Digital Transformation From Strategy To Execution

Au t h o r Preface
Chief Editor
Dr. Margaret HU
Digital transformation is underway globally, with nations around the world setting national
digital strategies to accelerate the digitalization process.
The report "Digital Transformation: From Strategy to Execution" analyzes data from more
Editors
than 100 countries and projects. It covers six perspectives: person, home, enterprise, city,
Li Yan, Ma Yong, Yu Feidi, Kang Zhe, Quan Rong,
industry, and nation; four levels: nation, city, industry, and enterprise; and four stages: basic
Yang Fan, Bing Hongyan, Zhou Yanqing
digitalization, digital applications, systematic digitalization, and smart ecosystem. It interprets
the framework of digital transformation and provides insights, use cases, and deployment
Contributors strategies relating to digital infrastructure at different stages of digital transformation and the
Ma rui, Hui Yanni, Wang Huaichun , Ruan Dongmin, quantitative impact on the digital economy.
Wang Jingyuan, Ao Congyuan, Cheng Qingjun
Contents
Chapter 1 Chapter 2 Chapter 3 Chapter 4
Insights and Digital Digital Infrastructure is Digitalization Facilitates

Trends Transformation Foundation Sustainability
Changes – Trends - Values Nation – City – Industry - Enterprise Building – Development - Innovation Social Welfare - Low Carbon
Chapter 1
Insights and Trends

Changes – Trends – Values
Digitalization, Challenges and Opportunities
Digitalization as an engine of Digital leverages energy saving and

Epidemic accelerates digitalization economic growth emission reduction
Accelerated by 7 years 2X of GDP Growth ICT enables 10x emission reduction
Digital Adoption acceleration Digital Economy Growth
GDP 8.7% 8.5%

60 Carbon handprint
Global
55 5.4% 6.0%
Asia-Pacific 54 20%
4.5% 4.0%
Europe ICT Enabling CO2e reduction share
North America 50 2.3% (2021~2030）
1.4%
41 Carbon footprint
35 47% 2%
33 34 40% ICT CO2e share
34 30%
31 28 33 2020
29 17%
26 26
25
Source: McKinsey, 2020 World High Millde Low
2017 2018 2019 2020 Average income income income
COVID-19 country country country
Source：GeSI
Source: CAICT, Roland Berger 2020
Average share of products and/or services Proportion of digital economy in GDP Carbon Neutrality Bring Industry Challenges
that are partially or fully digitized, % in different income countries and Opportunities
digitalization, New Changes
Person Home Enterprise Industry City Nation
Payment Smart Home Finance Pubilic service Emerging
High data
Happiness Social Intelligence Business Stability Economy Developing
Affinity
Entertainment Green Energy Platform economy ICT City operation Developed
Education Gigaband Connected Retail Low Carbon Efficient
Safety Experience Consumer & Culture &

Work Value Chain Oil/Mine
Governance
Industrial Sectors environment
Health care Premium Smart Manufacturing Active Innovation Transparent
Advanced quality FTTB->FTTH->FTTR Flexibility Agriculture Education
Localized
Availability Connectivity Workflow Infrastructure Society Healthcare
industry New
Ubiquitous access All connected Efficiency Construction infrastructure Employment
Person: Digitalization Establishes High-quality Connection Anytime and
Anywhere
Payment: More convenient Social: More intimate Entertainment: More pleasant
Global mobile payment market [USD 1 trillion] Number of global social network users [billion] Metaverse promotes entertainment upgrades and rapid
growth of the extended-range (XR) market [USD 1 billion]
2027E 2020 2025E
Happiness 2019 About 65% 2018 2025E
12.1 of global
3.6 4.4 population
1.5 27 393
CAGR 30% CAGR 4.1% CAGR 46.6%
Source: Allied Market Research Source: Statista Source: MRFR
Education: Higher quality Work: Lower risk Healthcare: Better health
Global E-learning market scale [USD 1 billion] Proportion of people who prefer to work at home before Growth of global family health monitoring equipment
Safety and after the Covid-19 epidemic market [USD 1 billion]
2025E
+11.4%
2019 Pros 2020 23% Pros 2020
274 370 33%
141 189
67% 77%
29
12
2016 2019 2022E 2025E CAGR 18.8%
Source: MaKreo Research & Consulting Source: Frost & Sullivan Source: BCC research
Ubiquitous access: Anytime and anywhere Advanced quality: Faster and better
Safety Active mobile broadband penetration rate [number of subscribers per 100 people] Theoretical interpretation of user Time consumed to download 2 hours
experience rate of movies
74.2 75.0 3G 4G 5G 3G 4G 5G
62.8 69.5
44.6 51.9
26h 6min 3.6s
384Kbps 100Mbps 10Gbps
2015 2016 2017 2018 2019 2020 Source: cnet
Source: Roland Berger
7
Home: Digitalization Promoted Step-by-step to Create an Intelligence,
Clean and Low-Carbon Life
Connectivity Experience Intelligence
All connected：Basic connection achieved Gigaband: Improving experience of speed Smart Home: Enjoying smart life
Malaysia：USD 685 Germany：A total investment of EUR Number of homes with smart residential system installed
worldwide [million]
million invested in 100 billion to build a gigabit fiber
250 309
network of full coverage by 2025 175
150+ NFCP1) 50+
Greece：700 million Spain：A total of EUR 2.32 billion 2017 2020 2023E
invested in NGA2) invested by 2025, with 100% coverage of
Interactive security Remote and whole home control
industrial zones
countries with over
countries have Digital health care Smart appliances
230 telecom
released national Jordan：USD 209 million operators have UK：A budget of 5 billion pounds,
broadband plans invested in NBN3) covering the 20% of homes and Whole home and remote entertainment systems
successively released
businesses of the most difficult reach
Source: ITU gigabit services Source: Strategy Analytics
FTTB->FTTH->FTTR：Developing all-optical fiber homes Premium: High-quality experience Green Energy: Contribution to clean development
EU39 FTTH/B penetration rate Global 4K TV market Global 8K TV market [USD 1 Green buildings lead the practice of energy-saving potential
[USD 1 billion] billion]
2020 Giga Resources Australian Green Indian Green South Africa
2015 2025E '20-'25 2025E '20-'25 saving： Star Building Building Council Green Star
Home CAGR CAGR
Certification Certification Certification
Greenhouse
62% 40-50% 30-40%
39.8% 52.5% 3809 21% 417 56% gas/energy
consumption
Water 51% 20-30% 20-30%
resources
Source: FTTH Council Europe Source: Grand View Research Source: MarketsandMarkets Source: World green building council
1) National Fibre and Connectivity Plan; 2) National Broadband Next Generation Access Plan; 3) National Broadband Network
Source: Desktop Research; Roland Berger
8
Enterprises: Digitalization Makes the Work Process more Efficient and Agile
More efficient and agile

The growth of global cloud SaaS market has accelerated Post-epidemic participants in Zoom’s meetings every day
significantly [USD 1 million] are 30 times compared with the pre-epidemic number
+17.9%
Workflow
April, 2020
+2.6% December, 2019
102,064 104,672 122,633 145,377 300

10
million million
2019 2020 2021 2022
operation of enterprises
Source: Gartner Source: Reuters

Continuous optimize
Connected and intelligence

AI has penetrated into the value chain [AI adoption in each sector] Compound growth Proportion of smart cities
rate of the digital twin that will start using digital
Service operation
21%
Value Chain
market [2020-2026] space planning tools like the
Products and/or service development digital twin by 2022
21%
Marketing and sales
15%
Manufacturing Market size in 2026:
12%
Risk control USD 48 billion
Supply chain management 10%
Human resources 9%
Strategy and financing 8% 58% 40%
Strategy and financing 7% Source: Markets and Markets Source: IDC
> Smart
> Connected The importance of platform economy has become increasingly Proportion of platform economy in future global economy
Business Model
prominent in global economy

More platforms
Value Chain Market value of platform-based enterprises with a global market value
exceeding 10 billion [USD]
In 2020: 76
In 2019: 69
8 12.5
In 2025 30%
trillion
trillion +56%
Source: Mckinsey
Source: Desktop Research; Roland Berger 来源：IDC
9
Industries: Digitalization Affects Info-intensive Industries in 1st Wave with a
High Penetration Rate
Wave of digital
transformation 3rd Wave 2nd Wave 1st Wave
Information-
Pillar industry intensive industry
Consumption and services
Territorial industry
Potential value 6.4
of digitalization
2.0 2.9 3.3
[2016-2025; USD
1.2 0.6 0.8 0.8 1.4 0.9 1.0 1.5 1.9 0.9 1.5
1 trillion] 0.3
Agriculture Construction Hospitality Real Estate Transportation Oil, Gas, Manufacturing Energy and Entertainment Education Healthcare Governme Retail Professional finance ICT
& Mine Utilities nt affairs Services
Digital Agriculture Digital Oil, Gas and Mine Digital Healthcare Digital Finance Digital ICT
• Improving work efficiency: e.g. smart • Efficient utilization of assets: e.g. • Optimizing patient experience: e.g. the Original IT digital industry Original CT digital industry
agricultural machinery and agricultural pipelines/equipment of smart personalized medicine (hospitals), and
• Improving employee efficiency: e.g. the core • Improving work efficiency: e.g. the cloud
drones, serving to reduce manpower interconnection, and predictive maintenance, wearable medical equipment (by medical
platform of digital bank, and video analysis, migration of OSS and BSS systems, IDC AI
input/comprehensive costs serving to improve the service life and equipment companies), serving inclusively
serving to liberate talent productivity energy saving and emission reduction, etc.,
operational stability of the assets. with smart solutions
• Improving agricultural output: e.g. serving to improve core business efficiency
• Optimizing customer experience: e.g. the
agricultural situation monitoring and smart • Optimizing production management: e.g. • Improving employee efficiency: e.g. the
multi-channel solutions and mobile payment, • Realizing data assets: the users, markets and
greenhouses, serving to further improve yield optimization of mining, and remote scheduling optimization (in hospitals), and
serving to adapt to individual needs other data under management will be
and quality through precise decision-making operation centers, serving to improve digital-driven drug trials (in medical
provided to partners in the form of services
and control production efficiency and safety. equipment companies), serving to liberate • Innovating solutions: e.g. the fraud
the productivity of high-quality talents monitoring system and virtual wealth • Constructing ecosystem: building a digital
• Digital upgrade of the whole value chain: e.g. • Comprehensive digital capabilities: e.g. the
advisors, serving to enhance competitiveness platform with the original advantages of
agricultural product e-commerce and 4D seismic data analysis and mining • Utilizing assets with efficiency: e.g. the
in the era of financial technology digitalization to get all partners in various
agricultural product traceability, serving to planning, serving to ensure the resilience and RFID/wireless equipment management (for
industries connected
promote the overall upgrade of the sustainability of production and operation hospitals), and real-time monitoring of
agricultural industry chain production lines (for medicine equipment
companies), serving to improve the efficiency
of the whole chain
Blockchain Solutions
Increase in food supply to Decrease of accidents in Decrease of accidents in AI-based power saving for
60% feed the world in 2050 3~13% work ~70% work 37% implemented by European
Commercial Bank
40% data centers
Source: UNFAO Source: WEF Source: WEF Source: Roland Berger Source: DeepMind
Source: : Desktop Research; Roland Berger
10
Cities: Invest New Digital Infrastructure to be Safer, More Efficient, More
Ecologically Sustainable
Pubilic service: Safe City Management City Operation: Urban governance
solution ensures the safety of residents centers improve the efficiency
Stability Global investment in Safe City Management technology Time saved by smart city construction for the residents
[USD 1 billion] [per persion per year]
22 35 London: Shanghai:
Dubai:
2019 CAGR 10% 2024E Traffic 10% Healthcare 180h Administrat 40h
ion affairs
Healthcare Source: Omdia
Low Carbon: Intelligent ability Active Innovation: Smart interconnection

promotes low-carbon travel spawns innovative applications
Scale of global AI-based transportation market [USD 1 billion] The scale of the global urban smart Internet of Things (IoT) [USD 1 million]
Culture and Stockholm, Sweden
10.6%
Phuket, Thailand
18.1%
Environment 2020 World's Smartest City
1.565 2018 Best Smart City in Asia Pacific region 2.600
• Intelligent Transportation Network System (ITNS) 945 • Tourism safety: IoT ship and smart wristbands 1.131
manages traffic commuting in real time • Cleaning waters: IoT wastewater treatment system
• Deploying shared electric vehicles
2020 2025E 2020 2025E
Source: MarketsandMarkets Source: MarketsandMarkets
Education New Infrastructure：New directions for infrastructure construction
Major projects and Total investment

Shanghai, China High-quality 5G and fixed networks to ensure dual-Gigabit broadband
engineering packages [RMB 1 billion]
Won the WSCA 2020 Driving 150,000 enterprises to land on the cloud platform
The first batch of the Action Plan to
Infrastructure Promote New Infrastructure 48 270 100,000 smart charging piles for electric vehicles
Construction in Shanghai (2020-2022) Over 100 unmanned factories/production lines/workshops
1) Economist Intelligence Unit, Global Liveability Index

11
Nation: digitalization Affects All Aspects of Economy, Society, and
Governance
Developing country: Emerging country: Developed country:
Enabling various industries Increasing productivity Building industrial competitiveness
Indonesia Malaysia UK
3.7 Empowered MSMEs with tech Uplift in productivity across £200 Digital sectors' contribution
30% 9.7%
mn e.g., e-commerce, fintech all sectors by 2030 bn to the economy by 2025
Education: Efficient: Digitalization of government affairs has

Providing fair and high-quality education Economy become a global trend
Proportion of countries featuring global e-government development
The digital educational plan Germany
Initiative Digitale Bildung proposed
14 index scoring high and very high
tasks 29%
key tasks 21%
15%
National +8pct
competitiv 2016 2018 2020
Healthcare: Improving residents' health eness
Source: UN
Healthcare: Improving residents'
health Japan
World Transparent: The level of government openness gets
#1 higher and higher
Proportion of countries/regions with governments' open data portals
Employment: Creating new jobs 79%

