from our merchants, who wanted to seek cross-border opportunities. My advice is to stay humble and have your customers’ interests at heart, eventually, you’ll be able to find that perfect slot.

2. Conduct research and watch carefully for opportunities

In SHOPLINE’s case, the opportunity was clear. We know there’s a wave of rapid digital penetration in the Asia Pacific market, which in turn makes having an online presence a necessity–not a nice-to-have.

Also Read: How to scale your e-commerce company from zero to $100M

For example, in Malaysia where we most recently expanded, the government has ambitions to double e-commerce revenues, which would see the industry contribute up to RM$21.1 billion (US$5.1 billion) in GDP by 2020. To achieve this, the government has offered a tax exemption for products valued under RM500 (US$120) and loosen the restrictions on B2C import items. And as a transportation hub for Southeast Asia, Malaysia is expected to lead the development of cross-border e-commerce in other ASEAN markets.

However, according to the Department of Statistics (DOSM), little over a third (37.8 per cent) of Malaysian organisations have a web presence. This is a big gap that needs filling.

3. Consider your cultural fit

For your first international venture, it’s also worth keeping in mind your own heritage. Selecting the right market is perhaps the most challenging task in the process. Blindly investing in new markets is a huge risk. So I’d always recommend selecting countries that share a similar background to your home market, in terms of language or culture.

In our case, we first expanded from Hong Kong to Taiwan. Our shared traits and market characteristics helped with lowering the barrier to entry and gaining an effective understanding of how to nuance our products and services for local merchants.

4. Localise your product offering

Of course, there are still many differences between Hong Kong and Taiwan – not least of all, in terms of language. So you can’t expect to offer the exact same service and product wherever you go, especially if you want to demonstrate how much you value your customer relationships.

As such, be ready to adapt your offering to cater to local nuances, whether that’s the language you use, the way you market your products, the prices you set, or even certain functions.

Take McDonalds for example – as well as the standard cheeseburgers and fries, its menu offers localised options that are uniquely made for the market or region. Think of the Nasi Lemak Burger, Bandung and Durian ice creams, or simply being able to order rice with your meal. These aren’t things available in Europe or the States.

In our case, wherever we launch SHOPLINE, we immediately prioritise the securing partnerships with local payment gateways and logistics providers. In Taiwan, this meant integrating with LINEPay, while in Hong Kong, our users can complete their purchases with PayMe – both popular payment options among local shoppers, but not necessarily further afield.

5. Hire locally

The reality is that for all your research and customer feedback, there are bound to be things an audit won’t unveil. So you need to be there, absorbing the business culture to develop a strategic plan.

When we enter new target markets, we always seek to hire locally. This enables us to gain new insights into the local competitive landscape and customer behaviour; and build networks and partnerships to navigate potential problems with greater ease. In turn, this usually translates to higher operational efficiency and better customer satisfaction rates.

Also Read: How do you grow your startup? Take some advice from 4 experts in digital marketing

Soft launches are also a great way to test the water and review your strategy over time. This was the method we adopted for our expansion into Malaysia, giving ourselves a six-month runway to work with a selected group of launch merchants, and understand their needs and requirements compared to other markets.

Taking the plunge: What to do once you’ve arrived, and maintaining momentum

Once we’d made our decision and committed to a launch, it was important that we gathered a team we could trust to be our eyes and ears on the ground, ensuring we were keeping on top of emerging trends and merchant needs to prepare for the future.

6. Decentralise to offer greater autonomy

If you have a team on the ground, decentralisation will allow local offices to take charge of the marketing and sales strategies in their markets, which helps in facilitating the process of expansion.

That’s not to say headquarters shouldn’t be involved—you want to retain brand identity across all offices. But the more you expand, the less time you’ll have to look at the finer details, so as a business owner, make sure your team is on the side, and excited at the prospect and hungry for growth, enabling you to prioritise the bigger picture.

If you’re stringent during the hiring process, you can ensure you find individuals who relish a challenge, share both your business’ values and company culture, and are capable to lead the charge in their respective country. This has the added benefit of giving employees a greater sense of authority and accountability when it comes to their work. Success will be a group effort.

7. Enable cross-border collaboration

That said, you’ll often have projects which involve multiple markets and require your employees to work together cross-borders. Having an effective structure in place can facilitate that collaboration.

We are fans of Scrum – the process management framework – when we have international projects underway. Essentially, Scrum ensures that each project has an appointed product owner, scrum master, and team.

The product owner ensures that actions are clearly communicated, decides what needs to be done and sets priorities; the scrum master monitors progress, facilitates meetings and removes any distractions; and the team executes the work to achieve the set goal.

