A region-wide strategy aids business in Southeast Asia

Azbil Corporation opened the Strategic Planning & Development Office for Southeast Asia (hereafter, ASPO) in Singapore in April 2018 with the aim of achieving further business growth throughout Southeast Asia by providing region-wide business support and management.

Until that point, the azbil Group developed its Building Automation (BA) business (for offices and large-scale buildings) and Advanced Automation (AA) business (for industrial facilities) through its subsidiaries in Southeast Asia. However, there is an accelerating trend towards economic integration in the region, and the region’s presence in the worldwide economy is growing. As the region’s economy grows, the azbil Group must also grow and respond rapidly to changing demographics and needs. The new organization was established in Singapore with the aim of strategically raising the level of business activities pursued by the subsidiaries.

The azbil Group already had one company in Singapore, Azbil Singapore, which has a 20-year history of business operation. Also, the Singapore government has been actively involved in the adoption of Industry 4.0 and Industrial Ethernet cutting-edge technology, so many potential customers in the city-state are proactively considering the adoption of Azbil’s products and services, which use next-generation technology like artificial intelligence (AI) and the Internet of Things (IoT). Leveraging this kind of advanced business environment, ASPO is working together with the azbil Group’s overseas subsidiaries to expand sales activity to Southeast Asian customers.

ASPO aims to stimulate business activity in the region and to achieve business growth by assisting and strengthening subsidiaries in the six countries of Vietnam, Thailand, the Philippines, Malaysia, Singapore, and Indonesia, including region-wide business promotion, strategic planning, and business management for all of Southeast Asia. ASPO also initiates activities that are challenging for individual subsidiaries, enabling the provision of a wider range of products and services to customers in Southeast Asia. Furthermore, ASPO approaches the market with a regional perspective, understanding the current and future needs of the region and its customers, and takes action with a medium- and long-term view.

Through active communication between subsidiaries in the region and between subsidiaries and Japan, effective strategies can be shared and collaboration can be deepened.

Know-how developed in Japan contributes to energy conservation and smart industrial safety

Southeast Asia has seen a growing interest in energy conservation and smart industrial safety. For example Singapore has a certification system called the Green Mark Scheme for environmentally friendly buildings, and aims to have 80% of the buildings in the city-state certified by 2030. In Thailand, smart industrial safety using the latest technology, such as the IoT, AI, and big data, is gaining more attention in order to cope with aging equipment, retirement of skilled operators, etc.—challenges which are seen in Japan as well. ASPO would like to meet this kind of societal demand and contribute to its customers’ businesses in Southeast Asia by suggesting solutions based on the abundance of technology and know-how developed by Azbil in Japan.

ASPO has the additional role of strengthening industry-academia-government collaboration. ASPO has been involved in enhancing collaboration with the Singapore Economic Development Board, “a government agency under the Ministry of Trade and Industry. . .responsible for strategies that enhance Singapore’s position as a global centre for business, innovation, and talent.”^＊ An example of ASPO’s activities in this regard is its advancement of an R&D project currently in progress with Nanyang Technological University, a leading public university in Singapore.

In October 2018, the Asian version of the Hannover Messe (the world-famous industrial trade fair held in Germany every year) was held for the first time in Singapore with the title “Industrial Transformation Asia-Pacific” (ITAP). Led by ASPO, the azbil Group participated in the trade show and exhibited Azbil’s unique products and services. The Azbil showroom was chosen as one of the best industrial transformation showcases and a technical tour was organized for visitors by the ITAP organizers after the exhibition. This year, the azbil Group will once again participate in ITAP, with ASPO leading the effort. Through such endeavors, Azbil is increasing its presence in the region.

Marketing of selected products to potential new customers

It has been slightly over one year since ASPO was established. In fiscal 2018, ASPO initiated regional research to understand the market characteristics and conditions of each country.

ASPO conducted comprehensive research of the BA market, one of the azbil Group’s core business areas. The research was aimed at identifying potential customers who have not been addressed previously by individual subsidiaries. The subsidiaries will begin sales activities based on the results of the research. Collaboration in sales activities among subsidiaries and related Azbil departments, etc., is already progressing, and the azbil Group is also building new relationships with customers by providing solutions for their businesses in various countries.

For the AA business, a decision was made in 2018 to focus on promoting Azbil smart valve positioners, which have functions essential for achieving smart industrial safety. This significantly boosted sales activities in the region. The business promotion framework for positioners is used region-wide, and will be applied to other products in the future. In the same way as for the BA business, market research was conducted for the AA business. The research results identify common requirements among Southeast Asian countries. Approaches that are successful in promoting a product or service will be applied to other products or services that can contribute to the same industry.

By closer cooperation with Southeast Asian subsidiaries and related Azbil departments in Japan, ASPO will facilitate providing high value-added products and services to customers in the region.

In May 2018, a showroom to benefit stakeholders in Southeast Asia was established next to the Strategic Planning & Development Office for Southeast Asia. The showroom has a direct communications link to the showroom at Fujisawa Technology Center in Japan, allowing shared realtime presentations and discussions between the two.