Oracle to Enable ASEAN Markets in 3 Ways Collaboration

Date : 08-Oct-2019
Location: Asia

Key Takeaways:
  • ASEAN is big
    • Not only ASEAN is of vital geostrategic importance to the world, it ranks as the 4th largest exporting region in the world, accounting for 7% of global exports.
    • This region had a combined GDP of US$2.8 trillion in 2017. This region’s economic growth continues to average 5.4%, and it is forecasted to maintain this growth rate in the near future. Regional GDP could grow from US$4 trillion to US$5 trillion in 15 years. + In this context, organizations in ASEAN can look forward to a compelling growth journey riding together the waves of digital technologies, empowering ASEAN’s growing middle class, and the fastest-growing digital economy in the world with an online population expanding by an estimated 124,000 new users each day.
  • The Challange
    • However, in this rapidly growing digital economy, organizations have to battle challenges such as an increasingly mobile-centric world, a gig-oriented workforce, skills shortages, and resistance to change.
  • The solution
    • Embracing collaboration and innovation are the only ways to survive in the digital economy.
    • In fact, many forward-looking governments in the region have already embarked on this path with national programs like Singapore’s Smart Nation, Malaysia’s focus on productivity and efficiency, and Thailand and Indonesia’s progress around Industry 4.0.

  • Cherian Varghese, Vice President & Regional Managing Director – ASEAN & SAGE,said, the stage has been set for ASEAN to shine, and time will be the jury as to how well the bloc executes on its vision. 
Oracle Cherian Varghese Photo

  • Lee Hsien Loong, Singapore’s Prime Minister, has predicted that ASEAN will become the fourth largest economy in the world by 2030

Collaboration in three ways:

1.) Public-private partnerships

Public-private partnerships (PPPs) are one of the oldest forms of industry-government collaboration but is needed now more than ever. This type of collaboration will help drive tech investments (for innovation) and will be useful in skills upgrading.

Growing automation, difficulties in accessing innovative technologies and skills shortage are some of the main challenges for organizations and governments in ASEAN. This is where organizations with resources can step in and contribute to fix the imbalance. On our part, for example, we have partnered with InvestKL to launch a Digital Hub to drive more investments into Greater KL, and providing support to 22 countries across APAC to accelerate adoption of cloud technologies and innovation. The digital hub, Oracle’s first in Southeast Asia, has been growing rapidly on the back of Malaysia’s business-friendly ecosystem. Located in Greater KL, Oracle Digital Hub is among four such operations established by Oracle in Asia-Pacific.

Similarly, Oracle Malaysia has launched the Oracle Cloud Solution Hub to help businesses across Asia-Pacific accelerate digital transformation access the latest innovative cloud technologies including Blockchain, IoT, Machine Learning, AI, Data Analytics and Autonomous Databases. Oracle Cloud Solutions Hub’s cloud solutions currently serve enterprises across 22 countries. To drive further growth, the hub is being developed to include a regional technical cloud center focused on delivering industry 4.0 solutions to enable more companies to adopt innovative and customized applications.

The other areas in which Oracle has been playing an active role is inclusive finance transition program (through the UN Capital Development Fund) and collaboration in higher learning. Last year, six Indonesian fintech companies were awarded financial grants as part of the Microenterprise Fintech Innovation Challenge Fund, which Pulse Lab Jakarta implemented together with the United Nations Capital Development Fund.

In education and training, for instance, Oracle Academy supports the Malaysian government initiative ‘Premiere Pride Challenge 2019,’ and recently delivered Train the Trainer events for senior educators/PhDs and associate professors in computer science from various selected universities and polytechnic schools in Malaysia. Oracle is supporting similar collaborative educational and training programs with governments and institutions of higher learning in Singapore and the Philippines. Through Oracle Academy, Oracle partners with 12 institutes of higher learning, 56 educators and over 300 students in Singapore to equip Singapore youths with skills on emerging technologies. Cross-sectoral / industry collaboration to drive new ideas and business models

2.) The second type of collaboration that is needed is cross-sectoral or industry collaboration that can drive new ideas and business models.

Today, as a result of digitization, the lines between industry verticals are blurring fast. No longer are banks only operating as lenders, nor are telcos only operating as telephony and data communications providers. The digital economy has pushed every company in every industry to rethink their value proposition and business models, and therefore mean they are no longer just competing with other traditional banks if they started out as a bank or other telco providers if they started out as traditional telcos. This necessitates collaboration amongst different industries to spur new ideas and innovations.

A great example of this is what the Asian Development Bank (ADB) is doing in the Philippines, in partnership with the Asian Institute of Management (AIM). ADB and AIM organized a hackathon as part of Digital Week 2019, where more than 700 youth and startups from around the world presented innovative solutions to three challenges. ADB is collaborating with technology companies to drive this initiative.

Oracle’s partnership with AirAsia is an example of a successful collaboration. The world’s leading low-cost airline chose the market-leading Oracle Enterprise Resource Planning (ERP) Cloud as as the backbone of their finance operations. Working with Oracle to centralise and streamline its finance operations, the airline company continues to be at the frontier of technology adoption as it works towards connecting its customers to more ASEAN cities. The deployment supports AirAsia’s growth plans and its vision to be the leading travel technology company in Asia.

3.) Collaboration among large enterprises and startups

This type of collaboration is gaining ground now as the startup ecosystems grows and matures in ASEAN. The collaboration between large enterprises and startups helps in sharing capabilities and driving new innovations to market with capital backing.

We have found that fewer than 20 percent of innovation-focused projects are coming to life in Asia. This is primarily caused by lack of focus and leadership, poor processes and an ongoing resistance to change. When large corporations and startups come together, this can help the entire community by driving innovation, making it more accessible and pervasive.

A case in point is our effort in this direction, the establishment of Oracle for Startups ecosystem. It started off in 2017 as the Oracle Startup Cloud Accelerator (OSCA) program in Singapore, with six locally based startups selected as the first cohort. In 2018, following the success of its first cohort, Oracle announced its continued investment in the local startup ecosystem by opening its program for the second cohort of startups in Singapore.  

Editor's comments:
  • At present stage, the software industry is driven by the fact that software is the main engine of business and not the other way round - which means that an enterprise software is as important as the cash flow which powers a business.
  • Big companies like Oracle must not only become the taiko in bridging collaborations but to nurture new digital talents and to moderate the industry for bad practices.