Report Delves Into the Transformative Power of Digital Innovation and Its Role in Driving Economic Prosperity

GSMA Intelligence published an insightful report that delves into the transformative power of digital innovation and its role in driving economic prosperity. Titled Economic growth and the digital transformation of enterprises, the report notes that "Industries worldwide are undergoing a profound digital transformation, reshaping the way businesses operate and interact. Connectivity, which is expected to account for 21% of enterprise digital transformation spending from 2024 to 2030, has become a critical enabler of this transformation. Businesses that can embrace advanced technologies that leverage connectivity, such as AI, IoT, robotics, AR/VR, big data analytics and cloud computing, can enhance operational efficiency, improve customer experiences and unlock new revenue streams."

Regarding how digitalization of enterprises is accelerating, the report says "This trend has been further accelerated by global challenges, such as the Covid-19 pandemic, climate change, economic uncertainty and geopolitical tensions. These challenges have all underscored the critical importance of digital infrastructure in ensuring business resilience and continuity."

The report's key findings are listed below:

• 5G solutions are amplifying digital transformation, but enterprise adoption is still limited. Initial 5G adoption has unlocked new use cases and accelerated digitalization for early adopters across industries. But the reach of enterprise adoption of 5G remains limited. For example, according to GSMA Intelligence’s Digital Transformation Survey 2024, only 2% of surveyed enterprises had deployed 4G/5G private networks.
• Digital transformation's economic impacts are not yet fully understood, but this report bridges the gap. While the economic impacts of mobile connectivity are well documented, the broader effects of digital transformation across sectors remain less understood. This report seeks to bridge this gap by offering empirical evidence on how the latest wave of digital technologies drives economic growth.
• Mobile technologies and digital transformation will boost global value added by nearly $11 trillion in 2030. The continued integration of digital technologies in enterprises will increase mobile’s contribution to global GDP from 5.8% in 2024, equivalent to $6.5 trillion, to 8.4% by 2030, equivalent to almost $11 trillion.
• Four sectors (manufacturing, financial services, automotive and aviation) will account for 34% of this impact. By 2030, advanced connectivity could enable manufacturers to achieve over $400 billion in annual cost savings, while the automotive sector could save nearly $45 billion in quality-related costs. Airports stand to reduce nearly $10 billion in flight-delay costs, and financial institutions could see a revenue uplift of over $140 billion through enhanced process automation.
• Realizing 5G's transformative potential requires collective stakeholder action. 5G could unleash the full potential of digital transformation, driving significant economic impact and commercial value. But the benefits cannot be realized without action from all stakeholders. Policymakers, operators and the broader ecosystem must collaborate to overcome barriers to enterprise adoption, including high implementation costs, device compatibility issues and often a lack of internal technical expertise within enterprises.

In writing the report's Foreword, Richard Cockle, Head of GSMA Foundry and Connected Industries at GSMA, explains that "The digital transformation journey is not merely about adopting new technologies; it is about reimagining business models, enhancing customer experiences and fostering a culture of continuous innovation. Enterprises that embrace this transformation, working in partnership with mobile operators, are better positioned to navigate the complexities of the modern economy, unlock new opportunities and achieve sustainable growth."

I agree with Mr. Cockle's concluding paragraph that "Together, let us embrace the opportunities that digital transformation presents and work towards a future where economic growth and technological innovation go hand in hand."

How is your business embracing the transformative power of digital innovation?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Explores How Mobile and Digital Technology Can Support Industry Decarbonization

According to a report conducted GSMA Intelligence, the research arm of the GSMA, a UK-based organization that represents the interests of mobile operators worldwide, "The use of mobile and digital technology is a key enabler of the decarbonization transition. Telecoms operators, vendors and supporting ecosystem partners play a key role in the move to digital and low-carbon economies, particularly where it involves the enterprise segment and asset-intensive sectors using technology to lower emissions." Supported Nokia, a Finnish multinational telecommunications, information technology, and consumer electronics company, Industry pathways to net zero: mobile and digital technology in support of industry decarbonization outlines "a high-level quantification of decarbonization and associated strategies for four key industries that account for 80% of global emissions – manufacturing, power and energy, transport, and buildings." The report also outlines "a set of forward-looking implications."

Addressing how smarter use of mobile and digital technology results in carbon savings, the report explains that the "implementation of specific mobile and digital technologies could result in substantial CO2 savings for each industry. In aggregate, the savings enabled by the technologies amount to just under 40% (equivalent to 11 gigatons) of the carbon emissions savings that these industries will need to achieve over the next decade, assuming an end goal of net zero by 2050." I appreciate how GSMA Intelligence puts this in perspective at an industry level:

• The annual global CO2 savings from smart manufacturing would equate to 28 million roundtrip flights from London to Los Angeles.
• The potential CO2 savings from using smart meters in North American residential premises would be enough to power 25 million homes (20% of households in the US) for a year.
• The savings from the switch to electric vehicles (EVs) worldwide would equate to removing 180 million petrol-fueled cars from roads over the next 10 years.

With respect to the specific technologies of IoT, LTE and 5G, the report imparts that "Digitization and decarbonization are enabled by a range of mobile connectivity products and network services working in sync with artificial intelligence (AI) and machine-learning algorithms in the cloud to drive productivity gains." GSMA Intelligence highlights ways "IoT sensors, LTE and 5G connectivity (including for private networks) are being deployed across the industries profiled in this analysis, along with a raft of other solutions."

• In manufacturing, smart factories are underpinned by IoT sensors, robotics and AI that automate dynamic shifts to production capacity and the remote repair of machine faults. This reduces reliance on manual labor, increases productivity and lowers overall factory energy consumption and emissions compared to premises not fitted with these technologies.
• In buildings, intelligent architectural design and the use of sustainable materials in the construction process are augmented by smart electricity and gas systems that optimize the use of energy based on occupancy levels and prevailing external climatic conditions. In homes, smart electricity meters are linked to smart home controls through a central interface that can offer energy savings of up to 5% and, in some cases, the ability to sell excess energy from the consumer to the grid.
• In transport, the use of on-board cellular telematics can improve shipping fuel efficiency and enable a more optimized model for cargo arrivals and departures from ports, due to reductions in idling time and better coordination with trucks for onward distribution of goods.

