Winston Ma is a high-tech investor, digital economy author, China-US cross-border lawyer and NYU Adjunct Professor on SWF funds
In early November 2020, 800 million consumers, 250,000 brands, and international merchants from more than 200 countries and regions, celebrated the Singles’ Day together. At the speed of the internet, global consumers collectively spent more than $74 billion during this 24-hour online shopping extravaganza.
By far, the November 11 festival is the world’s largest online shopping day, beating Black Friday and Cyber Monday combined. However, the highlight of late is no longer the new sales record, but the advanced data technologies involved, such as AI (artificial intelligence) and big data to predict consumers’ purchases, virtual tours with 3D visuals to sell big-ticket items like houses and furniture, and real-time transaction processing in the cloud.
This is a vivid example of China’s digital economy leaping from “mobile first” into “data first”, and the inflection point of which was a historical match between human and AI in 2017.
In May 2017, China hosted the historical Go match between Ke Jie, the world’s No 1-ranked player and world champion, and the AI-enabled computer program AlphaGo, designed by Google’s DeepMind Lab. With the AI machine’s straight 3-0 win over best human player, the sense of the unequivocal rise of the AI economy.
Almost overnight, the internet business community in China started discussing “the second half” of the mobile economy era, which in 2013-2016 drove a boom in e-commerce and mobile entertainment. Since 2017, the new key words have been “data” and “intelligence”.
Across just about every industry sector, Chinese companies are rushing to learn how new digital technologies, including the internet of things, AI, blockchain, cloud computing and data analytics can be integrated into their businesses to unlock value from non-traditional angles. The transformation of businesses and industries has been more profound than from the mere addition of internet.
Again, taking the logistics issue Singles Day for example. The inventory, distribution and delivery of numerous orders in a short span of time is such a challenge.
And as such, Alibaba’s logistics affiliate, Cainiao, launched big data analytics to empower merchants with demand forecast data and allow them to accurately pre-stock their goods in the right quantity and location.
Countries such as Bahrain, the UAE and Saudi Arabia have rapidly cemented their position as pioneers in leveraging modern day technology for the development of various industries
Moreover, Cainiao used GIS (Geographic Information System) to determine the fastest and most cost-effective delivery routes in a variety of complex road networks, including both rural villages and crowded urban areas. Because of the 2020 coronavirus pandemic, Cainiao deployed more than 10,000 mobile lockers to allow customers to pick-up parcels without human contact.
All these have profound implications for emerging markets that are looking at China as a reference case when they work on their own digital transformation. That means they need to look beyond mobile phones and the digital wallet; instead, they must start positioning themselves for the next phase – AI and the digital economy – now.
The billion-user messaging service of WeChat, $74 billion e-commerce in 24 hours on Singles Day, and “smile-to-pay” functions creating a cashless society are already screenshots from yesterday.
For emerging markets, China’s leap forward may also give them a sense of urgency. However, it may be a leapfrogging opportunity for them if they embrace the new technology revolution as keenly. From “mobile” to “digital”, what’s truly extraordinary is the decisive commitment from the China government.
Outside of China, significant technological advancements in the MENA region over the past year, especially in the financial sector, have made it clear that there is an abundance of opportunities available to the public and private sector to leverage technology advancements to address the growing challenges faced in the region.
Countries such as Bahrain, the UAE and Saudi Arabia have rapidly cemented their position as pioneers in leveraging modern day technology for the development of various industries, which is evident in each of their distinctive national transformation strategies.
For example, Bahrain has made significant strides towards its vision of becoming a cashless digital economy, positioning itself as a FinTech hub in the MENA region. It attracted Amazon Web Services to establish a footing, while fast tracking digital transformation in the region via cloud services.
Looking at Saudi Arabia, it is evident that the country is charging forward with its digital transformation ahead of the nation’s Vision 2030 objectives. The kingdom is investing heavily in shifting economic growth away from a dependency on oil, to supporting tech innovation and entrepreneurship. It has poured billions of dollars into high-tech funds and moved ahead with a swathe of economic reforms to strengthen the digital sector
Another prime example from the MENA region is the UAE. The explosion of smartphone ownership in the UAE in the past 10 years, coupled with the country’s high internet penetration and government bodies’ readiness to embrace technology, has transformed nearly every aspect of life in the country, from how residents and citizens communicate, to how they work, shop, get around, and pay electricity bills.
The explosion of smartphone ownership in the UAE has transformed nearly every aspect of life in the country
In summary, Covid-19 has changed the world, and we are all now progressing rapidly towards a digital ecosystem. This was a central point of consensus at Bank ABC’s 4th MEA Fintech Forum, which I recently took part in.
The seismic shift from physical to virtual lives has turbo charged digitisation across all industries, financial services included. Banks are slowly interweaving their services with non-banking services to enhance customers’ lifestyle experiences. This is “banking beyond digital”.
As such, the crisis may present an opportunity for the MENA Region to accelerate their digital transformation. Just like China’s recently announced stimulus package centered on “new [economy] infrastructure”, the emerging markets could similarly focus on digital ecosystem upgrade to build a 2021 path to recovery.
