Taiwan-based Advantech’s leaders have always been intellectual strategic thinkers. They have clued me in on several good management books. The company is an industrial computer company with industrial data acquisition and I/O devices that has successfully positioned itself as an edge device leader in the Internet of Things space.
The company has announced its strategies for entering the next phase of IoT development. To expand local operations, Advantech will fully activate the deployment of branch locations throughout various regions. In addition, a co-creation model will be adopted to construct the Industrial IoT (IIoT) ecosystem and strengthen the influence of vertical domains.
Advantech’s Executive Director of the Board, Chaney Ho, stated that since taking over as executive director last year, he has been focusing on developing regional strategies and establishing development goals and directions for each region, all of which are based on their scope.
In regions with a larger scope (Europe, United States, and China), to reinforce the Advantech brand recognition in IoT and Industry 4.0, talent cultivation and an increased presence in local sales are the company’s primary goals to actively respond to recent developments in Industry 4.0 trends in the EU, plans by the U.S. government to shift production back to America, and the China One Belt One Road policy.
For medium and small-scale regions, Mr. Ho stated that Advantech will develop Japan, South Korea, India, and Russia to generate $130 million in revenue. The company also plans to further increase investment in Malaysia and Thai IIoT organizations and new branch locations in Vietnam, Russia, and Turkey will be established through mergers and acquisitions as well as joint ventures.
Regarding developments in the European region, Miller Chang, President of Advantech’s Embedded-IoT (EIoT) Group, expressed that a sector-lead strategy has been practiced by the EIoT group since 2014. Various product divisions from headquarters have been fully connected with overseas frontline business teams and compound annual growth rate from 2014 to 2017 has reached 25%.
Key development points for the next three years in Europe are:
1. Elevating operation levels in five key regions, the UK, France, Germany, Italy, and the Netherlands.
2. Establishing branch offices in emerging European regions for conducting business and providing technical support.
3. Focusing on key industries, such as gaming, medical, transportation, and automotive, in Germany, UK, and the Netherlands.
With respect to development in the Greater China Region, Linda Tsai, President of Advantech’s IIoT Group, believes that the embedded systems/hardware from Phase I IOT development as well as IoT solutions platforms from Phase II are Advantech’s “double-growth engine” in IIoT development. Following this, three key strategies have been proposed.
1. Implement and IIoT sector-lead organizational development model expanding industry management and optimize regional resource allocations,
2. Set successful examples in the Greater China Region to accelerate the marketing of hardware/software and imaging solutions.
3. Actively cultivate local personal to become mid-to-high level supervisors to expand into the Chinese market.
Fantine Lee, Manager of Advantech’s Corporate Investment Division, pointed out that Advantech will continue to actively promote platform management during Phase II IoT development, SRP co-creation, and the co-created digital transformation of vertical industry cloud services during Phase III through the co-creation model. As for vertical industry, cloud service companies to be co-created during Phase III, Advantech plans to establish subsidiaries in Taiwan and China and will include domains such as Smart Manufacturing, Smart Environmental Protection, and Smart Retail. These companies will be managed together with Advantech’s co-creation partners. Furthermore, opportunities in other domains, such as Smart Hospitals, Smart Factories, Industrial Vision Systems, Consultant Training, and Integration Services will continue to be promoted and co-created.
Miss Lee further stated for Phase II development, Advantech’s WISE-PaaS cloud platform will serve as the foundation for building a comprehensive value chain for SRPs. This year, third-party software and WISE-PaaS platform integration with SaaS suppliers and collective sales/agents will be introduced at an accelerated pace. In addition, partnerships with software developers specializing in monitoring and diagnosing connected equipment, energy management, data analysis, machine learning, and other vertical industries will be established.