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Hong Kong needs to do more work to become a ‘smart city’, says Google Hong Kong managing director Leonie Valentine

Hong Kong may boast one the highest mobile phone penetration levels in the world and host some of the fastest broadband connections on the planet, but Asia’s self-styled world city still has some way to go before it becomes a globally recognised “smart city”, according to the findings of a recent survey.

Commissioned by Google Hong Kong with research conducted by market insights firm Nielsen, the “Think 202: Smarter Digital City” white paper reveals digital engagement by consumers, companies, and the Hong Kong government is lagging behind international competitors. For example, while the majority of local companies agree that digital is critical to success, only just over half are embracing the technology. Among those companies, only 52 per cent are investing in big data analytics, machine learning and the type of digital initiatives necessary to build a strong economy, enhance the quality of living and make Hong Kong a recognised smart city.

Leonie Valentine, Google Hong Kong managing director, says the benchmark report identifies some of the most pressing issues holding back digital development. But it also explores areas of opportunity and makes recommendations that could help to accelerate Hong Kong’s progress.

“From a technology statistics perspective, Hong Kong would seem to be one of the world’s most digitally connected cities, but it’s not,” says Valentine, who adds that a shortfall of investment in nurturing talent is holding Hong Kong back. For example, while 81 per cent of local citizens described themselves as digitally savvy, according to Google’s digital know-how scorecard, only 42 per cent can actually be considered so.

The Google white paper specifically examined the retail, finance, travel and lifestyle sectors, which collectively contribute roughly half of Hong Kong’s GDP. Respondents perceive saving time and increased efficiency (50 per cent), enhancing quality of life (42 per cent), and maximising digital connectivity (36 per cent) as being the top three benefits of a smart city. The white paper also highlights how Hong Kong’s “cash is king” mindset is holding back the transition to electronic payments and the move from physical banking to online banking.

Valentine says investments in machine learning and big data analysis, as well as improvements in user trust are essential for businesses to boost their digital capabilities. Using the analogy that it takes a village to raise a child, Valentine suggests policymakers collaborate with industries and educators to strengthen training and education for both professionals and students. Parents also have an important role to play in preparing their children to pursue jobs and careers that in some cases don’t exist at present. Valentine points out that, when she left university, Google didn’t yet exist as a company. “Parents need to embrace the mindset that things are changing rapidly and there are diverse and unimaginable options beyond the traditional favoured careers in medicine, law and finance,” she says.

To support talent development for the future, it is crucial for the government, companies and education providers to work together to offer programmes that attract high-quality students.

To accelerate local efforts towards becoming a “smart city”, Google Hong Kong has developed a number of programmes designed to train both entry-level and more experienced workers in the latest digital skills. Since the launch of Squared, a digital marketing leadership course in 2014, close to 400 professionals have been trained in the related skills, including data analytics tools and best practices.

Google Ignite equips college students and recent graduates with the knowledge to help them excel in their careers. The programme also provides industry placement support by matching qualified applicants with full-time jobs. To ensure that these new hires get off to a good start, Google Ignite continues to provide comprehensive on-boarding training for another six months.

(Photo: Lau Wai)