On an article published by Computer Weekly, Eugene Ho, SAP Southeast Asia’s head of corporate affairs, pointed out that to help the Association of Southeast Asian Nations (ASEAN) workforce to be ready for the digital economy, businesses, educators and the governments itself should co-invest in education and skills. Additionally, the individuals themselves should also be willing to be a part of the digital revolution and be ready to capitalise on it.

Based on a Deloitte survey result, only 20{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of youths feel that being part of the digital revolution is part of their responsibility. Ho noted that this kind of mindset is harmful and quoted that “one can lead a horse to water, but you can’t make it drink.”

At the 35th ASEAN Summit and Related Summits held in Thailand, Ho shared his views on the skills that will be needed to support the ASEAN digital economy. In the session, he talked about data intelligence and its role in the current era. He also shared what SAP has been doing so far to help the region in its upskilling efforts.

Eugene Ho emphasises increasing demand for data skills

Ho noted that the fourth industrial revolution, or IR4.0, is expected to bring about many opportunities and that the individuals and companies that will thrive during this era are those with advanced and adaptive data skills. He was quoted saying:

“By 2030, McKinsey estimates that as many as 375 million workers may need to change their occupational categories and learn new skills to adapt to automation and digital transformation.”

During the session, Ho also shared that 60{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of the expected population in the ASEAN region will comprise of individuals under 35 years old. Meanwhile, China and India lead the statistics for having the most significant number of millennials; however, he also pointed out that the lack of actual skills to succeed in the workplace could be a big concern. He noted that up to 27{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of millennials and Gen Z in the workforce would eventually leave their jobs because of the lack of learning and development opportunities.

As for companies, Ho noted that they can expect an enterprise value of 3{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} to 5{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} for industries with a higher corporate data literacy rate. The challenge now is getting CEOs to prepare their current workforce with data skills.

SAP’s role in learning and development

Eugene Ho praised SAP for putting its focus on the learning and development aspect. Their efforts have helped SAP establish a reputation as one of the most innovative companies in the world. In a statement, he said:

“Our focus on learning and development has made us an employer of choice in many of the countries that we operate in and enable us to have a thriving ecosystem of customers and partners in ASEAN.”

He also noted that 91{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of the top 100 ASEAN companies and 88{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of the ASEAN companies listed on the Forbes Global 2000 list were SAP customers. When it comes to digital learning and development, SAP is the leader in delivering massive online open courses (MOOCs).

Ho highlighted that SAP’s MOOC platform, openSAP, has more than 28,000 learners coming from 10 ASEAN member states. It is open to anyone for free. The openSAP platform has been helping individuals learn new skills through courses for various disciplines such as data science, machine learning, and robotic process automation.

During the session, he also highlighted some of SAP’s prominent initiatives, particularly with the ASEAN Foundation for the ASEAN Data Science Explorers training programme. They have also collaborated with Skills Future Singapore and other polytechnics for the SAP Skills University Singapore initiative.

Lastly, Eugene Ho emphasised the two things that need to be worked on to enable a digital ASEAN to unlock growth: an individual culture of learning for a lifetime and a collective culture that allows the growth of learning and development of the digital workforce.

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Mergers and acquisitions activity in the ASEAN channel is increasing this 2019 due to the need to build out specialised capabilities. To date, there have been more than 10 channel-related deals at a regional level. This is apart from the 25 industry-related transactions across the world.

The two major reasons why local partners have gone to market are the need to find an expert across cloud and software solutions and the need to obtain security and data centre capabilities. The M&A are showing patterns within the local ecosystem as partners chase new markets, customers and technologies.

Here are some of the noteworthy ASEAN mergers and acquisitions activity in the first half of 2019.

Game-changing M&As

US$125 million deal of 8X8 acquiring Singapore-based Wavecell

In the M&A that included cash and stock, 8×8 has entered into the communications platform-as-a-service (CPaaS). The acquisition is designed to enhance the vendor’s offerings within the service delivery space, alongside APIs for SMS, chat apps, voice, and video.