47%
+32pct
Increasing the use of public cloud and Singapore
expecting to create new jobs 22K 2018 2020
Source: UN
Source: Strategic document; Desktop Research; Roland Berger
12
170+ Countries Release Digital Strategies, 3 Essentials for Implementation
a Better Vision
China 3 Essentials for
UK Germany France
> UK Digital strategy > Digital Strategy 2025 > France International Digital Strategy
> 14th 5-year plan and 2035 Long-Range Objectives Implementing
> New Infrastructure; industry giants d
> World class infrastructure, the best place for the > Industry 4.0, Innovation and SMEs, Informational > Open governance; making France a center of digital a Better Vision
digital industry, and a leader in government digital Autonomy excellence; digital autonomy
transformation
Comprehensive
top-level planning
Japan
> Society 5.0: Solutions for Better Human Life (Big
> Some countries often have
Chile data, IoT, AI cover every corner) thoughtful top-level design and
> National Strategic Program for planning initiatives in their
Smart Industries national strategies.
> Improve productivity and efficiency;
digital language
Thailand
> Thailand Digital Economy and Society Development Clear
> ASEAN hubs for connectivity and data exchange implementation path
Brazil > Some countries propose
Indonesia detailed plans, and undertake
> Digital Transformation Strategy(E-
Digital) > Ministry of ICT Strategic Plan (2020-2024) their envisaged clear objectives,
> Digitalisation process of production; > Inclusive infrastructure, Digital literacy projects to be implemented,
promote education and training for
and main bodies to be
the digital environment
Kenya Egypt implemented.
> Ministry of ICT Strategic Plan (2020-2024) > Digital Egypt Singapore
> Digital business environment, digital capabilities, and > Government transformation, talent and employment, > Smart Nation, The Way Forward, etc.
application innovation ICT innovation and entrepreneurship > Digital government, digital inclusion, and
industry-wide transformation
Clear focus
Morocco South Africa Saudi Arabia UAE
Malaysia
> Morocco Digital 2025 > National Development Plan 2030 > Vision 2030, Smart Strategy 2020- > UAE Centennial 2071：best country in
2024, etc. > MyDIGITAL Initiative
> Dozens of initiatives proposed
> Digital administration, Digital > National Digital and Future Skills the world(economy, government,
ecosystem and innovation, Strategy: Originality, agility, critical > ICT industry, developed digital society, education) > Digital Hub by many countries, while
Inclusionsocial and human thinking and problem -solving for infrastructure, and government
> Strategy for Artificial Intelligence > Target to have 100% household with access to clarifying the focus of recent
transformation
development digital inclusion 2031：World leader in AI internet work
13
60 Countries & Territories AI strategies, Shaping the Future of Humanity
• Artificial intelligence is at the top of policy agendas for governments and other stakeholder groups at both national and international levels.
• Governments around the world see AI as a nation defining capability, and are looking to their education systems to develop world-class generational AI capability while ensuring
equity, privacy, transparency, accountability, economic and social impact.
• Over the past 3 years, 60 countries & territories has developed their AI policies & strategies, representing 90% of Global GDP.
Argentina Australia Brazil Bulgaria
Austria Belgium
Drafting the “National Plan of Artificial Nov 2019, AI Roadmap focused on Consultation period ended Jan 2020. Dec 2020, the government approved its
Jun 2019, ‘Artificial Intelligence Mission Mar 2019, ‘AI 4 Belgium’l aunched and
Intelligence”, follows the Innovative specialization in health, infrastructure Building a network of 8 research national AI strategic document, while also
Austria 2030(AIM AT 2030)’. Outlines 7 includes 7 major objectives.
Argentina 2030 Plan and the 2030 Digital and natural resources. Planning for an facilities focused on artificial preparing specific policy reports focusing on
fields for which AI will be critical.
Agenda. additional 161,000 AI specialists by 2030. intelligence. education, training, and research.
Colombia
Canada Nov 2019, first draft issued for ‘National Costa Rica Croatia
China
2017 federal budget announced five- Chile Policy for Digital Transformation’. Oct 2018, the Ministry of Science and In 2021, the government will
July 2017, China launched the most
year, $125M plan. Led by CIFAR. Research Expected April 2020. Ministry of Science, Medellín t o become an AI & Robotics Technology and Telecommunications release ’National plan for the
comprehensive AI strategy globally
and talent focus. First National AI Technology, Knowledge, and Innovation Centre of Excellence. presented the “Bicentennial Digital development of artificial intelligence’,
with 2030 targets for a $1T RMB AI
Strategy. created a committee of 10 experts t o Transformation Strategy 2018-2022” with its including policy measures and actions in
industry.
Cyprus develop. Egypt National AI principles. 2021-2025.
In 2019, Ministry of Transport, Denmark Jul 2021, Egypt launched the National European Union
Estonia –Kratts Strategy
Communications and Works (MTCW) Czech Republic Mar 2019, Denmark announced the Artificial Intelligence Strategy to attain Apr 2018, the Commission outlines the
May 2019, Estonian AI experts, led by
publicly consulate ‘The key actions for May 2019, ‘National Artificial Intelligence ‘National Strategy for Artificial the country’s sustainable development. approach to boost investment and set
government CIO produced a roadmap,
Promoting the Integration and Development Strategy of the Czech Republic’w as Intelligence’w ith 4 key objectives. ethical guidelines on AI with €20 billion in
later a d o p t e d as the Estonian National AI
of AI in Cyprus rest on 4 pillars’ launched. Greece AI research and innovation by 2020.
Strategy in July 2019.
France Germany A preliminary version of the strategy has Iceland
Finland €1.5 billion plan announced in 2018 €3 billion plan announced Nov 2018 been published in late 2020 by the Hungary Dec 2020, the Prime Ministry announced
June 2019, ‘Leading the Way into the Age of influenced by the ‘Villani Report’t o with a dedicated AI strategy t o make Hellenic Ministry of Digital Governance Oct 2019, Hungary announced an AI a prioritized list of actions to meet
Artificial Intelligence’identified 11 key transform France into a global leader Germany & Europe a global leader in AI. (MDG). Action Plan, the first pillar of a national changes brought by new technology,
actions following May 2017 Steering Group in AI. AI strategy, expected in 2020. specifically AI.
Israel
announcement. Indonesia Ireland Innovation Authority, tasked with AI Italy Japan
India Indonesia Artificial Intelligence Society Irish Economic Development Agency led policies, has warned that a strategy is Mar 2018, AGID released a White Mar 2017, the ‘Artificial Intelligence
June 2018 working paper on using AI to inaugurated under Smart Indonesia in process. AI Master program launched in needed t o prevent falling behind. Paper called “AI a t the service of Technology Strategy’, was announced
ensure social growth, inclusion and Oct 2019. National Strategy expected 2018 and is 100% industry driven. citizens,”w hich was edited by the AI second only t o Canada with ‘Society
positioning the country as a leader in AI. in 2020. Malaysia team. 5.0‘.
Lithuania Luxembourg 2018, Malaysia revealed a National Malta Mexico
Kenya Apr 2019, AI Strategy announced “to May 2019, launched ‘Artificial Artificial Intelligence Framework Oct 2019. ‘A Strategy and Vision for Jun 2018, ‘Towards an AI Strategy in
Jan 2018, government announced team t o modernize and expand the current AI Intelligence: a strategic vision for expanding the National Big Data Artificial Intelligence in Malta 2030’ Mexico: Harnessing the AI Revolution’,
create a five-year strategy on national use ecosystem and ensure that the nation Luxembourg’. Analytics Framework. Malta.ai launched and aspiring t o be serves as a foundation for building full
of emerging technologies. is ready” the ‘Ultimate AI Launchpad’. AI strategy.
Morocco
Netherlands New Zealand Norway Pakistan Philippines
In 2021, Agency for Digital Development
Nov 2018. AINED published a roadmap May 2018, AI Forum of New Zealand, Jan 2020, Norway issued its National Presidential Initiative for Artificial Nov 2019. AIM, Aboitiz School of
(ADD) leads to establish a strategy and
for developing a full national released “Artificial Intelligence: Shaping Strategy for Artificial Intelligence. Intelligence launched Dec 2018, focused Innovation, Technology and
national roadmap for developing an AI
strategy. a Future New Zealand.” on training beginners in AI and Entrepreneurship (ASITE) appointed to
Ecosystem. Romania advanced technology. craft an AI roadmap.
Poland Portugal Qatar 2020Q1, the national AI strategy for Saudi Arabia
Nov 2019, ‘Assumptions for the AI strategy in Feb 2019, ‘AI Portugal 2030’, seeks Oct 2019, National AI Strategy as a adoption released by Ministry for Sweden Sep 2019. Royal decree t o establish
Poland’a s an action plan towards strengthen economic growth, scientific blueprint produced by Qatar Communications and Information National Approach for Artificial an AI center, t o align with the
developing an AI strategy. excellence, and human development Computing Research Institute (QCRI). Society. Intelligence launched in May 2018. Kingdom’s Vision 2030 program.
using with AI. Spain
Singapore South Africa South Korea Switzerland
March 2019, the Spanish Ministry of
May 2017. AI Singapore is a five-year, $150 Intsimbi Future Production Technologies May 2018, five-year AI development Vietnam An Artificial Intelligence expert group
Science, Innovation and Universities
million national program launched in t o Initiative”l aunched in 2018 with aim t o plan launched with $1.95B budget. Ministry of Information and has published its recommendations for
launched the RDI Strategy in Artificial
enhance Singapore’s capabilities in AI. advancing manufacturing sector. Communications developing a broad AI a Swiss AI strategy.
Intelligence.
strategy.
Thailand
Tunisia United Arab Emirates United Kingdom
Thailand’s Digital Economy and Society
AI Team and Steering Committee t o Oct 2017 announced strategy. First Apr 2018, ‘Sector Deal’a nnounced. $1.24B
(DES) Ministry has drafted the country’s
develop a national AI strategy. The country t o create a Ministry of AI and funding as part of the UK’s larger
first artificial intelligence ethics
strategy was scheduled t o be published first in the Middle East t o launch an AI industrial strategy.
guidelines.
in 2019Q1. strategy.
14 Source: OCED.AI, Holon IQ

Some Countries Propose to become Digital Hub/Centre in their Strategies
With excellent ICT infrastructure, some countries propose to become regional digital centers, pool talent and innovation capabilities, accelerate the
development of local ecosystems, guide the upgrading of industries such as finance, logistics, and manufacturing, and improve national
competitiveness.
Saudi Arabia Thailand Malaysia
To establish A Digital Hub for the MENA region To become ASEAN’s Digital Hub and build a country-wide, The 12th Malaysia Plan aims to position Malaysia as
and create an ecosystem of advanced technology high-capacity digital infrastructure to provide accessible the ASEAN digital centre, given the country’s strong
services that will establish Saudi Arabia as a and affordable internet, digital transformation on SMEs, capability in security solutions and digital content
leading business hub in the region. Agriculture, and other industries. production.
Thailand Internet growth

57% rate over last 5 years
Source: the Ministry of Communications and Information Technology (MCIT)
15
Governments Take Various Measures to Support the Development of SMEs and Start-ups
China Italy Japan

Digital Technologies Support Digital Solidarity Initiative SME Digitalization
• The Ministry of Industry and Information
• Advocates the establishment of online service • Provides a subsidy for introducing IT to a
Technology promotes access to digital products
centers, such as the establishment of free single SME to promote the digital
such as video conferencing, cloud services and
online newspapers and e-learning platforms development of SMEs
training programs for SMEs
• Companies can contribute and share free • Initiates the “Champion City for
• Some local gov’ts offer free cloud computing
digital services through online service Digitalization" project to introduce digital
products to encourage businesses to resume
platforms technologies to SMEs in champion cities to
operations through telecommuting
increase business sales revenue
Denmark Germany Australia

Digital SME Mittelstand-Digital Small Business Digital Champion
• For 2018-2021，consulting and coaching on • Support for SMEs' digitalization through • Funding for a single enterprise and
digital opportunities, business case preparation building IT competence centers by universities, guidance on products and services
and implementation of digital solutions for research institutes and external partners (e.g., • Provides digital transformation support to
companies chambers of commerce) 100 Australian small businesses
• Provides specific recommendations and • Since 2015, 26 competence centers have been • 15 of these 100 companies were selected as
guidance for e-commerce and electronic established to empower SMEs through digital champions, with additional support
export applications examples, information events and exchange of from a high profile digital mentor
experiences
Source: Government website;
16
Digitalization Brings Economic Value, Social Value, Industry Value and
Business Value
Country/Government Perspective
1 Economic Value 2 Social Value
Boosting the economy Strong Competitiveness Improve Governance Ensuring People's Livelihood
> Inject vitality into traditional industries > Improve international/regional > Improving Public Sector Efficiency > Benefit people's well-being and
and increase output value competitiveness and reputation improve the level and popularity of
> Creating a Service-oriented
public services
> Developing a New Digital Economy > Driven by Innovation Engines, Government
> Promoting Sustainable
Digitalization
Future-Oriented
> Assists post-epidemic recovery
Development and Helping Achieve
UN SDG Goals
Beneficiary Unit
Supports
3 Industry Value
Promoting Well-being
Industry Industry Structural
Perspective Optimizati Transforma
Perspective
Individual/
on tion
Beneficiary
Home
a perfect Adequate
Execution
Unit society development

Unit
Aggregates welfare Opportunities
4 Business Value
Abundant
Good Nature
Enterprise Reduce business
environment
Perspective cost and Product Product
increase Upgrade
efficiency
17
Chapter 2
Digital Transformation
Nation – City – Industry - Enterprise
18
Overview：Digital transformation has five carriers and drives four values.
Overview of digital transformation
Direction
guidance
Economic Industrial
value Country Industry value
Deep integration of
StrategyInitiatives
Industry Knowledge
Plans
Policy support
Boosting economy and Digital Technology  Transformation
Enhancing competitiveness and upgrading
 Structural optimization
Undertaking strategies Implementation unit
Social Commercial
Value City Enterprise value
Efficient people- Experience Efficiency
oriented governance Innovation
 Reducing costs and
Ensuring people’s wellbeing
increasing efficiency
Improving governance
 Product upgrade
19
Different carriers digital transformation can be divided into four stages
Smart
Systematic Ecosystem
Basic Digital Digitalization
digitalization Applications
Construction of communication network Accelerate digital technology Digital platform construction Digital in everything
infrastructure and basic information systems implementation with pilot scenarios Systematic transformation for everyone
• Investment in communication network • The concept of digitalization rooted in

• Government transformation coming first • Digital industrialization and industrial digitalization
infrastructures society, and unleash unlimited potentials
• Selected industries taking the lead • Platform integration and system collaboration
Country • Informatization and digitalization • Inclusive and balanced development
• Investment in communication network

• Government transformation coming first • Integrated platform system • People-oriented city
infrastructures
• Application in some public fields • Leveraging data analysis to generate value • Joint governance and operating ecosystem
City • Informatization in public sectors
• Majority of operations are manual/offline • End-to-end business process in systems

• Majority of enterprises implemented core systems • Actively exploring industry application scenarios • Mature digital platforms in the industry
• Digitalization of core business processes of
Industry • Leading enterprises exploring smart applications with AI, IoT, 5G, etc. • Outcome value-driven business model
leading enterprises
• Holistic digital visibility and analysis capabilities

• Implementation of core information systems • Digital visibility of key business processes on group level • AI-driven business in multiple core sectors
Enterprise • Digital visibility of core business steps • Exploration of selected smart applications • Innovation in emerging technology driven • Digital twin, unmanned factories, etc.
business models
20
01
National Digitalization
Framework – Model – Stage - Practice
21
Nation City Industry Enterprise
Framework: Top-level design based on strategy, application, technology

and enablers
Strategy
Boosting Ensuring Enhancing
economy people’s wellbeing competitiveness
Business Society Government affairs

Smart finance Smart manufacturing Smart healthcare Smart education Digital citizenship
Application Smart energy Smart agriculture Smart transportation Digital citizenship Online services
Smart retail Smart construction City governance

…
Quantum
Key technologies 5G AI IoT Blockchain AR/VR Robot
computing
Technology
Infrastructure and
Network infrastructures Computing infrastructures (cloud and data center)
platform
Organization Fund Talent Regulation Ecosystem

Authoritative leading Improvement in data Cooperation or joint
organization Adequate special funds Abundant digital talents governance venture
Enablers
Management and Digitalization training Improvement in technical
coordination mechanism Plentiful incentive plans ethics Innovation incubation
plan
22
Evaluation model: Based on 12 dimensions and 29 detailed quantitative

indicators
Vision Organization
1 • Whether there is a clear digital leadership department to perform overall
2
• Whether there is a clearly defined vision for transformation
management
Objective • Whether the digital leadership department receives input from high-level
2 • Whether there are clear and detailed objectives

• Whether the objectives are quantifiable
leadership, has influence on multiple sectors and the ability of implementation
Fund
• Whether there is digital transformation fund
Richness
3 • Transformation degree in the commercial field

• Transformation degree in the government field
• Whether there are other financial plans such as incentive tax policy
in digital transformation 4
• Investment scale of business digitalization
• Transformation degree in the social field • Investment scale of government digitalization
Synergy
1 • Expert scoring of collaborative ability of applications
Countries'
digital
Talent
Advancement transformation
• Quantity of digital talents
3
1
• Level of ICT skills
• Expert scoring of smart applications evaluation • Whether there is a systematic talent training plan
Infrastructure and platform capabilities Regulation
4
•
•
Connectivity of communication infrastructure
Accessibility of communication infrastructure
• Supervision quality
• Supervision in emerging technologies
3
• Number of data centers
• Whether there is a national data center or cloud platform
Ecosystem
2
Emerging technology capabilities
• Index of emerging technology investments
Technology
(30%)
• Whether there is a clear ecosystem strategy/framework/platform
• Practice of ecosystem strategy of public-private partnership 3
• Index of emerging technology applications • Innovation incubation ability
X Number of indicators
23
Evaluation model: Based on 12 dimensions and 29 detailed quantitative

indicators
Evaluation model Digital transformation stage of typical countries
50 70 90
points points points
Strategic vision Strategic objectives

Qatar Singapore
High income
Strategy UAE
Following Germany
closely
France UK
Japan
Richness of Synergy Advancement of Kuwait Italy Spain South Korea
GDP per capita

application of applications application
Medium income
Application Estonia Excellent
Saudi Arabia
practice
Steady Greece
Development Malaysia China
Infrastructure Emerging technology Thailand
Tech
and platform capabilities capabilities Jordan
Indonesia
Low income
Morocco
Egypt Philippines
Organizing Strength in Talent Regulatory Myanmar Vietnam

Ecosystem
Enabler
ability funds strength capacity
Digital transformation stage
Basic digitalization Digital applications Digital applications Smart ecosystem
24
Basic information: Develop digital infrastructure to drive economic rapid

growth
Stage Typical cases: China’s communication network construction and digital transformation
characteristics
ADSL Commercialization of Release of Broadband China Internet Plus Action Plan was released
Broadband Strategy In March 2015, Internet Plus was written into the government
• Investment in the In 1999, China’s broadband ADSL was In August 2013, the State Council officially work report, which clearly put forward the network powerhouse
officially commercialized, and the released the “Broadband China” Strategy strategy that promoted the integration of mobile Internet, cloud
infrastructure of broadband network based on ADSL Implementation Plan: By 2020, the broadband computing, big data and Internet of Things with modern
manufacturing.
communication technology began to spread rapidly in access capacity of urban and rural households
China. had reached
networks: Through the
construction of fixed- 1993 1999 2009 2013 2013 2015 2019
broadband and mobile-
2G Network 3G Network 4GNetwork 5GNetwork
broadband, the network
In September 1993, China’s first digital mobile In January 2009, MIIT issued 3G licenses for After four years of rapid development, as In 2019, with the licensing for 5G, China’s 5G network
coverage of total GSM telephone communication network was China Mobile, China Telecom and China of August 2017, the 4G network had construction began to take the lead in the world. As
population (> 95%) will be deployed in Jiaxing City, Zhejiang Province. Unicom, and China began to enter the 3G covered 98% of China’s population. of the first quarter of 2021, the total number of China’s
era. 5G base stations reached 820,000.
completed within the
foreseeable interval.
In the past ten years, Infrastructure achievements in 2020 Digital Nation achievements in 2020
• Informatization and China’s network facilities
digitalization: Taking and digital economy have Fixed broadband’s
Mobile broadband’s Digital economy
household
government departments had a leapfrog penetration rate is
user penetration rate 2nd largest Growth rate of 6.4%
is 108%. US$5.4 trillion
as the forerunner to development, with 96%. in the world during ’18-’20
practice informatization infrastructure construction

and transforming physical leading the world and the Number of built 5G
Broadband access Digital core industry
ratio
vitality of the digital base stations
information into digital 718,000
is 98% in poverty- US$1.15 trillion
Accounting for 7.8% Growth rate of 11.8%
economy highlighted. stricken areas of GDP during ’19-’20
information
Source: Omdia; Digital China Development Report (2020); CAICT; Desktop Research; Roland Berger
25
Application digitalization: focus on government affairs and advantage industries
Stage Typical cases: Thailand Digital Economy and Society Development Plan
characteristics
Strategic vision and
direction
Key initiatives of transformation
Drive the economy with

digital technology Reform business practices Increase opportunities Accelerate startups Enhance competitiveness
• Developing digital trade • Focusing on tourism, • Providing funds and facilities • Supporting open business
• Government
Application
Build an equitable and alternative medicine, to encourage innovation intelligence centers and data
• Modernization in industry,
transformation coming inclusive society
agriculture and service
agricultural industrial chain,
• Funding innovation
analysis
through digital logistics and electronic
first: Comprehensively technology industry
payment
platforms
promoting the digital

