Acting as a Third-party Service Provider to Facilitate Digital Transformation, the Institute for Information Industry Assists Industries In Co-creating a Digital Ecosystem Date: 2023/06/13 Caption: The Institute for Information Industry sets its mid-term goal for 2025- continuously enhancing the service capacity as a third-party organization. III aims to return to its original intention of “Promoting the Advancement of the Information Industry” and leads the industrial transformation for shared prosperity. Pictured is Cheng-Hung Cho, the President of the Institute for Information Industry.In 2022, under the support of III Board of Directors, the President of the Institute for Information Industry (III), Mr. Cheng-Hung Cho, initiated a comprehensive organizational transformation for the institute. The mid-term goal for 2025 was set to transform III into a third-party collaborative organization that helps each unit build capabilities. From the perspective of the industry ecosystem, III shoulders the organizational responsibility of "Empowering Industrial Transformation" and "Developing the Industrial in Sound Order." The initiatives include: (1) Developing emerging technologies and leading digital technologies to co-create a sound ecosystem with industry participants, (2) Conducting in-depth analyses for digital trends, guiding and promoting initiatives related to policy and regulatory formulation, and advocating for talent cultivation as a corporate think tank, (3) Providing industry-oriented methodologies or consulting services to guide industrial transformation and expand industry value, (4) Encouraging excellent teams within III to establish startups, setting an example for further technological diffusion and driving the industry to move forward, and (5) Focusing on the core task of becoming a reference institution as a third-party forward citation body to help establish a trustworthy environment. Throughout the year, III has continuously strengthened the service capabilities as a third-party organization, assisting industries in digital transformation, breaking free from traditional thinking, and raising the level of services. III hopes to return to the original purpose of "Advancing the Information Industry" and leads the industry towards mutual prosperity through transformation. In fact, during the transformation, Cheng-Hung Cho has already held over 30 internal communication meetings last year, engaging in face-to-face communication with more than 2,000 colleagues within the Institute for Information Industry (III). He aspires to foster sincere and distance-free communication management, thus establishing an organizational culture and working together with colleagues to face the upcoming tasks. "The sea is full of unknowns, but there are people who always stand their ground. They are the important commanders who guide ships in and out of ports - 'pilots'!" Cheng-Hung Cho shared, "In the digital transformation ocean, if companies are the courageous captains navigating through the waves, then III plays the role of the 'pilot'." Pilots, like crucial third parties, integrate various needs and swiftly solve problems based on their rich practical experience. The third-party role played by III primarily falls into two categories: one is to match resources and construct a digital ecosystem, and develop digital economic business models from a professional perspective, while the other is to develop a fair third-party testing and verification mechanism. (For detailed cases, please refer to the attached description.) The Professional Third-Party Organization to Consolidate Digital Transformation and Construct a Sound Digital Ecosystem. In the past, digital transformation often started from a single point, and consultants gathered to solve the problems of a single company. However, upon closer examination, it is often found that comprehensive improvements or transformations are required for the overall industry structure. As a result, the aspects of the issue become so broad and deep that each person, each company, and even each industry has their own interpretations and imaginations of digital transformation. Cheng-Hung Cho mentioned, "We genuinely want to carry out digital transformation! We hope to start from the entire industry ecosystem where related industries are interconnected so as to completely solve the critical problems respectively. Undeniably, this is not an easy task!" In the past few years, the Institute for Information Industry (III) has gained initial achievements in providing guidance for digital transformation in industries such as cultural technology, sports technology, and energy. III hopes to create new forms of business models and establish a solid foundation for the robust development of the industry ecosystem specifically in the aspect of digital economy. The Fair Third-Party Organization to Create Taiwan's Michelin and Establish a "Digital Trust Governance Ecosystem." Cheng-Hung Cho stated, "The mechanism of third-party verification is similar to that of Michelin's certification, ensuring quality and safety." When companies reach a certain level of maturity and aim to expand internationally, they must comply with international standards. Sometimes, they even ask for a special unit to establish standards. As a government-funded foundation, the Institute for Information Industry (III) is the most suitable candidate to take on this role. Taking software procurement as an example, III plays a neutral and professional third-party role by providing a verification mechanism. Incorporating third-party cloud quality testing as a reference condition for acceptance ensures that enterprise products meet the standards and, no longer solely focusing on low cost. Additionally, III has introduced international cybersecurity standards and obtained international industrial control system cybersecurity certification, successfully transforming into a third-party cybersecurity inspection and testing organization. In the second half of the year, III will also launch CBPR personal