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HARVESTNET

Convenient Tech Solutions for Your Process Optimisations

SUMMARY VIDEO

COMPANY DETAILS

SUMMARY

2005-05-05 Harvestnet (HN) Co-founded by Nyou twin brothers as a Software Solutions company providing solutions

Nyou Wei Fung (ex-Ericsson and Sony- Wireless Systems & Mobile Phones)

Nyou Wei Tak (ex- NEC JAPAN, GFT USA, Ponta Japan- IT Solutions and Programming)

Our focus in first few founding years

  1. Type Approval Services and Retail Consultancy eg Sony, Motorola, Ericsson, Fuji Film

  2. SMS Gateway Services for Maxis, Celcom, Digi

  3. Mobile Content & Customer Acquisition Marketing Services (300+ Clients)

2007

Developed proprietary EMAS (Electronic & Mobile Access System) Database & SMS Checking) via collaboration with expertise from NEC Japan. Proposed to MCMC & Ministry of Finance to use EMAS to register the IMEI as a prevention to grey/smuggled phones issues that were plaguing 80% of the imports.

2008

Successful rollout telecommunications products traceability via IMEI registration database with SIRIM Quality Assurance Services International (SQASI)

  1. Reduce 80% of grey/smuggled units

  2. Increased by over 100% total type approvals applications in SQASI

  3. Integrated SIRIM Physical Labels tracking to EMAS Product Traceability DB

  4. Data synchronisation with E-Permit Kastam DiRaja Malaysia

  5. Registered 100+ million units of IMEI and Non-IMEI telecommunications products

  6. Assisted over 10,000 retailers in ensuring authorised sets were sold in the market.

Problem

Malaysia is facing the explosion of IOT products importation due to Industry 4.0 and 5G. It is forecast to increase manifold the need for IOT product certification and traceability from less than 10,000 models a year to more than 30,000 models in 2025. 

There is only one accredited certifying agency SQASI handling the product certification scheme with limited resources and support. This leads to over 60% of the IOT products unregistered/unauthorised in the market (refer to MCMC Report). Malaysia wants to capitalise on the expansion of e-commerce and digital logistics hub ie DFTZ. 

In order to position Malaysia as the main e-commerce support hub in South East Asia, there is an urgent need to get a reliable partner with necessary experiences in handling G2B trade compliance services and solutions.

Solution

In 2018, Harvestnet has been invited by KKMM/MCMC to apply for certifying body under Private Funding Initiative. We have proposed to provide

  1. Digital Platform for IOT Products Certification and Traceability

  2. IOT Product Certification Scheme based on ISO/IEC 17065:2012 and TSR 2000

  3. Expert team of engineers to perform IOT test reports conformity assessment

  4. Process Optimisation of existing government compliance and import requirements for IOT

Product

E2 IOT SaaS  (which was developed separately- outsourced to Upsizze development team in Japan)

  1. Product Certification E-Application- Simpler and convenient UI/UX (Handles 20,000+ models annual)

  2. Internal e-Assessment Team Management- Tracks processes and conformity assessment (5,000 clients)
  3. Digital Certificate of Conformity and Products Tracking (20+millions annual)

  4. Market Surveillance and Monitoring for channels (30,000 retailers)

  5. Product Certification Scheme based on ISO/IEC 17065:2012 and TSR 2000 (60+ Files: Procedures, Docs, Forms)

  6. Expert team of engineers to perform conformity assessment (min 5-13 pax)

Traction

Based on previous experience, where we were providing products traceability, we did over 20 million units registration worth RM10b+ for SQASI. Revenue share earned was RM11millions.

In 2018, we did an industry survey and 100% of the industry partners had feedback they want HN as the second MCMC Certifying Agency; which can collaborate with the industry as a commercial provider ie better service attitude and customer relationship.

Customers

The previous customers list in EMAS was 2000+ eg Samsung, Apple, Huawei, Maxis, HP, Canon

Under MCMC IOT, the communications and multimedia PCS will expand to cover wireless power, manufacturing, retail tech, finance, medical and transport. The total clients base will vastly increase to over 10,000 brands.

Business Model

  1. Every IOT Product Certification RM1000 - RM 10,000 per model per company

  2. Every IOT Product Registration RM 0.15 - RM 0.50 per unit

  3. Every E-Permit Registration RM10 per application

  4. Ancillary Income - IOT Trainings for Consultants and Corporate staff RM2,000- RM5,000

  5. E-Commerce Hub - 5% commission for each sale of certified IOT products

Note: IOT Product Certification and Traceability is a compulsory requirement and all services rendered are pre-paid upfront via online payment. This means zero non-payment risks from clients as well as no cash handling risks from internal staff.

Market

  1. SaaS RM 100m* per year (*by 2025) IOT Product Certification & Traceability 

  2. IOT Tech training valued at RM5m-10m per year for PCS & ISO related

  3. Digital economy RM10b+ worth of e-commerce potential for certified IOT products

Competition

One government agency - SQASI covering telecommunications products but HN has the competitive advantages

  1. HN is a commercial entity providing services which is definitely more agile, responsive and cost effective than government agency

  2. Barrier to entry is VERY high due to the ISO requirements, government license and proven track records in relation to Product Certification Scheme

  3. MCMC has requested HN to expand on the industries utilising IOT products

  4. We have done industy partnering workshop and PR. Received good response for our E2 Platform as well as recognition for our strategic plans.