Transform the public
transformation in sector into a digital Equal access Digital literacy Digital content Standard education Healthcare services
government affairs government
• Inclusive digital • Incorporate digital • Content information • Develop online • Integrate health
communities: Public literacy into digitalization education and provide information system
• Selected industries Develop countrywide
Tech
services, education, educational curricula course content

high-efficiency digital • Create a national digital • Encourage health-
taking the lead: infrastructure health, business, etc. at all levels
knowledge center related applications
According to the
national industry and Develop worker for the
age of digital economy
Citizen-driven smart Efficiency and good Civic participation Government service
enterprise foundation, and society services governance platforms
Enabler
• Automatic, convenient and • Improve the government • Establish open data • Data and service integration
encourage the universal online service mana-gement process and standards to support
• Establish large-scale unified
digitalization of Build trust and
confidence in the use of
systematically optimize industry applications
platforms across
background systems
industries with high digital technology departments
economic proportion xxx Related to industrial applications xxx Not related to industrial applications
and great growth
Thailand has applied digital transformation plan in IMD ranking of representative countries in 2020
various industries with remarkable results, becoming #57 #56 #39 #26 #2
a leading (top three) country in Southeast Asia.
Philippines Indonesia Thailand Malaysia Singapore
Source: CAICT; Desktop Research; Roland Berger
26
Systematic Digitalization : Nation had a strong strength in digital economy,

and formed a platform-based and systematic development trends
Typical cases: Digital Strategy 2025, Artificial Intelligence Strategy, etc.
Stage characteristics
• Digital industrialization: High tech Smart networks Industry 4.0

Develop telecommunications,
Develop advanced technology to The government takes the lead in coordinated
computers and advanced form digital industry
Plan strategic core areas
development and establishes industrial platforms.
digital technologies to form AI Strategy
AI
industrial competitiveness • Investment by 3 billion euros from 2018 to 2025 BMWi BMBF
Healthcare Agriculture Public Transportation Space Co-leadership
• Industrial digitalization: Block Blockchain Strategy governance
chain and safety management
Digital transformation in all • Technical innovation projects and application
walks of life has started and experiments Bitkom Industry 4.0 Platform1) VDMA
ZVEL
developed in an all-round way. I oT
Industry 4.0 Strategy
Manufacturing Energy Education Media Handicraft Joint participation
• Develop smart factories based on IoT and power industry
• Platform integration and Leading
manufacturing
Six
Overseas cooperation
enterprises Industrial Internet

system Synergy: Fragmented Quantum
computin • Invest 1.1 billion euros from 2021 to 2025 Policy supports industrial transformation, DAIMLER
working Consortium
g
groups
applications move towards taking Healthcare as an example. SAP BOSCH
Industrial Value
Chain Initiative
system integration, platform-
based organizations and Attach great
importance to the
Encourage the
development of
The government • Pass the healthcare digitalization bill
Research institutions
and universities
AI start-ups Policy bank
promotes the
enterprises emerge, and combination with SMEs and
improvement of
• Update the digital healthcare application approval mechanism
Fraunhofer
micropsi industries
KFW
core sectors (such innovative • Plan and iterate medical telecommunication infrastructure (TI).
deeper and more complex as industry) enterprises
regulation
• Provide 4.3 billion euros as hospital transformation fund ……
PerfectPattern KONUX
applications (such as AI
applications based on big Germany makes full efforts in digital industrialization Digital Nation
Total digital economy Scale of digital economy Digital economy accounts Digital economy grew by
data) thrive. and industrial digitalization, and improves industry achievements US$2.54 trillion No. 3 globally for 66.7% of GDP. 2.9% from 2018 to 2020.
collaboration ecosystem through platform alliance. in 2020
1) The German Industry 4.0 platform was established in 2013 by Bitkom, VDMA and ZVEI, and is jointly led and managed by BMWi and BMBF
Source: CAICT; Desktop Research; Roland Berger
27
Smart Ecosystem : Pay attention to inclusive and balanced development,

while managing and exploit the values of data
The objective of national digital transformation Future development direction
• The digital concept is rooted and pays attention to

Boosting Enhancing Ensuring people’s Stage leaping inclusiveness and balance
economy Digital competitiveness wellbeing characteristics • Giving play to the infinite potential value of data
Nation
Strategy
Talent UK Related strategic objectives

Ecosystem
Regulation
Organization
Fund
Society
Commerce Smart
Government Affairs Commercial digital Innovation and
Smart High-speed
health educa penetration business
Smart
-care City gover network coverage
Smart agricul Smart Smart
-tion
Digital Adminis -nance (including SME) environment
finance -ture construc transport citizen -trative Online
Smart -tion
Smart Smart manufac
-tation -ship affairs services
98% 100% best
…
energy retail -turing
Online
Proportion of Network
AI IoT government
citizens with digital regulatory level
capability
5G
AR/VR Quantum leader 100% best
Robot Blockchain computing
Network base station Cloud platform / data center

28
Five Key capabilities: organization, capital, talent, regulation and ecosystem
Organization Fund Talent Regulation Ecosystem

Policy & Execution Suggestions
Encourage the Various training & Improve the opening Strengthen the driving
Powerful leading
investments from introduction plan for public data governance factor and the project PPP
organization
commercial enterprises talents of all levels system capability
• Establish the dedicated digital • Create a good investment and • Improve the level of basic • Unify the public data lake of • Build a cooperation and basic
transformation strategy and financing environment education for all and vocational government; system platform for industrial
executing agency initiated and • Provide preferential policies education; • Publish the public data governance transformation
intervened by the highest leadership • Strengthen the cultivation of regulatory and promote the • Establish the cooperation and
and nominate the government’s CIO talents dedicated to STEM and openness and the activation of the communication mechanism, and
Abundant government digitalization; data value use the joint venture models such
• Establish the multi-departmental, capital investment and
• Introduce international talents; as BOT and BOOT flexibly
central and local coordinating diverse models
mechanisms, for example, the • Improve the digital level of civil
permanent mechanisms such as • Dedicated budget for digital servants
transformation;
council, cooperative organization
and regular meeting • Diversified investment form, e.g.:
government funds, subsidies, tax
lever, etc.
Singapore France Germany UK Malaysia

Case study
• Establish the SNDGO, which is directly • Invest 500 M€ to support all SMEs’ • Promote VET Vocational Education & • Create OGL and National Data Portal • Launch the MSC Status Program
affiliated to the Prime Minister's and industrial sectors’ transformation Training 4.0,. New courses, such as "e- • The GDS acts as the lead agency to • Attract enterprise by tax exemptions,
Office. It is responsible for managing in the form of procurement tax business management assistants" in promote data openness. financial subsidies, etc.
and coordinating multiple incentives and subsidies; response to the needs of new industries • Promulgating documents such as the • Attend in the Smart City district
• Set up a 2.1 B€ loan to finance the • Includes digital technology in training Public Data Principles and the construction
departments.
SMEs transformation regulations/standards Freedom of Information Act
29
Organization: Country level digitalization strategy and implementation agency
Bundestag and legislative body

Prime Minister's Office (PMO)
Collaboration and supervision
Smart Nation and Digital Government Group (SNDGG)
Federal Ministry of the Interior, Other federal departments
Federal
Building and Community Con feren ce of th e IT
Officers of the Member
Chairman
Smart Nation and Digital Execution Government Technology Agency IT instructor of Ministries/Departments CIOs of the ministries
1 Government Office (SNDGO) Agency 2(GovTech) federal government
(KolTB ) 1)
/departments
Direct Jurisdiction and Management of project Digital government policy establishment Federal inter-departmental
management 3 coordination of disputes coordination organization
implementation Coordinating
support Federal IT
IT Planning
Cooperation
Council2)
(FITKO)3)
Executing agencies Executing agencies Departments of state government
State
State CIOs Coordination Collaboration
Ministry of Information and between federal between federal
Ministry of Other Ministry of National government government and
Communications Media Development
Finance departments Home Affairs Environment Agency Some are directed and planned as a and state state (project and
and Information Agency (strategy level technology level)
whole by the state, some are initiatives,
Building and without explicit provisions of law
Ministry of National Ministry of Other relevant
Ministry of Transport Construction
Defense Health departments
Authority Departments of municipal government
City
(partial) participation and execution
National departments in charge Departments in charge
of confidential and crucial work of society and people’s livelihood Executing Agencies Coordinating organization
• SNDGO is directly affiliated to PMO. It has the right of supervision and jurisdiction over other • At the federal level, the IT instructor is the leader, the CIOs of the ministries/ departments are
departments. responsible for execution.
• The Agency for Science, Technology and Research is responsible for the execution and the direct • At the state level, their transformation strategy is executed by the state CIO.
leadership. It can respond to the top-level strategy in time and coordinate the interests of all parties. • The coordinating organizations were established between federal ministries / department and
• At the strategy formulation level, carry out regular consultations, adopt opinions of different between state and federal government
departments on transformation; at the execution level, SNDGO is responsible for interdepartmental
disputes and ensure its implementation.
30
Fund: Create a good investment and financing environment and provide preferential policies
to encourage the capital investments of commercial enterprises.
Typical government investment measures 1) Provide good investment environment & policies
Wide range Controlable Return Flexibility Negative

influence Environment • CAICT and CNCERT/CC initiated to found the Chinese Digital
Covering enterprise Influence of the Marketizatio Funding
/industry beneficiary of funds n and effect speed Crowding-out cultivating Economy Investment and Financing Alliance to improve
effect of market the matchmaking efficiency of investment and financing
China in the digital economy field.
(Enterprise) (High) (High) (High) (Minor)
Get (part of) enterprise’s
Capital equity, for example,
investments founding a state-owned • The “Digital Strategy 2025” proposed to invest 1 B€ in the
enterprise Investment “Digital investment subsidy plan for SMEs”.
subsidy
Unpaid appropriation, • The 2020 new investment subsidy plan “Digital Jetzt” will
Appropriations
normally used for interior
Germany continue to the end of 2023 with a total support funds of EUR
of government/public
benefits
203 million.
• 500 M€ was invested to support all SMEs and the industrial

Government
Contribute a partially
market investment as an
Development sector to realize the full digital upgrading by means of
funds investor loan preferential taxes and subsidies
Funds/lands/in-kind France • A development loan of 2.1 B€ was set to fund the

subsidies, tax reduction information transformation of SMEs.
Subsidies and exemption for
financing, etc.
• The general amortization deduction for digital
Adjust the tax rate in
Preferential transformation has been greatly increased.
Tax lever 2)
order to influence the tax • The income taxes for innovative startups and SMEs have
market investment
behavior been greatly reduced or exempted.
(Industry) (Low) (Low) (Low) (Major) Italy
• Provide interest-free loans for enterprise
1) Different countries may name the modes differently; 2) Some countries may not regard the tax lever as a “government investment”.
31
Talent: Launch abundant training and introduction plans for digital talents
UAE Germany Ireland Estonia Singapore

Basic Vocational STEM Introduction of Training of civil
education education talents cultivation international talents servants
TDRA launched the TDRA
Promote the VET1) The government The government
Virtual Academy plan to
Vocational Education published the STEM Work in Estonia plan established the Digital
develop the digital
and Training 4.0 Plan education policy Academy
capability
• Covering learners of all skill levels • Adopt the online + offline • Support primary and middle • As the cooperation platform of • The digital courses “for
and backgrounds and divided in three vocational training form; schools to carry out innovative institutions, the website intensively government system and operating
levels: beginner, intermediate, • Set new vocational education and activities in terms of STEM, and provides information and service environment” were provided;
advanced; training courses according to the cooperate with higher educational on foreign talents’ work in Estonia;
• The courses concern application
• Provide all-around skill training for new industrial needs, for example, institutions, industrial and • Ensure that the state and local development, data analysis,
free, including technology, business, “E-commerce management commercial circles; governments provide abundant digital leadership and other
soft skills; assistant”; • The supervision administration of resources for work and integration fields;
of foreign talents;
• The courses are provided by the • Add the requirements of digital the Ministry of Education • The courses are planned by
government in cooperation with technology in the training developed the supervision mode to • Encourage 14 heavyweight
government in cooperation with
technical enterprises such as rules/standards; support and monitor the quality enterprises in IT industry of Estonia
HUAWEI, Microsoft and SAP and to participate in the oriented
the Institute of System Science of
• Strengthen the cooperation of STEM education; National University of Singapore
professional institutions such as between the government and social recruitment of talents to find more
national computer organization NCC • The cooperation with SFI in the international talents. and 9 enterprises in the industry
partners to promote the research on Smart Future project makes such as Amazon Web, Services,
and UAE Social Development vocational education driven by data
Association. students get more high-quality Coursera, Google and Microsoft.
and obtain the policy information.
information on STEM professions.
1) Vocational Education and Training

32
Regulation: Establish clear laws and regulations/frames
Ethnics
Network Cloud computing Data Public service
in technology
Singapore Saudi Arabia Germany UK France
Communication and Information Adjust the legal frame and update Government established the French
A series of actions: Technology Commission (CITC) multiple important provisions as A series of actions National Commission of Digital
published the Cloud Computing per GDPR Ethnics (FNCDE)
Regulatory Framework
• Create the Open Government
• Singapore's Strategy • Implement highly complex Licence (OGL) and the • Give the advice on digital
Key Initiatives
protection system to personal national data web portal ethnics and organize public
data (sensible data) (Data.gov.uk) discussions
• National R&D Programme • Expand the protection range to • Government Digital Service • Cooperate with National
• Increase regulatory clarity and
encourage the use of cloud employees’ data protection (GDS) coordinate multiple Commission of Information and
technology over the country departments as a leading Liberty (CNIL), Academy of
• Stipulate that the data organ to promote the data Sciences of France, etc.
• Regulation processing companies have the
• Punish the violations of CCRF openness
obligation of nominating a • Keep communication and
Data Protection Officer • Publish the documents such as contact with foreign ethical
• Bilateral agreements with
(DPO) Public Data Principle and commissions
7 countries including UK
Freedom of Information Act
Achievements
Every department of Whitehall

The implementation of GDPR The pilot stage involves
Ranked No.4 among 194 Ranked No.2 among 194 has established the open data
was ranked No.1 in Europe 3 fields of AI ethnics:
countries with a score of 98.52 countries with a score of 99.54 strategy. The opened data
according to Vanson Bourne’s chat robot, autonomous
in the 2020 ITU in the 2020 ITU websites have 50,000+ data sets
research in IT professionals of car, medical diagnosis and
for public department, enterprises
enterprises health AI.
and the public usage.
Source: ITU; Vanson Bourne; Desktop Research; Roland Berger
33
Ecosystem: Create the public-private partnership, encourage the industrial applications,

and build the innovation ecosystem.
Public-private partnership Industry Application Ecosystem Innovation Ecosystem
UAE Republic of Rwanda Germany Malaysia France Singapore
• UAE government Government adopts Build- Establish the Industry 4.0

Launch the plan of Government invests in
Operate-Transfer (BOT) platform as the core
cooperates with “Multimedia Super creating the ecosystem Establish the
mode to encourage private undertaking hub of the
RapidData sectors to provide online digital transformation of
Corridor Status” (MSC and providing “AI Accreditation@SG plan
Status) beginner package”.
Technologies services. manufacturing industry
Key Initiatives
• Integrate the services such • Led by two departments of • Attract enterprises by • Provide SMEs with • Issue certificate recognized
• Local company Rwanda
as rule engine, digital federal government: BMWi means of tax exemption solutions such as specific by the state to promising
Online builds and operates
signature and Amazon and BMBF and financial subsidies experts’ consultation and technological startups
the platform Irembo in PPP
Alexa voice assistant. personalized support, open
mode. • Connecting the concerned • Jointly build the • Leverage Singapore’s
• Available for 36 parties such as decision- Communication Technology source and sharing of data, brand effect to help
• The platform provides access to algorithm, data
government agencies and making level of government, Core Park of Malaysia and enterprises get better
government services and storage solutions and AI
13,000 municipal business circles, academic participate in building the recognition in overseas
payment operation. application programs
government employees circles and labor unions districts of the smart city tenders
Achievements
Rwanda has become the e- It has attracted leading This plan aims to create a Under policy support, Paris Region
The Global Startup
government service model of enterprises such as BOSCH, large-scale information has owned over 8,000 technology-
Pushed by PPP, UAE realized Ecosystem Report of
East Africa. Every month, SIEMENS and SAP, research corridor in Malaysia. At based startups and quickly
the digitalization of 250 Startup Genome showed
Irembo offers convenience to institutes such as DFKI, policy present, over 4,000 developed into a center of
paper-based services within that Singapore is ranked
over 100,000 applicants and banks such as KFW and enterprises have technological innovation and
only 3 months. No.1 in terms of
provides more than 40 online overseas enterprises and participated in the scientific research in the machine
entrepreneurial talents.
services. startups. construction. learning field.
34
02
City Digitalization
35
City digital transformation is people-centric, the applications are developed based on

people's requirements in different scenarios
Smart education Smart communities

Online courses, Intelligent light poles, intelligent
interactive immersive virtual teaching… traffic, safe community…
Smart healthcare
Telemedicine, AI medical Smart transportation

consultation, house care...
Smart mobility system, smart parking,
automatic bus…
Digital inclusiveness
People-centric
Inclusiveness, care of vulnerable groups, demand
participation in public affairs…
Smart building
Smart public service Energy-efficient building,

building management
Public health management, automation…
Government
Smart government affairs Smart environment
Online services, digital government office… Smart electricity meters, smart grid,
intelligent water…
36
Stage: Based on Digital Transformation Model assessment result, different cities were
distributed in 4 different stages
Evaluation model
50分 70分 90分
GDP per capita
Clear vision of 75,000
Quantifiable smart
smart city 70,000 Munich
city objective
development
Strategy 65,000 Düsseldorf Paris
Stuttgart
60,000 Cologne
Doha London
55,000 Milan
Education, healthcare,
City operating Singapore
platform 50,000 Hamburg Edinburgh Lyon
transportation, energy,
governmental Genoa Bristol
45,000 Florence Tokyo
applications Public recognition Dubai
Application 40,000 Grenoble
Berlin
Nice LeipzigBarcelona
35,000
Glasgow Birmingham
30,000 Leicester Montpellier Manchester
Seoul
Smart city network Key technology 25,000
Cardiff Sheffield
and cloud platform capabilities Valencia
(5G, AI, IoT, etc.) 20,000
Tech Beijing Shanghai
15,000
Smart city
10,000
Casablanca evaluation
Organization ability Regulatory capacity 5,000 result
Cairo
0
0 30 35 50 55 60 65 70 75 80 85 90 95 100
Enabler Funding Talent Ecosystem
Basic digitalization Digital Applications Systematic Digitalization Smart Ecosystem
37
Stage: Different cities in different stages adopted different strategies
xx Phase leap-forward characteristics xx Sustainable development characteristics Smart