Having followed the rise of IoT and 5G mobile technology over the past few years, I concur that the "ubiquity of mobile and digital technologies in these examples demonstrates their ability to deliver greater energy efficiency and productivity for industries globally. This requires a long-term and holistic investment approach."

On the benefits of digitization going beyond decarbonization, GSMA Intelligence points out that "While industry decarbonization can help mitigate the risks of global warming, there are other important socioeconomic benefits." Examples include the following:

• Public health outcomes – Reducing CO2 in the power sector will result in lower concentrations of harmful particulate matter and gases such as nitrogen dioxide. A similar effect is expected to prevail as electric vehicles replace petrol- and diesel-fueled cars, and through a higher share of the population working at home.
• Economic diversification – Moving to digital operating models in industries such as manufacturing and transport will create new jobs and sources of national value growth. Digital operating models can also increase access to public services and civic engagement.
• Productivity – Digitization drives fundamental improvements in productivity, which form the basis of new business models across industries.

Lastly, GSMA Intelligence asserts that its "research demonstrates the clear, practical and beneficial impact of using mobile and digital technologies in the largest and most relied upon industries. These are, in the main, ready-made options." The research organization importantly adds that "While investment outlays and deployment costs are required (a particular challenge for smaller companies), these will decrease over time as scale grows. The long-term return on investment from a financial perspective (higher productivity) and sustainability angle (lower emissions) is highly significant. Market participants in the telecoms, media and technology sectors are unique in being both suppliers and consumers of the technologies. In this capacity, we hope this report and ensuing industry case studies add to the best practice driving decarbonization in the years ahead."

How do you think mobile and digital technology can support industry's path to decarbonization?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

TradeTech Has the Potential to Facilitate and Promote Further International Trade by Lowering Barriers for Companies to Enter New Markets

According to a report published by the World Economic Forum (WEF), a Swiss-based international organization promoting public-private cooperation, "TradeTech is the set of technologies and innovations that enable global trade to be more efficient, inclusive and equitable. The interplay of technology and trade has a long history, spanning from advances in transportation to the advent of the container to the emergence of coordinated production networks."

Mapping TradeTech: Trade in the Fourth Industrial Revolution "considers modern TradeTech in two layers: (1) a first layer in which trade data and processes are transformed from analogue to digital; and (2) a second layer in which trade process optimization and synchronization occurs between different parties, and where emerging technologies play a key role." The report adds that  "TradeTech solutions work in bundles. While the second layer depends on data generated in the first one, it is also hard to separate artificial intelligence (AI) from robotics or the internet of things (IoT) from 5G."

Aiming "to shed light on the landscape of emerging trade technologies and consider the opportunities and challenges for each, with case studies used for illustration," the report notes:

Business perceptions show that many technologies have a significant impact on trade. The World Economic Forum launched a global survey to understand how firms are currently using technologies in international value chains and to assess which technologies will have the biggest impact on global trade. The results are being used to determine a landscape of technologies that have the biggest effect on trade in the short and medium term. According to this survey on TradeTech, conducted from June to September 2020, "fundamental" technologies such as digital documentation, digital platforms, digital payment and cloud computing are perceived as most relevant in the shorter term, along with IoT, digital

services and 5G. Technologies expected to affect trade in the longer term are robotics, virtual reality, 3D printing and AI.

On the topic of TradeTech for micro-, small and medium-sized enterprises (MSMEs), the report says: "As the Fourth Industrial Revolution sets in, MSMEs face both opportunities and challenges in this wave of technological transformation. New technologies in trade, such as cloud computing, blockchain, IoT, big data and AI, present MSMEs with opportunities to tap into the technological edge previously only available to large firms. The application of new TradeTech can help MSMEs save costs, improve efficiency, streamline operations and scale up. Software as a service (SaaS) and e-commerce platforms have made trade more inclusive as there are no upfront costs."

As for supporting TradeTech adoption by MSMEs, the WEF suggests governments could support MSMEs in a number of ways, including by:

• Promoting education and IT skills development, through the inclusion of IT in school and university curricula, and encouraging public-private partnerships through internship programs
• Facilitating big data and AI tools that help MSMEs reduce market research costs and improve online visibility
• Improving information and communications technology (ICT) and logistics infrastructure
• Providing cybersecurity training
• Setting up a TradeTech network, composed of key stakeholders, that has the potential to maximize the scope and outreach of any given solution while encouraging the development of local solutions (for instance, a single web page might compile and easily display all the resources, tools and services offered by the members of the TradeTech network); given the lack of skilled human resources affecting companies, external experts might bridge the gap by providing qualified advice
• Establishing a benchmark for TradeTech adoption by MSMEs, which could help incentivize government reform actions to promote TradeTech adoption.

"Internationally," the report explains that "an increasing number of trade agreements include chapters on e-commerce and digital trade. Recent agreements, such as the Digital Economy Partnership Agreement (DEPA), include provisions on MSMEs and digital inclusion specifically. Commitments go from information sharing to enhancing public-private dialogue and cooperation involving e-commerce platforms."

Given my experience working in developing countries, I appreciate the report's assertion that "TradeTech offers developing countries leapfrog opportunities. The potential to seize these opportunities may vary by technology. TradeTech that requires higher capital, such as robotics and IoT, may be more challenging to diffuse in low-income country settings than technologies that are mainly software defined (e.g. blockchain, AI and digital platforms)."

What is more, "The network nature of TradeTech’s benefits, in which the more users there are of the technologies, the more value each user can derive from them (positive network externalities), creates incentives for the diffusion of technology worldwide.

"The most straightforward opportunities might come from the first layer of TradeTech, that is the digitalization of trade and logistics-related documents. This is a mature innovation in developed countries, where the opportunities for additional market expansion are limited, although certain developing countries have also advanced significantly in this area, for instance regarding e-invoicing."

