INVESTUS 2024 MAGAZINE
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INVESTUS
KNOWLEDGE-BACKED INVESTMENT
INSIGHTS INTO GLOBAL STARTUP INVESTMENTS: NAVIGATING
TRENDS, TECHNOLOGIES, AND EMERGING MARKETS
Raouti Chehih
DRIVING INNOVATION FROM THE GROUND UP
Galkhuu Sainbayar
SYNERGY FUND SOLUTIONS: INNOVATING IN
ASSET MANAGEMENT FOR SUSTAINABLE GROWTH
Anar Amarjargal
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GREETING
Bat-Ireedui Jargalsaikhan
CEO, Gund Investment LLC
Chairman, Socratus Studio LLC
Welcome to the second issue of our
magazine, dedicated to empowering startups
and fostering innovation. At Socratus Studio, we
are deeply committed to investing in startups,
SMEs and providing top-notch incubator
services that nurture young companies into
thriving enterprises.
The rapid advancement in artificial
intelligence is undeniable, revolutionizing
various sectors and enhancing our capabilities.
However, we believe that the power of human
knowledge, creativity, and resilience surpasses
even the most sophisticated AI. It is this
human ingenuity that drives true innovation
and sustainable growth.
Understanding the challenges that
startups and SMEs face is at the core of our
mission. We have dedicated ourselves to
studying the common pitfalls and developing
robust strategies to help startups and SMEs
avoid these traps. Our experience and insights
have shaped the methods we employ to support
our incubatees, ensuring they have the best
possible chance for success.
In this magazine, we aim to share our
knowledge, experiences, and the lessons we
have learned along the way. Through these
pages, we hope to provide valuable guidance,
inspiration, and practical advice to help you
navigate the startup journey. Together, we can
build a future where innovation thrives and
new ideas flourish.
Thank you for
joining us on this exciting journey.
2024
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CONTENTS
08 COOPERATION
SYNERGY FUND SOLUTIONS:
INNOVATING IN ASSET MANAGEMENT
FOR SUSTAINABLE GROWTH
Anar A.
12 SYSTEM ENGINEERING
WHAT IS A STARTUP FROM SYSTEM
PERSPECTIVE
Bayartsengel B.
16 COOPERATION
CLEAN ENERGY TRANSITION
Temuulen T.
18 SYSTEM ENGINEERING
JOURNEY OF SYSTEMIZED THINKING
AND STARTUP GOALS
Khatanzorigt A.
20 INVESTMENT
INSIGHTS INTO GLOBAL STARTUP
INVESTMENTS: NAVIGATING TRENDS,
TECHNOLOGIES, AND EMERGING
MARKETS
Raouti Chehih.
24 INSIDE
INVESTUS SUMMIT 2023
"Socratus Studio" LLC
26 EDUCATION
THE POTENTIAL OF USING ARTIFICIAL
INTELLIGENCE (AI) AS AN ACCELERATOR
FOR SOCIAL AND ECONOMIC
DEVELOPMENT
Jargalsaikhan D.
30 GLOBAL MARKET
UNLOCKING OPPORTUNITIES IN
CENTRAL ASIA: MARKET ENTRY
STRATEGY FOR KAZAKHSTAN
Bilguunzaya M.
33 GLOBAL MARKET
DOING BUSINESS IN SINGAPORE
THROUGH MY LENS: THRIVING IN
DIVERSITY AND EFFICIENCY
Aminzul D.
35 INSIDE
WHO ARE THE INNOVATIVE COMPANIES
OF TOMORROW
"Socratus Studio" LLC
38 INNOVATION
MONGOLIA IS THE CRADLE OF NOMADIC
CULTURE
Sarantsetseg E.
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INVESTUS
KNOWLEDGE-BACKED INVESTMENT
Issuer
Socratus Studio LLC
Editor
Munkhtsog A., Bilguunzaya M.
Chief Preparer
Nomiundari A.
Designer
Nomiundari A., Khongorzul M.
Photographer
Enhsaikhan S. /Zebra Studio/
Copyright©
2024 Socratus Studio LLC
42 SYSTEM ENGINEERING
DRIVING INNOVATION FROM THE
GROUND UP
Galkhuu S.
48 INSIDE
A DAY AT BRIGHTON
"Brighton" LLC
52 COOPERATION
ENSURING FINANCIAL SECURITY AND
HEALTH WITH INTERNATIONAL HEALTH
INSURANCE
"National Life Insurance" LLC
55 EDUCATION
LEARN, UNLEARN AND RELEARN
Oyungerel T.
58 INSIDE
SOCRATUS HIGHLIGHTS 2023
"Socratus Studio" LLC
62 INNOVATION
REVOLUTIONIZING BUSINESS
OPERATIONS: THE IMPACT OF
BLOCKCHAIN AND DIGITAL CONTRACTS
Javkhlan R.
67 INSIDE
SOCRATUS STARTUP STUDIO EXPANDS
COLLABORATION WITH CAMBODIA'S
MINISTRY OF INDUSTRY, SCIENCE,
TECHNOLOGY, AND INNOVATION
"Socratus Studio" LLC
70 INSIDE
PAVE THE FUTURE
Gund Investment Holding
72 RESEARCH
THE DEFINITION OF HUMAN RIGHTS
PROVISIONS IN THE SECOND CHAPTER
OF THE CONSTITUTION OF MONGOLIA
WAS DEVELOPED THROUGH SYSTEMS
ENGINEERING
NGO "Young Researcher Supporting
Foundation
77 INSIDE
WHAT IS TUSS D+?
"Tus Solution" LLC
78 INNOVATION
TRAVEL AS U WISH
"Monya Travel" LLC
81 RESEARCH
SMART CITIES INITIATIVE
INCOSE - Tus Framework
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INTERVIEW
SYNERGY FUND SOLUTIONS:
INNOVATING IN ASSET
MANAGEMENT FOR
SUSTAINABLE GROWTH
COOPERATION
G
ANAR AMARJARGAL
CEO, SYNERGY FUND SOLUTIONS SC LLC
Good evening, Today we speak with Mr. Anar, the CEO of
Synergy Fund Solutions SC LLC. Mr. Anar, let's commence with
an introduction to Synergy Fund Solutions. Can you give our
audience a concise overview of your company and its mission?
Thank you for having me. Established in 2012 and
restructured in 2022 reclaiming its asset management license,
Synergy Fund Solution. Synergy Fund Solution is an asset
management firm integrating systems engineering, innovative
strategies, and resilient risk management into its core operations.
The company strives to become a frontrunner in the industry and
aims to create shared value for its stakeholders through investment
activities deeply rooted in systems engineering. This aspiration
seamlessly aligns with our mission of smart asset management.
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What distinguishes Synergy Fund Solution from other
market players?
It boils down to our core operational approach.
We enhance our asset management approach through
systems engineering, a progressive method that facilitates
sustainable management and ensures constant adaptation
in an ever-evolving landscape. Sustainable management
involves operating in a manner that assures continuity,
obtained through establishing an efficient monitoring and
analysis system that eliminates the repetition of operational
flaws and creates a space for continuous improvement that
translates into value for its stakeholders. We can utilize the
same method for implementing our investment strategy, the
key being quality data collection structure and organizational
health.
Innovation is meant to increase efficiency in
operations, and innovative thinking is critical in a rapidly
changing world. In our case, we believe there is a flaw in
how the current system works to increase FDI in Mongolia.
Our solution is to meet this challenge head-on by investing
abroad and allowing foreign investors to view us in the
same field as they operate. SFS’s presence in international
markets is an indicator for FDI to understand that Mongolia
is ready for investment. Furthermore, opportunities within
our borders need to improve, and there is no better way
to guide this improvement than to have an up-close and
personal understanding of these products.
Finally, risk management is conducted in the same
fashion globally. Our approach to risk management has
the same basic principles; however, we incorporate risk
management at an individual level and include a notion of
organizational health that our partnering organization has
developed. This measure allows us to better understand
the risk level of operations and improve the data quality
reported.
business, guided by our vision to be an investment
management company that creates mutual value for
stakeholders through investment operations grounded
in systems engineering solutions. Our strategy involves
investing in innovative projects abroad, particularly those
leveraging cutting-edge technology. In the near future, we
aspire to introduce this advanced technology to Mongolia,
attracting foreign investors who have already engaged
with these progressive ventures. Moreover, a sustainable
business model is poised to offer everyday investors a solid
foundation for long-term financial planning, strengthening
Mongolia's middle class. This multifaceted approach aligns
with our commitment to embrace sustainability, realize our
vision, and promote economic resilience and prosperity in
our operating regions.
Innovative thinking is evidently a key theme for
Synergy. Moving forward, please provide insights
into your thoughts on global conditions in the coming
years.
I participated in the 2023 Global Wealth Conference,
organized by the Sovereign Wealth Fund Institute in
London. This gathering is a forum for discussions among
sovereign wealth fund managers and prominent family
offices worldwide, focusing on global trends. A prevailing
observation during the conference was the acknowledgment
that "uncertainty is certain." The world is grappling with the
economic and social aftermath of the COVID-19 pandemic,
compounded by disruptions in supply chains due to the
Ukrainian conflict, concerns about the adverse financial
effects of the Chinese real estate sector, and a notable
surge in global elections. In the face of these uncertainties,
we recognize a consistent trend toward a decreased risk
appetite, prompting a global shift toward prioritizing basic
needs. Moreover, technology is poised to play a pivotal role
in the speed of recovery during these uncertain times.
Thank you, Mr. Anar, for sharing these insights into
Synergy Fund Solutions' unique approach and future
goals. We look forward to witnessing your company's
continued success and innovation.
Thank you, and thank you for having me.
Thank you for that insightful overview. Could you
elaborate on what Synergy Fund Solutions is trying to
achieve in the near future?
A touch of strategic ingenuity can yield substantial
results. Our firm is dedicated to establishing a sustainable
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SYSTEM ENGINEERING
WHAT IS A STARTUP FROM SYSTEM
PERSPECTIVE
BAYARTSENGEL BATSAIKHAN
CEO, TUS SOLUTIONS LLC
WWhat defines a company? Is it merely a legal entity
bound by rules and regulations, or is it something more
profound? To delve into this question, let's embark on a
philosophical journey inspired by the Ship of Theseus.
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In ancient Greek philosophy, the Ship of Theseus
conundrum raises questions about identity and persistence.
Imagine a ship gradually having its parts replaced over time.
If every part is replaced, is it still the same ship? Similarly, a
company evolves over time. People come and go, strategies
change, but the essence remains.
At its core, a company is not just a collection of
individuals or a set of rules; it's a dynamic entity with a
shared purpose. It's the culmination of ideas, values, and
actions that transcend individual contributions. In the Ship
of Theseus analogy, the ship represents the company, and its
parts symbolize employees, processes, and structures. The
essence of the ship lies not in its physical components but in
its purpose and function.