NTT Communications, Dimension Data, and NTT Security joining forces

Early in July 2019, NTT has officially launched its $11 billion business comprising of NTT Communications, Dimension Data, and NTT Security. The global tech giant spearheaded by Jason Goodall employs around 40,000 staff in offices across more than 70 countries and regions. This M&A has a huge industry impact with NTT housing the capabilities of 28 companies.

As confirmed by Channel Asia, John Lombard has been named as CEO of Asia Pacific and is responsible for NTT’s global business in the Asia Pacific, excluding Japan and Australia.

Cloud and Software M&As

Cloud Comrade, Synchrony Global, and RightCloud in Singapore, alongside ISS Consulting in Thailand, Plaut IT in Malaysia and Ebiz Cipta Solusi in Indonesia are some of the mergers and acquisitions activity in the cloud and software space.

Rizing and Synchrony Global. In January 2019 Rizing, LLC, a privately-held multinational company providing leading SAP functional and technical services, completed its acquisition of Synchrony Global, a market leader in the Asia Pacific with a focus on SAP SuccessFactors Certified Professionals as well as a strong Business Process Outsourcing service headquartered in Singapore. This acquisition strengthens Rizing’s global position in the SAP SuccessFactors Cloud Software services market.

ST Telemedia and Cloud Comrade. ST Telemedia, an active investor in the Communications, Media, and Technology (CMT) space, acquired cloud start-up Cloud Comrade in January this year. The acquisition leverages the provider’s specialist expertise to bolster multi-cloud and digital capabilities.

EY and Plaut IT. Before January 2019 ended, EY has acquired Plaut IT, an SAP consulting and technical services provider, along with its local subsidiary EchoJunction and Malaysian subsidiary, Baseliner. This added 130 people to EY’s technology services and marked the global professional services firm’s third “digital” acquisition within seven months, including the acquisition of Adelphi Digital Consulting Group in November 2018.

SoftwareOne and RightCloud. In February, SoftwareOne acquired Singapore-based cloud service provider, RightCloud, for an undisclosed amount, further expanding its operations around the Asia Pacific promoting its multi-cloud strategy, and offering a range of services including managed services, cloud security, big data, business analytics, DevOps, application development and SAP on Cloud.

Information Services International-Dentsu (ISID) and Ebiz Cipta Solusi. In April 2019, Japan-based Information Services International-Dentsu (ISID) took a 75 {aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} equity stake in Ebiz Cipta Solusi, an Indonesian independent software vendor.

itelligence AG and ISS Consulting. In July, Bangkok-based ISS Consulting, one of the leading SAP consulting firms across the country, focusing on manufacturing, automotive, retail, and food and beverage industry sectors, was acquired by intelligence AG, a global SAP specialist.

Data Centre M&As

In the recent 6 months, four key mergers and acquisitions activity have transpired in the data centre space.

Iron Mountain and IntoZafe. In June 2019, Iron Mountain announced its plans to acquire Bangkok-based InfoZafe, providing the US-based storage vendor with additional reach across Thailand and expanding the company’s presence and capacity for service delivery, while providing an additional facility in Bangkok.

ST Telemedia Global Data Centres (STT GDC) and Tata Communications. Also in June, ST Telemedia Global Data Centres (STT GDC) has acquired the remaining 26 {aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} stake of Tata Communications in STT Tai Seng, making STT GDC the 100 {aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} owner of the Singapore facility. The agreement came two years after STT GDC entered into a strategic partnership with Tata’s data centre business in Singapore and India, holding a 74{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} majority stake across both markets.

Princeton Digital Group (PDG) and XL Axiata. Princeton Digital Group (PDG) took a 70 {aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} stake in XL Axiata’s data centre portfolio in Indonesia, enabling Singapore-based PDG to establish a “strategic presence” in Indonesia, which is poised to become the largest digital economy in Southeast Asia by 2025. XL Axiata owns five data centres across Indonesia.

ChinData and Bridge Data Centres. Bain Capital-owned business ChinData and Bridge Data Centres create a “pan-Asian” data centre platform in the region through its merger.

ChinData Group, the New parent company, will continue to operate under the ChinData and Bridge brands respectively and provide hyperscale, wholesale and custom-build data centre solutions to regional and global customers, with facilities in China, India and Southeast Asia.

