ADP Technologies – no, it is not any IT brand or software company as we should not like you to confuse with. ADP stands for Advanced Digital Production Technologies adopting which can be beneficial for your business in Thailand. Let us brief you about it.
ADP Technologies for your Business in Thailand: Overview
ADP Technologies are those which combine hardware like advanced robots and 3D printers with software like big data analytics, cloud computing and artificial intelligence. This hardware-software hybrid is synced with end-to-end detailed connectivity like the Internet of Things.
Advanced digital production technologies are the latest evolution of digital technologies applied to production, a core technological domain associated with Industry 4.0. They give rise to smart production or smart factories and are one of the most important strategic factors of Thailand 4.0.
It is all about facilitating fast and touchless interfaces for production. Additionally, it aims to enhance the productivity of manufacturing units across Thailand.
Now let us discuss how ADP Technologies can be important or beneficial for your business in Thailand.
Profit Enhancement, Sustenance of Environment and Labor Force Expansion
ADP technologies have the potential to boost firm profits and resource use, enhance labour force integration, and improve environmental sustainability. The possible benefits of ADP innovations have two perspectives:
- Introduction of new and better products into the market—smart TVs, smartwatches, home control systems, and,
- Increase in production efficiency through digitalization and interconnectivity of production processes.
Each of these wide channels has a direct effect on three primary dimensions:
- Industrial competitiveness,
- Environmental sustainability, and,
- Social inclusion.
The advantages come with uncertainties, and there is no assurance that these consequences will arise in the absence of other improvements. Moreover, Reaping the benefits is dependent on factors specific to the countries, sectors, and companies in the manufacturing sector.
Firms adopting advanced technology have higher productivity
ADP technologies can help companies to increase their productivity and performance. An econometric study of the countries surveyed for the report aimed at whether firms with higher levels of digitalization were more profitable on average than firms with lower levels.
Even after adjusting for a firm’s age, R&D and machinery investments, human resources, and VGC participation, ADP technology adoption was positive and had a correlation with firm productivity. Contrarily, the coefficients of other significant variables, technology adoption has a high coefficient.
New technologies foster knowledge-intensive business services
The adoption of ADP technologies in manufacturing production necessitates additional support from other sectors of the economy. Especially, knowledge-intensive services that provide the IT and digital solutions necessary for smart manufacturing is a great contributor.
There is an increase in engagement with services. It has the potential to increase the multiplier impact of manufacturing output on job growth and poverty reduction. Additionally, it can provide new opportunities for developing countries to join the manufacturing system.
Knowledge-intensive business services (KIBS) play a critical role in an economy as both innovators and carriers of new information. Additionally, they are primarily intermediate services that are sold to other industries rather than final consumers. Moreover, they disseminate technologies along the value chain across these linkages.
Expanded data analytics improve products and services
ADP technologies can boost product–service characteristics and functionalities, resulting in increased sales and a more efficient product–service package.
For example, data analytics enables the collection and analysis of real-time consumer data. It allows direct involvement of customer demands and cost-effective mass customization of goods.
These insights into consumer behaviour can be extremely beneficial to the development of new products, services, and solutions. By linking services to manufacturing efficiency, the changes open up new organizational and business model possibilities.
You can produce new products and combine manufacturing and service operations. Moreover, ADP innovations open the possibility of revitalizing industrialization and boosting economic development.
Therefore, these were the technical aspects that are important or beneficial for your business in Thailand. Moreover, speaking on the business aspect, adoption of these technologies in your business model can help you get the following financial benefits:
- Attract Corporate Income Tax (CIT) exemption for up to 3 to 10 years
- Reduction in import duties for raw materials which are not locally available in Thailand
- Exemption on import duties for research and development materials
- Double deduction for the cost of transport electricity and water
- 25% deduction on installation or construction of facilities
- Permit to bring in skilled workers and experts to work in investment promoted activities
Apart from these, you must also note that BOI Thailand is aggressively promoting the BCG Economy Model. Moreover, it is to encourage innovative and creative business pursuits. However, the major intention of BOI is to revive the economy from the retardation due to the COVID-19 outbreak.
Your Take!
Now is the perfect time for you to set up your business in Thailand. Thereby, you can take advantage of the schemes and programmes of the Royal Thai Government and BOI for foreign investors. Therefore, to ensure your share in the annual share of FDI for Thailand in 2021, communicate with us at [email protected].