data verification services, preparing companies for international operations. The Original Intention of the Transformation: Developing a Trustworthy Information Society in Taiwan. Along this journey, the Institute for Information Industry (III) has embarked on various tasks based on industry demands, uncovering numerous issues in the digital environment. Particularly, the recent global attention on ChatGPT has brought generative AI technology into the spotlight. In light of this, III has made "Digital Trust Governance Ecosystem" the main focus this year. III plans to invite experts from various fields to participate in an idea exchange seminar on August 1st, delving into topics such as AI governance guidelines, AI social trust, and digital adaptation, etc. The institute hopes to establish a foundation of digital trust and make sure the development and application of technology is guided by good will. In the process of transforming into an organization providing third-party services, III expects to move forward alongside the industry and aims to co-create a digital ecosystem with all sectors. Case Studies on Third-Party Services and Digital Transformation in Ecosystem Construction.Case 1: Cross-Domain Digital Transformation and Down-to-Earth Cultural Technology ExhibitionsIn the process of assisting various industries in their digital transformation, the Institute for Information Industry (III) noticed that cross-domain collaboration is the key factor determining project success. III feels the need for cross-domain, cross-industry cooperation in guiding companies related to fields such as cultural technology, sports technology, and energy transformation. "The key to cross-domain collaboration is for different industries to be able to communicate with each other and understand each other's needs, so as to discuss subsequent cooperation and make sure that everyone is on the same page," emphasized III president Cheng-Hung Cho. Taking cultural technology exhibitions as an example, there are currently various kinds of cultural art in Taiwan, including immersive theaters, 3D virtual reality, and film exhibitions, etc. In order to provide novel and engaging viewing experiences to the public while integrating 5G communication and interactive technology with the plan, III assists in designing solution specifications and facilitating the communication between performance and creative groups and information and communication technology industries as well as system vendors, which empowers parties from both fields. With stable software and hardware systems, as well as cybersecurity services at actual verification venues such as the National Theater and Concert Hall and the Kaohsiung Exhibition Center, units from different fields collaboratively create, produce, and perform outstanding culture-exhibiting 5G performances such as "Lunatic Town", "Jimmy's Musical - Turn Left, Turn Right", and " Diabolodance’s VALO II- Island", etc. The goal is to establish a foundation domestically and replicate successful models to market them internationally. Case 2: Integrating Elements in the Sports Technology Industry and Recommending Personalized Fitness ProgramsDuring the pandemic when people couldn't go to sports venues, home workouts became the norm. In the absence of a coach, technology became the greatest ally. People rely on sports devices and accurate recorded data as important reference indicators. Acting as the role of a third party, the Institute for Information Industry (III) has tried the whole bag of tricks. By providing technical support, integrating companies from various domains, and conducting actual field validation, III leads the team comprised of units from the industry, academia, and research to facilitate the establishment of a sports technology alliance, creating the preliminary structure for the industrial ecosystem. By data collecting and analyzing, III expects to move a step further to reinvent new business models, and little by little, advances towards the goal of developing a sports and health ecosystem. Through data-driven evidence, III utilizes sports technology to tailor suitable exercise recommendations for each individual. This involves arranging one-on-one online coaching, interactive sensory training sessions, or virtual coach guidance, offering a comprehensive set of exercise programs. By integrating various elements such as service providers in the industry, sports venues, and professionals, III is shaping the new industry outlook for sports technology, creating personalized fitness programs for each user. Case 3: ESG Starts from Home - Transforming the Energy Ecosystem from Electricity Meters to Gas CylindersIn recent years, households have been increasingly concerned about identifying the "energy monsters" in their homes, particularly during periods of high electricity consumption in the summer. Additionally, the promotion of ESG (Environmental, Social, and Governance) and net-zero carbon emission policies on an international scale has brought attention to energy issues and the transformation of related industries. The team at the Institute for Information Industry (III) has long focused on collecting electricity usage data. utilizing AI technology along with non-intrusive load monitoring (NILM) techniques, III led the collaboration with Taiwan Power Company and Ta-Tung 3C, two traditional industries, to provide a new service called "High-Energy Consumption Appliance Diagnosis" for Advanced Metering Infrastructure (AMI) households. Since September 2022, over 10,000 households have subscribed to this service. III has also partnered with the Housing Department of Taoyuan City Government to introduce active energy-saving service technology in the Ping-Zhen No.1 Social Housing, enabling residents to clearly understand the power consumption of their household appliances and subsequently modify their electricity usage behavior. Furthermore, with the involvement of Ta-Tung 3C, it is possible for citizens to receive the services such as energy-saving appliances replacement