Funding

Total funds required to RM3,000,000 mainly for

  1. OPEX- HR IOT Product Certification expert team

  2. OPEX- Maintenance and Operations

  3. CAPEX- System customisation as per requirements and data synch system to other Permit Issuance Agencies eg KDRM, SQASI, Dagangnet 

Vision

To be the effective leader in South East Asia for IOT Product Certification and Trade Compliance service platform.

Investors

2017-2020 Self-funded RM5 millions worth of cash, project team and development related work.

Potential funders:

  1. Up to RM25m to be arranged by a reputable global advisory co. (Due dilligence done. KIV for Secondary Market)

  2. RM1.5m by a public listed co (but HN has to decline due to conflict of interests compliance. KIV for Secondary Market)

  3. Up to RM500k by private funders (Pending conflict of interests compliance)

Founders

1) Nyou Wei Fung, CEO

  • MBA (International Marketing), Nottingham Trent University, UK

  • 23 Years of Corporate & Entrepreneurial Experience

  • Former Ericsson & Sony Mobile Malaysia

  • Industry: Business Consulting, Entreprise Sales in SaaS, Channels & PLC-Consumer Electronics. 

  • Focus on e-solutions G2B, B2B, BPO, O2O, ERP/MRP.

  • Vast business development experience in Malaysia, Indonesia, Philippines and Cambodia. Provide SaaS solutions for eGovt compliances, business process outsourcing and optimisation. To facilitate better trade competitiveness/ adoption for IoT related industries (Telecommunications, Medical, Transportation, Manufacturing, Financial Services). 

  • Expertise: Time to Market (Govt Regulations, Customs, Product Cycle Mgmt) and Clients' Acquisitions (projects tenders, channels management, industry advisory for growth/change management). 

2)  Nyou Wei Tak, CTO

  • MBA, Hult International Business School, Boston, USA

  • M.Engineering (Chemical and Bitotechnology), University of Tokyo, Japan

  • Former NEC Japan, Global Forex Trade USA and Ponta Japan 

  • Industry: Business Consulting, Cross Brands Loyalty Management, Consumer Behaviour. 

  • Focus on e-solutions G2B, B2B, BPO, O2O, ERP/MRP.

  • Distinguish track record in forming, building and motivating teams, as well as designing and implementing strategic marketing with focus on growth and profitability. 

  • An experienced professional with 18 years in Japan, 6 years in Taiwan and APAC

  • Expertise: IT, international experience in new markets creation, marketing and business development.

Past Experiences of Nyou Twins

Team

1) Abdul Ghani Zainal Abidin, COO

  • BSc. in Electronics Communications, University of Salford, UK

  • 30 years of Product Certification Scheme and accredited Test Labs management

  • Former Jabatan Telekom and SIRIM Quality Assurance Services International

  • Worked as Principal Consultant and Head, Communication and Multimedia Testing Section to SIRIM. Distinguished record includes setting up the Technical Specifications Requirements TSR 2000 for regulatory bodies, training of permit issuance agencies ie MCMC, Suruhanjaya Tenaga, SIRIM, KDRM etc. Well versed with ISO/IEC 17025, 17065 and 9001.

2) Ir. Aida Razana, GM

  • MSc.Eng (Telecommunications & Information Engineering), University Technology MARA

  • Professional engineer with 23 years of Product Certification, Standards and Testing. 

  • Panel member for Malaysian Communications and Multimedia Specifications and Standards. Experience in Market Surveillance activities initiated by Malaysian Communications and Multimedia Commission for Customer Premises Equipment (CPE) in Malaysia. Responsible to review test reports in field of expertise for electrical product application of Suruhanjaya Tenaga (ST)’s Certificate of Approval (CoA). Department of Standards registered Auditor for ISO/IEC 17025, 17065. Approved Signatory for RFEMCT, by Standard Malaysia (DSM). Member of the Communication Industry Standardisation Committee (CISC) and many more.

Impartiality Review Panel (Invited Industries Independent Members to Review HNCA annually)

1. Chairperson- Datuk Hod bin Parman, former Director of the Technical Division, MCMC

He has been involved in the telecommunications industry for more than 35 years. He graduated from the Technical College, Kuala Lumpur in 1968 (also now known as Universiti Technologi Malaysia – UTM) with a Diploma in TV Engineering and from the University of Strathclyde, Scotland in 1973 with a BSc (Hon) Degree in Electrical and Electronics Engineering

2. Dato’ Ismail Osman, MTFSB Chairman

Dato’ Ismail Bin Osman is currently the Chairman of Malaysian Technical Standard Forum Bhd (MTSFB), a forum designated by Malaysian Communications and Multimedia Commission (MCMC). He is also the Board of Director for RedTONE Sdn Bhd.

3. Amos Law, Director for Crowe Governance Sdn Bhd (Risk Advisory)

He has been involved in the internal auidt profession for over 21 years.
He was also a member of its global task force responsible for developing a global internal audit methodology to be adopted by its member firms worldwide.
He was involved in the commercial sector where he was a Senior Corporate Auditor for a US Fortune 500 Company Professional Summary

• Internal audit
• IT audit
• Compliance and statutory audits
• Risk management
• Corporate governance advisory
• Internal Controls due diligence review for Securities Commissions

Confidentiality Notes:
As HN is complying to ISO/IEC 17065:2012 and TSR 2000, all information put forth are considered CONFIDENTIAL in nature. We are disclosing the information based on PitchIn ECF's requirements in relation to regulatory rules and regulations. Information that ought knowingly to be understood as confidential material and which should not be released to unauthorized staff or external third parties unless required by legal or regulatory bodies.


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