Advantech Enters the Next IoT Era by Launching the Co-Creation Model and Global Deployment
Advantech, a leader in global intelligent systems (stock symbol: 2395), held an investors’ conference today to announce 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. Furthermore, the Advantech IoT Co-Creation Summit has been scheduled to take place at the International Expo Center in Suzhou from November 1 to 3, where the results of cooperating with various eco-partners will be showcased and a new vision for the next phase of IoT development will be mapped out.
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 (i.e., Europe, the United States, and China), to reinforce the Advantech’s 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 and India/Russia to generate US$100 million and US$30 million in revenues, respectively. The company also plans to further increase investment in Malaysian 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. Advantech Headquarters will assist with the optimization of local organizations, talent, and culture, and will also seek business opportunities through a regional advisory board.
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 the compound annual growth rate from 2014 to 2017 has reached 25%. Key development points for the next three years include 1) elevating operation levels in five key regions, namely the UK, France, Germany, Italy, and the Netherlands; 2) establishing branch offices in emerging European regions for conducting business and providing technical support; and 3) focusing on key industries, such as games of chance, medical, transportation, and automotive, and expanding deployment in Germany, the UK, and the Netherlands.
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 the vertical industry cloud service companies to be co-created during Phase III, Advantech plans to establish subsidiaries in Taiwan and China in the first quarter of 2018, and this 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.
As each day passes, Advantech’s confidence grows as the company’s strategies for Phase II and Phase III IoT development become clearer. To share these developments, invitations for the IoT Co-Creation Summit scheduled for November are already on their way to all customers and partners.