Ecosystem
Systematic
Digital Digitalization People-centric smart city
Basic Applications
Joint city management and operation ecosystem
Characteristics
Platform and system integration Continuous improvement of platform construction

Digitalizati Realize the value of data through analysis Deep dive the value of data
on Government transformation coming first
Continuous digital government transformation
Selected public sectors scenarios taking the lead
Investment in the infrastructure of Continuous expansion of the scope and depth of industry applications
communication networks Continuous upgrade of networks and computing infrastructure
Informatization of public sectors Continuous strengthening of data governance
Continuous driving the development of supporting capacities
Munich Dubai London Singapore
Smart London Plan Associated expressions of the goal in next

Smart together Smart Dubai 2021 • Create a new London 'Urban Platform': stage
and typical expression
Representative countries
• Set up an open, secure and city-wide smart data • Improve individuals' quality of life by embracing
aggregate disparate data sets and connect
platform technology to streamline social, cultural, Digital Readiness Blueprint
sensor networks
• Install smart energy-efficient street lighting education, and healthcare experiences • Using technology to achieve a better
quality of life(e.g. convenience in day-to-
day activities, better social and economic
outcomes)
Cardiff Tokyo Seoul
Smart City Road Map Tokyo of the future

Smart Seoul 2015
• "Improve fibre infrastructure • Digitize administrative procedures faster and
• Establish infrastructure for Smart administration,
• Ensure the smooth roll out of 5G &enhance more convenient,
including data centers and Smart work centers
mobile coverage • Extend healthy life
38
Basic Digitalization: infrastructures is 1st priority in this stage
Typical cases:
Stage characteristics Smart city infrastructure construction in Doha and Hamburg
• Investment infrastructure Doha Qatar Hamburg Germany

for communication
networks: undertaking Qatar's National ICT Plan proposes that by 2015, 95% of With the Digital Strategy 2025, Germany has proposed to
integration and partially households in Qatar could have high-speed (> 100Mbps), establish a gigabit optical fiber network with high capacity,
leading the national open and accessible broadband network wide availability and low latency by 2025
strategy， • The government invested at least USD 550 million to • Digital Germany has a planned investment of EUR 100
 Improving smart city accelerate the deployment of optical fiber to the home billion, including EUR 20 billion invested by the
high-speed and high- networks nationwide government
Oslo 527
quality network coverage Top five cities in Seoul 468
terms of 5G 421 Homes in Hamburg with
 Investing in the new
Abu Dhabi
413 access to 100 mbit/s 94%
download speed in Doha
401
smart city infrastructure 2021 Q1-Q2
Stockholm
network
(e.g. smart city intelligent
hub, data platform, IoT Installed intelligent temperature sensors in shopping malls
Hamburg Port Authority (HPA) invested in the intelligent
platform and sensors) and buildings nationwide
port infrastructure
• Automatically adjusting the temperature in the building
through variable factors such as outdoor temperature, • Installed sensors, cameras, intelligent meters, etc. at the
• Informatization in public number of personnel and humidity port
sectors: turning physical • Coping with high temperatures and changing weather • Optimized the utilization rate of port assets, improve cargo
information into digital security and reduce energy use at the same time
information around public Honeywell intelligent Green Safe Productive
departments such as building score1) Abu Dhabi 48

Dammam/Dhahran 41 Reduction of carbon dioxide 1,2000 Tons
government affairs, No. 1
Doha
Dubai 65
70
emissions at ports every year
educational and medical in Middle East
Jeddah
Kuwait City
37
38
treatment Riyadh 41
Source: Ookla; Desktop Research; Roland Berger 1) Honeywell Smart Building Score
39
Digital Applications: full development on energy, transportation, education, healthcare,

community, and government affairs
Typical cases:
Stage characteristics Application of public sector in Tokyo and Dubai smart city development
• Government transformation Tokyo Japan Dubai UAE

coming first: comprehensively
Smart Energy Smart Transportation
promoting the digital • Installed monitoring and data acquisition system: 116
• Deployed 27 million intelligent meters in the city
cameras, 100 accident detection systems, 114 speedometers
transformation of municipal • Applied energy management systems in homes, and 17 weather monitors
buildings and factories to enable users to understand and
government analyze energy usage • Installed 112 dynamic information boards to provide
instant information on road conditions
• Leading in some public fields: • Proposed cap-and-trade project
• Developed a central transportation system with automatic
response
starting from optimizing smart city
Carbon dioxide emissions 26% Congestion degree 17%
functions and solving practical
problems, launching application
Smart Education Smart Education
projects e.g. medical treatment, • High schools were equipped with personal learning
terminal, and the campuses were fully covered with WiFi • 400 campuses were equipped with the latest 4G networks,
education, energy, transportation, electronic whiteboards, intelligent tablets and electronic
• Developing education dashboard and storing basic data in textbooks
community and Pubilic service to the cloud
• Training core teachers on digitalization and learning the • Training teachers' digital skills and developing new
curriculum forms
provide citizens with high-quality life latest trends of digital application
Mathematics scores of classes Science education level of
applying ICT teaching technologies 19% fourth grade students 18%
40
Systematic Digitalization: Build an integrated operations platform system for efficient

collaboration and maximizing data value
Typical cases:
Stage characteristics
Platform development and data-driven applications in Seoul and London
• Integrated platform system: Seoul South Korea London UK

building an smart city
operation platform, Smart city Governance Control Center Cloud City Operations Centre
continuously integrating data,
computing power and other • Adopted public-private partnership and cooperating with • NEC Europe and the government jointly built the
LG-CNS to promote the construction of control center Greenwich intelligent city
resources to form system
services, for efficient • Handling vaious businesses such as crime prevention, • Digital Greenwich can visually analyze the real-time and
collaboration , and actively traffic control, disaster management and so on by historical data of IoT sensors and obtain the information of
introducing private institutions collecting and analyzing information through the smart city transportation, air quality and energy
monitoring system management
as smart city operation
companies IESE smart city # 36 # 29 # 19 #9 #1
dynamic index in 2020 Lyon Hamburg Seoul Singapore London
• Realize the value of data
through analysis: improving Seoul Open Data Plaza London City Datastore
the public data governance • More than 7000 data sets can be accessed, e.g. culture, • More than 6000 data sets can be accessed, covering many
system, open and share public tourism, health, environment, etc. As of January 2019, the fields, such as transportation, environment, health, etc.
data, and supporting total number of visits has reached 6.9 billion
• Transport for London (LFT) developed a unified API and
innovation and industry • By 2020, more than 180 applications have been created opened a large number of data sets for public transport and
transformation applications to help the government solve smart city challenges (air tram, promoting the generation of 600 + applications,
(especially in the field of pollution, traffic congestion, aging, etc.) which are used by 42% of London residents
people's livelihood)
Estimated economic value of Annual economic benefits of
USD 1.5 billion open information GBP 130 million LFT open data
41
Smart Ecosystem: Build application ecosystem, towards a people-centric and co-governance

New Smart City
The mission of smart city Future development direction
Smart
Environment Stage leaping > Introducing intelligent analysis and
decision-making
Smart Smart
characteristics > Building service-oriented governments
Digital Smart
Education government Construction
Smart Pubilic Communities
service
Citizens leveraging
Citizens with
technology for
digital capabilities
better life
Smart
Healthcare Smart Digital 100% 100%
Transportation Inclusiveness Singapore
Blockchain IoT
Paperless
Citizen happiness administrative
index affairs and resident
services
City
AR/VR AI Intelligenc 5G 95% 100%
e Hub Dubai
Sensor City network base station City cloud platform / data center
42
03
Industry Digitalization
43
Digital transformation drives industrial revenue growth and cost , creates around 27
trillion dollars of value potentially
Digital transformation drives industrial optimization and scale expansion

Potential value of digital transformation [2016-2025; USD 1 trillion] 6.4
3.3
2.9
1.9 2.0
1.2 1.4 1.5 1.5
0.8 0.8 0.9 1.0 0.9
0.3 0.6
Agri- Con- Hospitality Real Transport- Oil, Gas & Enter Education Health Government Manu- Retail Professional Energy & Finance & ICT
culture struction Estate ation Mining tainment care Affairs facturing Services Utilities Insurance
Boosting Improving retention Improving the EBIT Boosting Boosting

Rising productivity
business revenue Rate of customers of medical institutions business revenue business revenue
(up to)20% 35%-42% 15%-50% ~11% ~3.1% ~8%-11%
Optimizing Preventing adverse Optimizing

Reducing labor cost Cost saving Optimizing cost structure
cost structure drug events (ADEs) cost structure
(up to)25% 20%-40% ~26% (up to)95% ~4.2% ~25%-35%

44
Digital technologies is affecting various industries at different rates,

which can be roughly divided into three waves
Evaluation model Waves of digital transformation process in various industries
Potential Follower Pioneer
Digital Percentage of industry value-added1) [%] Manufacturing
Application
Breadth of application 14
digital depth: Pillar
applications: Utilization of Real industries
Popularity in AI, IoT, 5G 12 Estate
business and other Energy &
Government Utilities
processes cutting-edge
affairs Information-intensive
technologies 10
industries
Territorial ICT
8
industries Healthcare Professional
Talent
Digital Services
Digital talent Transportation
ecosystem 6 Finance &
resources Construction
environment Education Insurance
4 Consumption
Hospitality and services
Retail
Enablers
2 Agriculture
Digital Oil, Gas & MiningEntertainment
Digital assets
expenditure
0
0 5 10 25 30 35 40 45 50 65 70 75 80
Digitalization process (Industry Digital Transformation Evaluation Index)
1) Proportion of industry added value in representative countries and regions of digital development
45
Information-intensive industries will continue to lead the tide of digital

development
Stage characteristics The prospect of industrial digital transformation
• The commercialization of 5G promotes the upgrading of digital applications in existing fields, and more original innovations are emerging (e.g.
autonomous driving and Metaverse)
Good data base and high • International and domestic regulatory changes may become major uncertainties. For instance, many sectors of the information industry fall under the
digital affinity category of national strategic layout
• Meanwhile, the issues of data ownership and data sharing boundary in the big data era are becoming prominent
• Early start: IT investment
began in the 1980s
(Finance) or the early Typical cases: Application example of DBS digital transformation in Singapore
stage of the industry
(information and
communication) • DBS, the largest banking group in DBS encourages digital transformation in all aspects of information infrastructure, client financial service
• Excellent base: daily Singapore, has been exploring digital application and soft corporate culture:
operation reserves a large transformation since 2009 and officially
amount of data, which is took digitalization as the core of its Integration into Creating a culture of
a natural test field for big Digital Core upgrade
strategy in 2014 the client journey entrepreneurship
data / AI and other Make full use of emerging Cultivating innovative talents and
technologies. Meanwhile, Shift from product – oriented model to
• With an attitude of "digitalize or die", technologies and improve the basic strengthening the atmosphere for
client - oriented
the industry gathers high- DBS has transformed the world's leading
technological architecture innovation
quality talents and usually • Mobile banking • Personnel turnover forecasting system
technology companies and won • "Cloud Native" transformation
• Science innovation Challenge
makes good use of digital • Building a DevOps system • Fraud protection
technology EuroMoney's "world's best digital bank" • Building an ecology through APIS
• Cooperation start-up/large science
• A savings application for young people and technology companies
award in 2018 and Global Finance's • …… • …… • ……
"World's Best Bank" award in 2020
Finance &
ICT
Insurance • Update the governance model and relax regulations to facilitate the digital era
Government • Strategically promote industrial development, encourage and guide innovation at the policy level, support industrial funds and
function private capital investment, and establish a state-level industrial platform
• Investment in 5G, cloud, IoT, data centers, quantum computing and other digital infrastructure of the next generation
Source: DBS official website, Desktop Research; Roland Berger
46
Digital transformation of pillar industries accelerating, with enormous potential to be

unleashed through various applications

• The rapid development of digital applications in manufacturing, transportation, management and other links after the epidemic has helped the industry to reduce
Cost reduction and efficiency costs and increase efficiency as soon as possible. At the same time, the focus of transformation is on better products, better services and better customer experience
• However, medium-sized industrial enterprises have traditional multi -business models and lack digital talents, hardly making any meaningful innovations, and radical
increase, strong demand for
changes are facing high costs as well as high risks.
transformation, rich applications
• Applications deeply
integrate with business
scenarios: Industrial
Typical cases: UAE ADNOC oil and gas digital transformation application examples
enterprises have large
volume and high operation
difficulty in supply chain • UAE's largest oil and gas ADNOC's strategy focuses on improving profitability and efficiency, with a specialization on the development of AI technology. ADNOC intends
management. IoT and other company controls ~95% of to transform from "a technology buyer to a solution provider", with digital practices covering the entire value chain
technologies can effectively the country's crude oil
solve management reserves and ~92% of its
difficulties and improve natural gas reserves, with Related Projects Results Vision
production safety 14 operating companies It integrates 200,000 data points from 14 operating companies, and AI-driven intelligent Growth
covering the entire oil and Data Center Panoramic data control center
decisions creating a total value of more than $1 billion
• Heavy burden: many heavy Efficiency
gas industry chain
asset industries have complex 3D/ 4D automatic seismic data The world's first automated seismic acquisition system will be dynamically modeled by
• ADNOC develops its 2030 Upstream acquisition system ADNOC's in-house geoscientists to efficiently identify oil and gas opportunities Sustainability
processes and investment in
development strategy, of
digital tools needs to be Asset monitoring and predictive Monitoring the status of more than 2,500 key equipment in upstream mining, midstream
Industry leaders
which digitalization lies in Midstream refining and other links, and reducing maintenance costs by 10%-25% according to the
strengthened maintenance platform
the center; attaining estimation
Digital &AI innovation
"Outstanding Corporate Trading and accounting Following the volume and financial value of each bilateral transaction downstream and
Achievement" at OTC Downstream blockchain platform achieving automate efficient inventory management as well as accounting processes Future talents
Energy & Manufactu
(Technical achievement)
utilities ring
• Playing a leading role, encouraging green and intelligent development applied in the national pillar industries in an orderly way, and giving
Transporta Oil, gas, & priority to the digital transformation of large state-owned enterprises; Meanwhile, phasing out outdated and inefficient product ion capacity by
tion Mining Government raising the threshold for project approval, subsidy approval and supervision
function • Strengthening vocational education and training for basic personnel, increasing the introduction of innovative personnel, improving the training
of industry talent teams, and encouraging innovation in industries
47
The application scenarios of consumption and service industries accelerate their online
launching and the integration of cutting-edge technologies

• After the COVID-19 pandemic outbreak, entertainment, education, medical care, tourism and other scenarios have accelerated their online launching , which have led to
Consumer-side demand driven, the transformation of business models in many fields
• The integration of AI/VR/ clouds and other technologies has significantly accelerated the process from breakthrough innovation to practical application
various applications, strong data
• The enhanced regulation worldwide has become an issue that the digital transformation of client and service industries must deal with
potential
• Various applications: with
strong awareness for
digitalization and many
Typical cases: Application example of Fresenius Medical Group transformation
innovative application
scenarios, the industry is
willing to invest • Fresenius Healthcare is one of the world's Its four subsidiaries are all promoting the digital transformation of the all-round medical industrial chain:
• Data potential: client- leading healthcare companies with its service in
oriented, data-heavy but more than 100 countries globally. Its 4 Helios (Comprehensive Medical Care (Kidney Kabi (Drug Development) Vamed (Engineering
unstructured, AI and other subsidiaries include Helios, Fresenius Kabi, hospital) specialization) Medication management facilities)
technologies are expected to covering diagnosis and treatment, drug Full journey digital service Family diagnosis and treatment, • Application for patient Digital project management
precision therapy medication advice and nutrition
unleash the potential of research and development as well as medical • Telemedicine diagnosis • Digital predictive facility
• Online appointment/waiting • Cloud home management lecturing maintenance
digital applications in the equipment engineering services. Digital time prompt program: remote monitoring of • Biosimilars application case and • Application of building
industry transformation is one of the most focused • Real-time synchronization of kidney dialysis, treatment science popularization platform information modeling (BIM)
diagnostic reports and test progress monitoring, daily for patients and simulation of medical
strategies of all Fresenius subsidiaries report synchronous physicians, • RFID intelligent authentication
results customized prescription construction engineering
• Helios has won the Klink Award for "Best Online • Automatic warning of identification tag for medicine planning, construction and
Professional Governmen Service" in 2019, with a score of 4 for the level medication conflict
generation
operation management
• "TheHub" application terminals
services t affairs of digital analysis in medical institutions (the • Personal electronic health • Fusion of AI and targeted
records therapy
German average score is only 2)
Healthcare Education
• Formulating updated data specifications, defining data collection/transmission/storage/use/open standards according to data types and
application scenarios
Retail
Entertainm Government • Leading the opening and sharing of digital infrastructure platforms (e.g. medical electronic archives), plan and iterate the construction of
ent function communication infrastructure to support the digitalization of applications
• Guiding the development and construction of digital innovation ecology, and promote the participation of various types of subjects in the
digital upgrading of consumption and service industries
Source: Official website of Fresenius， Desktop Research; Roland Berger
48
The digital transformation of the territorial industry has also arrived, but it is faced with
problems such as late start and weak motivation.

