Co-Creation with Customers and Partners

Trends, Strategy Sharing, and Co-Creation

Advantech‘s 2023 customer management and partner co-creation activities are based on the principles of “altruistic cooperation and mutual benefit” and “digital service upgrade.” The Company is committed to deepening customer connection experience, expanding ecosystem partner operations, and institutionalizing distribution authorization management. At the same time, we will optimize digital platforms such as customer relationship management systems and online technical services to improve operational and service efficiency.

Advantech's 2023 Customer management and partner co-creation highlights

Three Stages of Advantech’s AIoT Internet of Things Development Blueprint

Ecosystem Partner Management

The Internet of Things is a market where multiple industries are integrated. Advantech upholds the concept of co-creation and co-prosperity with partners to create industry ecological partners with the IoT platform and core products, enabling small and medium-sized system integrators, traditional automation system integrators, and cloud platform system service providers and enter the IoT industry through this platform, where ecological partners and Advantech work together to expand the market

Partner Co-Creation

Through investment in external funds, we support start-up companies in Taiwan, China, Europe, and the United States, with the aim of forming a complete IoT ecosystem in these key regions.

The list of Advantech's support plan for AIoT startups in 2023

Advantech worked with experienced fund partners in the IoT industry to accelerate the development of international ecosystems. We invested in startups via AIoT Ecosystem fund and connected fund partners with our industry expertise, technical platforms, and market networks to accelerate the development of IoT ecosystems in key regions.

Ecosystem fund investment (overseas ecosystem deployment)
Fund partners	Fund investment scale	Investment fields	Investment efficiency
Momenta (Europe, America)	USD 30 million	AIoT, smart manufacturing, intelligent energy management, edge computing, AI, information and cyber security	In view of the fragmentation of the Industrial IoT, it is necessary to establish an industrial ecological chain in the above investment fields. Therefore, Advantech and Momenta Ventures jointly launched the AIoT Ecosystem Fund focusing on Europe and America. Through venture capital investment in digital industry startups in the fields of AI and IIoT. Advantech had also responded to the sustainable development goals (SDGs) in its field, which has a far-reaching and positive influence on Advantech.
Ying Capital Capital (China)	RMB 200 million	Industrial control security, IoT security, smart 5G mines, energy service integrators, energy storage system providers
Esquarre Capital (Global)	USD 25 million	IoT, New Energy

In addition to capital collaboration, Advantech worked with incubators and accelerators to provide enterprise technology platforms, industry connections, and co-creation funding sponsorship to early-stage startups that have not yet scaled their products or market performance. This is intended to accelerate the development of startups in the growth stage.

Sponsorships for incubators, accelerators, and IoT innovation events
Sponsored organization	Areas of support	Investment amount	Sponsorship benefits
Asia America Multi-Technology Association (AAMA)	Smart manufacturing, smart healthcare, smart environmental protection, smart logistics	NTD 2 million	Cooperated with Chunghwa Telecom and SYSTEX Corporation, recruited a total of 13 startups through industry propositions and counseling, and formed 8 co-creation and cooperation projects.
Garage+	IIoT and Industrial AI Applications	NTD 700,000	Gathered product supervisors from Advantech and over 10 domestic and foreign start-ups to exchange industry experience and explore co-creation opportunities.
Pan WenYuan IoT Innovation Application Award	IIoT	NTD 1.2 million	A total of 12 start-up teams/school teams with IoT applications were recruited, and innovative teams for agricultural applications of IoT were actually selected to provide bonuses and industrial experts to achieve practical guidance on the industrial application of the technology.
IMV ESG Technology Innovation Proposal Competition	Energy conservation, agriculture, forestry, fish, animal husbandry	NTD 2 million	Formed an alliance with seven industry partners to support sustainable startups and teams in Taiwan. A total of 92 teams were recruited, and the 18 teams were eventually awarded the prize. ● Organized 26 corporate counseling meetings ● Practically assisted 1 start-up company in developing new businesses and successfully raised funds.

The application of IoT in the market is divergent and fragmented, and as a result, it is full of opportunities for innovative application, and start-ups are at the forefront of exploring and implementing emerging business opportunities. By collaborating with startups to develop emerging solutions, Advantech hopes to jointly expand into emerging applications and markets.