8. Avoid complacency

After successfully rolling out the product, ensure you spend time reinforcing the quality of your product or service on a regular basis. Look no further than the iPhone’s decline in the Chinese market as rival, local phone brands garner favour with the population. If there’s a business opportunity to be had, it won’t be long until others attempt to ride the wave — you need to stand above the rest.

Also Read: Business scaling 101: What is scaling and how to scale

Depending on your sector, this may well involve introducing new products or services to provide a wider range of services to existing customers, as well as potentially enabling you to engage new audiences.

For example, at SHOPLINE, we noticed that there are a variety of channels that merchants use to reach out to audiences, including brick-and-mortar stores, online stores, and social media sales pages. As such, we rolled out O2O (online to offline) solutions that help to aggregate data and sales information from all these platforms, so that our merchants can analyse their sales across different channels, and provide their customers with an omni-channel experience.

9. Commit

Finally, demonstrate that you intend to stick around. Coming in as a foreign organisation, local customers may doubt your commitment to the country so building trust is essential. It could be as simple as marketing campaigns, but you may wish to consider other initiatives, such as committing to education in the market, or working with industry bodies on the ground.

Announcing office launches are only the beginning of your venture into new territory, and just as you size up the market, the market is also sizing you up. After building that trust, stakeholders and potential customers will view you in a more favourable light, which will widen your footprint, and establish a strong foothold.

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I don’t know about you, but there are brands I deliberately avoid. In this world of perpetual distraction, loyalty is a much talked about subject, but disloyalty rarely gets the airtime it deserves. This is a problem. Loyalty is often transactional in nature. Only few brands manage to create true advocacy among their customers. Advocacy requires the customer to proactively associate with a brand’s reason for being, and few companies achieve that at scale. Anti-loyalty is much more easily generated, typically highly emotional and very detrimental to business.

Many people believe loyalty is about capturing repeat transactional behaviours, but this perspective is flawed. During my Honours Bachelor back in university, I researched the motivations triggering loyalty program participation. We like to build habits to simplify everyday life, but that’s only the surface.

Most loyalists, we found, look to achieve one specific emotional goal: They are either maximisers that enjoy the goal progression to a reward, or social caregivers that look to maximise contributions to their family or group. While not exhaustive, these motivations show that loyalty is a very personal subject. It explains why many people passionately hate certain brands they’ve had a bad interaction with, but few put the same energy and emotion into the names they habitually purchase.

This matters greatly in a world where most of us have very little control over the things people say about us. Anybody can voice their opinion online, give ratings and reviews, endorse us and promote their views around what we do, whether we like it or not. This means we are well-advised to give people as little incentive as possible to emotionally condemn our work and business. But how? Ironically enough it comes back to purpose.

Also Read: Why trust is the biggest barrier to entrepreneurship and innovation

Those with the genuine purpose to build towards a better world need not worry so much about transactional loyalty, because they are the candidates most likely to benefit from genuine advocacy. Companies and people focused on transactional loyalty must perpetually find ways to hack our decision-making so we build habits around their products. Financial or product incentives are the weapon of choice here, and with enough coupons and discounts in the mix we start to believe that loyalty to Product X is a good way of satisfying our deeper and less obvious needs. Except this does not work for everyone.

Hardly any of the loyalty programmes currently out there are properly designed around the personal emotional needs we seek to satisfy through brand loyalty. Transactional approaches get the job done, but miss the point. The transactional and faceless approach to customer interaction and loyalty looks nice in theory, but is spectacularly misguided.

As many have argued, we think of brands and companies just like people. This is precisely why we are best advised to build relationships with customers beyond a chain of transactions. Put simply, the anti-loyalist feels offended by the anonymity and sterility involved in having to deal with companies that are incapable or reluctant to cater to their needs, and dissociates him- or herself from those brands through a hostile attitude.

Also Read: 10 amazing reasons why you should hire for incompetence

Interestingly, the troves of passive loyalists many companies have acquired through their programmes over the years are very likely to be influenced by Anti-Loyalists. Loyalists see brands just like ants living in symbiosis with acacia trees – they stick around in exchange for regular doses of nectar. There’s little passion involved in their behaviour, and the trust they have in the brand is transactional in nature. This means Anti-Loyalists are potent predators to many businesses.

This is true even for brands with high NPS. NPS approximates whether someone would recommend Brand X when prompted, but has almost nothing to say about the significance that person attaches to the product, service or company. Few brands have a solid count of true ambassadors among their loyalty base that passionately advocates for what they do. The ones that have achieved it, quite logically, are iconic household names.

All of this means two things: First, companies that are transactional and nondescript in their approach to customers, and visibly lacking purpose in their business, will have a hard time remaining relevant in future. Second, investing in true purpose and a relationship-focused strategy for customer engagement is more satisfying and rewarding for everyone involved.

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This article previously appeared on LinkedIn

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