THE SIAM Cement Group will invest around Bt6 billion towards achieving digital transformation in the next five years.
The firm expects to invest in 40-50 external start-ups and entrepreneurs as well as deep technologies to enhance efficiency and productivity in its operations.
Yuttana Jiamtragan, the vice president for corporate administration of SCG, said the firm had set up a Digital Transformation unit last year in order to drive its organisation with digital technology.
The giant group has allocated an investment budget of around Bt6 billion for five years (2017-21), with Bt3 billion budgeted for start-ups and another Bt3 billion for deep technology to support its business and customers.
“SCG has adopted digital technology to enhance our efficiency and create competitiveness so that we can move forward quickly, understand the behavioural insights of customers and consumers.
“As result, we can provide one-stop services to customers and improve human resources, the working process, as well as products, services and solutions for our business,” said Yuttana.
The firm will invest in internal and external start-ups. For internal start-ups, the firm has created the Start-up Studio programme in order to incubate internal start-ups with self-disruption.
It will synergise its core businesses including cement, building materials, chemicals and packaging.
It did not disclose the number of internal start-ups it expected to develop as part of the five-year plan.
For external start-ups, the firm will invest in industrial areas such as smart manufacturing, robotics and automation. It will also invest in business-to-business activities including e-marketing platform for construction products, logistics, packaging and chemicals.
Blockchain and AI
It will also invest in enterprises in the areas of e-commerce enablement, omni-channel, Blockchain and artificial intelligence.
The firm has invested in 11 external start-ups and entrepreneurs as venture capital and direct investment such as Getlinks, dekoruma.com and Adatos.AI.
The firm expects to invest in 40-50 start-ups and entrepreneurs within five years.
“We are ready to encourage our staff to pitch their new business models in the internal start-ups programme. Meanwhile, we will keep investing in start-ups across the Asean region,” said Yuttana.
He added that in the area of deep technologies, the firm would invest in innovative and technologies that have a direct effect on its core businesses such as smart packaging, digital printing and predictive maintenance to improve its business efficiency and productivity.
Yuttana added that the SCG each year would budget around Bt4 billion to support research and development, or around 1 per cent of total revenue.