The WEF says "TradeTech has the potential to facilitate and promote further international trade by lowering barriers for companies to enter new markets. Major TradeTech gains originate in good coordination between the different actors in supply chains. TradeTech, especially in its second layer, allows holistic decisions that can result in efficiency and environmental advantages for the whole value chain. Yet unintended consequences in terms of job displacement, competition and techno-nationalism trends require attention."

Moreover, "TradeTech's impact will depend on how data and tech interoperability are addressed, regulations are harmonized, and inclusive access to close the digital divide, also present in the trade space, is ensured. To deliver on TradeTech's promise, action is needed to build the trust required for supply chain transparency, to promote cooperation in tech regulation, to drive a trade facilitation agenda around interoperability, and to provide training for upskilling and reskilling workers."

Many will agree with the report's assertion that "[t]he COVID-19 pandemic has significantly accelerated the adoption of digital technologies and opened a window of opportunity to drive tech innovation in trade. The moment should be seized to use TradeTech to make global trade more efficient, inclusive and equitable."

How do you see emerging trade technologies facilitating and promoting international trade?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

GSMA Report Unpacks the Health Systems and Digital Health Solutions in Response to COVID-19 in Bangladesh, Myanmar, Pakistan, Benin, Nigeria and Rwanda

The previous post focused on a report by the GSMA on a report about utilizing digital health as a health system strengthening tool for developing countries. This post explores a subsequent report published by the UK-based organization representing the interests of mobile operators worldwide, which unpacks the health systems and digital health solutions in six developing countries: Bangladesh, Myanmar, Pakistan, Benin, Nigeria and Rwanda.

The report explains that "the state of play of digital health in each country . . . varies quite considerably. Bangladesh and Rwanda treat digital health as part of a whole-of-government approach and seek to leverage government-wide infrastructure and standards. Pakistan and Nigeria, which have a strong federal tradition, have a more fragmented approach. In Myanmar and Benin, digital health is still in early stages and relies more heavily on contributions from development partners."

What is more, "Several insights were gleaned from our key informant interviews (KIIs). A common theme was that broad stakeholder involvement in digital health ecosystems is a growing trend that should be fostered, but how this is done varies from country to country. While some respondents want governments to create an enabling environment, others see start-ups and mobile operators playing a greater role. Another emerging theme was the lack of shared understanding among stakeholders of policy requirements and frameworks."

I concur with the report's assertion that the "COVID-19 pandemic is a challenge confronting all countries, and the report briefly reviews some of the digital health approaches each country has taken." Given their importance, I have included each country's digital health approach below.

Bangladesh ‒ Digital health: COVID-19 response

"Digital tools and digital health solutions have provided critical support to Bangladesh's COVID-19 response, enabling access to essential information and health services. The government's digital health strategy focuses on developing instant and quality healthcare services via mobile apps, and tapping into the country's large number of mobile subscribers to establish a countrywide digital health system.

"The government has encouraged public-private partnerships (PPPs) since the beginning of the crisis, emphasizing close collaboration with digital health start-ups. The surge in demand for telemedicine has led to the advent of 15 digital healthcare providers providing these services. The launch of virtual hospital HelloDoc in April 2020, and the launch of the Daktarbhai telemedicine platform, have both supported the development of a telehealth system during COVID-19. In May 2020, the government collaborated with ride-sharing platform Pathao, digital health solution Maya and Praava Health to provide instant healthcare services via the Pathao Health mobile app. Pathao Health connects users to an online COVID-19 symptom checker and provides one-on-one medical services through phone and video consultations. Users can also obtain prescriptions and order medicines through the app. Bangladesh has also begun to use surveillance, reporting and contact tracing features in a COVID-19 module for DHIS2, as well as Go.Data for contact tracing in the Rohingya refugee camps in Cox's Bazar.

"Data is a critical resource for supporting public health actions across the different phases of the COVID-19 pandemic. Mobile operators are working with key stakeholders, including a2i and the National Telecommunications Monitoring Centre, on a COVID-19 Collective Intelligence System. More details can be found in GSMA's report, Keeping Bangladesh connected: The role of the mobile industry during the COVID-19 pandemic."

Myanmar ‒ Digital health: COVID-19 response

"In April 2020, the Myanmar Computer Federation (MCF) developed the country’s official contact tracing app Saw Saw Shar to help contain the spread of the virus. The app was developed in partnership with the COVID-19 Control and Emergency Response ICT team under the Ministry of Transport and Communication and the Ministry of Health and Sports. In addition to monitoring symptoms, the app provides timely notifications of nearby areas that have positive cases and are potentially high risk, as well as official COVID-19 hotline contacts and the closest fever clinics and quarantine centers. The app also has a dashboard that visualizes COVID-19 transmission and infections by region in Myanmar."

Pakistan ‒ Digital health: COVID-19 response

"Technology has played a significant role in Pakistan's response to COVID-19, and the development of digital health platforms has been a priority for the government.38 Pakistan’s Ministry of National Health Services Regulations and Coordination (MoNHSRC) is working with software companies such as CIT Solutions, telemedicine companies such as Sehat Kahani and doctors247online and start-ups from the tech hub National Incubation Centre.

"The mobile industry has been contributing to the digital health response to COVID-19. Mobile operators have provided free calls to emergency numbers, helped distribute information and alerts via SMS and expanded a polio hotline for COVID-19 enquiries. The government also worked with mobile operators to replace the standard call ringtone with COVID-19 messaging, and established a mobile track-and-trace system and dashboard that centralize COVID-19 data, both of which are active. Live data on hospital capacity is generated, and an app is available for citizens to identify nearby hospitals and their capacity. Data on index cases is mapped onto population centers using geotagging to identify hotspots and inform a smart lockdown strategy. Social media and traditional media have also been used to raise awareness and distribute information on sanitization techniques, handwashing and social distancing.

"Provincial governments have set up phone helplines for COVID-19-related enquiries and advice. The Yaran-e-Watan telehealth platform was launched in partnership with Sehat Kahani to harness the expertise of Pakistani health professionals living outside the country and to connect them with appropriate institutions in Pakistan. Health professionals can deliver teletraining sessions, provide consultations and triage assistance using telemedicine and participate in research collaborations. Telehealth and tele-education have been used extensively. The Government of Pakistan recently launched a COVID-19 telehealth portal on Twitter, as well as a website. Pakistani doctors and health professionals have been invited to register and volunteer to help COVID-19 patients.

