Innolux : Taiwan Supply Chain Align for Platform Opportunities

A comprehensive retail platform which includes e-commerce, brick-and-mortar, and logistics is changing the global retail industry via integration of data from upstream and downstream. Mr. Jim Hung, Chairman of Innolux, said that Taiwan had the best conditions for the new retail industry including diverse retail formats, the 2^nd highest density of convenience store in the world, well-developed e-commerce platform and most importantly, the software and hardware of new retail and big data AI talent. New retail platform consists of SI (system integration), soft/hardware solutions, cloud solutions, display, and integration of advertisement and POS system. Different from the large scale and fast development of China and USA market, Taiwan features its complete value chain. Innolux creates the technology platform for different roles to join and present their own best value.
President of Microsoft Taiwan thought the key technology of new retail was to combine brick-and-mortar with e-commerce platform to create genuine interaction, which was also the technology breakthrough of Microsoft. As an AI technology leader in the world, Microsoft keeps bringing imagination to refresh consumer experience in retail industry. According to IDC, cognitive computing system and AI market scale could grow from USD 8 billion this year to USD 47 billion in 2020, the compound growth achieves 55.1%^. Advance computer could process numerous data in a very short time with the help of big data and machine learning.

Face recognition, voice recognition, and instant voice translator are the fine cognitive services based on the development of AI, big data and machine learning to help user effectively handle different tasks. Microsoft Taiwan devotes to the commercialization of AI and AI application in industry together with partners from industry, government and academy. It is our pleasure to take a key part in the Familymart project with Innolux. The AI face recognition data analysis could realize precise marketing and enhance the inventory turnover rate. There are more to be developed for Microsoft's AI in the new retail industry, including smart customer service, cashier-free supermarket, customer recognition, smart access control, quality inspection, and goods search. The demand of AI talent is far greater than the supply. Microsoft shares the duty by promoting MPP, the certification program of AI profession, and assisting the setup of AI experience center and practical course, with different colleges at Taiwan.
Mr. Hui-Hua Liang, Technology Vice President of Dell EMC Taiwan said, 'Around 45% of companies in the world think they are facing the risk of replacement in 3 to 5 years. The retail IT solutions should be able to make use of the digital data transformation to assist company in formulating new business strategy and business model. The new focus should be consumer-oriented service rather than information provision.'
Mr. Liang elaborated that information security and data protection were the two major areas of big data processing. Company CIO is pursuing an IT system with better stability and security. Hybrid cloud is the next trend for the storage of retail application for the reason of its reliability, according to a transformation of retail IT survey by Dell EMC and VMare. Dell Technology Group is the solution partner for all top global retail brand. Dell is glad to have chance to take part in the establishment of the first Familymart smart store in Taiwan together with Innolux and RapidSignage. Dell expects its comprehensive solutions could help the transformation of retail industry in Taiwan.
Johnson Lee, President of E Ink Holdings, said electronic paper (ePaper) is the most paper-like technology. With features of ultra-low power consumption, wide viewing angle, and sunlight readable, ePaper is the best choice of electronic shelf labels (ESL) for retail industry. Among the global ESL market, ePaper display takes more than 60% market share while the ESL market is keep growing. E Ink aims to collaborate with the ecosystem globally to develop the ESL application in smart retail market. The efforts contributed by the ecosystem will support retail players to integrate the online and offline price alignment. Artificial Intelligence interacts mobile payment, inventory, or logistic system through the ePaper display.
Appendix : Display supply chain of new retail industry

Type	Product	Company
Display	23.1 inch FHD Display	Innolux Smart eShop
Server and player	Server and player compatible with various size display to assist different playlist	Dell EMC
Face recognition	Face recognition service supported by Microsoft cloud	Microsoft
Driver IC	Driver IC provides open Android platform for user to edit APK, CMS (Content Management System) content and playlist	Novatek
Electronic shelf label	Electronic paper is the best resemblance to real paper. With the features of zero power consumption at stationary image, ultra-low power consumption, 180 degree viewing angle, blurless under strong light, electronic paper is the best choice of electronic shelf labels for retail industry	E Ink
Camera	ACTi provides the best camera for flow analysis and heat map to identify consumer behavior and the best shelf placement.	ACTi
Flow analysis	RapidSignage integrates the Microsoft's face recognition into camera to collect consumer's biometric and effective view number for consumer behavior analysis and advertisement benefit analysis.	RapidSignage
Online and offline evaluation Advertisement and benefit evaluation	Carry out multilevel recommendation and promotion via user data analysis to establish brand image and loyalty by advertisement. Access different types of consumer, especially youth, via social media application	DSMA