Now, let's navigate towards startups. What
distinguishes them from established companies? Startups are
akin to the explorers of uncharted territories in the business
world. They are born out of innovation and driven by a vision
to disrupt the status quo. Unlike traditional companies,
startups operate in an environment of uncertainty, where
adaptability and agility are paramount.
Engineering the Startup Ecosystem
Now that we've established the importance of
startups as dynamic entities, let's explore how we can
engineer them for success. Enter the realm of system
engineering—a discipline focused on designing, analyzing,
and optimizing complex systems. By applying system
engineering principles to startups, we can unlock their full
potential and enhance their resilience.
Here are five principles every startup should
implement to function as a healthy system:
Commonly Shared Goal: Startups must rally around a
shared vision or mission that inspires and aligns stakeholders
towards a common purpose. For example, consider Airbnb,
whose goal of creating a world where anyone can belong
anywhere has unified its team and attracted millions of users
worldwide.
Clear Measurement Metrics: To gauge progress and ensure
accountability, startups need clear metrics that quantify their
performance towards the common goal. Take Tesla, for
instance, which sets ambitious targets for electric vehicle
production and regularly reports on its progress, fostering
transparency and accountability.
Stakeholder Duties: Just as every crew member has a
role to play on a ship, stakeholders in startups must fulfill
their duties and responsibilities. In the case of Alphabet
Inc. (Google's parent company), founders Larry Page and
Sergey Brin established a corporate structure that prioritizes
innovation and long-term thinking, empowering employees
to pursue ambitious projects like self-driving cars and
internet-beaming balloons.
Utilization of Quality Data: In the age of information,
startups must harness the power of data to make informed
decisions and drive innovation. Consider the data-driven
approach of Netflix, which analyzes viewer preferences
and behavior to personalize content recommendations and
optimize its streaming service.
Feedback Loop for Continuous Improvement: Like a
well-oiled machine, startups must establish a feedback
loop for continuous improvement. Look at Amazon, which
solicits feedback from customers and employees alike to
identify areas for innovation and refinement, fueling its
relentless pursuit of customer satisfaction and operational
excellence.
Case Studies in Systemic Success
To further illustrate the application of system
engineering principles in startups, let's explore some realworld
examples:
Spotify: Spotify revolutionized the music
streaming industry by focusing on a commonly shared goal
of providing unlimited access to music while ensuring fair
compensation for artists. Through data-driven insights and
a relentless focus on user experience, Spotify continuously
refines its recommendation algorithms and enhances its
platform's functionality, fostering customer loyalty and
driving growth.
Slack: Slack transformed communication and
collaboration in the workplace by streamlining messaging
and integrating with essential business tools. With a clear
measurement metric of user engagement and satisfaction,
Slack leverages feedback to iterate on its product and deliver
value to stakeholders. By fostering a culture of transparency
and accountability, Slack empowers employees to innovate
and contribute to its success.
Stripe: Stripe disrupted the online payment
industry by providing developers with a simple and
customizable platform for accepting payments. With a shared
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goal of enabling economic growth through technology,
Stripe prioritizes stakeholder duties by providing reliable
payment infrastructure and exceptional customer support.
By leveraging quality data to optimize transaction processes
and detect fraud, Stripe ensures the security and efficiency of
its payment platform.
System Thinking Methodologies in Action
There are many well-known methodologies that
use system thinking at their core, including agile, lean
startup, and design thinking:
Agile Methodology: Agile emphasizes iterative
development, collaboration, and customer feedback.
Startups like Spotify leverage agile methodologies to rapidly
iterate on their product features, respond to changing market
dynamics, and deliver value to customers efficiently.
Lean Startup Principles: Lean startup principles
focus on validating assumptions, minimizing waste, and
maximizing learning. Companies like Slack embrace lean
startup principles to experiment with new ideas, gather
feedback from early adopters, and iterate on their product
roadmap based on validated learning.
Design Thinking: Design thinking encourages
empathy, creativity, and prototyping to solve complex
problems. Startups like Stripe employ design thinking to
understand user needs, co-create solutions with customers,
and iterate on their product design to deliver a seamless user
experience.
Conclusion
In conclusion, startups are not just businesses;
they are dynamic social systems fueled by innovation
and collaboration. By understanding their underlying
mechanics and applying systems engineering principles,
we can nurture healthy startups that navigate the turbulent
seas of entrepreneurship with resilience and purpose. Just
as the Ship of Theseus persisted through time, startups
too can chart a course towards enduring success. Through
clear goals, measurement metrics, stakeholder engagement,
data utilization, feedback loops, and system thinking
methodologies, startups can engineer their ecosystems for
sustainable growth and impact. As we continue to explore
the frontiers of entrepreneurship, let us harness the power of
systems thinking to unlock the full potential of startups and
shape a brighter future for generations to come.
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COOPERATION
Current trends:
WRITTEN BY
BATCHIMEG GANBAATAR, TEM TUMURBAT
/MENTOR, SOCRATUS STUDIO LLC/
Decarbonization is a massive market
opportunity. By 2030, $44 trillion investment in energy
transition technologies is needed to meet the climate
goals and mitigate the impacts of climate change.
Global investment in the energy transition hit $1.8
trillion in 2023, up 50% from 2019 and a new record.
China led with $676 billion invested in 2023, or
38% of the global total. Clean investment in the US
totaled $239 billion, up 38% from 2022, according
to Clean Investment Monitor (CIM). Despite ramp
up in investment, over $5 trillion is needed annually
to stay on the 1.5°C pathway, according to IRENA.
This rapid change of economic activity creates
significant financial opportunity for investors regardless
of their personal views on climate change. Governments,
institutional and retail investors combined are investing
across infrastructure, energy efficiency, transition
technologies, and novel innovations to achieve the clean
energy transition.
Net Zero targets:
• 140 countries, including the biggest polluters –
China, the United States, India and the European
Union – have net-zero target, covering about 88%
of global emissions. (UN)
• One-fifth of the world’s 2,000 largest organizations
are targeting net zero. (Science Based Targets 2023
• At COP28, 30 nations declared to triple global
nuclear energy production by 2050.
• EVs represent 1 in 5 car sales globally, up 35% (IEA)
• Solar PVs deployment grew 85% in 2023
• Wind deployment grew 60% in 2023
• Grid investment jumped 5% in 2023 from $310 billion
• The Green Climate Fund (GCF), the world’s largest
dedicated climate fund, has a portfolio of $13.5 billion
• Assets under ESG management were $40 trillion in
2022 (Kishan 2022)
Risks of global warming pose economic losses in
addition to human health threats and fatalities. Climatechange-fueled
natural disasters are expected to cost $77
trillion by 2050. All investors will need to navigate climate
related risks and opportunities to make informed decisions
to protect assets and maintain best possible outcomes.
(Source: AON 2023 Natural Peril Review)
Climate data shows 2023 was the warmest year on record.
• Extreme heatwaves - claimed 16,200 lives worldwide
• Severe winter weather - 5.2 million livestock perished
in Mongolia. North American storms resulted in $1.5
billion in insured losses in only 3 days.
• Drought - US crop insurance payouts at $6.5 billion
• Coastal erosion - 24% coastal zones eroding annually,
$500 million in property loss and damage just in the
U.S.
• Windstorms - economic loss of $5 million in Europe
• Flooding - $32 billion economic losses in China
• Wildfire - Lahaina wildfire cost $5.5 billion in
economic loss, deadliest U.S. fire in over a century
2023 Economic losses from natural catastrophes
• United States - $114 billion, above the median $84B
• EMEA - $150 billion, highest on record, 3X previous
year
• APAC - $65 billion with record rainfalls, 2,900
fatalities
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Climate tech investment trends:
According to recent data from PitchBook, VC
investment in climate tech reached $41.1 billion in 2023,
albeit with a slight dip from previous years. Despite this,
key segments such as low-carbon mobility, heavy industries
including mining and manufacturing, and renewable energy
continue to attract substantial public and private funding,
signaling sustained investor interest in sustainability-driven
ventures.
Climate tech investment trends:
Foundation of the clean energy transition
1. Critical materials: Solving for net zero means solving
for minerals demand. Annual copper demand is set to
balloon 53% by 2040 to 40 million metric tons (Mt)
- a 14 Mt supply shortfall. Lithium supply will need
to increase 5.9x to meet the 4 Mt demand by 2035.
Other metals like cobalt, nickel, and graphite will likely
experience similar growth profiles. Close to 300 new
lithium, cobalt, nickel, and graphite mines would need
to be up and running by 2035 to bridge the supplydemand
gap.
2. Manufacturing: Industrial processes account for 30%
of global emissions. Chemicals, cement, steel making,
aluminum and copper smelting are all heat and carbon
intensive processes with little commercial substitutes.
3. Transportation: 70% of goods are transported by
heavy duty diesel trucks without viable alternatives.
Hydrogen and battery electric vehicles currently lack
significant charging/fueling infrastructure for long haul
trucking.
Nomadic Venture Partners is an early stage venture capital
firm in the US investing in climate technologies accelerating
decarbonization in mining, manufacturing, and heavy duty
transportation. Learn more at www.nomadicvp.com.
Tem Tumurbat
Co-Founder and Managing Partner
Batchimeg Ganbaatar
Co-Founder and Managing Partner
The firm was established in 2021 by Batchimeg Ganbaatar
and Tem Tumurbat, who worked previously at Resource
Capital Funds (RCF), Newmont Mining Corp and AngloGold
Ashanti. Batchimeg has background in growth marketing
and has worked with early-stage VCs, tech startups, and
corporates including The Boeing Company. Both born in
Mongolia, they grew up and studied in the US at the Colorado
School of Mines and the University of Chicago Booth
School of Business, and both have been start-up founders.
As thought leaders in the climate tech ecosystem, the
founding team are often speaking at Benckmark's Battery
Sustainability Summit, Carnegie Mellon University,
Activate, ARPA-E, Chicago and New York Climate Week,
etc.
Exposure to emerging climate tech startups not only
promises substantial returns but also offers a pathway to
surpassing the conventional bounds of profitability seen in
traditional investment avenues. Investors in NVP include
mining industry experts, family offices, executives across
Amazon, Apollo, founders, private equity investors, etc.
NVP Limited Partners gain access to curated portfolios,
proprietary deal flow, diversification, and the opportunity to
drive meaningful change toward a Net-Zero future.