• Leading enterprises are beginning to transform, the digitalization depth of the industry is expected to be significantly improved in 3 -5 years, and the digitalization
backward enterprises will be eliminated in the long run
Tend to be regional players of • They are mostly small and medium-sized territorial enterprises with limited budget and insufficient digital skills. It is diffic ult for them to carry out long -term investment in
slow progression under the long digital transformation
tail effect
• Late start: They have deeply
cultivated the local resources, Typical cases: The Indonesian government encouraging the pilot application of smart agriculture
are less subject to
international competition,
have weak digital power and
Encouraging agricultural science and technology enterprise
started late, especially with Application of smart agriculture on the farmer side
few advanced technological development on the merchant side
in-depth application
• Long tail effect: There are In 2020, the Bank Negara Indonesia, Ministry of Agriculture, Ministry of Communication and Project Petani dan Nelayan Go Online: Led by the Indonesian Ministry of Information and
too many small enterprises, Information Technology have led the application in 6 experimental sites in 5 provinces of Communication to introduce local agricultural technology apps available to farmers and
dragging down the pace of Indonesia fishermen
overall industrial • Funding farmers to use sensors and sensor-based smart agriculture monitoring
transformation programs; farmers can monitor land conditions (rainfall/temperature/humidity/acid/alkali, >1 million Potential agricultural users whom the project has reached to
etc.) in real time and get smart fertilizer suggestions through the cell application111
Kredit Usaha Rakyat Financing Support Program: The Central Bank of Indonesia supports
"The implementation of the BNI project has given us the incentive to financing of small and micro agricultural technology enterprises and negotiates with
Real Estate Construction produce, and previously unproductive idle land has been reclaimed to grow Indonesia Agricultural Technology TaniHub to establish targeted financing support platform
for agriculture
food crops."
——Farmers of Malang Indonesia has the most digital agriculture service start-ups in the
34 startups
most in low - and middle-income country in Southeast Asia
Hospitality Agriculture
Government • The government plays a major role in supporting and guiding the construction of digital infrastructure such as the national industrial data
function platform, and drives digital transformation through policy guidance, subsidies and incentives as well as industrial funds
Source: BNI, GSMA, Desktop Research; Roland Berger
49
04
Enterprise Digitalization
Framework – Stage - Practice
50
Enterprises have accelerated their digitalization and cloud adoption due

to the pandemic
Six major changes that are here to stay Enterprises are entering more advanced phases
of digital transformation
Digital-first Working
customer from Digital transformation
engagement Digitally restructured
home investment
86%+ value chain
Advanced
Financial Tech-
1/4 expect increase >20%
Core production systems
enabled
flexibility and
predictability
Six changes operating Full cloud adoption Intermediate
models
1-3 years earlier than expected Support systems
AI adoption by 2025 Preliminary

Data- Brand-new
driven business
business continuity 97% of large enterprises
Marketing
models plans
Source: IDC, Gartner, and Huawei MI
51
The digital transformation path of enterprises should consider the

breadth and depth of application.
Deepening the use of
digital technologies
Intellectuali
-zation
④
③ Smart Ecosystem
Digital ② Systematic Digitalization
Visibility
Digital Applications
①
Basic Digitalization Expanding
Informati the breadth
-zation of of digital
processes applications
adoption
点
Point 线Line 面Area 体
Body
Scenario Process Business Group

52
The basic features and typical applications in different digitalization stage
Basic Digitalization Digital Applications Systematic Digitalization Smart Ecosystem
Basic features Basic features

Basic features
• The basic system integration • Oriented to the business unit as a
Basic features within the group has fully whole, it has the capability of • Ideal state of digitalization, it is
• Building the core enterprise realized informatization, and global visualization and difficult to achieve
information system within the the data structure is clear analysis, which can quickly lock comprehensive intelligence at
business line and perfect exceptions and assist decision- the "body" – all group level,
• Visualizing the core value making since enterprises still need
• Visualization of key business
business links, and embed point people's participation for the
processes • Using intelligent means to
intelligent applications if decision-making
appropriate • Exploration into the selected innovate business model
smart application • Focus on using AI and other
technologies to connect
Typical applications
different business processes
• ERP, SRM, CRM system Typical applications
Typical applications and realize business automation
implementation and integration
• Supply chain control tower
• Construction and improvement of • Real time production (automatic ordering, inventory
the master data monitoring room allocation and deployment, etc.) Typical applications
• POS sales, customer service on
• Intelligent preventive
multi terminal application and • AI empowered R&D design • Digital twins
maintenance of equipment
visualized reports
• …… • Remote equipment operation, • Big data business forecast sand • Unmanned factory
unmanned vehicle and UAV table
• ……
• …… • ……
53
In the stage of digital applications, enterprises improve their business operation efficiency and
performance by implementing visualized and intelligent tools for key business processes.
Example 1: Consumer Electronic Manufacturer has implemented CRM enabled marketing centers and sales centers to
Stage characteristics automatically manage potential customers
Basic features
Background
• The basic system integration
within the group has fully • Before the implementation of project, the customer businesses of marketing center and sales center are independent respectively,
so it is impossible to generate integrated potential customer management and access
realized informatization, and
the data structure is clear
and perfect
• Visualization of key business
processes
The new CRM platform system was launched
• Exploration into the selected
Details
• Uniform migration of the independent data of the original marketing center and sales center to the new platform
smart application
• Automated workflow for potential customers: defining potential customer and configuring the automatic touch mechanism in the form
of e-mails based on the unified background data
Typical applications • BI data visualization e.g. marketing model A/B test
• Real time production

monitoring room
• Intelligent preventive 496% Growth in potential customers
maintenance of equipment
Result
90% Website traffic growth after e-mail reaches potential customers

• Remote equipment operation,
unmanned vehicle and UAV
9% Overall revenue growth from potential customers
• ……
Source: Intouch， Hubspot，Desktop Research; Roland Berger
54
In the stage of systematic digitalization, the enterprises carry out global visualization management
and intelligent decision-making for the business unit
Example: Supermarket has implemented the digital transformation

Stage characteristics of the supply chain, enabling online sales and innovating the retail business model
Basic features
Multiple digital supply chain projects
• Oriented to the business unit as a
whole, it has the capability of
global visualization and Sourcing & Procurement Warehousing Distribution Sales
analysis, which can quickly lock
exceptions and assist decision-
making
Supply chain management
• Using intelligent means to Vehicle distribution
system (SCM) Delivery algorithm
innovate business model Vendor managed inventory system
• Commodity distribution • Analysis and forecast of real-time
system (VMI) • The lane planning
analysis among stores, delivery date and inventory data
• Visualization of inventory analysis and forecast sales algorithm supports
• Order warehouse allocation
Typical applications supply data to suppliers on inventory levels the optimal route
routing assignment
• The supplier can arrange of the last
• Supply chain control tower Supply chain management The store software MyProductivity
the preparation and kilometer
(automatic ordering, inventory system (SCM) • The store manager observes the
replenishment in real time • On-site truck
allocation and deployment, etc.) according to the • Commodity distribution operation and real-time sales data and
background inventory data analysis among stores, driving commodity replenishment through
• AI empowered R&D design analysis and forecast sales the application
automation
• Big data business forecast sand on inventory levels
table
• ……
Source: Forbes, official website of SKUBANA, Desktop Research; Roland Berger
55
In the stage of smart ecosystem, enterprises could realize business management

automation leveraging AI and other emerging technologies
Example: Electronic and electrical engineering enterprise promotes the application of digital twin and in
Stage characteristics multiple fields such as design, production and application from the automotive industry
Basic features • A global leader in electronic and electrical engineering, focusing on electrification, automation and digitalization
Background • In 2017, Siemens has released the digital twin application model and continuously expanded the application of digital
• Ideal state of digitalization, it is twin technology in many technical fields
difficult to achieve
comprehensive intelligence at Siemens automotive digital twin application model Continuous Development of Digital Twin Application
the "body" – all group level,
since enterprises still need
Continuous optimization of performance
people's participation for the Automatic In 2021, launched Simulytic, focusing on accelerating
Setting Automatic
decision-making 1
Virtual parameters 2
Virtual
Operation
Real production independent mobile deployment by using reliable big data
product
Real product driving and establishing simulation driving database
Verification production Checking production
• Focus on using AI and other
technologies to connect 3 Performance analysis
019: acquiring Multimech, predicting the aging behavior of
different business processes Siemens digital twin solution: relying on Siemens TeamCenter PLM information system, digital Compound advanced materials through virtual simulation, and
and realize business automation design, simulation and verification of automobile manufacturing
material continuing to build a comprehensive multi physical field
① Virtual product: Siemens NX CAD system supports vehicle prototype design in virtual twins
environment, including design and simulation of vehicle software, mechanical, electronic and
electrical systems and physical operation
② Virtual production: Siemens Line Designer and Tecnomatrix factory and process system
Typical applications support the whole process simulation of automobile production in virtual environment,
including but not limited to production line layout planning simulation, production equipment In 2018, Siemens Healthcare has released the intelligent
selection simulation, process and card point prediction, on-site operation condition simulation, software AI-Rad Companion and AI-Pathway Companion to
• Digital twins etc. build customized, pathological and continuously updated
Healthcare human internal models through digital twins, promoted the
① Virtual presentation: Siemens MindSphere supports the feedback, quality control, data
• Unmanned factory analysis and performance insight of cloud data of real production and real products to the reform of diagnosis and prevention combined with wearable
design link, forming a closed loop of efficient decision-making and automatic process devices and medical scanning
optimization
• ……
Source: official website of Siemens, iMBSE online,; Roland Berger
56
Chapter 3
Digital Infrastructure is Foundation
Building – Development - Innovation
57
Digital Industrialization and ICT Application Boost Economic Growth
Ripple effect: Whether new technology is adopted or not results in significant divergences in economic development. Application
of new technology will make tremendous contributions to the economy and to society as a whole. This is an area of focus for
organizations such as the UN, EU, OECD, and IMF.
Mechanization Electrification Informatization Intelligence

Railways Power grids and highways Internet Information
infrastructure
5G
AI
Big data
2nd great
Cloud computing divergence
Internet
Digital technology not
Planting Electric power adopted
Hunting Animal husbandry Steam power
1st great divergence
Digital economy
Industrial technology not adopted
Agricultural Age 1760s Industrial Age 1970s Information Age 2020s

divergence
divergence
2nd great
1st great
 Steam engines, internal combustion engines, and  With widespread use of semiconductors, communications, cloud computing, and AI,
electricity greatly increased productivity, and technology
ICT has become the core driver of global economic growth.
began to dominate economic development.
OECD: Organization of Economic Cooperation and Development

58
From the perspective of return on investment (ROI), ICT investment drives the growth
of economy.
ICT investment growth drives GDP growth:
investment of USD 1 drives a GDP growth of USD 3.51) Project Investment Achievement
This effect is of greater significance to countries German national • The federal • Ranking 9th in the
19 developed countries supercomputing government WIPO Global
with lower levels of development project NHR 2) invests EUR 62.5 Innovation Index (GII
Alliance million every year 2020), and 3rd with a
for 10 years digital economy of
GDP of developed USD 2.54 trillion
countries around the world
USD
(Around USD 52,000 1.3
per capita)
Invest USD 1 in ICT
22 emerging economies Thailand's • In 2015, about • The scale of the

national USD 450 million digital economy in
broadband was appropriated 2020 was USD 69.3
GDP of emerging construction for national billion, accounting for
economies project broadband about 13.8% of the
projects GDP in 2020
USD
(Around USD 12,000 2.0
per capita)
18 developing countries Indonesian • A total investment • The scale of E-commerce
Palapa Ring of about USD 1.5 will increase from USD 23
GDP of developing project, a fiber billion, resulting billion (2019) to USD 53
countries optic cable in a total length billion (2025), with a
USD network project of 35,000 km to growth accounting for
connect all islands about 2.8% of the GDP
(Around USD 5,000 4.4 in the country in 2020
per capita)
1) Due to limited availability of the GDP data per capita, the calculation is based on data of 2019; 2) National High-Performance Computing
Source: Document study; CAICT; Desktop Research; Roland Berger
59
Furthermore, network communication infrastructure and computing power are
positively correlated with GDP per capita.
Network communications infrastructure capability Computing power is positively correlated with GDP
is positively correlated with GDP per capita per capita
GDP per capita [USD] GDP per capita [USD]

70,000 70,000
60,000 Singapore Singapore

60,000
Sweden
Sweden
50,000 Germany 50,000 Canada
Canada UAE Germany
Japan
Japan UAE
40,000 France UK
UK 40,000
Italy France
South Korea
South Korea
30,000 Italy Spain 30,000
Spain
Czech Republic Saudi Arabia Czech Republic
20,000 Mexico Chile Saudi Arabia 20,000 Indonesia Poland
Turkey Poland
Columbia Brazil
10,000 Mexico Thailand Chile
South Africa 10,000 Brazil
Thailand India Columbia
India Indonesia Philippines Philippines South Africa
0 0
Turkey
0.0 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0 500 1,000 1,500 2,500
UN Communications Infrastructure Index Computing power per capita [GFlops]
1) Incremental contribution is calculated based on the long-term return after 5 years of cloud investment
Source: UN; IDC; Desktop Research; Roland Berger
60
Emerging technologies such as 5G, AI, IoT, etc. would generate more than 10 trillion
USD of value. Enormous Value
16 14 17
Economic value
8 5
general in 2030 2 2
[trillion USD]1)
5G AI IoT Robots AR/VR Blockchain Cloud Quantum
computing
Percentage of
world GDP now 9% 19% 17% 6% 2% 2% 20%
> Smart factory > AI Image > Health > Manufacturing > Virtual operating > Trade facilitation
> Cloud gaming > Smart monitoring robots room platform
transportation > Industrial (automobiles, > Virtual > Digital wallet
> Smart electronic
equipment > Customed Internet of vocational > Digital Lease
Things products) education and
education Agreement
Training
> Smart Finance
> Virtual fitting
room
> Connected > Auxiliary > Check inventory > Manufacturing > Interactive game > Financial asset
vehicles diagnosis > Preventive robots > Surgical transaction
> Telecommuting > Smart security mechanical (automobiles, simulation settlement
maintenance mechanical > Digital
> Smart healthcare > Smart equipment, > Construction
transportation > Fleet following Engineering Government
> Digital fitting metal
processing, Training > Deposit
electrical > Car concept certificate anti-
products) design counterfeiting
1) Including different technology act together, economic value could be overlapped

61
Governments Accelerate the Development of ICT Infrastructure
Brazil: Fine-for-investment
China: New Infrastructure South Korea: Digital New Deal
swap
• Over five years for new infrastructure. • Brazilian telecom regulator Anatel agreed to
swap TIM's fines for 4G investments in remote • Digital New Deal and Green New Deal.
• Seven industrial infrastructures: 5G, AI, big
data centers, industrial Internet, intercity high
areas.
• Ten domains: 5G, AI talent cultivation, data ...
speed rail, charging stations, and UHV • Telecommunications is one of the four pillars dam, AI-based government, smart healthcare,
transmission. of the "great reset" and regulation will be green buildings, electric vehicles, smart cities,
relaxed. Brazil will receive SoftBank's Latin sustainable energy, and low-carbon industrial
American Fund to accelerate the development campuses.
of telecommunications.
South Africa: Temporary Thailand: Incentives for 5G

Pakistan: Tax reduction
spectrum development
• • Low auction prices for 5G spectrum with a 10-year • Reduced federal excise duty on telecommunication
466 Ghz temporary spectrum.
payment term, and payment from the second to services (from 17% to 16%).
• Shortened time for license approval: 30 days -> fourth years may be exempted if construction meets
requirements. • Withdrawing sales tax on SIM card purchase
4 days. (US$1.55/card).
• Reduced costs for emergency site coverage.
• The National Broadcasting and Telecommunications
Commission (NBTC) approved a fund for ICT • Reduced import duty on raw materials and machines ...
equipment in hospitals, subsidized for 10GB wireless (20%->5%) and equipment parts (7%->3%).
• US$20 billion infrastructure plan: Rail, ports,
users for three months, and provided to support free-
energy, broadband, water, hygiene, and social of-charge evolution from FBB to 100 Mbit/s • 67% reduction in import taxes (US$25->US$8) on
care. networks. budget mobile phones (price: US$30–100)
62
From Internet of Everything to Intelligent Internet of Everything
Upgrade home networks to support telecommuting and online Deterministic services are the ticket to vertical
education, and upgrade enterprise networks to support production markets.
…
…
18 Mbit/s: 80% of operations Slice 1 Slice 2 Slice 3 Slice n

Scenarios: 100 billion for Internet of for smart for for live
telecommuting digitalized Experience: From Vehicles
Entertainment, connections factories healthcare streaming
120 Mbit/s: online 33% of transactions best effort to
education office, and by 2025
digitalized deterministic
enterprise
services
production
5 billion From IoT to 1 trillion

connections Intelligent connections
by 2020 IoT by 2035
Bandwidth: O&M: From

The user side is the From Mbps manual O&M to Free people from complexity with
Gigabit
entrance to the ocean to Gbps via any hyper- intelligence
Rate
medium automation
Cellular
Fixed
time Complex services Complex connections Complex O&M
2C/2H/2B Connection density up 10,000+ parameters

