Since 2010, Advantech has adhered to its corporate vision of “Enabling an Intelligent Planet.” Under this strategy, we actively invest in product and technological innovation as well as in mechanisms for co-creation and co-prosperity with R&D and business ecological partners. Advantech further outlined our vision in three stages in 2015 with the "AIoT Internet of Things Development Blueprint.” This set the tone for artificial intelligence and the Internet of Things as our engine of future industrial growth; and through continuous innovation, we are gradually transforming the Company from an industrial computer manufacturer into a technology supplier and service provider that provides overall solutions from the industrial Internet of Things to the cloud.
Three Stages of Advantech’s "AIoT Internet of Things Development Blueprint"
Several important innovation mechanisms all held by Advantech now are personally led by the Chairman and senior executives, including those concerning products,technology, careers, and academic cooperation. Furthermore, they involve pragmatic long-term promotion encompassing three categories and six projects:
Among these, the “C” in the IMAX-C for innovative business stands for “Co-Creation,” a newly-added initiative over the past two years. That is to say, in the second stage of the "AIoT Internet of Things Development Blueprint," co-creation must be clearly described in the annual plan of a business unit once it begins work. EBO has been simultaneously advancing this blueprint. As Advantech has transformed from a manufacturer of equipment and hardware to build an AIoT ecosystem, we have begun to explore and develop new opportunities from a new business perspective. A+X and TSU/MCU support this AIoT development blueprint from an innovative perspective on the product side, and achieve this through high-level empowerment and cross-unit integration. Along with InnoWorks, industry-university co-creation also lies in the direction of the Blueprint's development. Through cooperation with external academia and research, we may stimulate new ideas that form a departure from traditional thinking.
This includes the new social generation‘s ideas and product concepts for the future Internet of Things to help prepare Advantech for the third phase of AIoT to envision new integrated applications and services and to undertake preliminary ideas and exploration.
Advantech‘s innovation mechanism has fostered many new business units and launches hundreds of new products or more every year. In addition to winning awards and creating outstanding business results, we continue to expand our leadership in the Industrial IoT industry. While promoting the co-creation of the Internet of Things, it is one of Advantech’s important tasks to enable our core business to grow through mainstream trends and innovative growth rates of leading R&D technologies. Through in-house innovation projects, we examine innovation effectiveness and trends, encourage the development of innovative products, and nimbly adjust our product strategies.
Effective Management of Innovation
In the promotion of many innovative mechanisms, Advantech will provide different effectiveness indicators according to the attributes of the issues each mechanism focuses on. This will ensure that these innovative measures and mechanisms can maximize their benefits. In addition to defining a basic quantitative goal (KPI) for each innovation mechanism, we shall also define conditions for achieving the goal as well as follow-up actions. For example, the University Co-Creation industry-university research projects shall establish how many research projects of value are to be proposed, and the final results must also have a certain percentage of output that can be transferred or that can see continued cooperation in technology with the internal business units of Advantech. Another example is in product innovation. For industrial design, additional rewards will be given based on whether industrial design awards such as IF are obtained; and we shall track the revenue benefits of new products after commercialization. For the EBO mechanism of business innovation, Advantech also has a special steering committee composed of senior executives.
This Executive Committee is established for the planning or achievement of innovative businesses and business models, and to provide substantive suggestions, resources, and rewards as well as tracking the development results of business units.Through various innovative mechanisms and corresponding management by objectives, Advantech pragmatically drives the creativity, innovation, and breakthroughs of the Company's team in terms of products, technology, or business.