Technologies
NVP invests in technology companies that hold venture scale
return profile and can outcompete incumbent technologies
based on price and performance alone. Examples include
capital efficient solutions with potential for gigaton carbon
reduction in Nomadic Venture Partners’ target sectors:
• Artificial Intelligence
• Process Optimization
• Hardware Enabled Software
• Materials and Metallurgy
Portfolio highlights:
Breaking down ores
with enzymes
Fintech platform for
transition projects
AI powered mine
intelligence
Converting lampposts
to EV chargers
Transforming
copper extraction
with synbio
Energy transition
marketplace
Join Nomadic Venture Partners at their annual Industrial
Climate Tech Summit on October 18, 2024 in Golden, CO,
U.S. Reach out to contact@nomadicvp.com to additional
details.
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SYSTEM ENGINEERING
JOURNEY OF SYSTEMIZED THINKING
AND STARTUP GOALS
KHATANZORIGT AMARZAYA
CEO, RUBICK AI LLC /PORTFOLIO OF SOCRATUS STUDIO LLC/
WWelcome to insights and reflections on my
entrepreneurial journey. Today, I want to delve into the
importance of systemized thinking and the significance of
defining goals, both in personal and startup contexts.
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Systemized Thinking: Beyond Just Thought
Have you ever pondered the difference between
mere thinking and systemized thinking? I've come to realize
that systemized thinking isn't just about having thoughts; it's
about organizing those thoughts into a structured approach
for decision-making and problem-solving. Drawing
inspiration from "Sapiens" by Yuval Noah Harari, I've
learned that our capacity for thought has been a cornerstone
of human progress since ancient times. Our ability to
outsmart predators and navigate survival challenges paved
the way for our dominance on Earth. Indeed, I would like
to share with you lessons that I have learned from mistakes
made due to poor decisions. Despite the excellent progress
in product development and the team's performance, we
faced disappointing results as the new feature failed to
meet the customers' needs. My poor decision has resulted
in a significant loss of both time and money for us. This
experience has prompted me to realize the importance
of thoroughly collecting, analyzing, evaluating, and
interpreting data before making any decisions or solving
problems.
As Buddha wisely said, "We are what we think."
Our thoughts shape our actions, which in turn define our
identity. This realization hit me hard when I reflected on the
state of my startup. Understanding and applying “Systemized
thinking” empowers business leaders and entrepreneurs to
make informed decisions and their organization can adapt to
change, establish stable systems, and create value for their
stakeholders. I realized that the success of my company was
intricately linked to my mindset as its founder. Recognizing
the need for personal development, I embarked on a journey
of self-improvement.
out new knowledge, and constantly challenging yourself are
essential steps toward becoming a valuable individual. As
you continue to enhance your value as an asset, money will
naturally gravitate toward you like a magnet.
Secondly, in today's digital age, it's crucial to carve
out time for deep contemplation amidst the distractions of
smartphones and social media. It's crucial to allocate more
time to disconnect from our devices, allowing ourselves
the opportunity to think, observe, read, and engage in
introspection. By breaking bad habits and cultivating good
ones “make it invisible, unattractive, difficult, unsatisfying”.
In conclusion, systemized thinking and goalsetting
are not just buzzwords; they are indispensable tools
for navigating the complexities of startup life and personal
growth. As I continue on this journey, I'm reminded of the
wise words of Socrates: "The unexamined life is not worth
living."
Remember, to achieve something you've never
had, you must be willing to do something you've never done.
Until next time, keep striving and growing!
The Power of Setting Goals
Fitzhugh Dodson once remarked, "Without goals,
and plans to reach them, you are like a ship that has set sail
with no destination." Setting clear goals provides a roadmap
for success, both in personal and professional spheres. Goals
offer clarity, direction, and alignment, enabling individuals
and organizations to prioritize tasks and measure progress
effectively.
Unfortunately, I learned this lesson the hard way
when misunderstandings among my co-founders led to our
eventual split. It underscored the importance of ensuring
everyone shares a unified vision and understands the
company's goals.
Additional Insights: Investing in Yourself and
Breaking Bad Habits
Before wrapping up, I want to touch on two
additional points. Firstly, investing in oneself is the most
valuable investment one can make. As Jim Rohn aptly put
it, "The more valuable you are, the higher your earning
potential." Improving yourself, acquiring new skills, seeking
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INTERVIEW
INSIGHTS INTO GLOBAL STARTUP
INVESTMENTS: NAVIGATING
TRENDS, TECHNOLOGIES, AND
EMERGING MARKETS
INVESTMENT
RAOUTI CHEHIH
CO-FOUNDER, CEO & INVESTOR, TANSLEY
MENTOR, SOCRATUS STUDIO LLC
W
What recent trends have you observed in startup investment
globally? Are there any sectors or regions that are particularly
promising or experiencing significant growth?
Absolutely, the startup investment landscape has been
incredibly dynamic lately. One notable trend is the increasing
interest in sustainability-focused startups. For instance, companies
like Impossible Foods and Beyond Meat have attracted significant
investment due to their innovative approaches to plant-based meat
alternatives, addressing both environmental and health concerns.
Additionally, sectors like cleantech, fintech, and health tech continue
to see substantial growth, with startups like 44.01, Robinhood, and
Roivant Sciences capturing investors' attention with their disruptive
business models and technologies.
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"Investors today emphasize the quality of founding teams and technological advancements
like AI, blockchain, and biotech, adapting strategies for economic uncertainties and exploring
cross-border opportunities, especially in emerging markets with high growth potential like
India and Southeast Asia."
How have the criteria for selecting startups for
investment changed over the years? Are there any new
factors that investors are placing greater emphasis on
now compared to in the past?
Investors are definitely placing more emphasis on
the quality of the founding team nowadays. They're not just
looking at the product or market potential; they want to see
a team that has the vision, resilience, and adaptability to
navigate challenges and scale the business effectively. Take
the example of Stripe, a fintech startup founded by two Irish
brothers. Despite facing initial skepticism, their relentless
focus on building a seamless payment processing platform
and their ability to attract top talent have made them a
darling of the investment world.
How are technological advancements (e.g., AI,
blockchain, biotech) influencing investment
decisions in startups? Are there specific technologies
or industries that are attracting more attention from
investors?
Technological advancements like AI, blockchain,
and biotech are driving a lot of excitement in the startup
space. We're seeing startups like OpenAI revolutionize
natural language processing with their GPT models,
or companies like ConsenSys leveraging blockchain
technology to transform industries like finance and supply
chain management. These technologies not only offer
opportunities for efficiency and innovation but also have the
potential to address complex global challenges. For instance,
biotech startups like Moderna and CRISPR Therapeutics
are making significant strides in personalized medicine and
gene editing, attracting substantial investment as a result.
In the current economic climate, how are investors
adapting their strategies and risk assessments when
considering startup investments? Are there any
specific challenges or opportunities that they are
focusing on?
In today's economic climate, investors are
definitely being more cautious and selective with their
investments. They're looking for startups with solid revenue
models and clear paths to profitability, rather than just
chasing growth at all costs. One challenge startups may
face is the need to demonstrate resilience and adaptability in
the face of uncertainty. However, this climate also presents
opportunities for startups that can innovate and address
emerging market needs. For example, during the COVID-19
pandemic, we saw startups like Zoom and DoorDash thrive
by providing solutions for remote work and food delivery,
respectively. On the other hand, startups that have already
established sustainable business systems can prevent these
challenges or adapt to them.
With the increasing globalization of markets, how
are investors approaching cross-border investments
in startups? Are there any unique challenges or
opportunities associated with investing in startups
from different regions?
Cross-border investments offer exciting
opportunities for investors to tap into new markets and
diversify their portfolios. However, they also come with
unique challenges, such as navigating cultural differences,
regulatory complexities, and geopolitical risks. Investors
need to conduct thorough due diligence and build strong
local partnerships to mitigate these challenges effectively.
Nonetheless, investing in startups from different regions
can provide valuable insights and access to untapped
market opportunities. For instance, SoftBank's Vision
Fund has made significant investments in startups across
the globe, from WeWork in the U.S. to Grab in Southeast
Asia, leveraging its global network and expertise to support
portfolio companies' growth.
What are your thoughts on emerging markets as
destinations for startup investments? Are there any
particular emerging economies that you believe
hold significant potential for startup growth and
investment?
Emerging markets present immense opportunities
for startup investments, driven by factors like rapid
urbanization, rising middle-class consumption, and
increasing internet penetration. Countries like India, with its
burgeoning startup ecosystem and large consumer market,
are particularly attractive to investors. Startups like Flipkart
and Paytm have demonstrated the potential for explosive
growth in emerging economies, attracting investment from
both domestic and international investors. Additionally,
regions like Southeast Asia and Latin America are also seeing
a surge in startup activity, fueled by supportive government
policies and growing entrepreneurial ecosystems.
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EDUCATION
THE POTENTIAL OF USING ARTIFICIAL
INTELLIGENCE (AI) AS AN ACCELERATOR FOR
SOCIAL AND ECONOMIC DEVELOPMENT
JARGALSAIKHAN DUGAR
FOUNDER OF GUND INVESTMENT HOLDING, HEAD OF THE YOUNG
RESEARCHER SUPPORT FOUNDATION
I
In recent years, there has been remarkable progress
in developing and deploying AI across all sectors of society
and the economy, and the application of AI is increasingly
permeating all areas of social, economic, and defense
activities in countries around the world. Although the term
"artificial intelligence" has caused considerable debate
internationally, it is clear that the solutions created under
this name have become a powerful tool to support human
thinking and cognitive activities.
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It has already been proven that AI creates the
following advantages for any purposeful activity:
• Reducing the time required to achieve the goal
• Avoiding errors arising from human thinking biases
• Improving transparency
• Enhancing the rationale for conclusions and decisions
• Ensuring coherence between multiple decisions being
made
• Enabling rapid monitoring of decision implementation
without lateral effects
• Automating and making safer processes that humans
repeatedly perform or that are hazardous to health
• Creating and effectively utilizing a knowledge base
from the results of previously created human knowledge
and experience.
AI can never completely replace human cognitive
activities, but it has the ability to substitute or support many
complex cognitive operations that are essential for creating
knowledge and solutions. In particular, AI provides the
ability to quickly, inexpensively, and without errors perform
cognitive operations that are extremely time-consuming
and highly dependent on individual thinking patterns and
perspectives, such as searching, generating, collecting,
classifying, comparing, processing information, and drawing
conclusions.
Numerous international studies have shown that
the use of AI can reduce the cost of goal-driven activities by
30-50%, increase productivity by up to 40%, and increase
customer satisfaction by 15%. These advantages can be
created across all sectors of society. These advantages
explain why public and private sector organizations in many
countries are interested in using AI as widely as possible.