For the first time in the history of the connectivity industry, 100 times
gigabit access can be provided for any scenario via any medium.
63
Explosive Data Growth Presents Challenges to Storage and Computing，
diversified computing power is required
The pace of digital transformation is increasing, Explosive data growth in the next 10 years
making data a key asset for enterprises
Unstructured data (text, images, voice, video, etc.), Insufficient

requiring GPU and NPU computing power
storage, poor
64 TB/day 1 PB/day Structured data (processed using the two- data flow
Data trained Production data dimensional table structure of databases)
Less than 2% of
data is stored
Autonomous vehicles A digital, connected
factory >80%
Source: IDC, Huawei GIV
of data
10 PB 40 PB is
Transactional data Analytical data unstruct Slow
ured
computing and
Structure
Huawei BPIT d data poor utilization
Less than 10% of
data is used
1990 2000 2010 2020 2030
64
ICT is the foundation of digital transformation, the critical elements include
the development of 4A networks, 3C computing power and 2I technology.
computing
Blockchain
Quantum
Infrastructure Communication Digital AR/
Computing Power 5G AI IoT Robot
and platform Network technology VR
3C Computing
4A Network 2I Technology
Power
Accessible Advanced Cloud Computing
Innovation Industrialization
Affordable Applicable Credible
65
4A network 3C computing 2I technology
Network infrastructure is the cornerstone of the development of digital economy. It

needs to be “Accessible, Advanced, Affordable and Applicable"
Accessible Advanced Affordable Applicable
Penetration rate of Penetration rate of Fixed-broadband Mobile-broadband 5GB fixed-broadband 1.5GB mobile- The countries in stage of systematic
fixed-broadband mobile-broadband download speed download speed fee [GNIpc1)] broadband fee digitalization and in digital applications
subscriptions subscriptions [GNIpc1)] have begun to implement and integrate
applications of 5G network.
Smart Manufacturing
Average value of 116 76 3.4% 0.8%
typical countries 22% 113% Mbps Mbps • Installing 5G network in No.56 factory in
Sindelfingen
• Planning for optimization of production
process.
Digital transformation process
Cloud Gaming
Basic 50 31 6.9% 1.5%
digitalization 8% 68% Mbps Mbps • Relying on Singtel multi-access edge computing
(MEC) platform
• Latency of 8-11ms, ~85% lower than 4G network
Smart Transportation
Digital 107 77 3.4% 0.8%
Applications 17% 106% Mbps Mbps • Pilot of automatic guide vehicle (AGV) at
Pasir Panjang port
• 4 AGVs have adopted 5G network and finally
2000 vehicles will be used.
Smart Healthcare
Systematic 167 101 1.1% 0.6%
Digitalization 34% 145% Mbps Mbps • It is planned to use intelligent platforms based
on 5G, AI, cloud and other technologies
• Objective: the first national 5G intelligent
hospital in Thailand
Source：ITU; SPEEDTEST; Desktop Research; Roland Berger
66
Accessible: digital gaps still exist between different regions
Regional digital gaps still exist in network construction Remarks

• Between different regions, between developed and developing countries, between urban and
rural areas • Differences exist between
Number of fixed-broadband Number of mobile-broadband different regions, where
subscriptions per 100 people subscriptions per 100 people Europe and America noticeably
take the lead, especially in
2010 2019 2010 2019 terms of fixed-broadband.
Africa 0.2 0.5 1.7 32.1 • Differences exist between
Arab countries 2.0 7.7 7.8 62.0 developed and developing
countries, between urban and
Asian-pacific 5.5 14.3 7.3 75.4
rural areas, with developed
CIS 8.3 19.0 25.7 86.5 countries leading in all aspects.
Europe 22.8 32.1 28.7 97.4 • Promote the deployment of
America 14.3 21.4 25.4 99.1 mobile / fixed broadband
networks, provide a safe, high-
Developed countries 23.5 33.2 44.7 123.9 speed, economic and scalable
national communication
Developing countries 4.2 11.1 4.5 64.3 infrastructure, release
Population covered by a mobile- Percentage of households with productivity, alleviate
cellular network [2019, %] access to the Internet [2019, %] inequality and achieve
Urban areas 100.0% 72.0%
sustainable development
Rural areas 92.7% 37.7%
Source: ITU; Roland Berger
67
Ubiquitous MBB Availability Supports Consumer and Industrial Internets

The consumer Internet is built off the mobile Internet. In China and Indonesia, offline activities – such as business and public services – rapidly
went online as 3G and 4G networks became more widely available.
• A high MBB coverage rate means it's possible to communicate and transact online anytime, anywhere, making it possible to use online
applications on a larger scale.
• When there are more online services and processes, there will be more data, which is essential for AI application.
China Indonesia
E-retailing sales Population coverage(%)

E-retailing sales Population coverage(%)
Million USD
Million USD 100
80
20,000 4G Coverage
3G Penetration
600,000 E-commerce retail value 80
4G Penetration
60 15,000
E-commerce retail value
60
400,000
40 10,000
40
200,000 5,000
20 20
0 0
0 0 2009 2015 2019
2009 2014 2017 2019
3G commercialization 4G commercialization Go-jek, an online-to-offline e-commerce platform, launched its mobile

app in 2015, and became the country's first unicorn in 2016
Source: Euromonitor, ITU, BCG analysis
68
National Broadband Is Critical Infrastructure for the Digital Economy
Broadband development drives Despite varying development levels, countries have included network
economic growth structure optimization and penetration improvement in national strategy
Number of fixed broadband subscriptions by technology, OECD

Per 100 inhabitants
GDP (June 2020)
↑ 1.3%
Innovation
efficiency Employment
15x ↑ 2–3%
FBB penetration
↑ 10%
Gas Production
emissions efficiency
↓ 5% ↑ 5–10%
Source: Impact of broadband on the economy, ITU Source：OECD
69
Removing digital gaps and realize wide connection through the national strategic plan
Recommended
direction Key Initiatives Typical cases of different countries
• According to the Indonesia Broadband Plan 2014-20191), it was planned to invest USD 22 billion and realize a
National broadband 49% access to the Internet in remote areas and 70% in urban areas by 2019.
plan Indonesia
• The National Fibre and Connectivity Plan2) was launched to realize the gigabit network access in the selected
National Remote area network industrial areas by 2020 and in the capitals of all states by 2023, and the Internet speed of business premises of
strategic plan Malaysia 20% in remote areas will reach 500Mbps by 2022.
investment • In the 14th Five-Year Plan, it was planned to: accelerate the large-scale deployment of 5G network, with the
user penetration rate increased by 56%; deploy the technological reserves for 6G network in advance; expand
Advanced network plan China the backbone network interconnection nodes; and comprehensively promote the commercial deployment of
Internet Protocol Version 6 (IPv6).
• French government signed the FTTH (PPP) agreement for the region Yonne with the operator Altitude
Public-private Infrastructure. 190,600,000 euros of the project was funded by Crédit Mutuel , Banque Populaire Bourgogne
partnership (PPP) France
Franche-comté and other 4 institutions.
• To promote the 5G network construction based on the accessible and affordable 4G network, Indonesian Ministry
Spectrum optimization
Incentive and re-farming Indonesia
of Communication and Information 3) launched the 2.3GHz frequency band re-farming project. It was planned
to start on July 14, 2021 and end in September 2021 at latest.
and support
for network • The Telecom Right-of-way Regulations of India stipulates the nomination of a dedicated official to take overall
Simplification of the responsibility, the standardization of the approval procedure and the improvement of the efficiency by online
construction right of way India and visualized process so as to finish the examination and give the opinion within 60 days.
• The Investment Development Authority of Lebanon (IDAL) 4) grants the reduction or exemption of enterprise
Tax incentives income tax for up to 10 years to national and foreign companies operating in the ICT field and meeting certain
Lebanon investment conditions.
1) Indonesia Broadband Plan 2014 – 2019; 2) National Fibre and Connectivity Plan; 3) The Ministry of Communication and Information; 4) Investment Development Authority of Lebanon
70 Source: Desktop Research; Roland Berger

Advanced: There are still large gaps between different countries in terms of network
quality, so the continuous investment in network are still necessary
There are gaps between different countries in terms of network quality Remarks
• On the basis of reaching the coverage rate, a fast, low-latency, reliable and stable network should be
offered. • Mobile-broadband
Mobile-broadband Fixed-broadband Mobile-broadband Fixed-broadband download speed: the leading
download speed [Mbps] download speed [Mbps] latency [ms] latency [ms]
country (UAE) is 9 times
Singapore 86 256 22 12 faster than the backward
UAE 190 191 24 7 country (Indonesia).
Germany 70 126 34 20 • Fixed-broadband download
Thailand 49 216 29 8
Morocco 40 28 30 35 speed: the leading country
Indonesia 21 26 36 18 (Singapore) is 11 times
Malaysia 28 101 34 17 faster than the backward
Egypt 25 41 37 29 country (Burma).
France 73 200 40 26
Italy 51 97 45 24 • Mobile-broadband latency:
Estonia 65 81 29 15 the leading country
Greece 76 36 31 30 (Singapore) is 23 ms faster
Qatar 171 107 23 9 than the backward country
Spain 53 188 41 22 (Italy).
Philippines 34 71 31 22
South Korea 189 213 30 13 • Fixed-broadband latency:
Myanmar 23 23 39 21 the leading country (UAE) is
Jordan 25 82 22 16 28 ms faster than the
UK 79 94 42 21 backward country
Vietnam 42 78 27 8 (Morocco).
Japan 62 179 44 22
Saudi Arabia 151 92 34 19
Kuwait 140 143 22 21
71 Source: Speedtest 2021 Q2; Roland Berger

Full fiber has become the strategic direction of ICT infrastructure investment
Boost the economy: "Broadband China" strategy (year 2013-2021)

Optical become the medium and long-
term plans of various countries 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Phase 3: Phase 4:
Japan and South Korea continue to "upgrade" Phase 1: Phase 2:
optimization and upgrading dual Gigabit operations
overall acceleration Popularization
>100Mbps upgrade, Gigabit Coordinated development of
• Japan: increase budget by 17 times and 2Mbps -> 20Mbps Coverage 30%->80%
access in developed cities gigabit optical network and 5g
strengthen optical fiber connection
• South Korea: 50% 10G coverage in 85 cities
2006-2012 2012-2019 2020 -2025
in 22 years
Japan
Turn to Optical Optical speed up Optical upgrad
EU turn to optical 2007-2012 2012-2018 2018-2022

South Korea
Turn to Optical Optical speed up Gigaband coverage
• EU: NextGenerationEU
• UK: Full Fiber
The epidemic has made Europe recognize the
RECOVERY PLAN FOR EUROPE
• Germany: broadband expansion plan GUIDELINES importance of ICT infrastructure
developing)
(under
Twin green and digital
Very High transitions • Understanding and expectation of "digitalization":
Capacity Network Technology autonomy + openness + encouraging
Full competition + standard unification
EM ICT infrastructure "catch up" Fibre Investment focus: • European digital sovereignty - anti technological
• Uzbekistan: ICT plans to build 20000 Green+Digital hegemony:
POLICY 1. “Network Federation": Pan European backbone network
kilometers of optical cables Connectivity for construction to avoid cloud Federation becoming an
• Kazakhstan: national broadband 2.0 a European Gigabit Society information island
• Tunisia: digital 2023 2. “Cloud Federation": Pan European cloud and DC alliance.
Unified architecture, certification and deployment
72
Government should continuously strengthen high-speed networks, while telecom

operators should proactively take measures to improve their capabilities
Recommended
• Morocco plans to achieve nationwide coverage of 2-Mbps broadband by 2023; and no less than 50% of
Morocco households in the country will have high-speed Internet of more than 100 Mbps by 2025.
High-speed network
plan • Since 2010, the network construction has focused on optical fiber, and billions of dollars has been spent
Singapore upgrading the infrastructure and on the plan of Next Generation Nationwide Broadband Network 1) to achieve
National gigabyte network speeds throughout the country
strategic
investment • The Digital Strategy 20252) strategy clearly defines the construction of an infrastructure that meets the triple
Germany needs of high capacity, wide availability and low latency to realize a gigabit optical fiber network by 2025.
Importance given to
network quality • Connections need to meet the demands, such as providing fixed optic fiber connections for FIFA World Cup
Qatar venues by 2022, and providing high-capacity, high-reliability, high-redundancy, and low-latency networks for
media needs.
• China Telecom Zhejiang branch built the OneNR boutique network and synergized 2.1G uplink and downlink
Technological China coverage advantages and 3.5G downlink capacity advantages to maximize 5G spectrum efficiency, reduce
optimization network congestion and make user experience 1+1>2.
Improvement of
operators’
capabilities • Telefónica is actively carrying out digital transformation, using Huawei’s SmartCare system to analyze real-time
Intelligent operation Spain data with AI technology in the network operation center to improve the user experience.
and maintenance
1) Next Generation Nationwide Broadband Network; 2) Digital Strategy 2025

Affordable: the infrastructure has reached a high connecting level, but the price is unaffordable
The inclusivity and the affordability of infrastructure need to be improved

Remarks
• Network prices in different countries differ by more than 10 times, and inclusive
infrastructure should be priced in an appropriate way.
1.5G mobile broadband subscription fee [2020，GNIpc] 1)
• Mobile-broadband price:
3.54
that of the leading country
1.36 1.33 1.18 1.16 1.04 1.04 1.01
0.91 0.79 0.79 0.72 0.55 0.51 (Spain) is 1/11 of that of
0.49 0.47 0.42 0.40 0.40 0.38 0.37 0.31 0.31
the backward country
Jordan
Philippines
Indonesia
Thailand
Japan
Myanmar
Vietnam
Egypt
Malaysia
UAE
Morocco
Saudi Arabia
UK
Kuwait
France
Greece
Germary
Italy
South Korea
Estonia
Singapore
Qatar
Spain
(Jordan).
5GB fixed broadband subscription fee [2020，GNIpc] 1)

• Fixed-broadband price: that
12.08 11.55 10.93 of the leading country
7.85
3.93 3.92 3.29 3.22 2.88 (Kuwait) is 1/30 of that of
2.19 1.99 1.72 1.72 1.45 1.40 1.20 1.11
1.05 0.99 0.93 0.74 0.55 0.40
the backward country
Jordan
Myanmar
Indonesia
Philippines
Morocco
Vietnam
Thailand
Egypt
Saudi Arabia
Malaysia
UK
Qatar
Spain
Greece
Italy
France
South Korea
Japan
Germany
Estonia
Singapore
UAE
Kuwait
(Jordan).
1) Unit: GNIpc (percentage of monthly gross national income per capita), to remove the influence of national income level and exchange difference.
74 Source: ITU; Roland Berger
Enhancing the inclusivity of infrastructure through policy measures and direct subsidy
Recommended
• The taxes related to the “last mile” broadband construction were reduced and exempted, and the import taxes
Government tax Malaysia and the business taxes on broadband equipment and user access terminals were exempted. Users can receive
incentives tax reductions for digital expenditures of no more than USD 600 per year.
Direct • The Project Gigabit plan was launched to provide vouchers subsidies for the cost of connecting to gigabit networks
Government financial UK
government subsidies
for eligible residents and businesses in rural areas.
funding
• The frequency occupation fee standard was reduced for frequency bands above 3,000 MHz, and a
Reduce spectrum costs China preferential policy of “reduction and exemption for the first three years, and gradually collected in the next
three years” was implemented for the frequency occupation fee standard for 5G public mobile
communication systems.
• In the context that its price of telecommunication service was the highest among the OECD countries in 2012,
Strengthen market Mexico Mexico strengthened the market competition in the communication industry, removed the foreign investment
competition restrictions on fixed-line telecom operators and encouraged the resellers to enter the market.
• Indonesia Infrastructure Finance (IIF) was founded by the Ministry of Finance and dedicated to providing low-
Provide low-interest Indonesia interest loans for infrastructure construction. In the Palapa Ring project, IIF provided Len Telekomunikasi
loans Indonesia (LTI) with a loan up to USD 73 million.
Market
regulation • The National Power Corporation of Ireland and Vodafone Ireland established a joint venture company SIRO to
Share infrastructure Ireland build FTTH broadband using resources such as the power company’s existing substations, towers, poles and
power pipelines.
• Potential sources of funds for “Broadband China” include central finance, local funds, basic telecommunication
Enrich sources of funds China companies, radio and television companies, private capital, etc., and it is operated in market-oriented modes
such as competitive bidding, PPP and commissioned operation.

