Talking with Samsung Research Indonesia Managing Director Alfred Boediman about “Deep Tech”

Terminology deep tech is currently emerging thanks to the increasingly massive use of digital services. One of them is mentioned in the results CompassList research about agritech in Indonesia throughout the first quarter of 2020. Product-implementing innovation deep tech needed to transform this sector. Technologies such as artificial intelligence, data analysis, and robotics are considered important to be part of the future of agriculture in Indonesia.

More than that, deep tech which is becoming more mature ideally can be implemented in various other sectors, by supporting existing technology systems. To understand more about deep tech, including its implementation and projection, DailySocial had the opportunity to interview the Managing Director of Samsung Research Indonesia (SRIN) Alfred Boediman. Here are the results of our interview.

DailySocial: How would you describe deep tech, in terms of implementing it in an app? So far, many people have associated the term with products such as artificial intelligence and analytics; what can be optimized from this technology?

Alfred Boediman: Yes, technologies such as artificial intelligence (AI), genome editing, data analytics, facial recognition, and robotics are indeed considered as applications of solution terminology "deep tech"Because it is based on scientific research and is often patent-backed. In general, I can identify three basic attributes that characterize a solution deep tech in a business context, especially in its application in an existing application/system.

The first attribute is impact. Innovation based on deep tech should be able to have a great impact on everyday life, far beyond the limits of the resulting economic value. As is the case in Indonesia, several big cities in our country have started experiencing the problem of overpopulation. To solve this problem, AI is considered as one of the key technologies to be implemented.

Then second is time. Solution development deep tech it takes time to move from basic science to technology that can be applied to tangible results. The length of time for adoption of these technologies will vary substantially, and may take longer than innovations based on established technologies.

For example, based on the analysis of international research institutes, if it takes an average of 4 years to develop technology in biotech; broken down into 1,8 years from incorporation to the first prototype and a further 2,2 years to reach a market-ready product. Then, compared to startups blockchain, the comparable figure is 2,4 years, of which 1,4 years for the first prototype and 1 year for the next market-ready product.

While the third attribute is investment. Company funding needs deep tech significantly different from the others. According to the example above, where on average the first prototyping for a biotech solution could cost around US$1,3 million, while the solution cost blockchain only about US$200 thousand.

Other than that, Market risk is one of the factors for investors to consider, where is startup deep tech usually seek funding at an early research stage, meaning that it can be difficult to thoroughly evaluate the attractiveness and potential of the market. Another factor is the inherent technology risk, as many investors do not have the specialized skills to accurately assess the potential of emerging technologies in such a short timeframe.

Because we will face challenges: lack of talent, education and a thorough understanding of solutions deep tech the. So to overcome and optimize this problem is the collaboration between technology companies, governments, and universities; which will be a key move to train and upgrade the skills of the existing professional generation.

DailySocial: To your knowledge, currently deep tech has begun to be widely applied to support ICT in Indonesia?

Alfred Boediman: Back in 2017, several ministers in Indonesia have joined forces to start the “Movement Towards 100 Smart Cities”, together with several private companies. The smart city concept will combine information and communication technology (ICT) and IoT (Internet of Things) solutions. The current government this, has shown its will to implement the solution deep tech with the President's previous statement to replace some state worker positions with AI services to reduce overlapping rules and bypass the existing bureaucracy.

As far as I know, there are at least more than 50 startups deep tech who work in various industries in Indonesia. For example, several national startups in the AI ​​field are Kata.ai and Nodeflux. kata.ai provides B2B-based conversational platform solutions, also known as chatbot. chatbot can be integrated in various messaging platforms, such as LINE, Facebook, Twitter, and Telegram. It's different with nodeflux is the first startup to develop a video analytics platform using technology "machine learningThis platform allows Nodeflux to offer services such as facial recognition and other monitoring functions.

DailySocial: In its application in the real sector, what is the potential of this technology? Maybe there are case studies that have been encountered?

Alfred Boediman: For now, local technology companies in Indonesia are largely relying on the government to nurture more local talent by raising awareness about the industry's direction and progress in the future, and how people should prepare for these changes. However, relying solely on the government may not be effective, as the existing education and learning system is not equipped to cope with the impending revolution in the demand for industrial skills. Therefore, real collaboration is very important to be able to implement solutions deep tech in Indonesia.

In a growing digital ecosystem across Southeast Asian countries, growing talent for solutions deep tech will become increasingly important and more businesses will need the technology. Each country in the region has a different pace of development, for example Singapore is considered the most advanced for the implementation of solutions deep tech in South East Asia.

Meanwhile, Indonesia has also built several unicorn, with its main startups like Gojek, Tokopedia, Bukalapak, and others. With a total of around 5800 startups nationwide, the market is getting a little crowded, but a small portion has set foot in the solution area deep tech overall. Startups with solutions deep tech tend to have periods to market longer, because the existing operations are highly dependent on research-based solutions projects. Startup deep tech currently on the rise, but they also meet many challenges that require them to think hard in order to stay operational.

DailySocial: What are the biggest challenges for the successful implementation of deep tech in Indonesia?

Alfred Boediman: Even though the government and many industries are open to adoption deep tech, but efforts to implement it throughout Indonesia will face complex challenges, especially in the problem of local talent shortages and the quality of existing education.

In my opinion, there are three main components that will drive the use of the solution deep tech effective: algorithms, computing power, and existing data. These are all components that must be improved in our country. Many companies deep tech (such as SRIN) have difficulty in finding AI talent in university graduates in Indonesia.

Meanwhile, there is an interesting article I've read that the country that hosts a PhD student is not always the beneficiary country. The reality is that about a third of the researchers working for companies based in the country are different from the country where they received their PhD. Therefore, local technology companies in Indonesia need to attract this talent to return to our country and continue to develop solutions deep tech appropriately.

DailySocial: In your opinion, is there any urgency why deep tech development needs to be prioritized at this time?

Alfred Boediman: Solution development deep tech important for a simple reason – to simplify human life, one example is where in the past "social distancing" today, solution-based digitization and automation deep tech will help a lot of existing business needs. Solution based company deep tech very relevant to big problems around the world; such as in hygiene problems in water purification, or chatbot which is useful for various service industries, or matters related to autonomous vehicles–especially in developed countries. These kinds of things may not be easy areas for some investors or the government to pursue in Indonesia's short time, but we have to start now or it's too late.

I met a wide variety of investors, entrepreneurs, academics and scientists. That's my way of being open to what's going on, especially in solution development deep tech – what worked and what didn't work. Part of what I'm trying to do is provide feedback to existing governments and communities. I take what the government thinks and convey it to the community, it is a long journey from a research organization committed to developing solutions deep tech in Indonesia.