Notable M&As

DXC Technology and Sime Darby Berhad. In May 2019, DXC Technology, the world’s leading independent, end-to-end IT services and solutions company has acquired the global services centre of Sime Darby Berhad in Malaysia, backed by a long-term managed services agreement. This brings the tech giant control over Sime Darby Global Services Centre (SDGSC), the in-house provider of its HR, finance, accounting, and IT services.

Future Data and Maximus Group Consulting. Future Data acquired a majority stake of 64.86{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} in Maximus Group Consulting in June, a Hong Kong-based cybersecurity consulting firm, as part of in-market growth plans. It comprises of 24,000 sale shares and the subscription of 24,000 new shares.

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Family Businesses and the Future

Singaporean family businesses are embracing emerging technologies for business success. A new study by The Economist Intelligence Unit, sponsored by SAP, found that Singapore family businesses are ready to utilise emerging technologies to drive business success, such as data analytics, automation, machine learning, and cloud computing. These results show that businesses are prepared to put aside traditional business models. The majority of businesses believe that they need to change at least somewhat in order to overcome challenges in the next three years.

The regional multi-country study, ‘Planning for prosperity: assessing family business future-readiness in South and South-east Asia’, assessed and benchmarked the readiness of family businesses to meet future challenges. Singapore family businesses, many now in their third generation, are also very confident about their future. Businesses are collaborating with other organisations for better business outcomes, with half saying it is likely they will launch new products and services. A third of the businesses surveyed are saying the primary benefit of partnerships with other organisations is access to new geographical markets.

A Focus on Singapore

According to the study, family businesses in Singapore view partnerships as crucial to ensuring survival and growth. They are also open to collaboration with other companies to develop new products and to cultivate new customer segments These new partnerships drive product innovation and expansion into different markets.

“Family businesses are trusted, home-grown enterprises that form an important part of the bedrock of Singapore’s private sector, and their optimistic outlook towards the future bodes well for the economy,” said Michael Gold, EIU editor of the report. “To strengthen their legacy and seize opportunities in the digital economy, they cannot continue to depend solely on connections or customer loyalty. Family businesses and SMEs need to future-proof themselves with digital know-how and innovation, in order to compete successfully in the international arena.”

The full report is available for download .

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The Friend of ASEAN award was presented by Mdm Halimah Yacob:

Mdm Halimah Yacob is the President of the Republic of Singapore. The award presentation was at the ASEAN Business Awards 2018 gala dinner, held in Singapore and hosted by the ASEAN-BAC. The Friends of ASEAN award category acknowledges non-ASEAN owned organisations for their continuous and increased commitment to growing their presence in the ASEAN. The awards were introduced in 2007 by ASEAN-BAC to mark ASEAN’s 40^th anniversary and to recognise outstanding ASEAN businesses.

From its initial single office and 16 employees in Singapore in 1989, SAP has steadily grown its ASEAN presence to its current 11 offices in 7 ASEAN member states and more than 3,800 employees.

As an employer, SAP has continuously invested in the development of its people and is recognised as an employer of choice in the region, as demonstrated by the numerous employer-focused awards it has garnered.

In addition, SAP innovations help more than 10,000 ASEAN customers — including 91 of the Top 100 ASEAN companies — work more efficiently and use business insights more effectively.

“SAP has been helping customers in Southeast Asia run better with our software innovations for close to 30 years now, and with our continued expansion, we are focusing on helping even more organisations leapfrog the technology gap to thrive in the fourth industrial revolution. We do so by bringing best practices from our global experience with 25 industries, together with leading technologies such as blockchain, IoT, machine learning and analytics, while building the capacity of local partners to better serve our customers,” said Claus Andresen, president & managing director, SAP Southeast Asia.

SAP Corporate Social Responsibility initiatives help communities:

“Receiving the Friend of ASEAN accolade is an impetus for us to do more to help companies and communities be more successful. We will be successful only when they are successful.”

A major initiative of SAP Corporate Social Responsibility (CSR) is the SAP Social Sabbatical, enabling SAP employees to donate their skills and expertise to help non-profit organisations and social enterprises to create solutions to major business challenges. Since 2015, 111 SAP employees have volunteered more than 27,000 hours, valued at almost 1.5 million euros in support of 40 social enterprises across Southeast Asia.