While it is undoubted that AI creates these
advantages, it is essential to establish the necessary
environment and resources to create these advantages and
develop appropriate infrastructures. Failure to prepare
these conditions will not only prevent AI from creating its
advantages but will also result in a tremendous waste of
resources. Well, proven international practice suggests that it
is appropriate to plan and coordinate the following activities
to create the prerequisites:
• Clarify the concept of AI and the consequences of its
use
• Establish the necessary workflow of the activities of the
user organizations to effectively use AI for any goaldriven
activity
• Develop official definitions for commonly used core
concepts (work, goal, plan, law, regulation, duty, etc.)
to be understood in the same meaning
• Develop measurement units for planning and monitoring
activities
• Develop commonly shared quality standards for data/
information used for drawing conclusions and making
decisions
• Develop a unified model of processes and activities that
stakeholders perform to achieve a commonly shared
goal
• Digitize and automate the planning and monitoring of
goal-driven activities
• Develop intellectual solutions to generate, store,
integrate, and process high-quality data to support AI
solutions
• Train personnel with the necessary skills and expertise.
Clarifying the Concept of Artificial Intelligence
The prevailing view that AI can perform thinking,
reasoning, and other operations without human involvement
based on pre-programmed algorithms, generating all the
knowledge needed by humans, limits the possibility of
effective and accessible usage of AI. In other words, the
view is that humans do not need to think because AI is
capable of thinking and making the necessary decisions on
their behalf. Unfortunately, we still do not fully understand
the cognitive operations that make up human thinking and
reasoning, nor do we have sufficient understanding of the
roles these operations play in implementing complex and
broad-ranging goal-driven activities. Therefore, rejecting
this broad view and instead considering AI as a tool
that creates advantages such as saving time, increasing
accessibility, and assisting with cognitive and physical
operations that are time-consuming, costly, and hazardous
to health for humans to perform themselves would be more
appropriate. An approach based on this understanding would
create the conditions for developing and using AI solutions
that are accessible and effective across all sectors of human
society.
Improving the Goal-Driven Activities
AI solutions create advantages in supporting
human activities by performing cognitive operations
that can recognize certain characteristics of a goaldriven
activity. Although, if that activity is disorderly, the
usefulness of the AI-based solution is greatly reduced.
Therefore, it is fundamentally important to bring these
activities into an organized state. Especially, the cognitive
operations performed by humans are often disorganized
and iterative in nature. However, these operations are not
directly visible or perceptible to the human eye but rather
occur in an extremely complex process between living cells
and neurons. For this reason, it is difficult to fully monitor,
diagnose, and control human activities using AI, and the
conclusions and recommendations produced by AI tend
to have only a probabilistic character, similar to a doctor
saying, "Your lungs are 80% likely to be inflamed."
Another factor contributing to this weakness is poor
management and lack of internal coherence in goal-driven
activities. The more disorganized the goal-driven activity
is, the more limited the ability to recognize its properties in
detail. Therefore, in order to enable diagnosis, digitization,
and the more accessible and effective use of AI solutions, it is
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necessary to bring goal-driven activity into an orderly state.
Although this is not easy, humanity is investing tremendous
resources into creating a generally accepted model. This
approach is evident by adopting practices to standardize
the dominant properties of organizational governance or
operational activities in many countries. For example,
the international governance standard ISO 37000 is being
used to organize the activities of all types of organizations.
By consistently implementing standards like ISO 37000
for governance in the activities of multiple interrelated
organizations, including government agencies, it is entirely
possible to digitize and make their activities coherent with
each other, thereby increasing the scope and variety of AI
solutions that can be used.
Defining and Aligning Core Concepts
As AI solutions perform certain cognitive
operations using specific signals, symbols, numbers,
letters, words, concepts, and phrases created by humans,
the performance, quality, and results of these operations
directly depend on the properties of the elements used to
perform them. For example, since the meaning of commonly
used words or concepts can be general and subjective, AI
solutions cannot understand, translate, or compare them
in a single way, and thus, the output of the AI solution
will be based on a probability estimate with considerable
uncertainties. One way to overcome this weakness is to
align the meanings of core concepts commonly used within
an organization or industry. This alignment would enable AI
to be used more effectively in cross-sectoral or large-scale
coherent activities.
Developing and Improving Activity Measurement
Units
A key advantage of using AI-based solutions is
the ability to quickly and accurately measure, evaluate, and
draw conclusions about specific properties of something or a
phenomenon without human involvement over a short period
of time. Unfortunately, in most cases, people neglect to
develop a solution for translating the properties they want to
evaluate and draw conclusions about into numerical values.
To perform these evaluation and conclusion operations, it is
essential to develop measurement units for measuring the
state of the properties. Without appropriate measurement
units, it is impossible to generate quality data, and without
quality data, it is impossible to draw quality conclusions
and make quality decisions, furthermore forcing decisions
to be made based on assumptions and biases. Therefore,
it is essential to precisely identify the properties of social
relationships and development that need to be measured
and develop interrelated measurement units essential for
translating these properties into numerical values. While
developing such units is a highly complex task, it can be
solved using systems engineering methods.
Developing Common Quality Standards for Data/
Information Used for Drawing Conclusions and
Making Decisions
Since AI solutions generate new data and process
existing data, defining and adhering to common requirements
for data quality will create a fundamental advantage in
deploying and effectively using AI solutions more widely.
Working with incomplete or non-harmonized data causes
AI to make overly general probability-based conclusions
and explanations. While several international organizations
have defined quality criteria for data, unfortunately, there
are no universally accepted criteria. One factor hindering
the development of such criteria is the chaotic notions and
assumptions in our minds about the concept of data itself.
Such chaotic notions also adversely affect the ability to bring
cognitive processes into an orderly state. This situation can
be resolved by modeling cognitive processes down to the
level of operations.
Developing a unified model of processes
and activities to achieve a commonly shared goal of
organizations that wish to use advanced AI solutions in
their operations must necessarily model their activities into
a specific pattern. Such modeling creates many advantages,
such as directing participants towards a common goal,
establishing alignment, creating a quality data repository,
enabling diagnosis and feedback, and enabling sustainable
improvement. On the other hand, the elements that make
up a goal-driven activity constantly change, limiting the
ability to model activities. However, the rapidly developing
field of systems engineering in recent years provides an
opportunity to overcome this difficulty, with the axiombased
system model playing a crucial role in achieving
this goal. Researchers at TUSSolution have developed an
axiom-based system model of goal-driven activities, and the
results of using this model in numerous studies, analyses,
and development efforts suggest that it is possible to model
goal-driven activities in detail.
To create the conditions for more effective use of
advanced AI solutions in social and economic development
activities, the following measures are recommended:
• Develop and enforce official shared definitions of
common pillar concepts
• Develop and enforce standard criteria and metrics for
measuring data quality commonly used in planning and
monitoring activities
• Develop a unified governance model for goal-driven
activities based on the ISO 37000 standard using social
systems engineering methods
• Execute the governance model
• Develop or select a platform to digitize the developed
model.
Implementing these steps enables AI to offer more
tailored ideas for concluding, developing solution concepts,
and modeling the entire goal-driven activity.
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GLOBAL MARKET
UNLOCKING OPPORTUNITIES IN CENTRAL
ASIA: MARKET ENTRY STRATEGY FOR
KAZAKHSTAN
A
BILGUUNZAYA MUNKHBAYAR
HEAD OF INNOVATION DEVELOPMENT AND
SUPPORT DEPARTMENT, SOCRATUS STUDIO LLC
As Central Asia continues to emerge as a hotspot
for startups and investors, Kazakhstan stands out with its
dynamic and rapidly evolving ecosystem. For those looking
to enter this promising market, understanding the key
components of the ecosystem, popular startup sectors, the
role of venture capital (VC), incubators, accelerators, and
governmental support is essential. This article delves into
these aspects and provides strategic tips for startups aiming
to succeed in Kazakhstan.
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Ecosystem of Kazakhstan
Kazakhstan is making significant strides in
transforming into a digital nation. With a population of
19.8 million and a GDP of $225.5 billion in 2023, the
country boasts a high internet penetration rate of 90% and
a rapidly growing e-commerce sector. The government's
"Digital Kazakhstan" program and initiatives like the
Astana International Financial Centre (AIFC) have created
a favorable environment for startups.
Popular Startup Sectors in Kazakhstan
The startup ecosystem in Kazakhstan is diverse,
with several sectors showing significant promise:
• E-commerce and Marketplaces: Due to the rising
internet penetration and a young, tech-savvy population,
e-commerce is a leading sector.
• Fintech: The fintech sector is thriving and is supported
by initiatives like the AIFC's fintech regulatory sandbox.
• Govtech/Smart City Solutions: Innovations in
government technology and smart city solutions are
gaining traction.
• Edtech and Healthtech: These sectors are also growing,
driven by the demand for digital education tools and
healthcare solutions.
VCs, Incubators, and Accelerators in Kazakhstan
Venture Capital Funds:
• QazTech Ventures: This major player cooperates with
international funds like 500 Startups (USA) and Quest
Ventures (Singapore), focusing on high-growth tech
startups.
• MOST Ventures: An independent fund that supports
early-stage startups with a focus on technology and
innovation .
• Tax Incentives: Startups at Astana Hub benefit from
preferential tax regimes, including exemptions from
individual, corporate, and value-added taxes until 2066.
• Subsidies and Grants: Programs like the Business
Roadmap (BR) and Economy of Simple Things (EST)
provide subsidies and guarantees for business projects.
• Regulatory Frameworks: The AIFC operates under
English law, offering a stable and attractive legal
environment for foreign investors.
Criteria of VCs, Incubators, and Accelerators for
Startups
Selection Criteria:
• Innovation: Focus on innovative IT projects with high
growth potential and scalability.
• Market Potential: Clear market potential with a strong
business model and revenue streams.
• Team Competence: A capable and experienced team
with a mix of technical and business skills.
• Alignment with Priorities: Projects should align with
national priorities in tech and digital transformation.
Tips for Startups to Enter the Kazakhstan Market
Understand the Local Market:
Conduct thorough market research to understand consumer
behavior, regulatory environment, and competition.
Leverage Available Resources:
Utilize the support services provided by incubators and
accelerators, such as mentoring, office space, and networking
opportunities.
Network and Collaborate:
Engage actively in networking events and workshops
to build relationships with other startups, investors, and
industry experts.
Incubators and Accelerators:
• Astana Hub: Established in 2018, this international
technopark provides tax incentives, office space,
mentoring, and access to global networks. It focuses on
IT and tech startups.
• Tech Garden: Supports smart industry, clean
technologies, and fintech startups, offering funding and
strategic partnerships.
• MOST Business Incubator: The first private incubator
in Kazakhstan, providing comprehensive support from
idea to market realization .
Governmental Support
The Kazakh government actively promotes
innovation and entrepreneurship through various programs
and initiatives:
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Focus on Scalability and Innovation:
Develop a scalable business model with a clear growth
trajectory and continuously innovate to stay competitive.
Prepare for Investment:
Have a solid business plan that demonstrates market
potential, revenue model, and growth strategy.
Adapt to Regulatory Requirements:
Stay informed about local regulations and ensure
compliance to avoid legal pitfalls.