75
Applicable: Taking 5G for example, the influence on communication network is profound
The application of 5G infrastructure blooms everywhere with a promising future

Remarks
• Many countries leading in 5G construction have launched pilot applications.
Influence of 5G on the incomes of different industries by • 5G network is expected to
2035 and current 5G applications in selected countries
Smart Manufacturing increase the incomes of
• Install 5G network in No.56 factory in Sindelfingen
Manufacturing 5.4%
• Planned for optimization of production process. various industries by an
Info & communication 10.7%
Wholesale & retail 5.1% average of 5% by 2035.
Public service 6.3%
Construction 4.3% Cloud Gaming
5.4% • Based on Singtel multi-access edge computing (MEC) platform
Transport and storage
• Latency of 8-11ms, up to 85% lower than 4G network
Finance and insurance 4.5% • Currently, in some countries
Professional services 3.0% such as China, South Korea,
Health and social work 3.9%
Smart Transportation
Agriculture, forestry and fishing 5.3% Singapore, Thailand and
Real Estate activities 2.4% • Pilot of automatic guide vehicle (AGV) at Pasir Panjang port Germany, various 5G pilot
Mining and quarrying 4.9%
Energy and utilities 3.9% applications have been
Education 3.6% Smart Healthcare launched.
Hospitality 2.2% • Using intelligent platforms based on 5G, AI, cloud and other
Arts and entertainment 3.5% technologies.
• Objective: the first national 5G intelligent hospital in
Thailand
5%
Source: IHS Markit; Desktop Research; Roland Berger
76
5GtoB Promotes the Digitalization of Various Industries

Verticals
Manufacturing Oil & Gas
Port 1 ~ 6 2 4 6 7 Pubilic service
1 4 5 6 2 3 6 7
Iron & Steel Transportation
1 ~ 6 Basic applications 1 2 3 6
Coal mines 4 Electricity

1 ~ 7 3 AR/VR 5 1 2 6 7
People and equipment locating Remote maintenance,
Remote control
Meter-level locating for people, materials, guidance, training, etc. Remote control of equipment in
2 and linear scenarios dangerous environments

6
Video Basic network capabilities Data acquisition/loading
HDV and video streaming Acquisition of data of people, machine,
objects, and environment, and software
Large connections Large uplink Stable latency Accurate locating loading
NB and NR coexistence 1 Gbps, SUL, 2:3, D- 20 ms, local MEC, low-
1
Meter-level, ECID,
RedCAP MIMO latency air interface UTDOA
7
Machine vision Mobile inspection
Surface inspection, locating, Series core Mobile robot/drone
E2E slices Reliability Simplified O&M
recognition, and measuring networks inspection/filming
77
Integrating the network construction with industry to create a greater value of connection
Recommended
• Ministry of Science, ICT and Future Planning1) cooperated with telecom operators, the ICT equipment manufacture
Publish the application South Korea industry, academics and professionals to establish a 5G forum to promote discussions and communication on
guidance 5G application. The forum has published 16 white books on the application guidance.
• IMDA cooperates closely with mobile operators. TechSkills Accelerator project customized the internal training
National Help cultivate telecom Singapore plan for it. IMDA also cooperates with professional institutions to offer new 5G courses, for example, 5G network
support operators’ abilities architecture and network function virtualization.
Promote the • IMDA started the 5G Living Lab@PIXEL project, offering shared courses to help various industries (especially
application in various Singapore small and medium-sized enterprises) develop new 5G solutions. Some startups such as Serl.io, Hiverlab and
industries UCCVR have benefited from it.
• To promote the application of 5G in AR/VR, LG U+ takes VR/AR business for the core right and interest of the
Transformation of South Korea 5G package, promoting the exclusive VR/AR content, launching free VR boxes and programs, and has thus
business field won 30% of 5G users.
• Initiated by Ministry of Economic Affairs and Digital Transformation and Ministry of Transport, Mobility and Urban
Telecoms’ Pilot testing Spain Agenda2), under the cooperation of Telefonica with Nokia, Ineco, Stellantis and CTAG3), Cereixal Tunnel has
practice cooperation become Spain’s first tunnel where vehicles are connected to the 5G network.
• The wireless carrier and Internet service provider AIS cooperated with Suranaree University of Technology in
Industry-university- Thailand developing the 5G intelligent factory solution to show the possibility of 5G application on production lines to
research cooperation industrial entrepreneurs.
1) Ministry of Science, ICT and Future Planning; 2) Ministry of Economic Affairs and Digital Transformation and Ministry of Transport, Mobility and Urban Agenda; 3) Automotive
Technology Centre of Galicia
78
Computing power has become a new type of infrastructure, and the trend of 3C (Cloud,
Computing and Credible) in developed countries is obvious
Cloud Computing Credible
Number of cloud data centers Percentage of countries possessing sovereign cloud, • Countries across the world usually invest 0.13% of the
government cloud and supercomputing project GDP in the network
Average value of Global expenditures in different fields and their growth

typical countries 88 52% speeds [USD 100 million; 2020]
Service 64 3.7%
Infrastructure protection 17 5.8%
Digital transformation process
Basic Network equipment 12 12.6%

digitalization 8 20% ID login management 10 5.8%
Client software 6 -0.3%
Integration risk protection 5 3.8%
Digital
Applications 44 50% Application 3 6.2%
Data 3 7.2%
Other software 2 3.1%
Systematic
Digitalization 193 75% Cloud 1 33%
Total 124
Source: Cloudscene; Gartner; Desktop Research; Roland Berger
79
Cloud: Various countries has invested to create a new generation of IT infrastructure
Investments in cloud IT show a growth trend

Remarks
• The cloud services are favored for their flexible resources, convenient deployment and other
advantages. • The CAGR of the IT
expenditure on public cloud
16% service from 2019 to 2025
calculated on the basis of
the number of end users is
public cloud service in total IT
Percentage of expenditure on
Canada
UK
Netherlands Poland 16.1%, which is a boom.
Brazil
Australia
expenditure
France Mexico
• The developed countries
8%
Germany leads the world in the
Italy India China
Turkey percentage of the cloud IT
Spain South Korea
Argentina expenditure, while
Japan Growth of IT
Indonesia expenditure on developing countries leads
public cloud
service (2017-2022 in the growth rate of
CAGR)
0% investment in the cloud IT.
0% 20% 40%
Source: Gartner; Roland Berger
80
Cloud Supports Industry Digitalization and Digital Sovereignty

Cloud enables ubiquitous computing. Adopting cloud is an important step of digital transformation. The
construction of national cloud computing power helps to enable the digital transformation of countries, cities,
industries and enterprises.
Future-Oriented Development
Intelligent services & better

experiences
Agile applications
Efficient use of
Integration Aggregation Innovation
resources
Container
platform
Volcano
Batch • Unified resource • IT integration • Service • Application

computing Istio
Transcoding Edge
pool
• Technology
computing Service
CDN x86
network
• Diversified computing
• DC integration • Data exchange
... GPU
AI inference
• Cloudization • Eco-system (AI/Cloud/Data)
Ubiquitous computing: Edge-cloud Unified computing: Hybrid deployment, • Talent Cultivating

collaboration, multi-cloud application collaboration
governance
IN Cloud •Security
Cloud-native services Security
•Compliance
Cloud-native architecture | Agile, intelligent, building on existing
assets | Application-centric
81
Governments could encourage the development of cloud computing power

through various planning and preferential policies.
Recommended
• The 14th Five-Year Plan proposes to accelerate the establishment of an integrated national big data center
Encourage Planning and guidance China system, strengthen the overall planning and intelligent dispatch of computing power and build several national
the hub nodes and big data center clusters.
development
of computing Preferential • According to the 4.0 strategy of Thailand, the Board of Investment (BOI) stipulated that the investment data
power investment tax Thailand centers and the cloud services can be exempted from the enterprise income tax for 8 years at maximum.
Publicity, • SME 4.0 Cloud Agency offers resources of cases, teaching and guidance, demonstrates how to implement, use
implementation and Germany and integrate the cloud to SMEs and provides assistance in terms of business process optimization, development
popularization of intelligent products/services, etc.
• China collected some cases of enterprise cloud implementation as industrial benchmarks, and under the lead of
Encourage pilots China the government, invited entrepreneurs over the country to seminars and forums, offering on-site face-to-face
Facilitate diagnosis with experts.
SMEs' cloud
migration Subsidies and financial • Each SME that uses the cloud computing service will get a subsidy of INR 100,000 at most within two years.
aids on the demand India After filing an application to the cloud service provider and the government’s official website, the subsidy will be
side distributed via TCIL1).
• For a technological SME, a subsidy of EUR 60,000 at maximum and EUR 12,500 at minimum is provided to
Subsidies and financial Spain support its development of new cloud software, migration of cloud tools and other solutions that can help SMEs’
aids on the supply side cloudification. The total budget is EUR 25 million.
1) Telecommunications Consultants India Ltd

Computing：Building a national high performance computing center is a

necessary for the scale development of digital economy
Leading governments actively invest in the national/regional computing power projects
• Considering the factors such as data sovereignty, privacy security, operating cost and efficiency, some countries initiated the projects such
as sovereign cloud, government cloud and supercomputing.
Supercomputer ABCI Total investment: JPY 19.5 billion Driving economic development
Japan
• Japan plans to build the fastest • Equivalent to about USD173 million • Provide research platforms and help
supercomputer of the world. improve automatic driving, medical
diagnosis, etc.
Guarantee the well-being of the

National cloud computing project Total investment: EUR 450 million
people
France
• In April and May of 2012, two national • French government invested EUR 150 • Public institutions such as the Health Data
cloud computing projects were successively million and the rest was funded by Center got “credible” clouds.
implemented. operators and companies.
National data center Total investment: THB 10 billion Improve the governance capability
Thailand • Thailand built a governmental data center • All was invested by government, • It integrated original data centers which
complying with the international standard. equivalent to about USD 287 million. were loose and non-standard so that the
operating cost has been reduced by 30%.

83
Computing power is basic productivity of AI enterprises, and AI high performance

computing center is the future-oriented computing infrastructure
The computing power required to train AI models The architecture of Artificial Intelligence Computing Center
doubles every 100 days on average
Industry Transpor Educatio Manufac Healthc automo 3 major technological
Security Finance
2012~2019, the demand for computing power application tation n ture are bile development trends
PFlops/day increased by 300,000 times Industry algorithm: deep AI Market: AI model and data
integration of AI and Industry element flow
1e+4
Platformization
AlphaGoZero Enabling software
GPT-3
• Accumulating algorithm
Software infrastructure
Computing
Artificial Intelligence Computing Center

1e+3 AlphaGo Data Model Automatic Preset and application
power demand management development learning algorithm
1e+2
Intelligent Data Large scale AI Cloud side
• Enabling SMEs
Neural Machine
Translation diagnosis Annotations training deployment
• AI ecosystem
1e+1 TI7 Dota 1v1
Xception Basic software

1e+0 Huge gap HW and SW collaboration
DeepSpeech2 AI system
1e-1 software Processor enablement AI framework • Cloud platform scheduling to
ResNet
VGG support large-scale training
Cloud Cloud
Computing
Multi tenant Elastic
Cloud-edge-
1e-2 power terminal
SEQ2SEQ platform Resource
scheduling
isolation sharing
collaboration
• AI chip and software work
GoogleNet
AI computing together to improve computing
1e-3
virtual Machine power growth rate efficiency
infrastructure
AlexNet AI computing subsystem
Hardware
understanding Conv Network
1e-4 Storage
interconnection
subsystem
GPU FPGA ASIC NPU subsystem Intensive construction
2012 2013 2014 2015 2016 2017 2018 2019
• Reduce overall construction
cost
Infrastru
AI model training is expensive Planning and Civil Electrical
cture
construction engineering of engineering Others • Improve energy consumption
design machine room construction
management level
GPT-3 $4.6 million 10000 GPUs * 13 days
84
Governments could invest resources in strengthening national computing power

on the one hand, while making full use of private suppliers and sets regulatory.
Recommended
• The EU plans to invest EUR 8 billion between 2021 and 2033 to develop the European supercomputing for the
EU deployment of supercomputer equipment and innovative research projects.
Increase the
governmental
investment • The EU launched the GAIA-X plan to invest totally EUR 6 billion at maximum, of which EUR 2 billion will be
EU funded by the EU and the rest will be jointly funded by the member countries and the industries together with
Strengthen some post-pandemic recovery funds.
national
computing • The federal government cloud Bundescloud is led and operated by Federal Information Technology Center
power Germany (ITZBund), with the open-source platform Nextcloud offering technical service and assisting in the
construction.
Introduce the private
sector
• The federal government cloud FedNet was launched by Telecommunications and Digital Government Regulatory
UAE Authority (TDRA) in 2014 and the service is offered by the only two UAE telecom operators du and Etisalat.
• For government and related public sector procurement, the German Federal Office for Information Security (BSI)
Germany has issued the C5 standard covering a number of international certifications, helping organizations prove their
operational security and providing guidelines for product and service requirements.
Set the Implement the security
regulatory certification of cloud
suppliers
standard • For the government procurement scenarios, Dubai has published the Cloud Service Provider (CSP) Security
UAE Standard, a service provider security certification in line with international standards. The cloud service
providers that serve the government shall pass this certification.

85
Credible：With the increasing awareness, countries have promulgated credibility

strategies, invested in network expenditures
Leading countries invest significantly in expenditures
Proportion of expenditure in GDP [%; 2017] Global expenditures in different fields and their
growth rates [USD 1 billion; 2020]
Israel 0.35 Service 64 3.7%
UK 0.27 Infrastructure protection 17 5.8%

Singapore 0.22 Network equipment 12 -12.6%
Japan 0.21 ID login management 5.8%
10
South Korea 0.10 Client Software 6 -0.3%
Malaysia 0.08 Integration risk protection 5 3.8%
Thailand 0.05 Application 3 6.2%
Vietnam 0.04 Data 3 7.2%
Philippines 0.04 Other software 2 3.1%
China 0.03 Cloud 1 33%
Indonesia 0.02 Total 124
Global average: 0.13
Source: Gartner; Desktop Research; Roland Berger

86
Establish regulations / frameworks
Ethnics
Network Cloud computing Data Public service
in technology
Singapore Saudi Arabia Germany UK France
• A series of actions: • Communication and • Adjust the legal frame and • A series of actions: • Government established the
• Singapore's Strategy Information Technology update multiple important • Create the Open French National
Commission (CITC) provisions as per GDPR Government Licence (OGL) Commission of Digital
• National R&D Programme published the Cloud • Implement highly complex Ethnics (FNCDE)
and the national data web
• Regulation: Computing Regulatory protection system to portal (Data.gov.uk) • Give the advice on digital
Key Initiatives
Framework personal data (sensible ethnics and organize public

• Bilateral agreements with • Government Digital
7 countries including UK • Increase regulatory clarity data) discussions
• Expand the protection range Service (GDS) coordinate • Cooperate with National
and encourage the use of multiple departments as a
cloud technology over the to employees’ data Commission of Information
protection leading organ to promote and Liberty (CNIL), Academy
country the data openness
• Stipulate that the data of Sciences of France, etc.
• Punish the violations of processing companies have • Publish the documents such • Keep communication and
CCRF the obligation of nominating as Public Data Principle contact with foreign ethical
a Data Protection Officer and Freedom of commissions
(DPO) Information Act
• Ranked No.4 among 194 • Ranked No.2 among 194 • The implementation of • Every department of • The pilot stage involves 3
Achievements
countries with a score of countries with a score of GDPR was ranked No.1 in Whitehall has established fields of AI ethnics: chat
98.52 in the 2020 ITU 99.54 in the 2020 ITU Europe according to Vanson the open data strategy and robot, autonomous car,
Bourne’s research in IT opened data websites. Over medical diagnosis and
professionals of enterprises 50,000 data sets are health AI.
available to public services,
enterprises and the public.
87 Source: ITU; Vanson Bourne; Desktop Research; Roland Berger

Various countries actively embrace new technologies and strengthen their leading position
in transformation
Key emerging technologies and maturity level
Block- Quantum
Country Vision and strategy 5G AI IoT chain AR/VR Robots Computing
Germany ＞ To become the global innovation leader
France ＞ Centre of digital excellence through innovation

Innovation
Digitalization
Systematic
UK ＞ Application of leading tech in various sectors
Singapore ＞ Harness digital tech to transform into a Smart Nation
UAE ＞ Creation of innovation-enabling environment

Prepare for future,
accumulate capabilities Japan ＞ Resolve social challenges through 4IR
South
Korea ＞ Digitalization of all industries with emerging tech
Italy ＞ Enhance and stimulate demand for digital offering
Digital Applications
Spain ＞ Enhance digital connectivity and capabilities
Thailand ＞ Develop nation into economy driven by innovation

Industriali-
zation Indonesia ＞ Improve digital infra, ecosystem and talent
Malaysia ＞ To be the heart of digital ASEAN
Qatar ＞ Develop digital, become knowledge-based economy

Focus on Saudi
＞ Develop robust digital infra to support Vision 2030
implementation, realize Arabia
value of technology
B1) Egypt ＞ Solve society problems with scientific solutions
1) The countries in basic digitalization stage Mature / widely applied Technology in R&D No outstanding
technologies exploration technology input
88
AI as a New GPT, have a great impact on economic growth
The AI market will be worth US$7.44 trillion by 2025, and its annual growth rate over the next five years will be more than 30%.
AI is becoming deeply integrated with industry know-how at an accelerated rate. It not only provides support systems, but has become part of main
production processes. Many countries are building national AI centers and stimulating AI industrialization to become a hub of intelligent upgrade.
AI drives fast GDP growth: Global 1.2%, China 1.6% More than 60 countries have released national AI strategies
1.2% AI Strategy: Invest

AI Council: support AI
Germany billions of dollars in AI UK technology development
development
0.6%
AI for Humanity: Invest World's first Minister for AI
0.4% France in AI development UAE National AI Strategy 2031
0.3%
1990s 1990s 2000s 2 0 1 8-2 0 3 0 Japan Society 5.0 for AI

(S team (I ndustrial (IT) (AI)
power) automation)
Influence of GPTs on global GDP Source：Global AI Strategy Landscape, Holon IQ
Source：Mckinsey; Accenture
89
Vary in strategy, some countries places more emphasis on the innovation, while
some on the application
Korea
Technology Leaders (Researcher)
› Pioneers of inventing world-class leading- UK
edge technologies
Germany
Innovation Innovation Hub (Innovator) Japan
› Conceptualization and commercialization of UAE

new solutions through research &
development Spain
Innovation Industrial enabler (Enabler) Japan

strategies › Leverage its existing advanced technology to Singapore
develop solutions to improve societies and
industries Germany
Technology advocator (Advocator) Egypt

Industrialization › Innovation led through implementation of Indonesia
technology solutions by public sector, due to less
developed technology currently Saudi Arabia
Startup incubator (Startups) France Qatar
› Creation of favorable environment to incubate and Italy Malaysia

grow startups/ SMEs
Thailand
90
Accordingly, on Innovation, governments could encourage technological development by

means of investments, providing resources of premises and facilities, and strengthening
cooperation…
Recommended
• GBP 400 million was invested in the Innovation and Future Fund, aiming to develop new technologies such as AI and
Innovation funds UK quantum computing. The Emerging Technologies Competition for a total award amount of GBP 15 million was set to
identify and fund new technologies.
Capital
Investments
• The “Future Fund”, an equity investment fund of EUR 10 billion, was set to fund the startups engaging in future science and
Governmental technology. This fund is managed by KfW, a development bank of German government.
investment bank Germany
• The AI Research Center (AIRC) was founded in Japan to implement the joint research plans (such as DFKI) with
National laboratory Japan local/international research centers and provide AI startup workshops, AI technology alliance, talents development courses,
etc.
Premises and
facilities • 13 Technological Centers of France were founded all over the country and some events such as French Tech Next 40 and
National innovation French Tech Ticket were held to promote the application and the innovation of applications.
center/platform France
• Germany cooperates with Canada to promote exchanges and joint trainings of scientists/students (such as NSERC and DFG)
International exchange Germany and jointly carry out more than 1,000 research projects in the fields of AI, robot and quantum technology.
Facilitate
Cooperation • Various cooperative modes have been created, including joint research, industrial alliance plan, one-to-one, one-to-many
Inter-industry and inter- Singapore and many-to-many alliances. For example, the joint laboratory of advanced semiconductor technology includes Panasonic,
business cooperation Nikon and other companies.