"The Sindhi government developed the CoronaCheck app that allows users to check their symptoms through a screening tool that utilizes an AI-assisted chatbot. It also provides information from the World Health Organization (WHO) and lists relevant services."

Benin ‒ Digital health: COVID-19 response

"A centralized, government-led platform that provides frequent COVID-19 updates is freely available to all mobile subscribers in Benin, and there are a range of awareness-raising videos and press releases on various social networks. An interactive WhatsApp messaging system has been set up and helps the national COVID-19 response team to communicate directly with citizens.

"Sèmè City, with support from UNFPA Benin, has created Taskforce Innov COVID-19 Benin to mitigate the challenges presented by COVID-19. This initiative aims to develop local solutions that deliver healthcare services to women and strengthen the economic resilience of youth entrepreneurs. The task force is comprised of various players (start-ups, SMEs, large corporates, academics and scientists, government agencies and NGOs) that are developing innovative solutions adapted to Benin's social and economic context. Sèmè City is responsible for coordinating the task force's activities. Digital health start-ups, including KEA Medicals and REMA, are part of the task force, working closely with the government during the pandemic."

Nigeria ‒ Digital health: COVID-19 response

"The Nigeria Centre for Disease Control (NCDC) launched a COVID-19 eTraining course on Infection Prevention and Control. The online course is available to the public and is aimed at healthcare workers to reduce the risk of transmission of COVID-19 and other infectious diseases while administering healthcare in Nigeria.

"Since the first COVID-19 case in Nigeria was confirmed in February 2020, the NCDC has supported the training of about 17,436 health workers in Infection Prevention and Control (IPC), and works in collaboration with the Department of Hospital Services and the Department of Food and Drugs under the FMoH. Since February2020, Nigeria has increased its molecular laboratory network for COVID-19 testing, from two laboratories to 28 in states across the country. To achieve this, the NCDC collaborated with private sector partners, such as start-up 54Gene and eHealth Africa, which were instrumental in expanding testing capacity for COVID-19.

"LifeBank, a blood delivery digital health start-up, has collaborated with the Nigerian Institute of Medical Research to develop rapid testing kits and create a shared database to track available medical equipment. Wellvis Health created COVID Triage,54 a digital self-assessment tool that helps users test whether they have been exposed to the virus and take the next steps. In turn, the NCDC collects this data to see who might be at high risk of contracting COVID-19 and isolate them. GloEpid by Tech4Dev has developed a contact tracing tool that uses a smartphone, GPS and Bluetooth connection to trace the movements of those who have been potentially exposed to the virus."

Rwanda ‒ Digital health: COVID-19 response

"Digital health has been a key enabler for Rwanda's COVID-19 response, particularly in terms of access to information and healthcare. The government has set up a toll-free national helpline and a USSD platform for self-triage. Information from the WHO was disseminated via SMS and drones, and AI-enabled drones operated by technology company Zipline have been used to deliver medical supplies to more remote areas of the country. Mobile money transaction fees have been waived to increase uptake and encourage cashless payments.

"The following digital solutions have helped the government respond effectively to the COVID-19 outbreak:

• "Contact tracing: Infections are being traced through the paperless Open Data Kit app that can be downloaded on a mobile device. Data is collected for analysis by outbreak investigation teams.
• "COVID-19 surveillance: A digital reporting surveillance system for health facilities is being used to monitor influenza-like illnesses and severe acute respiratory infections in real time to provide early warnings of suspected COVID-19 cases.
• "Infection prevention: Robots have been used in healthcare settings to perform simple tasks, such as checking temperatures and monitoring patients to reduce healthcare workers' exposure.
• "Data visualization: Geographic Information System (GIS) is being used to monitor COVID-19 cases at the household level to assess the need for lockdown measures, to focus public health interventions where there is evidence of community transmission and to monitor at-risk populations."

Lastly, the report explains that its final section "features case studies from each country. Again, while these are just snapshots, taken together they illustrate some of the progress that is being made in strengthening health systems with digital health solutions."

COVID-19 has significantly impacted health systems in countries worldwide. During my travels to developing countries prior to the global pandemic, I saw just how fragile these health systems are. Since the start of the pandemic, my colleagues who live in these countries have shared how COVID-19 has exasperated the health system's vulnerabilities in providing quality healthcare to the general population. The GSMA report, however, provides much encouragement on how governments, civil society, and the private sector can collaborate in creating sustainable digital health solutions.

What are your thoughts about the report? What digital health solutions are you seeing that were created as a result of the COVID-19 pandemic?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

EIU Report Explores How Latin America Can Take Advantage of Shifts in the Global Supply Chain

"The coronavirus (Covid-19) pandemic has exposed the fragilities of globalized supply chains, raising the possibility that many of them will be localized over the coming decade to reduce operational risks," says a report published by The Economist Intelligence Unit (The EIU).

Titled Will Latin America take advantage of supply chain shifts? the report explains that "[g]iven its proximity to the US market, localized supply chains would present a big opportunity for Latin America where, aside from Mexico, the region has not really been part of the boom in global supply chains in recent decades." Furthermore, "As the pandemic has exposed the fragilities of the global supply chain—and the enormous disruption that can take place when only a few links in the chain are broken—nearshoring some of this production to Latin America has become a more attractive prospect."

With an approximate population of 129 million, according to the Central Intelligence Agencies' World Factbook, The EIU asserts that "Mexico is the country in Latin America with the most success in regional supply chain integration, owing to the 1994 North American Free Trade Agreement (NAFTA) with the US and Canada. Currently, about 80% of Mexican exports are orientated to the US, of which the bulk are manufactured goods, including vehicles, electronics and machinery."

What is more, "the current moment should provide a golden opportunity for Mexico to increase its share of manufacturing in US-bound exports from East Asia. Instead though, so far at least, the pandemic has caused Mexico's share of US imports to slump badly to just 20% of Asian imports in May, although there were signs of recovery in June. The immediate question, then, relates to when Mexico can get back on track and be seen to manage coronavirus-related uncertainty."

