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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


2 INVESTUS SOCRATUS.mn


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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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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3.

WELL-BEING INDEX TO MEASURE SMART CITY RESULTS

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7011 4858

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

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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