Stay Agile and Resilient:
Be prepared to pivot based on feedback and market
conditions, maintaining a resilient mindset to navigate
challenges effectively.
Socratus's Partnership with Kazakhstan
Socratus Startup Studio is actively engaged in
the Central Asian market and has established a partnership
with key players in Kazakhstan. This collaboration
aims to leverage the strengths of both ecosystems,
providing startups with enhanced support, resources,
and opportunities for cross-border expansion. Through
this partnership, Socratus and its Kazakh counterparts
focus on sharing best practices, fostering innovation, and
driving economic growth in the region.
By focusing on these key areas and leveraging strategic
partnerships, startups can successfully navigate the
vibrant and growing ecosystem in Kazakhstan, achieving
sustainable growth and success.
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GLOBAL MARKET
DOING BUSINESS IN SINGAPORE THROUGH
MY LENS: THRIVING IN DIVERSITY AND
EFFICIENCY
O
AMINZUL DAVAAPUREV
BRANCH MANAGER, TUSS INTERNATIONAL PTE LTD IN
SINGAPORE
Over the past five months in Singapore, I've delved
into a business environment that exemplifies efficiency,
innovation, and multicultural harmony, offering insights into
the distinctive attributes that make Singapore a unique place
for business.
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Speed and Efficiency
In Singapore, the business ethos is characterized
by a remarkable pace. Quick decision-making and the agile
implementation of innovations are hallmarks of the local
culture, driving success in a highly competitive global
environment. Plans ahead and prepares ahead.
Support for SMEs
Small and Medium Enterprises (SMEs) in
Singapore are bolstered by targeted support mechanisms:
• Startup SG Founder Grant: Provides up to SGD
50,000 to first-time entrepreneurs with innovative
business ideas, facilitating the launch of their ventures.
• Productivity Solutions Grant (PSG): Offers up to
70% funding support for SMEs to adopt IT solutions
and equipment that enhance business processes.
• Market Readiness Assistance (MRA) Grant:
Supports companies looking to expand globally with
funding up to 70% of eligible costs for market entry or
expansion.
Focus on Human Capital
Key initiatives reflect Singapore's investment in its
workforce:
• SkillsFuture Credit: Offers Singaporeans aged 25
and older an initial credit of SGD 500 to fund skills
development courses, fostering lifelong learning.
• Workfare Training Support (WTS) Scheme: Provides
salary support and funding for training programs to
encourage the upskilling of lower-wage workers.
• Professional Conversion Programmes (PCP):
Facilitates career transitions for mid-career
professionals, offering training and salary support to
enhance employability in new sectors.
These programs exemplify Singapore's holistic
approach to nurturing a skilled and adaptable workforce,
pivotal to sustaining economic vitality and business
competitiveness.
Digital transformation consultants (CTO) who
analyze business operations and offer appropriate digital
solutions. Even they developed Industry Transformation
Plans on how businesses can foster digitalization at different
stages.
These initiatives are instrumental in fostering a
vibrant SME sector, enabling businesses to innovate, scale,
and compete internationally.
Feedback Culture
Singapore’s feedback-oriented approach is evident
in its systematic collection and utilization of public and
customer feedback to refine services and policies, promoting
a culture of continuous improvement and responsiveness.
Diversity and Inclusivity
Singapore's social and business fabric is enriched
by its diverse population comprising Chinese, Malay,
Indian, and Eurasian communities. This diversity is not only
a source of cultural wealth but also a driver of innovative
and inclusive business practices.
Singapore as a Business Hub
Singapore’s status as a business hub is reinforced
by its hosting of over 7,000 MNCs and 60,000 foreign
business entities. The strategic geographic location, probusiness
policies, and robust legal framework make it an
attractive center for global commerce and finance.
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INNOVATION
MONGOLIA IS THE CRADLE OF NOMADIC
CULTURE
O
SARANTSETSEG ENKHJARGAL
CEO, O AND PARTNERS LLC
One of the best reasons to travel to Mongolia is to
experience the vibrant nomadic culture. "Mongolia is a land
of vast sandy dunes, free-roaming horses, nomadic herders
who graciously welcome strangers into their homes, and
stunning landscapes that take your breath away".
Since the Hunnic Empire, Mongolians have practiced
nomadic pastoralism with their five types of livestock
which include sheep, horses, cattle, camels, and goats spread
across the vast steppe, forest, and desert regions.
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Mongolia boasts four enchanting seasons, and its
nomadic families meticulously follow a seasonal routine,
strategically relocating their herds to fresh grazing lands in
harmony with the changing seasons. Historically, each clan
had its own designated pasture lands that only they used
year after year.
When traveling to different locations, tourists have
the thrilling opportunity to immerse themselves in four
unique cultures, lifestyles, landscapes, cuisines, climates,
local customs, histories, and attractions.
In the tourism sector of Mongolia
The tourism sector is developing rapidly in
countries around the world, and in Mongolia, the growth
of this sector is even more accelerated compared to other
business sectors. Mongolia became a member of the World
Tourism Organization in 1990.
The government has declared 2023 to 2025 as
the "Years to Visit Mongolia" and adopted "Welcome
to Mongolia" as the key slogan, shaping the country's
international image and identity.
Furthermore, in addition to the tourism sector, the
government it has begun to outline the direction for economic
and social development and establish a legal environment.
Within the framework of the sector's policy, the goal is to
develop the cultural and tourism sectors, enhance a positive
perception of Mongolia and Mongolians among visiting
tourists, and promote national characteristics.
Tourism is a Bridge of Culture
The tourists visiting our country have a desire to
experience Mongolia's breathtaking nature and learn about
its traditional culture and customs.
Mongolia is a country with an incredibly rich
cultural heritage stemming from its unique geography.
Accordingly, this opens up significant opportunities to
develop Mongolia's economic and business sectors.
While tourism was traditionally most active during
the summer months, in recent years the promotion of the
unique nomadic culture has provided a major boost to the
growth of winter tourism. The expansion of winter tourism
allows visitors to immerse themselves in the authentic
nomadic lifestyle year-round.
Tourism serves as a bridge to experience
Mongolia's rich natural landscapes and nomadic traditions
that shift across the four seasons. No matter which corner of
Mongolia you visit, you can experience its stunning natural
scenery, which transforms with each changing season,
captivating the human spirit.
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About us
Our company "O & Partners" LLC was established
in 2004 with 100% investment from "Gund Investment"
LLC. Starting in 2020, we have been implementing the
"Dream Tour" project in the tourism sector. Within this
project, our goal is to provide tourists with a nomadic
experience in the vast steppe under the eternal blue sky and
introduce them to authentic Mongolian national culture.
To this end, we have organized tours to scenic
destinations in Mongolia such as Yolyn Am in the Gobi
Gurvan Saikhan region of Omnogovi aimag, also the Altai
Tavan Bogd mountains (the highest peaks in Mongolia)
located in Ulaan khus sum of Bayan-Olgii aimag known
as the "Roof of Mongolia", and other picturesque natural
wonders across the country.
We aim to immerse visitors in Mongolia's nomadic
heritage and breathtaking landscapes through authentic
travel experiences.
Moreover, based on the unique natural features
of Mongolia, the "Dream Sky" tourist camp has been
established and is steadily expanding its operations.
Operating regularly during all four seasons, our tourist camp
is located 45 kilometers away from Ulaanbaatar city, in
Bugatiin Davaa of Gachuurt.
Upon arriving, our travelers can experience the
grandeur of the high mountains, hear the sound of the
mountain streams nearby, and gaze at the twinkling stars
in the clear night sky from cozy traditional ger dwellings
furnished with modern amenities for guest comfort while
immersing in the nomadic culture.
Additionally, aiming to promote and introduce Mongolian
culture through our hospitality services, we offer activities
such as horse riding, archery, and performances of traditional
Mongolian arts. Seeking peace and tranquility? Look no
further than Dream Sky Hotel & Resort Nestled amidst
breathtaking mountains in Mongolia’s stunning natural
landscape, our resort offers the perfect escape from city life.
Choose from 9 comfortable hotel rooms for a classic stay or
12 traditional gers featuring modern amenities.
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INTERVIEW
DRIVING INNOVATION FROM THE
GROUND UP
SYSTEM ENGINEERING
G
GALKHUU SAINBAYAR
HEAD OF BUSINESS SYSTEM INSTALLATION DEPARTMENT, SOCRATUS STUDIO LLC
Good evening, Today we speak with Galkhuu Sainbayar, Head
of Business system installation department of Socratus
Startup Studio. Could you provide us with an overview of your
department role and company’s operation.
Thank you for inviting me. Socratus Startup Studio is a
specialized organization that provides innovative start-up business
ideas with services, start-ups to become organic, well-functioning
business systems, and a comprehensive program based on systems
engineering. Simply put, it can be likened to a kindergarten. Just as
a kindergarten provides minors with all the necessary skills before
they enter school and instills fundamental principles, values, and
attitudes that shape what kind of person they will become, we do the
same for entrepreneurs who just started their journey. We help them
organize their mindset and develop the right attitudes for running a
startup business.
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"Startups are not just businesses, they are dynamic social systems fueled by innovation and
collaboration"
Our company is divided into four departments
based on our operational focus. Specifically, our Business
Systems Installation Department is responsible for implementing
and developing management solutions for startups.
This includes identifying and integrating additional required
solutions, overseeing their implementation, and providing
the necessary data for monitoring and evaluating the performance
and outcomes of startup operations.
So you have mentioned “Startup” a bunch of times.
What exactly is Startup?
The notion of a startup originated when small
technology businesses began to address new needs, offering
innovative products and services and experiencing rapid
growth, thereby making a significant impact on their
respective industries. Whereas, we define a startup as
“an activity of generating, testing and perfecting a set of
knowledge-based solutions that enable offering competitive
products and services in an inclusive manner for customers
and building a sustainable business” based on our experiences
since our inception and long-term research. To illustrate:
An individual is able to meet their needs through
various means, if someone wants bread, they can learn how
to make it, buy the ingredients, and bake it themselves,
or they can simply purchase it. However, consumers
face obstacles and challenges during the processes of
implementing current methods of satisfying needs that often
involve significant resource expenditure or result in lower
quality. Startups emerge to overcome these challenges and
provide more resource-efficient and higher-quality solutions
to meet consumer needs.
Startups are similar to small and medium-sized
enterprises (SMEs) in that they are relatively small, have
limited resources, and employ few workers compared to
corporations. Even so, they differ from traditional businesses
in their ability to create new business models, develop
innovative products, and address emerging needs, thereby
achieving rapid growth. This potential for exponential
growth also comes with a higher level of risk.
face the challenge of limited resources. Therefore, they must
utilize their limited resources most efficiently.
