Digital transformation results in fundamental changes to the way a business operates. For many small and medium enterprises (SMEs), the driver for digital transformation is cost-related. The costs and complexities associated with digital transformation involve a large number of Malaysian SMEs. However, they mistakenly assumed that it is something that should only be run by large companies that have surplus budgets and resources.
This has resulted in the downfall of micro, small and medium enterprises (MSMEs) by 7.3% between 2020 and July 2021. According to the Chief Executive Officer of SME Corp Malaysia, Rizal Nainy, this decline is not surprising due to the pandemic and Movement Control Orders (MCOs) which hinder and slowed the majority of business operations, especially for those who did not embark on their digital transformation journey.
Today’s artificial intelligence (AI) systems are already transforming the industry and becoming an indispensable part of our daily lives.
It is undeniable that we currently live in a world where everything moves fast. As technology is just at the tip of our fingers, companies are forced to continuously adapt to change to survive. This ultimately, changes what it means to be an SME. In the past, being an SME generally meant your small to medium-sized business operated locally, servicing a core group of customers. The internet that we have now allows them to serve global clients as much as the larger competitors using cloud-based software, development platforms and infrastructure.
Today’s artificial intelligence (AI) systems are already transforming the industry and becoming an indispensable part of our daily lives. They grasp machines in processing and analysing large amounts of data, bringing an impact on how humans work and play as well as being used in many sectors, from banking to energy to agriculture.
ESG and Sustainability
ESG is an acronym that stands for the Environment, Social, and Governance factors to appraise enterprises and countries on how advanced they are with sustainability. ESG and sustainability are two popular terms that are floated around the corporate sphere. Both have similarities that address the environmental and social aspects of a business.
ESG and sustainability are two popular terms that are floated around the corporate sphere. Both have similarities that address the environmental and social aspects of a business.
What AI can do for ESG and Sustainability:
1) Analyses huge quantities of unstructured data efficiently
Unstructured data is harder to analyse and process which is why it is not often used. But cloud computing and AI tools equipped with machine learning are introducing new ways to manage this which contains a variety of precious customer insights. Unstructured data needs more advanced tools to transform it into measurable data. Scientists and data engineers have started to adopt AI to automate research processes and manual data extraction allowing them to find and swallow large amounts of data as well as identify, extract and measure ESG information quickly and efficiently.
2) Balance electricity supply and demand needs in real-time
The utilisation of AI can optimise energy consumption and storage to reduce rates as well as balance electricity supply and demand needs in real-time. In the future of green energy, renewable energy will come from a variety of sources, such as microgrids, wind farms and solar panels. The energy generated by such sources is inclined to volatile fluctuations depending on current weather conditions, unlike the more predictable production of gas or coal plants. With the decentralised global energy line, AI will hold an important role in handling the complexity of power deployment to industrial facilities, office buildings, homes and wherever needed.
3) Allows agribusiness to grow more food with fewer resources
AI is changing the game for agribusinesses. Modern farmers can utilise AI in analysing their farms’ data for crop yield forecasting as well as climate control. In a space-hungry land like Singapore, AI makes it possible for them to grow more food with fewer resources. This can be seen happened to one of the local agri-tech firms based in Singapore that incorporated AI in their indoor farm, A*STAR’s partnership with Archisen who is capable of producing up to 1000 tonnes of vegetables a year.
AI is changing the game for agribusinesses. Modern farmers can utilize AI in analysing their farms’ data for crop yield forecasting as well as climate control
4) Attract investors in ESG investing
Investment in ESG has become a socially vital asset group. One study shows that sustainable investment hit $31 trillion in 2018, up by 34% from 2016. As a result, we need to know how different companies act according to ESG. AI allows investors to gather and analyse more data than ever before when taking into account environmental, social and governance risks and opportunities. Besides that, AI can help sustainable investors process a mountain of information that stores vital information for ESG investments. Once investors have information on ESG investing, they will look for enterprises that apply AI in their businesses to help them grow.
Now Is the Time!
The importance of AI’s role when it comes to ESG and sustainability efforts have become clear. In the evolution of the ESG space, the benefits of access to powerful technology for decision-makers are playing their part. Now is the time to read between the lines to find who will move the needle. The majority of business leaders believe that technology can efficiently help enterprises to manage a sustainable business. These businesses surely will be the ones that will succeed in the long run. So, businesses should make a progress now, or risk falling behind.
TM R&D is happy to build effective partnerships to confront what is a common concern for mankind by providing businesses with innovations that fulfil the ESG requirements. In addition, we look forward to collaborating with interested partners to achieve successful results together. At the core, our goal is also to be a reliable partner for any organisation to embark on a successful and sustainable digital transformation journey and ensure that any technology adoption will be the building block to spur growth.
About TM R&D
Established in 2001, TM R&D is the innovation arm for TM Group focusing on creating smarter ecosystems to make business and life easier for a better Malaysia. TM R&D’s solutions are clustered around four (4) pillars namely Intelligent Platforms, Data Brokerage, Connectivity/Tools and IR4.0/Digital Solutions. Growing from strength to strength since 2016, TM R&D has won multiple global awards and generated more than 2,800 Intellectual Property Rights (IPRs) and 1,400 digital assets to date. TM R&D’s innovations are all developed in-house and cut across multiple verticals such as Utilities, Retail, Agriculture, Healthcare and Education with safety and productivity as the top priority.
For more information about TM R&D and its innovations, visit www.tmrnd.com.my or email your inquiry to email@example.com or follow us on LinkedIn (TM Research & Development) for more news and updates.