In addition to the aforementioned finding about the Latin America region not being part of the boom in global supply chains in recent decades, the report's key findings include:

• The region faces considerable obstacles to supply chain integration, including poor infrastructure and logistics capabilities and legal and regulatory deficiencies. As such, although there is some opportunity for localization, the region as a whole is unlikely to take full advantage.
• Mexico seems best placed to increase its position in the US supply chain, but there are issues here too. In the very near term, the problem will center around the country's slow emergence from the health and economic effects of Covid-19. More fundamentally, Mexico will struggle without government policy to actively promote supply chain shifts, and without policy that attracts investment more broadly.
• Looking elsewhere in the region, a number of key metrics in The Economist Intelligence Unit's business environment rankings suggest that Mexico, Costa Rica, Chile and Colombia are, relatively speaking, better placed to compete with Asia in supply chains.

"Labor markets, economic policy and political effectiveness are crucial," the report notes. "Although weaknesses in logistics have been central to the failure of Latin America (with the exception of Mexico and Central America) to integrate into major global supply chains, there are clearly other challenges. One of these is the region's readiness to adopt new technologies and preparedness for industry 4.0 (the fourth industrial revolution) as firms in all sectors increasingly adopt, for example, artificial intelligence (AI) and robotics into supply chain processes."

The EIU assesses global technological readiness in its Business Environment Rankings, "looking at issues such as research and development (R&D) spending and infrastructure, the quality of e-commerce and e-government, patent applications, and technology usage. Taking all of these factors into account, and combining our assessment of technological readiness with an assessment of the infrastructure capacity of countries in the region, our rankings show that Chile, Mexico, Argentina and Colombia stand out ahead of the pack in Latin America."

Moreover, companies in the region making supply chain location decisions "will take into account factors such as policy towards private investment and foreign direct investment (FDI), the prevalence of free-trade agreements (FTAs) with other key players in the supply chain, and political and policy effectiveness and predictability."

Importantly, "An assessment of all of these factors, along with infrastructure, technological readiness and labor markets, taken from our Business Environment Rankings, suggests that, within Latin America, the economies most prepared for supply chain integration are Chile, Costa Rica, Mexico, Colombia and Brazil. This preparedness matters, given the stickiness of local investment. Moving manufacturing from one place to another is difficult and expensive. So, notwithstanding considerations that companies are giving to supply chain diversification and resilience, relocating requires the right conditions. There are sectoral implications here too: it is much easier to relocate a textile manufacturer than an autoparts or aerospace manufacturer, for example."

The EIU encouragingly maintains that "Latin America clearly has the opportunity to gain from nearshoring in the coming decade, given some comparative advantages, including its long list of FTAs, proximity to the US market and increasingly competitive wages. And some movement is likely, particularly to Mexico. To the extent that supply chain shifts happen, they would prove enormously beneficial, boosting local suppliers and helping the region's middle-income economies to move up the value chain."

Apart from those countries blessed with natural resources, the Latin American economy has experienced a variety of socioeconomic challenges in the past few decades often exasperated by corruption. However, with policy reform, support to expand infrastructure capacity, and private sector investment in technology R&D, I am expect to see a rise in regional supply chain integration. This will present opportunities for firms provided they effectively identify the country-level risks and prepare strategies to mitigate those risks.

Do you think Latin America can take advantage of shifts in the global supply chain?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

GSMA: '5G Has Arrived – but 4G Is Still King'

According to a report authored by GSMA Intelligence, the research and consulting arm of the GSMA, a UK-based trade organization, "5G will drive future innovation and economic growth, delivering greater societal benefit than any previous mobile generation and allowing new digital services and business models to thrive."

The Mobile Economy 2020 further explains: "Many countries have already launched 5G, but widespread commercial 5G services are expected in the post-2020 period, which will mark the start of the 5G era. 5G is developing in parallel with rapid advancements in both AI [artificial intelligence] and IoT [Internet of Things]; the combination of these technologies will have a large positive impact, spawning innovations for consumers and enterprises defined by highly contextualized, on-demand and personalized experiences."

As highlighted in this press release, GSMA Intelligence's report reveals that:

"5G has arrived – but 4G is still king: 4G was the world's dominant mobile technology last year, supporting more than half (52 percent) of global connections. Despite the emergence of 5G, 4G will continue to grow over the coming years, increasing to account for 56 percent of connections by 2025.

"The industry is investing heavily in 5G: Mobile operators are expected to spend $1.1 trillion worldwide between 2020 and 2025 in mobile CAPEX, roughly 80 percent of which will be on 5G networks.

"The smartphone is becoming ubiquitous: Smartphones are forecast to account for four of every five connections by 2025, up from 65 percent in 2019.

"IoT will be an integral part of the 5G era: Between 2019 and 2025, the number of global IoT connections will more than double to almost 25 billion, while global IoT revenue will more than triple to $1.1 trillion.

"Subscriber growth is slowing, but the industry still has people to connect: The number of unique mobile subscribers at the end of last year stood at 5.2 billion (67 percent of the population) and is forecast to grow to 5.8 billion by 2025 (70 percent).

"Half the planet connected to the mobile internet: Almost half of the global population (3.8 billion people) are now mobile internet users, forecast to reach 61 percent (5 billion) by 2025."

Regarding connected devices, "The business case for IoT is shifting from just connecting devices to addressing specific problems or needs with solutions to collect, process and integrate data from multiple sources, which can then be analyzed to create value and provide actionable insight." Furthermore, "Enterprise IoT connections will overtake consumer in 2024, and will almost triple between 2019 and 2025 to reach 13.3 billion. This will account for just over half of all IoT connections in 2025.

"Consumer IoT connections will almost double to 11.4 billion in the same time frame. More and more devices include connectivity built in by default and interoperability within the ecosystem is increasing."