Winston Ma is a high-tech investor, digital economy author, China-US cross-border lawyer and NYU Adjunct Professor on SWF funds
Written by Staff Writer
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Leaping from mobile first into data first
Coronavirus crisis may present an opportunity for the MENA region to accelerate its digital transformation, says Winston Ma
Winston Ma is a high-tech investor, digital economy author, China-US cross-border lawyer and NYU Adjunct Professor on SWF funds
In early November 2020, 800 million consumers, 250,000 brands, and international merchants from more than 200 countries and regions, celebrated the Singles’ Day together. At the speed of the internet, global consumers collectively spent more than $74 billion during this 24-hour online shopping extravaganza.
By far, the November 11 festival is the world’s largest online shopping day, beating Black Friday and Cyber Monday combined. However, the highlight of late is no longer the new sales record, but the advanced data technologies involved, such as AI (artificial intelligence) and big data to predict consumers’ purchases, virtual tours with 3D visuals to sell big-ticket items like houses and furniture, and real-time transaction processing in the cloud.
This is a vivid example of China’s digital economy leaping from “mobile first” into “data first”, and the inflection point of which was a historical match between human and AI in 2017.
In May 2017, China hosted the historical Go match between Ke Jie, the world’s No 1-ranked player and world champion, and the AI-enabled computer program AlphaGo, designed by Google’s DeepMind Lab. With the AI machine’s straight 3-0 win over best human player, the sense of the unequivocal rise of the AI economy.
Almost overnight, the internet business community in China started discussing “the second half” of the mobile economy era, which in 2013-2016 drove a boom in e-commerce and mobile entertainment. Since 2017, the new key words have been “data” and “intelligence”.
Across just about every industry sector, Chinese companies are rushing to learn how new digital technologies, including the internet of things, AI, blockchain, cloud computing and data analytics can be integrated into their businesses to unlock value from non-traditional angles. The transformation of businesses and industries has been more profound than from the mere addition of internet.
Again, taking the logistics issue Singles Day for example. The inventory, distribution and delivery of numerous orders in a short span of time is such a challenge.
And as such, Alibaba’s logistics affiliate, Cainiao, launched big data analytics to empower merchants with demand forecast data and allow them to accurately pre-stock their goods in the right quantity and location.
Moreover, Cainiao used GIS (Geographic Information System) to determine the fastest and most cost-effective delivery routes in a variety of complex road networks, including both rural villages and crowded urban areas. Because of the 2020 coronavirus pandemic, Cainiao deployed more than 10,000 mobile lockers to allow customers to pick-up parcels without human contact.
All these have profound implications for emerging markets that are looking at China as a reference case when they work on their own digital transformation. That means they need to look beyond mobile phones and the digital wallet; instead, they must start positioning themselves for the next phase – AI and the digital economy – now.
The billion-user messaging service of WeChat, $74 billion e-commerce in 24 hours on Singles Day, and “smile-to-pay” functions creating a cashless society are already screenshots from yesterday.
For emerging markets, China’s leap forward may also give them a sense of urgency. However, it may be a leapfrogging opportunity for them if they embrace the new technology revolution as keenly. From “mobile” to “digital”, what’s truly extraordinary is the decisive commitment from the China government.
Outside of China, significant technological advancements in the MENA region over the past year, especially in the financial sector, have made it clear that there is an abundance of opportunities available to the public and private sector to leverage technology advancements to address the growing challenges faced in the region.
Countries such as Bahrain, the UAE and Saudi Arabia have rapidly cemented their position as pioneers in leveraging modern day technology for the development of various industries, which is evident in each of their distinctive national transformation strategies.
For example, Bahrain has made significant strides towards its vision of becoming a cashless digital economy, positioning itself as a FinTech hub in the MENA region. It attracted Amazon Web Services to establish a footing, while fast tracking digital transformation in the region via cloud services.
Looking at Saudi Arabia, it is evident that the country is charging forward with its digital transformation ahead of the nation’s Vision 2030 objectives. The kingdom is investing heavily in shifting economic growth away from a dependency on oil, to supporting tech innovation and entrepreneurship. It has poured billions of dollars into high-tech funds and moved ahead with a swathe of economic reforms to strengthen the digital sector
Another prime example from the MENA region is the UAE. The explosion of smartphone ownership in the UAE in the past 10 years, coupled with the country’s high internet penetration and government bodies’ readiness to embrace technology, has transformed nearly every aspect of life in the country, from how residents and citizens communicate, to how they work, shop, get around, and pay electricity bills.
In summary, Covid-19 has changed the world, and we are all now progressing rapidly towards a digital ecosystem. This was a central point of consensus at Bank ABC’s 4th MEA Fintech Forum, which I recently took part in.
The seismic shift from physical to virtual lives has turbo charged digitisation across all industries, financial services included. Banks are slowly interweaving their services with non-banking services to enhance customers’ lifestyle experiences. This is “banking beyond digital”.
As such, the crisis may present an opportunity for the MENA Region to accelerate their digital transformation. Just like China’s recently announced stimulus package centered on “new [economy] infrastructure”, the emerging markets could similarly focus on digital ecosystem upgrade to build a 2021 path to recovery.
Winston Ma is a high-tech investor, digital economy author, China-US cross-border lawyer and NYU Adjunct Professor on SWF funds
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