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Is AI an investment or a cost? Use the right scenarios to improve transformation efficiency and accelerate AI value realization【Business Weekly】
Radiant Opto-Electronics Corporation | 2024-08-07
2024/08/07 Far EasTone

President Qingde’s 520 inauguration speech proposed the “five major trust industries” that will be comprehensively promoted economically in the future, and artificial intelligence occupies one of them. Public servants from the grassroots to the undersecretary will also be provided with AI course training starting from the second half of this year. From the government to the private sector, Taiwan is making every effort to build an "AI brain."
"The digital economy will be the main driving force for the next wave of economic growth." In the AI ​​era, Lu Zhenghua, director of the Digital Industry Administration of the Ministry of Digital Development, emphasized in his speech: "No matter in any industry, the added value of software and data is crucial. "Especially in the manufacturing industry, machinery is the mother of industry. When the mechanical equipment of various manufacturing industries is combined with chip and software control, it will create huge application potential for flipping industries, and at the same time find a solution to the shortage of labor due to the declining birthrate.

The Department of Digital Development is leading the way and supporting the promotion of industrial AI.
At present, the Department of Digital Development is focusing on strengthening guidance and investing in the digital industry, promoting the integration of Taiwan's AI industry chain, and establishing an ecosystem based on the software and information security industries, with the goal of becoming a new trillion-dollar industry in 2026. . At the same time, the Ministry of Digital Development is also actively negotiating with the National Development Council, hoping to cooperate in establishing an "AI Ecological Park", combined with investment subsidies and collaboration, to attract domestic and foreign new entrepreneurs to deepen their cultivation in Taiwan and improve the AI ​​digital ecosystem. In addition to providing R&D subsidies to information service providers, the Ministry of Digital Development also announced this month the "AI Pilot Project" to provide subsidies for core AI technologies, AI information systems, and software and hardware integration solutions to accelerate the introduction of AI in various industries. .
Lu Zhenghua also reminded companies that intend to introduce AI to have a clear transformation strategy before deciding to invest. For example, instead of purchasing computing power by themselves in the early stage, it is better to use cloud and other methods to reduce the cost burden; first determine what problem is to be solved, and then decide what needs to be used. science and technology.

Find the right application scenarios and maximize the "return rate" of AI.
Many manufacturers are interested in investing in digital transformation and AI applications, and have also introduced a large number of IoT devices, but they suffer from not knowing how to carry out overall planning and connect individual technologies to achieve real benefits. Hu Demin, executive deputy general manager of Telecom Information and Digital Transformation Technology Group, pointed out that IT and OT players each have their own perspectives and strengths, but they only provide individual products rather than strategies, and cannot help enterprises plan an overall transformation blueprint. Enterprises should still start by thinking about what problems they want to solve and what value they want to create, weigh the urgency and importance of different goals, prioritize them, and then choose which technologies to introduce and how many resources to invest.
Due to the rapid iteration of technology, selecting technology requires not only mastering the most advanced technical knowledge, but more importantly, how to evaluate the benefits of introduction. At this time, Far EasTone's own transformation success and trial and error experience may be able to provide some practical insights for enterprises and help them Inventory transformation strategies and plan paths more efficiently.
"In the past, information investment was like buying medicine. If you have any disease, you just take the medicine. Today's AI thinking requires thinking about how to use it and where to use it." Hu Demin pointed out. For example, Far EasTone itself uses generative AI with the goal of "empowering white-collar workers". Senior managers take the lead in learning new tools and using them extensively to identify different application scenarios, effectively improving employee capabilities and productivity, thereby improving work efficiency. , the purpose of continuously stimulating innovation. When generative AI is used in the Far EasTone computer room, it performs real-time detection and alarm functions, and develops applications that can create benefits in different scenarios.

Harnessing AI technology to accelerate dual-axis transformation
In fact, for many Taiwanese manufacturing companies that compete in the international market, the dual-axis transformation issues of digital transformation and net-zero sustainability are not only related to the future competitiveness of the company, but also to meet the requirements of downstream customers. and expectations.
Take Radiant Opto-Electronics, Apple's main backlight module supplier and the world's largest backlight module factory, as an example. In recent years, it has improved the automation of its assembly business in response to customer requirements. In addition, Apple also requires Radiant Opto-Electronics to import a large number of IoT devices for testing. Key sites use AI to collect, analyze data and make improvements. Zhang Wenxiang, senior vice president and spokesperson of the Administrative Center of Radiant Opto-Electronics, said that at present, Radiant Opto-Electronics has fully introduced AI into all department processes, such as establishing a smart manufacturing department and using technologies such as image recognition and data analysis to promote the improvement of production lines; research and development The department uses AI for testing, accelerating research and development, reducing costs, and improving product quality; it also uses generative AI to produce patent documents, write programs, and more.
In terms of net-zero carbon emissions, Ruiyi Optoelectronics also uses AI to conduct carbon inventory and find the direction of carbon reduction improvement from the data. At the same time, it establishes an AI platform to evaluate the carbon emission coefficient of materials and uses low-carbon materials to produce low-carbon products. “In the process, the AIQ (AI IQ) of the entire company must be cultivated, so that they know what suitable application fields AI has and at the same time eliminate their doubts about AI.” Zhang Wenxiang pointed out.

Make good use of your own data gold mines to drive AI, and do data governance first.
Finally, Hu Demin also reminded enterprises not to ignore the existing internal data gold mines, because the prerequisite for AI digital technology to be truly effective is data. Many companies have a large amount of data, but it is scattered in various systems and cannot be used properly. "Getting through the data" is the first lesson that all companies cannot overcome to achieve successful transformation. Hu Demin particularly emphasized the importance of data governance in improving the success rate of transformation: "In fact, a lot of value is already in your home. It's just whether you have a way to penetrate it, activate it, use it, and let yourself see the scenery you haven't seen in the past. 

Is AI an investment or a cost? Use the right scenarios to improve transformation efficiency and accelerate AI value realization!

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