In our incubation program, we guide startups
through the Initiating Stage, which involves activities such
as meeting with consumers, conducting surveys, and having
discussions. These efforts significantly impact successful
market positioning. By gathering and analyzing data to
understand consumer needs, startups can effectively position
their products in the market with limited resources.
I see that the Initiating Stage has a lot of impact on
the market fit of startups. Could you please provide us
with what is the initiating phase in detail?
The Initiating Stage /IS/ is a critical phase that
helps startup founders understand the essential foundational
factors they need to know about their business. In a nutshell,
this stage supports founders in identifying whose needs
they are addressing, what advantages (through products or
services) they are offering, and what value they are creating.
It also helps them to determine whether they genuinely want
to pursue this startup venture.
The IS continues over two months. Initially, startup
entrepreneurs deeply explore their mission, understanding
the fundamental reason for their existence which means
understanding why they are undertaking this startup and what
purpose it serves. Subsequently, they focus on identifying
what they need to do to establish their relative advantages,
what business model they should employ to create value
with a superior product, what strategies to follow, and what
resources are necessary. These questions guide them in
building a solid foundation for their startup.
Then how do they position in the market successfully
and what does Socratus do to support them in
successfully positioning?
To successfully position in the market, startups are
often advised to directly offer their products to consumers,
gather feedback based on consumer and market responses,
and make improvements accordingly. While this approach
is straightforward with sufficient resources, startups often
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How is this methodology tailored to fit different types
of startups or industries?
In our program, startups from various sectors
enroll, and despite their diversity, all these startups are
organizations and systems. What I mean is that they all
have similar properties such as they all have goals and
stakeholders etc,. Therefore, the tasks carried out during the
IS are essential for any type of startup, regardless of their
operational focus. These tasks must be completed to ensure
a solid foundation for the business.
What are some common challenges that startups face
when implementing the IS methodology?
From my observations, many young entrepreneurs
starting a business often think, "If I just do this and secure
funding, I'll succeed," and dive right in. However, once
they join our program, many of them face challenges due
to not having thoroughly researched their ideas. This often
leads to frustration, discouragement, or even abandoning the
business altogether, realizing that they didn't actually want
to pursue it. This reflects their superficial approach and lack
of comprehensive understanding of their business.
Can you share a story of a startup that successfully
overcame these obstacles and effectively implemented
this methodology?
For example, we have a travel company that has
joined our program. When they first enrolled, I asked the
founder to define "travel" and "tourism." They couldn't
differentiate between the two notions. Without clearly
defining fundamental notions, they were in the condition of
not being able to proceed with developing their program or
revenue model. However, by completing the IS, they gained
an understanding of these essential notions. This allowed
them to create more refined travel programs and implement
a consumer-focused business model. During the IS, startups
can define common notions used in their operations, leading
to a deeper understanding of their business
How do you assist startups in overcoming these
challenges?
Entrepreneurs who are just starting their businesses
often do not fully understand the importance and benefits of
the IS. Therefore, we take the initiative to teach them each
phase, help them understand the notions, and advise them on
how to execute these tasks in a simple and efficient manner.
Additionally, we connect startups with necessary mentors in
collaboration with other departments, providing training and
consulting services to support them through these phases.
fifth model iteration. Over this period, we have continuously
improved and evolved. On the other hand, just as we advise
our companies to implement the IS, we also identify and
correct any errors or shortcomings in our process, making
improvements along the way. Furthermore, our startups'
feedback is incorporated to enhance our approach. As we
continue to learn and grow over time, we better understand
what needs improvement and develop accordingly.
Additionally, in recent years, Socratus has been collaborating
with international mentors, which has allowed us to identify
and implement necessary solutions for enhancing the IS,
leading to further improvements.
In the last, what advice would you give to startups
about to embark on the initiation phase? What should
be their top priority?
For young entrepreneurs just starting their
journey, my advice would be at first to first identify your
available resources and opportunities. Using these to
supplement your limited resources is the most optimal
initial step. Additionally, do not restrict your opportunities
for continuous growth. Participate in as many competitions,
challenges, and programs as possible. These experiences can
provide invaluable insights and experiences for both you
and your business.
Thank you for speaking with us. Good luck for your
future career.
How has the initiation phase methodology evolved
based on feedback and results from past incubatees?
As far as I remember, it was either 2016 or 2017
when we started working on this, and we are now on our
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DIGITAL SOLUTIONS FOR NBFI TO
EXPAND THEIR BUSINESS
Fintech application
Loan origination system
BNPL(buy now pay later)
infrastructure ready to plug
and play
FINTECH
APPLICATION
Integrate with Core banking system to pay and inquire loans
Self sign-up
Integration with XYP, DAN and other state services
Integration with CIB(sainscore, burenscore)
Fintech loan
Loan request
BNPL purchase
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LOAN
ORIGINATION SYSTEM
Integration with core system to
operate seamless
Sync customer data with state data
(XYP DAN and transport department etc)
Work on request issued from Fintech
app
Loan disbursement, integration with
Bank gateway
Identify business income from bank
statement using AI
Estimate collateral valuation
using AI
BNPL INFRA
contact@gopay.mn
+976 8804-0051
Enable BNPL feature to customers
Access to ever growing shared BNPL
merchant infra without additional
integration
Opportunity to create additional
revenue stream by acquiring BNPL
merchants
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COOPERATION
ENSURING FINANCIAL SECURITY AND
HEALTH WITH INTERNATIONAL HEALTH
INSURANCE
"NATIONAL LIFE INSURANCE" LLC
A
At our organization, we pride ourselves on providing
comprehensive and reliable health insurance solutions to our
clients. Recently, we had the privilege of supporting one of
our long-standing partners through a challenging medical
situation.
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A Life-Saving Liver Transplant
One of the employees enrolled in our
"INTERNATIONAL HEALTH INSURANCE" plan was
diagnosed with liver cancer and required urgent liver
transplant surgery. The individual sought treatment at a
leading hospital in South Korea, where the total cost of
treatment and services amounted to 240 million tugrug.
We are proud to announce that our organization fully
compensated for these expenses through direct billing,
ensuring the employee received the necessary medical care
without financial burden.
We are delighted to share that the surgery was
successful, and the insured person has returned to Mongolia.
Our contribution played a vital role in preserving the wellbeing
and integrity of a Mongolian family, reflecting our
commitment to our client's health and peace of mind.
Understanding Liver Cancer and Its Causes
Liver cancer is a significant health concern, with
90% of cases attributed to hepatitis B and C viruses. Other
factors contributing to liver cancer include:
• Cirrhosis or liver scarring
• Inherited liver diseases
• Non-alcoholic fatty liver disease
• Previous liver inflammation or hepatitis
• Excessive alcohol consumption
• Improper use of medications
According to the National Cancer Center of
Mongolia (NCCM), liver cancer had the highest incidence
rate among all cancers in 2022, accounting for 33.2% of
new cancer cases registered nationwide. The incidence rate
was notably high in both sexes, with 77.6 cases per 100,000
males and 59.5 cases per 100,000 females.
The International Agency for Research on Cancer
of the World Health Organization (WHO) identifies alcohol,
tobacco, unhealthy diet, and air pollution as significant
contributors to cancer growth.
Prioritizing Liver Health for Your Family
Maintaining a healthy liver is crucial for overall
well-being and longevity. As the liver plays a vital role in
detoxification, metabolism, and nutrient absorption, it is
essential to adopt healthy lifestyle choices and undergo
regular medical check-ups to detect and prevent liver-related
diseases.
Conclusion
At our organization, we understand the
importance of health and financial security. Through our
"INTERNATIONAL HEALTH INSURANCE" plan, we
strive to offer peace of mind to our clients, ensuring they
have access to quality healthcare when they need it most.
The recent successful liver transplant case
underscores our unwavering commitment to our client's
health and well-being, reminding us all of the importance of
having a healthy liver as a family.
We encourage everyone to prioritize their
health, get regular check-ups, and consider investing in a
comprehensive health insurance plan to safeguard against
unforeseen medical expenses. Your health is your most
valuable asset, and we are here to support you every step of
the way.
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EDUCATION
LEARN, UNLEARN AND RELEARN
T
OYUNGEREL TUDEV /Ph.D/
PROFESSOR, UNIVERSITY OF FINANCE AND ECONOMICS
MENTOR, SOCRATUS STUDIO LLC
The year 2024 marks a turning point in the
workplace, as highlighted by a joint report from LinkedIn
and Microsoft Corp. Artificial intelligence is reshaping how
we work, lead, and recruit globally. Leaders now prioritize AI
proficiency when making hiring decisions: 66% would not
consider someone lacking these skills, and 71% would prefer
hiring a less experienced candidate who possesses them.
LinkedIn data shows that members have added AI skills to
their profiles 142 times more frequently than last year.
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Before the "GPT Era," AI-based products like
Grammarly and GPS were available, but many non-technical
users didn't fully utilize them. The introduction of ChatGPT
changed this by enabling human-like conversations and
integrating seamlessly into daily routines, saving users over
30 minutes a day. My recent trip to Beijing provided me with
a glimpse into AI integration into our daily lives. I found
it enlightening to communicate effortlessly in Chinese, the
world's most complex language, using translation tools.
People of all ages adapted to the translation device and tried
diligently to convey their messages clearly to the device,
speaking at a measured pace. This experience reminded
me of a Chinese novel, 'Journey to the West', where the
author writes, "A wise man can mold himself into whatever
container he finds himself in."
Market trend analysis and marketing strategies
are often top of mind for entrepreneurs, but in my
opinion, the real challenge lies in responding swiftly to
consumer demands. Our market is not experiencing rapid
transformation; rather, consumer needs require immediate
responses. Cultural preferences favor instant, spontaneous
decisions, along with social norms that favor quick access
to information. This often leads to rapid problem resolution
with great intervention over the telephone. Therefore,
startups' competitive advantage depends on their ability to
react promptly to market fluctuations and align their goals
with immediate needs.
However, in a dynamic business environment,
startups must navigate a multitude of tasks, priorities,
projects, and tools, which often leads to a distracting cycle.
As a project manager, you are responsible for overseeing
various elements such as people, workflows, tasks, and
time, all of which require strategic oversight. Due to this
rush and reliance on past experiences makes it difficult for us
to visualize the future. According to behavioral economists,
people prefer immediate rewards over delayed gratification,
and prioritize short-term gains over long-term benefits. In his
publication "Thinking, Fast and Slow," Daniel Kahneman
highlighted that we tend to think fast, automatically, and
intuitively, making quick decisions and judgments based on
patterns and experiences.
Reframing the future as a series of potential
scenarios rather than a fixed destination can significantly
change our approach to planning. At its core, project
management is about implementing replicable processes.
