Understanding Social Innovation and its importance in ASEAN - Hitachi

Summary

Hitachi’s social innovation initiatives in Southeast Asia focus on using technology to address the region's diverse challenges. With over 640 million people and rapid growth, ASEAN faces issues like limited electricity access, traffic congestion, and low internet penetration. Hitachi tackles these by building subways, creating electronic payment systems, providing renewable energy solutions, and more. The company combines its expertise in IT and operational technology to improve lives, aiming to help the region achieve its full economic potential while contributing to sustainable development through co-creation with local partners.

Takeaways

• 😀 Social innovation is about applying technical solutions to solve society's problems, especially in rapidly growing regions like Southeast Asia.
• 😀 Hitachi focuses on social innovation through the combination of operational technology (OT) and information technology (IT) to tackle modern societal challenges.
• 😀 Southeast Asia is facing diverse development needs, ranging from urbanization to aging populations, with specific challenges like access to water, transportation, and traffic congestion.
• 😀 Social innovation in Southeast Asia is crucial due to the region’s growth potential, with 640 million people and a projected increase in the middle class.
• 😀 By 2050, Southeast Asia is expected to become the world’s fourth-largest economy, and social innovation will play a key role in helping it reach its full potential.
• 😀 Key obstacles for the region include limited access to electricity, crowded public transportation, and low internet penetration compared to other regions like North America.
• 😀 65 million people in Southeast Asia lack access to electricity, highlighting the need for innovative solutions to improve energy access.
• 😀 Traffic congestion in Southeast Asia costs the region over $200 million annually, exacerbating the need for better public transport systems.
• 😀 Hitachi is addressing these challenges by developing infrastructure like subways in Bangkok and Ho Chi Minh City to reduce congestion and improve public transportation.
• 😀 Hitachi’s initiatives include partnerships for electronic payment systems, supplying energy-efficient transformers, and contributing to Indonesia’s renewable energy targets through solar panel production.

Q & A

What is social innovation, according to Hitachi?

Social innovation for Hitachi is the application of technological solutions to address societal problems, aiming to improve the quality of life and solve issues faced by modern societies. This is achieved through a combination of operational technology (OT) and information technology (IT).

How does Hitachi view Southeast Asia in terms of growth potential?

Hitachi sees Southeast Asia as a region with tremendous growth potential. With a population of 640 million, the region is expected to become the world's fourth-largest economy by 2050. The growing middle class and urbanization present significant opportunities for social innovation projects.

What are some of the key obstacles Southeast Asia faces, according to the speaker?

The key obstacles mentioned include limited access to electricity, severe traffic congestion, and low internet penetration. These challenges impact the region's overall economic development and quality of life.

Why is internet penetration important for Southeast Asia’s development?

Internet penetration is crucial because it enables access to information, supports economic activities, and promotes digital inclusion. Southeast Asia has a low internet penetration rate of 68%, which hinders the region’s full economic potential compared to regions like North America with 88% penetration.

How is Hitachi addressing the issue of traffic congestion in Southeast Asia?

Hitachi is addressing traffic congestion by building subway systems in cities like Bangkok and Ho Chi Minh City. These transportation projects are designed to ease congestion and improve public transport infrastructure, ultimately enhancing mobility in these urban centers.

Can you provide examples of how Hitachi is helping improve access to electricity?

One example is Hitachi supplying over 5,400 distribution transformers to Myanmar. This project helps meet the country’s growing energy needs and ensures more people have access to electricity, a critical component for economic and social development.

What is Hitachi's role in renewable energy in Southeast Asia?

Hitachi, in partnership with Sky Image, is producing solar panels in Indonesia to help the country meet its renewable energy target of 23% by 2025. This contributes to the region's efforts to transition to cleaner, more sustainable energy sources.

How is Hitachi contributing to the development of smart cities in Southeast Asia?

Hitachi is contributing to the development of smart cities by setting up IoT solutions centers, such as the Lumen Center in Thailand. These centers promote Thailand 4.0, focusing on enhancing technological infrastructure to improve urban living standards and support economic growth.

What is the significance of the partnership with temples in Laos for Hitachi?

The partnership with temples in Laos is significant because it focuses on creating an electronic payment system, which will serve as the foundation for a nationwide payment infrastructure. This initiative is part of Hitachi's broader effort to enhance financial inclusion and promote digital transformation in the region.

What makes Southeast Asia’s challenges unique compared to other regions?

Southeast Asia's challenges are unique due to its diverse stages of economic development. While some countries are urbanizing rapidly, others face the challenges of an aging population. The varying needs—ranging from urban infrastructure to access to basic services like water and electricity—require tailored technological solutions.