Support for startups (co-creation of innovative IoT solutions and markets)
Co-creation partners	Investment amount (USD)	Co-creation solutions	Benefits
Encoremed (Malaysia)	1.7M	AIoT Solutions for outpatient appointment, scheduling, and telemedicine.	Expand the intelligent healthcare market.
Expetech (Taiwan)	1.2M	Smart warehousing and smart manufacturing solutions	Accelerate the industrialization of corporate technology and promote the formation of new IoT businesses.

Customer Satisfaction Survey

In 2023, Advantech conducted a customer satisfaction survey on customers with sales orders in each region from the five dimensions of TQRDC. (TQRDC: Technology, Quality,Responsiveness, Delivery, Cost) The number of each region was 2,906 in China, 4,901 in North America, 2,891 in Europe, and 3,894 in Taiwan, total 14,592 customers.

The PDCA tool was used to analyze the items with the lowest average value this year: AE technical service quality. Customers expect to have prototypes to be turned around in case of defects and rapid technical support. According to the needs of customers in each region, continuous improvement had been carried out through internal discussions to meet customer expectations.

Customer satisfaction survey score and coverage 2019-2023

Year	Satisfaction (score)	Revenue from sampled customers as a percentage of total revenue (%)
2019	94.59	16.80
2020	95.16	16.98
2021	94.83	17.45
2022	92.66	60.76
2023	93.16	76.73

2023 Customer satisfaction survey scores

	Average score (out of 5 points)	Satisfaction (%)
Sales service and pricing	4.70	93.92
Delivery efficiency	4.68	93.60
Product quality	4.72	94.47
Technical Services	4.52	90.35
After-sales service	4.60	92.05

Customer Service

Global Online Technical Service Platform

In 2023, Advantech's technical service teams in Japan, Korea, and Taiwan completed the implementation of the cloud technology service management platform, Zendesk, enabling faster responses to customers for cross-border collaboration in Asia Pacific. The customer portal was launched in October of the same year for customers to check the progress of the service and cases at any time, significantly increasing the convenience for customers. The system also provided considerable help in assisting in the analysis of work order request information. It was observed that 43% of the requests for online support could be resolved by chatbots . A total of 114,757 technical service requests were closed in 2023, a 30% increase over last year, and the closure rate was 98%. In 2024, Advantech will focus on optimizing the RMA product maintenance department process in Europe, America, Japan and Korea. While introducing this platform, we will also enhance the customer experience and eliminate worries about after-sales service. Advantech has continued to develop its chatbot service. In addition to introducing the service to Europe and Southeast Asia and guiding customers to self-help for support around the clock. We are also actively developing the application of Gen AI to provide Advantech product information and suggestions for solutions in the unmanned chatbot, which are expected to be implemented in the first half of 2024.

Advantech’s online technical support process

Analysis of Technical Support

Customer Privacy Protection

The scope of Advantech‘s privacy policy includes the following: Advantech’s privacy policy includes but is not limited to employees, customers, suppliers, and any third parties using other services of the Website. To ensure that everyone can use Advantech's various services with peace of mind, Advantech has formed a personal data protection team under the legal department and formulated the “Advantech Co., Ltd. Personal Data Protection Manual” and “Privacy Protection Policy” to comply with the Personal Data Protection Act and the General Data Protection Regulation (GDPR).

Organizational chart of the personal data protection team

Protection of privacy

Internal data access is subject to privilege control, and users must apply for it through the internal process form.
New employees are entitled to privacy-related education and training.
The purchasing unit announces Advantech‘s privacy policy in the purchaser management system every year, and requires suppliers to sign it during login before performing related operations.
Privacy-related clauses in the standard contract that both parties are required to abide by.
Establish Advantech‘s privacy policy and explain Advantech’s processing and protection of personal data in detail. Please refer to Advantech‘s privacy policy for details: https://www.advantech.com/en/legal/privacy

Privacy protection for digital marketing and customer management

Differentiating the data that can be accessed and edited according to the regulations of the region to which the user belongs to ensure that customer data is properly managed and used.
The customer data source channel will request customers to read Advantech's privacy policy, and relevant consent will be recorded.
Corresponding supporting principles have been developed in accordance with the privacy needs of countries, including Japan, Turkey, California, and Europe's GDPR.

Privacy-related consent signed