To increase agility and operational efficiency, startups
could prioritize the development of scalable, repeatable
processes. By combining technologies and artificial
intelligence tools, we can make future project outcomes
more tangible, understandable, and achievable. To
enhance team productivity and avoid redundant efforts, it's
crucial to visualize work processes and continuously seek
improvement opportunities. Tools like Kanban boards on
platforms such as Monday.com, Asana, and Trello facilitate
project breakdown, progress monitoring, and adaptation to
shifting priorities, simplifying project management.
Project management follows a structured approach,
as highlighted by the Project Management Institute's latest
PMBOK® Guide. It is structured into knowledge areas,
which are specific domains in project management, requiring
specialized expertise and abilities. It means that although the
project itself must be original and innovative, established
standards and formats must be followed in planning and
executing the project tasks. During the initial phases of
the project, it is advisable to focus on idea generation and
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delegate planning tasks to AI. When planning, GenAI
supports spitting out multiple ideas, which the user could
use as prototypes or first drafts to refine further. By iterating,
you can modify, refine, uplevel, and create variations until
they are good enough to use as the final product.
In January 2024, the Project Management Institute
conducted a global study among project managers around
the world to evaluate the current state of the adoption of
GenAI in project management. It was indicated in the
"First Movers' Advantage" report that organizations that
support the adoption of GenAI experience a higher level of
utilization by project professionals. However, the results of
the Global Chapter-Led Survey 2024 indicated that most
PMI members working on projects were basic (49%) or
intermediate (31%), whereas 15% had no prior experience
with AI. Only 11% of respondents considered themselves
experts in specific data science skills, 41% had some
familiarity with them, while 47% had no knowledge of them
at all. With a 160% increase in the use of LinkedIn Learning
courses in building AI aptitude, GenAI has rapidly gained
traction among non-technical professionals, particularly
project managers, architects, and administrative assistants.
The future of project management, powered by AI, is here. While AI promises
significant benefits, including real-time assistance and enhanced decision-making, local
adoption faces challenges such as high implementation costs, lack of top-down support,
and a shortage of skilled employees. AI can automate tasks and improve efficiency, but
it cannot replace human intuition and creativity. Companies must find the right balance
between human and AI solutions. As filmmaker and futurist Jason Silva said, "Our tools
make us gods. In symbiosis with our technology, our powers expand exponentially and
so, too, our possibilities." Are you prepared to embrace this transformation? Then learn,
unlearn, and relearn…
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INNOVATION
REVOLUTIONIZING BUSINESS OPERATIONS:
THE IMPACT OF BLOCKCHAIN AND DIGITAL
CONTRACTS
JAVKHLAN RENTSENDORJ
CO-FOUNDER AND CIO, SMART CONTRACT MONGOLIA LLC
I
In today's rapidly evolving digital landscape,
businesses are constantly seeking innovative solutions
to enhance efficiency, security, and sustainability. One
technology that has emerged as a game-changer is blockchain,
particularly in the realm of digital contracts. Leveraging
blockchain for digital contracts offers unparalleled
benefits in security, efficiency, and environmental impact,
revolutionizing how businesses manage their contractual
agreements.
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The Power of Blockchain
Blockchain technology, renowned for its secure
and immutable nature, provides an optimal foundation for
digital contracts. Traditional contracts are often susceptible
to tampering, loss, and forgery. In contrast, blockchain-based
contracts are stored in a decentralized ledger, ensuring that
once a contract is recorded, it cannot be altered or deleted.
This immutability offers unparalleled security and trust,
crucial for sensitive business agreements.
By utilizing blockchain, contracts are made secure,
transparent, and verifiable. Each contract can be coupled
with a certified timestamp, enhancing its authenticity and
reliability. The decentralized nature of blockchain also
reduces the risk of fraud and unauthorized access, as no
single entity controls the data.
Furthermore, blockchain technology streamlines
the auditing process. With all contract activities recorded on
an immutable ledger, auditors can easily trace the history
of each contract, ensuring compliance with legal and
regulatory requirements. This transparency not only builds
trust with stakeholders but also simplifies dispute resolution
by providing a clear, tamper-proof record of all transactions.
Enhancing Efficiency with Digital Contracts
Traditional contract management processes are
often cumbersome and time-consuming, involving printing,
signing, and physically transporting documents. These
processes are not only inefficient but also environmentally
unsustainable. Digitizing the entire contract lifecycle
addresses these issues effectively.
With a digital platform, businesses can create,
sign, and store contracts electronically. Support for both
domestic and international digital signatures makes crossborder
agreements seamless and hassle-free. This digital
transformation eliminates the need for paper, significantly
reducing the environmental impact and contributing to
sustainability goals. Digital contracts are faster to process
and reduce the risk of errors associated with manual
handling.
Moreover, advanced artificial intelligence (AI) can
streamline contract management further. AI-driven tools
assist in drafting contracts, translating them into multiple
languages, and ensuring compliance with local laws and
regulations. This not only saves time but also reduces the risk
of human error, making the contract process more efficient
and reliable. AI can analyze large volumes of contracts to
identify patterns and insights, helping businesses optimize
their contract strategies.
Impact of COVID-19
The COVID-19 pandemic has significantly
accelerated the push for paperless and more flexible working
environments. One of the biggest barriers to remote working
was the lack of digitalized documentation, including
contracts. This situation is rapidly changing as businesses
recognize the necessity of digital solutions to maintain
operations during disruptions. Digital contract solutions are
at the forefront of this shift, providing the tools needed for
businesses to adapt to the new normal and ensure continuity.
The pandemic highlighted the vulnerabilities of
traditional contract management systems. With employees
working remotely, accessing physical documents became
a challenge, and reliance on face-to-face interactions for
contract negotiations and signatures was no longer feasible.
Digital contract solutions addressed these challenges by
enabling remote access to contracts, secure digital signatures,
and real-time collaboration on contract terms. This
flexibility allowed businesses to continue their operations
without interruption, despite the restrictions imposed by the
pandemic.
Furthermore, the need for rapid response and
agility during the pandemic underscored the importance
of having a robust digital contract management system.
Digital platforms allowed businesses to quickly adapt their
contracts to changing circumstances, such as supply chain
disruptions or new regulatory requirements, ensuring that
they could respond effectively to the evolving situation.
Real-World Impact and Adoption
Since the advent of digital contracts, significant
strides have been made in transforming contract management
for businesses across various sectors. Solutions tailored
for industries including real estate, insurance, exchange,
brokerage, education, finance, medical, and more have
seen widespread adoption. By using digital contracts, these
organizations have saved resources, reduced waste, and
enhanced their operational efficiency.
For example, a Ministry of Education used
digital contracts to manage agreements with numerous
schools, saving 12 trees and 100,000 sheets of paper.
This demonstrates the tangible environmental benefits of
adopting digital contract solutions. The reduction in paper
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usage not only contributes to environmental conservation
but also reduces operational costs associated with printing,
storage, and document handling.
Another notable success story is a large
transportation company that integrated digital contracts into
its operations. By digitizing contracts with its drivers and
suppliers, the company streamlined its contract management
process, reducing the time required for contract approval and
execution by 50%. This efficiency gain translated into faster
service delivery and improved relationships with partners
and clients.
The impact is not limited to large organizations.
Small and medium-sized enterprises (SMEs) have also
benefited from user-friendly interfaces and cost-effective
solutions. By adopting digital contracts, SMEs can compete
on an equal footing with larger competitors, leveraging
advanced technology to enhance their contract management
capabilities.
Looking Ahead: Innovation and Growth
Conclusion
In conclusion, the integration of blockchain
and digital contract solutions is transforming the
business landscape. By providing a secure, efficient, and
environmentally friendly platform, digital contracts are
setting a new standard for contract management across
all sectors, including real estate, insurance, exchange,
brokerage, education, finance, and medical industries.
As more organizations adopt this technology, the benefits
of digital contracts will become increasingly evident,
paving the way for a future where businesses operate more
transparently and sustainably.
The commitment to innovation, sustainability,
and excellence positions digital contracts as a leader in the
contract management space. With advanced technology, userfriendly
platforms, and a focus on customer success, digital
contracts are empowering businesses to thrive in the digital
age. Join the revolution and discover how digital contracts
can transform your contract management processes, making
them more efficient, secure, and sustainable.
Innovation and expansion continue to drive
the digital contract space. Partnerships with academic
institutions to establish AI labs are a testament to the
commitment to advancing technology. These collaborations
aim to drive further advancements in AI and blockchain
integration, ensuring that digital contract solutions remain at
the forefront.
Research in AI labs focuses on developing cuttingedge
algorithms and machine learning models to enhance
digital contract platforms. Areas of research include
advanced natural language processing for more accurate
contract drafting and analysis, predictive analytics for risk
assessment, and automated compliance checking. By staying
at the cutting edge of AI research, digital contract solutions
aim to continuously improve their platforms and offer even
greater value to users.
As businesses increasingly recognize the value of
secure, efficient, and eco-friendly contract management,
digital contracts are poised to lead the way. By revolutionizing
how contracts are managed, these solutions are not only
enhancing business operations but also contributing to a
more sustainable future. The vision includes expanding
global reach, targeting new markets, and forging strategic
partnerships with industry leaders to the drive adoption of
digital contract solutions worldwide.
The roadmap also includes the integration of
additional features such as smart contract capabilities,
which enable automated execution of contract terms based
on predefined conditions. This innovation will further
streamline contract management processes and reduce the
need for manual intervention, enhancing efficiency and
accuracy.
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POWERED BY
TIXY DIGITAL LLC
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L A U N C H I N G
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MAY 2024
INSIDE
SOCRATUS STARTUP STUDIO EXPANDS
COLLABORATION WITH CAMBODIA'S
MINISTRY OF INDUSTRY, SCIENCE,
TECHNOLOGY, AND INNOVATION
"SOCRATUS STUDIO" LLC
S
Socratus Startup Studio recently hosted a pivotal
5-day training and discussion event from May 26-31, 2024,
for the Director and key officials from the Department of
Science, Technology, and Innovation of Cambodia's Ministry
of Industry, Science, Technology, and Innovation.
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Our goal was to introduce Cambodian officials
to Socratus Startup Studio's incubation and support
programs for startups and SMEs, as well as to the
dynamic ecosystem of science and startup businesses in
Mongolia. This initiative fostered a productive exchange
of ideas on enhancing future collaboration between our
two countries.
Additionally, the Asian Productivity Organization
expressed interest in partnering to disseminate our
methodologies, programs, and ecosystem model examples
to its member countries. In November 2023, we conducted
an intensive 5-day training session titled "Successfully
Building a Startup Ecosystem Based on Systems Engineering
Model" for specialists from the Cambodian ministry and
local business owners, following an invitation from the
Cambodian ministry.
Co-organized by the Asian Productivity
Organization and the Mongolian Productivity Center, the
event culminated in the Cambodian side proposing expanded
cooperation. A memorandum of understanding was signed,
highlighting several collaborative efforts:
• Joint incubation of Cambodian startups and SMEs by
integrating a systems engineering-based incubation
program into Cambodia's startup ecosystem.