The report also explains that smart manufacturing and autonomous cars are important verticals for 5G and presents the following use cases for the former:

Robots and robotics

• 5G increasingly complements Wi‑Fi in factories
• Real-time AI-powered robot collaboration and integration
• Cloud-based wireless robotics

Labor augmentation

• 5G and AI-powered industrial AR, enabling workforce training and augmenting human skills
• High precision simulations of human-machine interactions in various manufacturing situations

Remote real-time manufacturing

• Live remote monitoring and reconfiguration of robots and processes
• Remote quality inspection

Connected operational intelligence and analytics

• 5G coupled with AI enables real‑time data gathering to inform immediate manufacturing decisions
• AI-based analytics for processes, inefficiencies and predictive maintenance for robots

On the topic of mobile delivering social impact, the report says: "With more than 5 billion unique subscribers worldwide, and more than 7 billion people covered by a mobile network, mobile is increasingly being used to access an array of life-enhancing services that contribute to and catalyze the achievement of the UN SDGs."

"Despite the global reach of mobile," however, "much more can be done to leverage its power and support the delivery of the SDG 2030 targets. Crucial to this will be helping people realize the full benefits of using mobile and mobile internet services in terms of accessing health information, public services and digital payments, both in developed and developing countries. New technologies that are supported by IoT also need to achieve scale if mobile operators are to maximize their impact on the SDGs – for example, solutions in smart cities that can reduce pollution, and smart buildings and homes that can increase energy efficiency."

Infographic: GSMA Intelligence

While 4G remains the world's dominant mobile technology, "5G is gaining pace." Companies of all sizes are increasing their research and development budgets to build products and services to utilize the fifth generation wireless technology that is expected to deliver speeds 100x faster than 4G. However, for these investments to produce positive results, the report correctly notes that "Governments and regulators must play their part to help propel 5G into commercial use by implementing policies that encourage advanced technologies (e.g. AI and IoT) to be applied across all economic sectors."

What do you think of the report's findings?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Legacy Created by the 2020 Tokyo Olympics Will Launch 'Japan's Next Decade'

"Japan is back—and in the spotlight," proclaims the Economist Corporate Network (ECN) in a report entitled Japan's next decade: Opportunities for economy and society after the 2020 Tokyo Olympics. "Perceived as a laggard for decades, it is finally receiving attention, if not for staggering GDP growth, then as an example of how to deal with the population-related issues that many countries will face sooner or later."

Sponsored by Philip Morris Japan, the report notes that the "2020 Summer Olympic and Paralympic Games in Tokyo are playing a central role in the narrative of Japan's revitalization. The direct economic benefits of this iconic event are forecast to range from ¥30trn (US$282bn) to ¥32trn or around 0.6% of real GDP. The Olympic Games are also viewed by business executives as a great opportunity to boost morale and visibility, to 'catapult the host city into the premier league of cities,'" according to a report that looks into the economic impact of the Olympics.

Moreover, "The cumulative effect of the Olympics brings more important results than simply faster GDP growth. Olympic euphoria has developed into a new national idea, driving the country and its economy forward. 'The Olympics will be a great catalyst, showcasing all of the great things about Japan and Japanese society. There will be a huge positive effect from an incoming tourism point of view, but there is also domestic excitement, that will be created as well,' says Randall G. Wada, CEO of JLT Holdings Japan."

The report encouragingly explains that "this positive trend does not have to stop when the lights go off after the closing ceremony. The legacy created by the Olympics should be enough for the country to start building what we call Japan's next decade" as opposed to the 'lost decades' of economic stagnation in the 1990s and 2000s.

There are challenges, however, such as a rapidly aging population that may adversely impact Japan's next decade. "The statistics are well known: by 2030, more than 30% of Japan’s population—nearly every third person—will be over 65. This is unprecedented in world history. The Japanese government and people are concerned as to whether their society is sustainable with such a demographic structure."

What is more, "The Economist’s Glass Ceiling Index consistently ranks Japan as one of the worst environments for working women among OECD countries." In a chapter on driving growth through diversity and inclusion, the report says "improving conditions for working women and promoting 'total diversity' are crucial for Japan's next decade and beyond. The economic potential is huge, and the socio-demographic implications could benefit society as a whole."

Based on desk research and consultation with experts in Tokyo, the report's key findings include:

• By 2030, more than 30% of Japan's population—nearly every third person—will be over 65, but the rate of aging peaked in the mid-2010s and is now beginning to plateau.
• An aging population presents a market opportunity for companies that can recognize the needs of potential new customers, especially in the technology sector and IT and software industry.
• The number of employees in Japan who are over 65 rose from 5.7m to 8.7m in 2008-18 and their share in workforce will amount to around 20% by 2030.
• Up to 80% of Japanese companies in hospitality, nursing and transportation experience severe lack of workers. However, due to the decline in population, Japan finds itself in the unique position where the labor shortage presents a chance for the development of new automating technologies, without the risk of creating huge unemployment.
• Eliminating the gender employment gap and promoting women to full-time positions can bring Japan a 15% increase in GDP.
• Added value driven by the 4th Industrial Revolution in Japan can be as high as ¥30trn—in terms of economic impact, essentially another Olympics.
• The manufacturing sector in Japan has a very high level of automation potential—at 71%, it is 11% higher than that of the US. By 2025, with the use of the internet of things (IoT) and automating technologies, industries such as construction can improve productivity by 20% and manufacturing productivity can grow by up to 2% per year.
• Japan is lagging in the adoption of digital technologies, but there are still considerable achievements in innovation in Japan, particularly in manufacturing sector.
• The number of international tourists in Japan increased more than six-fold in 2011-18, making Japan one of the top countries in the hospitality industry globally in just a few years.
• The size of Japan’s domestic tourism market still dwarfs the inbound at ¥20.5trn compared with ¥4.52trn. The government is aiming to increase annual revenue from international travelers to ¥15trn by 2030.
• If put together, the opportunities around the silver market, increased productivity, inbound tourism and diversity promotion could bring the national economy to a much larger size than the government's current target of ¥600trn.

Source: ECN

The report concludes that "[d]espite serious challenges, Japan has immense potential for the future. If put together, the opportunities around the silver market, increased productivity and diversity promotion could bring the national economy to a much larger size than the government's current target of ¥600trn. This would require more than new programs by the Cabinet Office new strategies by business, however; a shift in perspective and change of mindset are needed to see the risks as opportunities to be realized by society as a whole."

