Services 4.0 provides a new way forward to capture the opportunities and risks from the rise of emerging technologies in the services economy
Monitor Deloitte is knowledge partner to IMDA’s Services 4.0 development and Services and Digital Economy Technology Roadmap
SINGAPORE, 22 November 2018 — Deloitte, through its strategy consulting practice (Monitor Deloitte) in Singapore, is supporting the Info-communications Media Development Authority (IMDA) as a knowledge partner in the agency’s focus and efforts around Services 4.0 development. As part of this support, Deloitte assisted IMDA to envision the concept and strategy around Services 4.0 and supported the new Services and Digital Economy Technology Roadmap.
“We are honoured to support IMDA in this important and ambitious agenda. The Singapore economy, and along with it, its service economy will continue to grow, and the rise of emerging technology will drive transformation simultaneously. Emerging technologies and their associated trends can bring about new value creation in the economy, and cause disruption to current businesses. It is, therefore, becoming necessary for organisations to reimagine the way they deliver services, conduct their business and interact with their customers,” said Mohit MEHROTRA, Strategy Consulting Co-Leader, Deloitte Asia Pacific.
As digital and technological transformation becomes increasingly pervasive, it will inevitably give rise to a suite of opportunities and challenges for the Singapore economy, business and workforce. This will be especially prominent in the services industry, given that Singapore is a service-oriented economy where, in 2017, 72% of the nation’s GDP and 74% of employment came from the services industry, compared to 66% and 69% in 1996 respectively.
Services 4.0, or the future of services, can be defined as the ‘next step’ in the evolution of service provision, as it embraces the changes brought about by the digital economy.
A study was conducted by Monitor Deloitte to understand the changing dynamics of the services economy landscape and the role emerging technologies play in this change. The study determined the major technology trends and their impact on the changing customer needs, service delivery models and the ICM (Infocomm Media) ecosystem that provides solutions to the service providers.
Everything-as-a-Service has been identified as a key Services 4.0 model for the service providers to adopt to respond to the opportunities and risks associated with technology disruption. Furthermore, the study recommends that service providers and the ICM ecosystem work together to create a new paradigm of technology development, deployment and adoption based on the principles of Cloud Native Architecture. Through this new paradigm, service providers will be able to leverage the powers of emerging technologies flexibly, easily and at low cost, and will also be able to bring new products to the market and scale faster.
Services 4.0 keeps humans at the centre. This new vision will help service providers offer services that are end-to-end, frictionless, and in a way that is also anticipatory and empathic to their customers’ needs. Here, the definition of customers is not just confined to the business-to-consumer industries such as retail and restaurants but also include business-to-business customers (such as logistics) and customers of intra-business functions (such as internal organisational functions such as Human resources and finance).
Services 4.0 also has the workers at heart. It envisions an ecosystem that allows machines to augment workers’ performance by automating certain repetitive parts of the tasks and enables, via intelligent machines, workers to focus on more “human” aspects such as creativity, critical and analytical thinking, emotional intelligence and innovation. This will in turn encourage workers to adopt new skills, to work with emerging technologies seamlessly and to focus on jobs that generate higher value.
“In an increasingly technology enabled world, the big shifts in the client, regulatory and capability ecosystems are creating interesting opportunities and challenges for businesses. Many businesses are orienting towards the Everything-as-a-Service play. Singapore, through its Services 4.0 vision, has recognised the associated opportunities and risks. This move will help Singapore strengthen the ecosystem, accelerate the transformation of businesses and workforce, and deliver the ambition towards becoming a leading services and digital economy,” said Mohit.
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