• Support for startups from both countries in entering
each other's markets.
• Collaborative research on the legal environment is
essential for developing Cambodia's startup business
ecosystem, along with providing consulting services.
Since our establishment in 2018, we have made
substantial investments, totaling over $1.6 million, in
23 domestic startups and SMEs through our incubation
program. Graduates of the program are now successfully
operating in the market, showcasing the effectiveness of
our incubation approach. The expanded collaboration
between Socratus Startup Studio and Cambodia's Ministry
of Industry, Science, Technology, and Innovation marks a
significant step forward in fostering cross-border startup
ecosystem development.
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RESEARCH
THE DEFINITION OF HUMAN RIGHTS
PROVISIONS IN THE SECOND CHAPTER
OF THE CONSTITUTION OF MONGOLIA
WAS DEVELOPED THROUGH SYSTEMS
ENGINEERING
"YOUNG RESEARCHER SUPPORTING FOUNDATION" NGO
U
"Under the initiative of the National Human Rights
Commission of Mongolia, the Young Researchers Supporting
Foundation NGO conducted research titled 'Development
of Definitions of the Human Rights Provisions of the Second
Chapter of the Constitution of Mongolia Using the Systems
Engineering Method' from April 21, 2023, to March 2024. In
Chapter 2, Article 16 of the Constitution delineates 18 sets of
rights that every citizen of Mongolia is guaranteed. The research
team, through a process of decomposition, identified 97 human
rights within these 18 sets, highlighting significant differences
from the initial constitutional definitions."
Some Results of the Research:
Human rights are essential needs that must be met in
accordance with the inherent nature of human life and should
be safeguarded from the adverse effects of natural and social
factors through legal and other protective measures.
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The right to fair acquisition, possession, and inheritance
of movable and immovable property is the requirement to
be provided with the conditions and opportunities to create
or acquire movable and immovable property independently
or jointly with others in a manner consistent with the moral
and legal norms generally followed by citizens of Mongolia.
The right to conduct in private enterprise entails that every
citizen of Mongolia should have the opportunity to freely
undertake comprehensive activities that generate value for
themselves and others, utilizing their own resources and
opportunities in accordance with established procedures.
Key Findings from the Research
1. The Constitution as a Guiding Framework: The
Constitution serves as a conceptual framework that
defines the their goals, principles, and functions to be
followed in state and social relations, thus acting as a
common guide for societal members' understanding.
2. The Constitution, which entered into force in 1992, is
instrumental in fostering societal stability by regulating
social relations in Mongolia.
3. The Constitution is a document comprising six chapters,
70 articles, and 7,138 words, and it is essential for
society to define the meaning of each term and apply
it consistently."
4. As part of the research, 167 concepts and 18 sets of
rights defined by Article 16 of the Constitution were
systematically analyzed across 97 units of rights, a
method that can be used to further develop definitions
of rights.
5. By employing the systems engineering method, it is
possible to coordinate the properties included in the
definitions of concepts and unit rights, ensuring that
they do not conflict or overlap.
6. In harmonizing the definitions of concepts and
individual rights, the common societal goals outlined
by the Constitution and Max-Neef's theory of common
basic human needs were used as a foundation.
7. The research team, composed of diverse professional
researchers from various sectors, was able to represent
different segments of society. This diversity facilitated a
comprehensive analysis of the concepts and provisions
in Chapter 2 of the Constitution from multiple
perspectives, free from ideological bias.
8. By providing detailed definitions of the concepts in
Chapter 2 and the provisions related to human rights
and freedoms, and by developing practical indicators
for measuring the implementation of these rights,
the research aims to enhance measures and solutions
for protecting human rights. This approach has the
potential to yield significant positive outcomes, such as
improved oversight and control in the activities of the
state and society concerning human rights.
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RESEARCH
SMART CITIES INITIATIVE
A
SMART CITY DEFINITION, METRICS, AND INCOSE-TUS
FRAMEWORK
As the world is unevenly waking up after a pandemic
coma, cities are seeking opportunities to improve the quality of
life, efficiency of city services and overall economic resiliency
by enabling their transformation towards being ‘smart.’Since
technology is a fast changing variable, it is understandable
that governments are focusing on technological roadmaps
and digital engineering strategies to address the capability
gaps through technological solutions. The implementation
of such strategies across the wide range of city services,
ultimately will define the “smart city.”
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1.
SMART CITY MISSION
Humans have fundamental needs, many of which
are fulfilled in their city.
Humans establish cities, small and large, as
places to gather and share resources. We believe that a
city’s purpose is to provide opportunities to satisfy human
fundamental needs. The taxonomy of human fundamental
needs, developed by Max Neef, offers a solid foundation for
understanding the core purpose of a city. Building a city’s
purpose based on human fundamental needs provides
a consistent, fair, and human-centered approach to
understanding a city. Complex solutions, offered in cities,
should be to the benefit of the residents of the city. We
know from experience that form and function are born
from purpose. Yet while solutions develop and complexity
is added, form and function can stray from serving the
humans. The solutions and necessary complexity in a city
can be guided to continuously perform for the good of the
humans at the heart of the city.
by a number of goals that will be required to accomplish
the mission. Differing stakeholder groups will have varying
levels of participation in achieving the goals, some of which
may appear disparate on the surface, but are needed as a
whole to accomplish the overall common mission. Each
goal is, in turn, supported by clear, measurable objectives
that can then be used to gauge overall mission progress.
The TUSS team has applied the Max Neef
taxonomy and this process to various social system designs
and it has continuously proven to be an accurate foundation
(Bayartsengel, et al., 2019). The human fundamental
needs are easy to understand and well suited to various
social systems. The purpose of a smart city is to create and
maintain an environment that enables its residents to satisfy
their fundamental needs by interacting in fair, mutually
beneficial, and sustainable ways.
HUMAN FUNDAMENTAL NEEDS SERVE AS THE
BASIS OF A SMART CITY’S COMMON MISSION
Focusing on the human fundamental needs, a
common mission must be defined as the purpose for each
city. The common mission will be unique for each city
and based on meeting the human fundamental needs. It
is important that a city define a common mission, so the
residents know they are the purpose of the city and the
stakeholders can understand how they support the city’s
purpose. Defining a single common mission for a city can be
complicated. Focusing on meeting the human fundamental
needs eliminates politics, money, and private interests from
the definition of the common mission. Many people can
agree that meeting human fundamental needs is a worthy
mission. Once a city can define its common mission, it is then
used as the center for development, evaluation, and growth
of the smart city. The city common mission is then supported
2.
SMART CITY METRICS
We propose to use a set of metrics as minimum
requirements for a smart city. A single set of holistic
metrics provide a consistent benchmark for evaluation and
comparison. The metrics proposed measure how well a city
is: aligned to perform its services; and, fulfills the city’s
common mission. The metrics can be applied to any city
and are intended to be tailored per the common mission
and goals of the city. The metrics are based on engineered
quality data.
CITY ALIGNMENT FOR PERFORMANCE OF SERVICES
The TUS index reports how well the city is aligned
to perform its services to fulfill the needs of the residents.
It measures the connectedness of the duties fulfilled on
behalf of the city to meet the needs of the residents. If there
is a large disconnect between the services being provided
and the needs of the residents, the TUS index will identify
where the disconnect exists and how much risk the city is
encumbering by not having the services aligned to meet the
needs.
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The metrics to evaluate City Alignment for
Performance of Services are:
• The Tailored Unified System (TUS) index is an
unbiased indicator telling us how well a city is equipped
with solutions to meet the needs of the residents. This is
a unified measure that reflects how many of the needed
solutions are available and functioning properly.
• System Properties Alignment (SPA) index measures
the how well solutions are aligned among the
stakeholders. This indicates if one solution may be
counter-productive to the implementation of another.
For example, traffic control and emergency response
must be aligned. If the traffic signals are sequenced
for optimal traffic movement, but do not allow for
emergency pre-emption, the traffic control system could
negatively impact emergency response. Emergency
response depends on the traffic control system to move
quickly through a city, even when traffic congestion
exists.
• System Operation Performance (SOP) index measures
how effectively the stakeholders are performing their
duties within the system. It is a holistic measure and
reflects the execution of assigned stakeholder duties
across the city. For example, this measure could reflect
how well the traffic signal timing is achieving a goal
of decreasing traffic congestion by 10%. Keep in
mind, stakeholders could be individual contributors or
organizational elements.
TUS, SPA, and SOP are unified metrics and can be
applied universally to any city.
CITY FULFILLMENT OF THE COMMON MISSION
Two tailored indices provide insight into how
well a city is achieving its defined common mission. These
indices are rooted in international standards, which provide
a level of commonality for all Smart Cities, yet the measures
are tailored for a city’s specific achievement.
Well-Being Index (System Performance Result) (WBI-
SPR) index measures how well the city is achieving the
common mission through stakeholder contributions. The
index is tailorable for the city’s specific common mission,
and allows the city to monitor its progress to mission
realization. The Well-Being Index provides a measure that
can be used to track progress toward achieving the common
mission, even as specific stakeholder duties may adjust over
time.
The Well-Being Index was developed based on ISO
standards Indicators for City Services & Quality of life (ISO
37120:2019), Indicators for Small Cities (ISO 37122:2019),
Indicators for Resilient Cities (ISO 37123:2019). These
collective international standards represent a consistent,
internationally-accepted standard for expected results of a
city and are representative of how well a city is providing
smart services to support the needs of the residents.
Engineered quality data criteria were applied to refine the
ISO metrics to create the Well-Being Index of a smart city.
The 59 metrics in Appendix C are an illustration of factors
that can be aggregated into the Well-Being Index. Appendix
C is grouped to identify the fundamental human need
satisfied by each metric.
Social Responsibility (SR) index measures the city’s impact
on commonly shared natural resources like water, air, and
land, and balances this with society’s well-being. The
measure is tailored based on the city’s policies and reflects
the impact of those policies on shared natural resources. The
measure is tied to each stakeholder’s role and illustrates how
well all stakeholders are performing their duties in a way
that minimizes negative impact on the environment.
The SR index was developed with a direct
connection to the seventeen United Nations’ Sustainable
Development goals set forth in 2015.
The Well-Being Index and SR are tailored metrics
and can be applied universally to any city.
The INCOSE-TUS Smart City Metrics all work
together to provide a single set of metrics to provide a
consistent benchmark for evaluation and comparison.
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WELL-BEING INDEX TO MEASURE SMART CITY RESULTS
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info@socratus.mn
Ulaanbaatar city, Bayangol district, 16th khoroo, Amarsanaa's street 12/1, Colorado Business Center, 207
www.socratus.mn
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INVESTUS
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