91
On the other hand, on application, it is recommended to initiate government projects,

provide financial support, and provide aids to startups and innovating enterprises
Recommended
• To drive AI development, Dubai cooperated with IBM to launch the Saad, the first government service based on AI of the city
Digital transformation which can answer questions related to the registration of enterprises in real time.
UAE
Initiate of government services
government
projects • UK launched the Digital Catapult Things Connected Plan and established free IoT infrastructure in London to support the
Infrastructure UK promotion of IoT technology.
• Singapore plans to invest up to USD 18.1 billion between 2022 and 2025 to assist in the transformation of enterprises and to
Industrial digital Singapore fund the recruitment of digital talents, the concept design of products and the professional consultation through
transformation fund Digital Leaders Program in order to help local leading enterprises become digital leaders.
Provide • South Korea invested USD 90 million in the blockchain technology development course to cultivate blockchain talents
financial Capability building fund South Korea and invested USD 9 million and cooperated with relevant ministries to carry out 6 pilot projects in various industries.
support
• The Board of Investment (BOI) grants an additional tax deduction for capital investment in the application automation and
Preferential taxes Thailand robot system equal to 50% of the enterprise income tax for 3 years to the manufacturing enterprises.
• French Ministry of Economy and other government departments allocated EUR 100 million each to initiate the foundation of a
Innovation and startup France public fund of EUR 10 billion (including EUR 5 billion from institutional investors and insurance companies) which is managed
fund by BPI France and planned to be invested in tech enterprises.
Support
startups Incubation and
• German Research Center for Artificial Intelligence (DFKI) cooperated with governmental agencies (Federal Ministry of
Germany Education and Research, Federal Ministry of Economic Affairs and Energy) and globally leading tech enterprises to encourage
implementation of the transformation of laboratory research achievements and to help SMEs develop AI applications.
applications

92
The development of ICT industry should be promoted step by step and gradually build
infrastructure, platform and digital technology
GDP per capita
Basic digitalization Digital Applications Systematic Digitalization Smart Ecosystem
80,000
Qatar UAE Singapore
Italy Japan Germany
40,000 Spain UK
Kuwait France
Morocco Saudi Arabia
South Korea
20,000 Greece Estonia National digital transformation
Myanmar Jordan Egypt Indonesia
Philippines Thailand Malaysia evaluation result
Vietnam
0
Steady Development Following closely Excellent practice
Introduce computing power development and Break through the frontier field, lead the industrial
Launch the network construction strengthen technological application development
Deploy cutting edge technologies and

innovative fields
Tech UAE UK
AI、Blockchain Quantum Computing
Digital technology combined with advantageous industries to leverage their technological value
Platform Thailand
THAILAND
Spain
EUPATI National Platform
Germany
Industry 4.0
Singapore
SGTS1)
NOW(Tourism) (Healthcare) (Manufacturing) (Government)
Build a new type of computing power infrastructure (national DC, government cloud and supercomputing)
Computing Indonesia One Data Indonesia EU GAIA-X France
National Cloud Strategy
Japan
ABCI supercomputer
Launch national network plan and increase

access to the Internet Continually strengthen the network infrastructure, enhance coverage, increase the speed,
reduce the cost and improve the quality
Network National Broadband
Jordan Network Morocco
National Broadband
Development Plan Malaysia National Fibre and Connectivity Plan Korea Private 5G network Policy Plan
1) Singapore Government Technology Stack

93
Chapter 4
Digitalization Facilitates Sustainability

Social Welfare - Low Carbon
94
Digital drives the Sustainability Development Goals (SDG)
Digital drives the realization of

UN Sustainable Development Goals
Sustainability Development Goal (SDG)
Digital tools help to realize the people-oriented healthcare
1 2 3 4 5 6
3 and improve the health level of population
Digital tools help to realize easy and equal resources and

4 provide fair and quality education
Zero Good Health and Quality Gender Clean Water
No Poverty
Hunger Well-being Education Equality and Sanitation Digital tools help to create flexible and intelligent power
7 system based on clean energies
7 8 9 10 11
For example
Between 2016 and 2020, digitalization created up to 6.5
8 million jobs for key industries.
Affordable and Decent Work Industry, Reducing Sustainable

Clean Energy and Economic Innovation and Inequality Cities and 9 Digitalization enables innovation in other industry sectors
Growth Infrastructure Communities
12 13 14 15 16 17 10 Digitalization benefits all and promotes inclusiveness
Drive the development of the smart city, and create an

11 inclusive, safe and durable space
Responsible Peace, Justice,
Climate Life Below Life On . Partnerships for
Consumption and Strong
Action Water Land the Goals In 2016~2020, the total net emission reduction of CO2 was
and Production Institutions
13 about 29 billion tons thanks to digitalization
95
Digitalization improves healthcare and education service level and the quality
Digital tools help to realize the people-oriented Digital tools help to realize easy and equal
3 healthcare and improve the health level of population. 4 resources and provide fair and quality education.
Digital healthcare Singapore Digital Education Germany
• Singapore built the National Electronic Health Records System (NEHR) to • The German federal government cooperated with state governments to implement the “School
promote the circulation of medical and health information among medical Digital Convention Plan” in 2019, aiming to improve the modern digital technology in
institutions and improve medical services. campuses all over the country and improve the educational quality.
Use Cases
• The Ministry of Health (MoH) of Singapore cooperated with institutions • The government invested EUR 5 billion in building the educational digital infrastructure
such as Accenture, Oracle, Orion Health, IBM and Hewlett-Packard to build such as federated cloud server, digital teaching equipment, information platform, etc.
the medical information database, the real-time communication • It invested EUR 500 million in strengthening the cultivation of teachers’ digital skills in all
Technology system, the intelligent monitoring equipment, etc. states and developing teaching schemes adapted to the digital trend.
Investments
• Connect medical institutions with patients, and push the perfection of the • Provide technological base for the use of modern digital technology in teaching by teachers and students
medical system focusing on patients. so that the digital teaching is easier.
• Complete medical records help to establish personalized optimal • The improvement of the digital infrastructure for education of primary and middle schools is favorable
diagnosis and treatment schemes and improve the safety and the to promote the educational equity and the overall quality of basic education of Germany.
accuracy. • Improve the resistance to risks of the educational system.
Social • The accessible information exchange helps to improve the satisfaction to • The objective is to increase the proportion of the German citizens with basic digital knowledge from
influence medical services and save the time and the costs of medical tests. 68% to 75% by 2025.
96
Digitalization helps to clean energy, create new high-quality jobs
Digital tools help to create flexible and intelligent Between 2016 and 2020, digitalization created
7 power system based on clean energies. 8 up to 6.5 million jobs for key industries.
Enable the energy management and

China Creation of high-skilled jobs Singapore
improve the utilization
› China proposed to deepen the reform of electricity system, based on the

› Increased adoption of cloud computing technology across the
construction of the digital power grid, taking multiple measures to build a
private and public sectors
Use Cases new power system mainly based on new energies.
› China Southern Power Grid discovered the operating rule and the
› Investment in the public cloud technology is set to grow from
potential risks of the power grid through analysis of massive information
USD 1.5 billion in 2018 to USD 3.6 billion in 2023, growing
Technology data and high-performance computing technology so as to realize the
at a CAGR of 20%
Investments accurate prediction of electrical load and electric quantity data.
› It efficiently predicted the use and consumption of clean energies in

Guangdong Province, Guangxi Province, Yunnan Province, Guizhou Province
and Hainan Province.
› The proportion of installed capacity and generating capacity of clean energies › Increase in public cloud usage is expected to create 22,000
of the five southern provinces have exceeded 50% for 5 consecutive years, new jobs over the same period
among the world’s highest. › 8,000 jobs (~4% of current ICT worker) with cloud service/
Social IT system providers and industry verticals
› The utilization of hydropower of the whole grid has exceeded 99.5% and
influence the utilization of both wind power and photovoltaic power has reached › 14,000 jobs in non-digital roles e.g., sales, marketing,
99.7%, which has basically realized the full use of clean energies, the safe and finance
steady operation of the power system and the optimized configuration of
resources in a wide range.
97
Digitalization fosters innovation to promote inclusiveness
Digital technology enables innovation in other Digital technology benefits all and
9 sectors 10 promotes inclusiveness
Foster innovation Japan Provide equal opportunities for all Kenya
› Uber and Sidian Bank collaborate to provide

› Development of IoT powered 'living labs' to support AI and
unconventional credit scoring system, giving Kenyan's
robotics development for use in real-life environment
Use Cases access to loans which would otherwise be difficult to
obtain
› Development of 'living labs' equipped with IoT sensors to observe › Upgrading broadband/ internet bandwidth,
and gather data related to physical and cognitive changes in Subsidizing broadband for education institutions,
Technology various environments such as healthcare facilities, residential and creating start-up hubs with high-speed internet
Investments commercial areas › This attracted international tech players to country
› Enables creation of database containing data of various life › Uber has partnered with Sidian Bank to offer loans to
phenomenon e.g., body motion, human feelings and awareness drivers at favorable interest rates to purchase vehicles,
with eligibility based on Uber app data, rather than on
› Enables usage of AI for data analysis (probability model, traditional credit references, which are not widely
ontology) for research in prediction & control systems available in Kenya and has caused loans to be commonly
Social
influence › Data gathered enables research in developing robots for usage in inaccessible
such living environments with the ultimately aim of improving › Partnership is expected to lead to loans of ~USD 100 m
service with less labor and power over 3 years
98
Digitalization creates durable and low carbon space
Between 2016 and 2020, the total net

Drive the development of the smart city, and
11 create an inclusive, safe and durable space 13 emission reduction of CO2 was about
29 billion tons thanks to digitalization
Digital Inclusion Project Singapore Smart city projects Germany
› “Digital citizens” are the key pillars for realizing the fully smart cities. It
› Smart City Model Projects Program to develop integrated smart
lays emphasis on strengthening the way and the capability of
and sustainable city strategies, including development of smart
Use digital participation of all citizens and achieve the aim of inclusion
buildings, homes, streets etc.
Cases of all people and improvement of life quality.
› Digital assistance to disabled people: Digital products with

preferential prices are supplied to disabled people. IMDA has invested › Total funding volume of Euros 820 million to fund 32 Smart
more than SGD 2 million since 2014. City Model Projects
Technology › Digital integration of elder population: Some projects such as the › HafenCity Hamburg integrates infrastructure planning,
Investments education of network information security for the aged, the use of construction and disposal to cope with climate challenges
digital equipment, were rolled out successively.
› It is forecasted that the implementation of intelligent building

› According to the RB digital inclusion index, in 2020, the digital climate management systems could help reduce CO2 emission
inclusion of Singapore was No.1 in the world, with the index scores levels by more than 41 million tons in Germany by 2020
Social greatly increased in multiple dimensions such as digital accessibility,
› 30 percent of all urban emissions could be cut by 2050 by
influence affordability and citizens’ digital ability.
making buildings more efficient
99
The countries and regions release green and digitalization strategies and initiatives
Country Strategic document Strategic statements Key initiatives
…promote further integration of the internet, big data,

› Strengthen the informatization of ecological environment and the construction
and artificial intelligence with the real economy, and
of intelligent environmental protection, promote the establishment of a
foster new growth areas and drivers of growth in
“Xi Jinping's report at 19th CPC National platform for intelligent environmental protection and decision support in all
China Congress” and other documents
medium-high end consumption, innovation-driven
development, the green and low-carbon economy, the
fields with all elements.
sharing economy, modern supply chains, and human › Support logistics enterprises to build digital operation platforms, encourage the
capital services … development of intelligent storage and intelligent transportation.
› Use digital technology to optimize intelligent power grid, regulate the balance
between supply and demand of luminous energy and wind energy, strengthen
…Green and digital are the 2 inseparable wheels of a
Green Growth Strategy Through the maintenance and the inspection of equipment.
Japan Achieving Carbon Neutrality in
car…There is an urgent need for creating a development
and evaluation environment utilizing digital › Increase the utilization of energy through the transportation modes such as
technology.… autonomous car and UAV.
2050 › Use energies efficiently through intelligent residence and service robot.
› The Recovery and Resilience Facility1) and the earmarking of expenditure on

reforms and investments include investments in the complementary green
…Our goal is to accelerate and take the global lead on industry (at least 37%) and in the digitalization (at least 20%).
A Green and Digital Transformation
EU of the EU
the green digital transformation, building on › Encourage to use other policy tools to accelerate the green and digital
"Digitalization for the Benefit of the Environment".… transformation of the preferential industries such as energy, transportation,
agriculture and construction defined in the Green Deal and Circular Economy
Action Plan2).
1) Recovery and Resilience Facility and the earmarking of expenditure on reforms and investments; 2) Green Deal and Circular Economy Action Plan
100
Thank you. 把数字世界带入每个人、每个家庭、
每个组织，构建万物互联的智能世界。
Bring digital to every person, home and
organization for a fully connected,
intelligent world.
Copyright©2021 Huawei Technologies Co., Ltd.

All Rights Reserved.
The information in this document may contain predictive

statements including, without limitation, statements regarding
the future financial and operating results, future product
portfolio, new technology, etc. There are a number of factors that
could cause actual results and developments to differ materially
from those expressed or implied in the predictive statements.
Therefore, such information is provided for reference purpose
only and constitutes neither an offer nor an acceptance. Huawei
may change the information at any time without notice.

Digital Transformation From Strategy To Execution

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Digital Transformation From Strategy To Execution

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Au t h o r Preface

Chapter 1 Chapter 2 Chapter 3 Chapter 4

Insights and Digital Digital Infrastructure is Digitalization Facilitates

Insights and Trends

Digitalization as an engine of Digital leverages energy saving and

Digital Adoption acceleration Digital Economy Growth

GDP 8.7% 8.5%

Person Home Enterprise Industry City Nation

Payment Smart Home Finance Pubilic service Emerging

Education Gigaband Connected Retail Low Carbon Efficient

Safety Experience Consumer & Culture &

Advanced quality FTTB->FTTH->FTTR Flexibility Agriculture Education

Education: Higher quality Work: Lower risk Healthcare: Better health

Source: Roland Berger

More efficient and agile

102,064 104,672 122,633 145,377 300

Source: Gartner Source: Reuters

Connected and intelligence

prominent in global economy

Source: : Desktop Research; Roland Berger

Low Carbon: Intelligent ability Active Innovation: Smart interconnection

Education New Infrastructure：New directions for infrastructure construction

Major projects and Total investment

1) Economist Intelligence Unit, Global Liveability Index

Education: Efficient: Digitalization of government affairs has

Employment: Creating new jobs 79%

Source: Strategic document; Desktop Research; Roland Berger

14 Source: OCED.AI, Holon IQ

Thailand Internet growth

Source: the Ministry of Communications and Information Technology (MCIT)

China Italy Japan

Denmark Germany Australia

1 Economic Value 2 Social Value

Unit society development

Aggregates welfare Opportunities

Overview of digital transformation

Undertaking strategies Implementation unit

• Investment in communication network • The concept of digitalization rooted in

• Investment in communication network

• Majority of operations are manual/offline • End-to-end business process in systems

• Holistic digital visibility and analysis capabilities

Framework: Top-level design based on strategy, application, technology

Business Society Government affairs

Smart retail Smart construction City governance

Organization Fund Talent Regulation Ecosystem

Evaluation model: Based on 12 dimensions and 29 detailed quantitative

2 • Whether there are clear and detailed objectives

3 • Transformation degree in the commercial field

Infrastructure and platform capabilities Regulation

Evaluation model: Based on 12 dimensions and 29 detailed quantitative

Strategic vision Strategic objectives

GDP per capita

Organizing Strength in Talent Regulatory Myanmar Vietnam

Source: Roland Berger

Basic information: Develop digital infrastructure to drive economic rapid

practice informatization infrastructure construction

Application digitalization: focus on government affairs and advantage industries

Drive the economy with

promoting the digital

services, education, educational curricula course content

Source: CAICT; Desktop Research; Roland Berger

Systematic Digitalization : Nation had a strong strength in digital economy,

• Digital industrialization: High tech Smart networks Industry 4.0