Is your business planning to establish or expand its operations in Japan in the next decade?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Innovative Startups Pitch at Silicon Valley Funding Summit 2020

Once again, I attended the annual consumer and electronics show in Las Vegas, Nev. Owned and produced by the Consumer Technology Association (CTA)®, a Virginia-based trade organization. CES® is promoted as "the world's largest and most influential tech event." While a separate post will focus on my experience of attending CES 2020, this post addresses an event, "Silicon Valley Funding Summit 2020," I attended on Jan. 6th.

Co-produced by Angel Launch, which connects Silicon Valley, American and foreign financial professionals and investors to global startups and private companies for high-level networking and deal-making to build successful ventures, and ENRICH in the USA, which establishes a network of European research and innovation centers and hubs throughout the United States acting as a central contact point for European research and innovation actors, the Silicon Valley Funding Summit aims to connect accredited investors and corporate partners to global startups. Those startups presenting to a panel of investors and audience come from a variety of sectors including consumer and enterprise apps; devices and platforms; hardware; software; data analytics; robotics; machine learning; smart devices; digital health; fintech; and cybersecurity.

Some of the companies that I found of particular interest include:

• BARU's mission is to empower the customer you to create a home that fits your unique lifestyle and personality. Our made-to-measure furniture can fit right in. Design every dimension to the inch and preview it in your space with our Augmented Reality app.
• Brilliant Sole focuses on merging footwear and virtual reality.
• Calamus Electric Private Limited (Calamus) promotes itself has built the world's first e-bike with an inbuilt TFT touchscreen that interacts with the Ultrabike's advanced features.
• Sensors provided by Caregiver Smart Solutions track movement and patterns to provide caregivers with some reassurance that things are as they should be, without the use of invasive video cameras or wearable tracking devices.
• CloudBackend provides a world-wide service for accelerating applications and harvesting data through a distributed cloud with intelligent data management. The platform is designed for smart vehicles, telecom infrastructure, public clouds, on-premise, smart devices in homes and offices, and in between.
• Cyber Reconnaissance, Inc. (CYR3CON) specializes in combining artificial intelligence with information mined from malicious hacker communities to avoid cyberattacks.
• Dr. i-Coach® by Eyes4lives is a patented sensor and software package that sits on top of a laptop/monitor and monitors the users blink rate, sitting height, screen distance, screen time and ambient lighting. The product will alert the user if they are in violation of any of the above-mentioned factors and will coach them on developing and maintaining proper sitting and screen use habits.
• FATRI (Xiamen) Technology Co., Ltd. (FATRI) focuses on the development of new materials, chip design (MEMS Chip & AI Chip), sensors, data acquisition designed assemblies and AI data analysis platforms.
• Joué makes MIDI instruments for creative musicians. The Joué Board is a MIDI controller to play drums, guitar, keyboard and more.
• MJN Neuroserveis developed MJN-SERAS, an earpiece that records brain activity from the ear canal. In combination with AI algorithms the device triggers a warning signal minutes before an epileptic seizure occurs and also records it during the onset.
• UltraUVTech revolutionizes the way consumers disinfect wet and dry surfaces through its reliable ultraviolet sterilizing technology.

The summit presented me with the opportunity of sitting on a panel of accredited investors. The panelists were asked to briefly provide advice to the presenting entrepreneurs and audience members. I recommended that entrepreneurs adopt the mantra "if you do not know your numbers, you do not know your business." Entrepreneurs should know various financial metrics for their startup such as gross gross profit margins; expenses as a percentage of their gross profit; annual operating expenses segmented by sales and marketing, general and administrative (G&A), and research and development (R&D); and cost of revenue (sales).

In addition, entrepreneurs should comprehend eight risk factors that may prevent their startup from becoming a successful (i.e., profitable) venture.

While I found that several companies are developing useful products and services, I was underwhelmed by many of the actual presentations. First, most entrepreneurs did not complete their presentations within the time allowed. Being prepared including practicing the pitch will go a long way in presenting a polished presentation.

I also found many entrepreneurs spent too much time explaining the problem they are trying to solve, but not enough time to thoroughly explain the solution their business is providing to their customer.

And when pitching to prospective investors, a strong presentation should include the "WOW!! Factor" -- why are customers excited to do business with you?

Mike Grigg, who provides soft skills leadership coaching in storytelling, produced the images below on how to improve your presentation skills, which my colleagues and I find useful.

I am grateful for having the opportunity to attend the Silicon Valley Funding Summit 2020. The organizers did a great job in producing an event both entrepreneurs and investors found valuable.

What advice do you have for startup entrepreneurs?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

The Changing World of Digital Health

Organized through its Kirkland, Wash. office, Nan Hai, a Millbrae, Calif-based company that produces tech and business conferences to facilitate cross-border collaboration between companies in the U.S. and China, held its annual Seattle Biz-Tech Summit in Bellevue, Wash. on Sept. 30, 2017. The theme for this year's summit was "Innovation meets Connection," which continues the summit's focus on technology innovation and business exchanges between the Pacific Northwest and Asia. This post focuses on the presentation, "The Changing World of Digital Health," I gave in a breakout session titled "Technology & Innovation in Healthcare." The content of my presentation is primarily derived from three articles published by The Economist.

What Role Will Technology Play in the Delivery of Primary Care in China?

Starting with an article, "Shod, but still shoddy," published on May 11, 2017, I focused my discussion on the assertion that "many people who seek medical help in China bypass general practitioners and go straight to hospital-based specialists. In a country once famed for its readily accessible 'barefoot doctors,' primary care is in tatters."

In presenting the current conditions in China, the article explains:

It is not just long waiting-times at hospitals that necessitate more clinics. People are living far longer now than they did when the Communists took over in 1949: life expectancy at birth is 76 today, compared with 36 then. People from Shanghai live as long as the average person in Japan and Switzerland. Since 1991, maternal mortality has fallen by over 70%. A growing share of medical cases involve chronic conditions rather than acute illnesses or injuries. GPs are often better able to provide basic and regular treatment for chronic ailments. The country is also ageing rapidly. By 2030 nearly a quarter of the population will be aged 60 or over, compared with less than one-seventh today. More family doctors will be needed to manage their routine needs and visit the housebound.

