The EDB Society and Singapore Management University co-hosted the third of a six-part Enterprise & Entrepreneur Series – Transforming Industries • Creating Value, on 17 April 2018 (Tuesday), themed Advanced Manufacturing and Urban Solutions – Pushing Frontiers.

The disruptive effects of intelligent automation, robotics and artificial intelligence are being felt across industries such as advanced manufacturing, as well as by communities living in urban cities and rural landscapes. With Singapore looking at both the challenges and opportunities of shifting from a value-adding to a value-creating economy, the forum provided an opportune platform to discuss the ways in which to meet the challenges and opportunities of Industry 4.0 and the changing face of advanced manufacturing.  

Close to 200 guests comprising business leaders, entrepreneurs, government officials, EDB alumni as well as SMU faculty, staff and students attended the forum, held at SMU’s Mochtar Riady Auditorium.

As moderator of the panel discussion on advanced manufacturing and urban solutions, SMU President Professor Arnoud De Meyer, introduced the speakers as a group of accomplished individuals who collectively held a wealth of diverse experiences.

The speakers were Mr Raimund Klein, Executive Vice President, Digital Factory, Process Industries & Drives, Siemens; Mr Ryoichi Yamaura, Vice President New Solution Business Division, Fujitsu Asia and Co-Director Fujitsu-SMU Urban Computing & Engineering Corporate Lab; Mr Wong Heang Fine, Group Chief Executive Officer, Surbana Jurong Pte Ltd; Mr Peter Ho, Chief Executive Officer and Co-Founder, Hope Technik Pte Ltd; and Mr Amos Leong, President and CEO, Univac Group.

Prof De Meyer set the premise of the discussion by reminding the audience of how manufacturing had been, and continued to be a driving force of success for Singapore, generating about 20 per cent of GDP growth. It remained important to keep up healthy levels of manufacturing activity and to keep the focus firmly on the area of advanced manufacturing, given the country’s high cost of labour.

Being a compact and densely populated city-state facing the challenges of space constraints, such activities should steer clear of polluting industries, be sustainable as well as competitive and compatible. He highlighted the relevance of effective urban solutions in this area, such as by adjusting city management to enable Singapore to be a good environment for advanced manufacturing.

Mr Klein, who has since 2015 been driving Siemens’ development of new business models for digitalisation, shared that Siemens built its Digihub Industry4.0 in Singapore due to the city-state’s adoption of advanced technologies. The multinational has found Singapore to be one of the best testbeds for its initiatives to build up an ecosystem of digitalisation modules.

“We learn by doing,” Mr Klein said, elaborating on how Siemens had integrated pioneering technologies and innovation into its business model, from the digitalisation of verticals to designing customised technology roadmap for a digital factory. He emphasised the importance of having the right talent to drive the growth of the factories of the future, which would likely incorporate data analytics, cloud computing and cyber security.

Mr Leong expressed a different view of what it takes to push the frontiers in advanced manufacturing. According to him, the foremost priority should not be about adopting digital solutions and bringing technology into the manufacturing space. Instead, business strategy should lead the way in identifying solutions, reinventing business models and adopting an integrated approach. With this foundation in place, there could be a blueprint to enter R&D and design space, influence manufacturing, as well as to find ways to be more innovative in impacting the end-market in a value chain.

Mr Wong, in highlighting the increasing relevance of urban solutions to developed cities, cited studies in Australia on transit-oriented development to deliver efficiencies and how driverless cars are changing the way in which one would look at mobility solutions. In regards to urban farming, Surbana was studying how vertical farming and vertical factories could be integrated into urban cities, changing the way food would be supplied to residents. Mr Wong believed a certain size, network and global network was required for a company to successfully push the boundaries in pursuing innovation and growing its talent base.

According to Mr Yamaura, Singapore’s unique strength was in its ability and willingness to optimise resources despite its limited land space. Although smaller in size relative to other developed cities, Singapore is well-equipped and ready to address urban challenges with the testing of myriad new solutions that deploy technologies such as artificial intelligence, deep learning and automation.

Speaking on Hope Technik’s work in developing robotics solutions, Mr Ho declared himself to be an engineer before a businessman. He expressed his view that advanced manufacturing, in embracing technology, could present the ability to “do anything, anywhere, any place”. For example, 3D printing could in the very near future replace the work of twenty employees in a factory. In such scenarios, certain jobs would inevitably be replaced, but new roles would be created. He advocated for a focus on developing human capital, protecting intellectual property and developing manufacturing ecosystems, all of which would boost Singapore’s competitive advantage and lead to the continued growth of jobs.  

In concluding the forum, Prof De Meyer thanked the panellists and summed up the key learning points from the session, from his perspective, “What was interesting to me to note was that manufacturing 4.0 is very much about customisation and smaller lots, as well as the ability to produce anywhere. To ensure business success, it is not just an investment in technology, but building an entire ecosystem within the organisation which encourages innovation.”

Given Singapore’s small size, it would help for it to develop a framework or platform of connectivity to the global economy, to successfully continue its trajectory of growth. Prof De Meyer underscored the importance of a good business model, as well as leadership, as drivers of innovation across enterprises and economies. He emphasised the advantages of being able to tackle complexity as a key strength in a fast-changing world. Case in point, Singapore has been able to formulate new solutions in a complex environment by leveraging on its diversity of talent.  

“Such Forums are great platforms for astute business students to learn from, and interact with the industry practitioners. It was also a good opportunity for me to connect with the members of EBD Society and Singapore Business Federation. I believe it’s very important for budding entrepreneurs to keep themselves updated of the constantly advancing technologies and innovations, to be successful in their respective areas of expertise,” said Mr. Prateek Daruka, Third Generation Member and Partner- Daruka International Group, currently pursuing a full-time Master of Science in Management (MiM) at SMU.

He continued, “Attending the forum enabled me to personally meet and interact with Mr. Raimund Klein, Siemens Executive VP and ASEAN Division Lead for Digital Factory. He struck me as a very humble man and an expert person in the Digital Manufacturing Space. I shared with him my thoughts on the Indian-German Manufacturing Sector in Pune and my vison of transforming Indian SMEs into Global Enterprises; his expert advice on Digital Business Solutions has helped broaden my perspective.”

About the Enterprise & Entrepreneur Series

The Enterprise & Entrepreneur Series aims to draw insights from inspiring entrepreneurs and industry leaders, explore how Singapore can exploit new opportunities leveraging on megatrends and growth themes, as well as to create a platform for sharing, learning and networking among business trailblazers with aspiring young entrepreneurs. The Series was launched on 31 January 2018 by Mr Heng Swee Keat, Minister for Finance. This initiative is supported by the Economic Development Board (EDB).

The next instalment of the Enterprise & Entrepreneur Series takes place on 5 June 2018 at SMU and will discuss the themes of ageing, wellness and healthcare.

[Featured photo: Panelists at the Enterprise & Entrepreneur Series were Mr Peter Ho, CEO and Co-Founder, Hope Technik Pte Ltd; Mr Raimund Klein, Executive Vice President, Digital Factory, Process Industries & Drives, Siemens; Mr Amos Leong, President and CEO, Univac Group; SMU President Professor Arnoud De Meyer; Mr Ryoichi Yamaura, Vice President New Solution Business Division, Fujitsu Asia and Co-Director Fujitsu-SMU Urban Computing & Engineering Corporate Lab; and Mr Wong Heang Fine, Group CEO of Surbana Jurong Pte Ltd.]