“In service to SAP’s CSR mission – powering opportunity through digital inclusion — SAP collaborated with the ASEAN Foundation to establish the ASEAN Data Science Explorers (ASEAN DSE) program in 2017. ASEAN DSE have since trained close to 5000 educators and youths in SAP Analytics Cloud across all 10 ASEAN member states,” said Eugene Ho, head of corporate affairs, SAP Southeast Asia.

The initiative enables participants to visualise and analyse data on UN Sustainable Developments Goals and to develop recommendations to support the ASEAN Socio-Cultural Community Blueprint 2025.

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The initiatives aim to equip young people in ASEA with the skills they need to thrive in the digital economy; build capacity of innovative social enterprise to help youth build successful careers; and to build the skilled workforce that will be required for the IT sector.

Among the successes in 2017 have been the ASEAN Data Science Explorers competition, which saw 804 participants trained in SAP’s Analytics Cloud software and create submissions addressing some of the most pressing social issues in the region. Highlights included a project by Team ‘Omotesando’ from Indonesia, which aimed to accelerate financial inclusion through branchless banking, and a project by Team ‘Tonkar Data’ from Laos, which proposed adoption of smart and vertical farming to improve agriculture productivity.

The Youth Volunteering Innovation Challenge provided 29 young people with access to mentor and capital to start or scale-up social impact and sustainable development projects. SAP also supported nine of the top 50 ASEAN social enterprises through its SAP Social Sabbatical and NUS Crossing the Chasm Challenge, providing mentorship and consulting.

“Through this synergetic collaboration, we have been able to leverage resources from both organizations to inspire ASEAN youths to actively participate in efforts towards driving a sustainable future for ASEAN. With digitisation being the pivotal force in today’s ASEAN economies, both the public and the private sector need to work together to impart digital skills to the young,” said Elaine Tan, executive director, ASEAN Foundation.

“SAP has been a strong supporter in making consistent effort to move the needle in this respect; we hope to continue to collaborate with them to prepare ASEAN’s workforce for the future.”

“2017 has been a special year for the ASEAN community, with ASEAN turning 50 and the ASEAN Foundation celebrating its 20th anniversary. The community has come a long way and through this collaboration, SAP is proud to have been part of this journey to help ASEAN write the next chapter towards a more sustainable future,” said Claus Andresen, president and managing director, SAP Southeast Asia.

“Helping the world run better and improving people’s lives is at the heart of everything we do at SAP and we are pleased with the outcomes of the collaboration in the first year. I am confident that the renewal of this collaboration will help scale our ambitious CSR programs to create even greater positive impact across the region.”

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This is the first time SAP has offered the solution to SMEs through an Asian bank.

SMEs will be able to choose from three Business One options, with various levels of functionality to help digitise back office processes such as accounting and sales. The most basic option will be free.

“UOB has been supporting SMEs for more than 80 years and we know that ensuring efficient operations is their priority. While SMEs are keen to reap the benefits of digital technology, it can be costly to implement such technology,” said Lawrence Loh, managing director and head of group business banking, UOB.

“A survey we donated among SMEs earlier this year showed that two in five respondents indicated that cost was a barrier to using digital solutions. To help SMEs overcome this challenge, we have worked with SAP to offer a complimentary, entry-level version to help our customer begin their digitalisation journey.

“Through the collaboration, we believe our customers would benefit from the use of an enterprise resource planning solution to automate and to manage their administrative processes. Having a direct link to their operating accounts with UOB would enable them to manage their company finances more effectively.”

SAP and UOB share a common goal to help ASEAN SMEs seize growth opportunities in the new economy.

Scott Russell, president, SAP Asia Pacific and Japan, said, “SMEs are key drivers of the ASEAN economy and need to be equipped with the right infrastructure and tools to operate in today’s business environment. As more SMEs become digitally-savvy, we recognise the need to help them digitise the way they run and manage their business. UOB Biz Smart featuring SAP Business One could help SME business owners make the transition to digital and take away the hassle of managing complicated operational tasks manually, empowering them to focus on driving business outcomes.

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