Whether it is through wearables, telemedicine or other technological hardware or software platforms, what role will technology play in the delivery of primary care of China?

How Hospitals Could Be Rebuilt, Better Than Before

Referencing an article, "Prescription for the future," published on Apr. 8, 2017, I highlighted The Economist's observation that:

Today, hospitals are where patients go for consultations with specialists, and where specialists, with the help of medical technicians and pricey machinery, diagnose their ills. They are also the main setting for surgery and medical interventions such as chemotherapy; and where sick people go for monitoring and care.​ But high-speed internet, remote-monitoring technology and the crunching of vast amounts of data are about to change all that. In the coming years a big chunk of those activities—and nearly all the monitoring and care— could move elsewhere.​

I also explained that "technology firms are already playing a bigger part in health care as phones become more powerful and patients take control of their own diagnosis and treatment." Furthermore, "the more far-sighted hospitals are hoping to remain at the center of the health-care ecosystem, even as their role changes.​"

The following text from the article provided the central thesis of my presentation:

Picturing what hospitals could be, if the various obstacles are overcome, means abandoning long-held assumptions about the delivery of care, the role of the patient and what makes a good doctor . . . . Just as online banking made life more convenient for consumers and freed up branch staff for complex queries, online health care could mean fewer people need to come to hospitals to be cared for by them. Last year half of consultations ordered by Kaiser Permanente, an integrated American health-care firm that runs many hospitals, were virtual, with medical professionals communicating with patients by phone, email or videoconference.​

Mark Wen and Aaron Rose
at the 2017 Seattle Biz-Tech
Summit

What is more, as "more sophisticated diagnostics, including blood tests and virtual imaging, become available remotely, more patients could receive hospital-quality care without leaving home . . . . And with better remote monitoring some chronically ill patients who now need to be in hospitals will be able to stay at home, only coming in when their conditions deteriorate. Moving care outside institutions will both save money and raise standards, by making patients more comfortable and reducing infection rates."

The article is correct to forewarn that "for all this to happen, primary care and home support will need to improve." Technology will play a significant role in such improvements.

In the future, the article suggests, "rather than checking patients' vital signs only at intervals, or parking ICU-nurses next to beds, live data-streams from medical machines and wearable devices could ow straight to such command centers, where supercomputers could screen them for anything worth bringing to the attention of medical stations. Doctors in the command center, or even in their own homes, could be at patients' bedsides virtually with a swipe of a touchscreen. All this would not only make the hospital safer and more efficient; it would also give medical staff a more complete record of patients' progress."

Moreover, "A command center could watch over patients not only in hospitals, but also at home. Wearable devices that track vital signs, contact lenses that monitor blood-sugar levels and smart-stitches that measure the pH level of fluid in wounds would all mean fewer patients in hospital for monitoring."

On the topic of robotics, "The surgeon's job, too, could be transformed. Today, the use of robots in the operating room is limited because they must be steered manually with a joystick. In future robots might be able to carry out some standard procedures such as hip replacements autonomously, with a surgeon getting things started and the robot doing the rest."

In addition, more complex operations via "a supercomputer linked to a real- time virtual-reality (VR) machine could help walk surgeons through their operations. It could, for example, highlight where a tumor sits in the liver and warn a surgeon about impinging on an artery, just as a satnav warns of traffic jams ahead."

The article accurately the discusses the world's growing need for healthcare workers. "The World Bank," notes The Economist, "estimates that by 2030 the number of health-care workers will need to double, compared with 2013—an extra 40m workers globally." Additionally, "High rates of stress and burnout are already a problem in health care; if workloads continue to increase they will only rise further. But if medical staff are made more productive with the help of computers, monitoring devices and robots, they can be freed up to do the work that only humans can do, and helped to do it better and more happily."

China's Audacious and Inventive New Generation of Entrepreneurs

My presentation then focused on the wave on new Chinese companies that are transforming the digital economy domestically and abroad. According to an article, "The next wave," by The Economist, "China's nimble new innovators are using world-class technologies from supercomputing to gene editing. Having established themselves in the cutthroat mainland market, many are heading abroad."

China's health industry "is antiquated and dysfunctional," the article claims. "Long queues are common at state hospitals and access to drugs is complicated by an opaque system of dispensation." This, however, has provided an opportunity for entrepreneurs and well-established Chinese companies alike. "AliHealth, an arm of Alibaba, is now a leading online pill-peddler. WeDoctor helps patients book medical appointments using smartphones. Venus Medtech has invented a retrievable heart valve intended for patients with high calcification in their arteries."

The Sept 23, 2017 article further says: "The best example of a local health-care disrupter with global potential, however, is iCarbonX, a health-data analytics firm from Shenzhen, a metropolis near Hong Kong. It is the brainchild of Wang Jun, who is a picture of the active health he wants to encourage with his startup. He formerly ran BGI, one of the world’s leading genomics-research firms. The Chinese company was involved in the global race to decode the first human genome and at one time owned half the world's gene-sequencing equipment."

ROI3's English Language Learning for Medical Terminology​

I concluded my presentation with a discussion about a mobile app my colleagues and I at ROI3 developed to help medical doctors and healthcare professional in China to learn English language medical terminology. Not only does our app correspond to the growing international presence Chinese companies are experiencing, but many studies suggest that over 90 percent of global medical research is published in English. Chinese medical universities and research institutions have recently made significant investments in building their research and development programs with the aim to share their innovation with partners and customers worldwide.

I want to express my appreciation to the panel's moderator, Dr. Mark Wen, Vice President & Director for Seattle Children's Hospital Global Business Development and International Medical Services, for inviting me to speak at this year's summit. In addition, a special "thank you" to my colleague, Jingyan Zhang, for her help with creating the PowerPoint presentation, which may be downloaded via SlideShare.

What are your predictions on how technology will change the global healthcare industry?

The Changing World of Digital Health from Aaron Rose (罗安伦)

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.