discounts as well as repair and maintenance services, which fosters the development of a cross-domain energy ecosystem and creates a win-win situation for all stakeholders. Additionally, given Japan's push for carbon neutrality, III plans to introduce this service model to Japanese companies, leading to increased international cooperation opportunities for Taiwanese businesses. In the realm of energy transformation, the III team is also actively involved in the transformation process of bottled gas services. Currently, half of Taiwan's households use bottled gas. It is predominantly found to use bottled gas especially in the eastern region. However, the timing for gas cylinder replacement often relies on luck. It is possible to run out of gas while cooking or have no hot water halfway through a shower. Sometimes, while requesting gas delivery, people may find it challenging due to route issues and limited logistics resources. To address this, III has facilitated the collaboration between Taiwanese AIoT (Artificial Intelligence of Things) companies, which are able to provide technology and smart gas meters, and Mitsubishi Corporation as well as Tai-Ho Industrial to establish intelligent delivery logistics services. This joint effort aims to drive digital transformation in the traditional bottled liquefied petroleum gas (LPG) delivery business. In the future, users will no longer need to passively wait until their gas is depleted before requesting a replacement. Gas providers can now deliver and replace gas cylinders according to predetermined routes as well as charge reasonable fees based on usage ratios. The collaboration benefits users, gas companies, and AIoT companies, ultimately realizing the true meaning of digital transformation. Case 4: Software Procurement No Longer Painful - Cloud Testing Checks Software Quality for YouIn addition to focusing on energy issues, Cheng-Hung Cho believes that the Institute for Information Industry (III) should explore the possibility of transforming into a third-party organization within existing projects or tasks. Taking software procurement as an example, which is one of the pain points in the ICT industry, in order to address this problem at its root, each step of the software procurement process needs to be examined. III first provides a verification mechanism to ensure that the products offered by companies meet the standards. Then, III proposes to the government that third-party cloud quality testing be included as a reference criterion for purchase inspection and acceptance, starting with various government departments. In other words, it is no longer sufficient to win government contracts solely based on low prices; quality must also be taken into consideration. Playing the role of a neutral and professional third party, III balances the cognitive gap between companies from supply and demand side, ensuring the quality of products from the supply side and increasing the product adaptation willingness and trust of the companies from the demand side. "Why spend several years doing this?" Cheng-Hung Cho expressed his thoughts, saying, "III's mission is to convey the correct concept to customers and let them know that low price is not the primary criterion for software evaluation. We hope to change the ecosystem of the software and IT service industry, so that everyone in the industry could move towards a virtuous cycle where product evaluation is quality-oriented, profitability is reasonable and improving, and the overall market is sound and healthy." Case 5: Assisting Enterprises in ICT Product International Compliance and Expanding Overseas MarketsWith the rapid development of AI and IoT technologies, industries will face increasingly severe cybersecurity challenges in the future. The Institute for Information Industry (III) has long been responsible for introducing international cybersecurity standards. Therefore, as a third-party cybersecurity inspection and testing service provider, III assists the industry in various domains such as IT, OT, CT, cybersecurity technologies, intelligence, testing, and talent development, etc. III's mission is to help Taiwanese ICT products comply with international security standards and enhance the industry's digital resilience. Taking industrial control system (ICS) security as an example. III introduced the IEC 62443 standard from the international verification organization ISASecure before this issue received significant attention. In addition to assisting the development of the certification laboratory industry and establishing the first independent internationally recognized verification system in Taiwan, III also provided guidance to well-known domestic ICS manufacturers in building a pre-testing system. This system enables early detection and remediation of cybersecurity vulnerabilities, reducing the certification costs associated with repetitive testing of subsequent products. Consequently, these manufacturers associated with the system have successfully gained the opportunities to enter international markets. Case 6: Launching International CBPR Verification Service to Build a "Digital Trust Governance Ecosystem"In 2021, the Institute for Information Industry (III) became the accountable agency for the Asia-Pacific Economic Cooperation (APEC) Cross-Border Privacy Rules (CBPR). After years of preparation, III leveraged the framework of the "Taiwan Personal Information Protection and Management System '' (TPIPAS) and incorporated APEC CBPR requirements. This initiative aims to assist domestic companies in aligning with international privacy laws. In the second half of the year, III will officially launch the CBPR verification service in Taiwan, enhancing the international image of Taiwanese businesses in terms of personal data privacy protection, facilitating cross-border collaboration as well as attracting foreign investment into domestic industries. 【Media Contact】 Center for Marketing Strategy (III) Joy Yen Tel: (02) 6631-8635 joyyen@iii.org.tw Ying Shen Tel: (02) 6631-8643 yingshen@iii.org.tw