Companies in the Asia–Pacific region are more confident in their ability to disrupt markets by implementing new digital technologies and business models, says a research conducted by International Data Corporation (IDC), and commissioned by Avaya Holdings Corp (NYSE: AVYA). Almost a third, 29.2%, of respondents said they were market disrupters, compared with the global average of 19.5%.
“Asia alone is poised to be the home of 2.5 billion people by 2025. The continent had been the dominant force in the world economy for hundreds of years till the industrial revolution wrested the balance in favor of the European countries and the US. The next 10-20 years will see the balance of power tilt back to Asia–Pac. Infrastructure challenges in these geographies have seen these countries leap frog the wired era directly into mobile. Rapid wireless internet penetration is likely to accelerate the adoption of AI, IoT and Cloud. Companies emerging from these countries on to the global stage are likely to be fierce competitors. They would have fought and won in markets that are highly heterogeneous and challenging in terms of infrastructure and regulatory practices,” says Ranjit Satyanath, CIO, Croma – Infiniti Retail (TATA Enterprise).
According to IDC’s Digital Transformation: The Key to Getting it Right report, increased employee productivity is a primary driver for digital transformation for 65.6% of organizations in Asia-Pacific, above the international average of 62.1%. Supporting new products and revenue streams and delivering better customer experience were ranked as the second and third-most important drivers for digital transformation.
“Organizations in the Asia-Pacific region are setting the pace for digital transformation, and are driving innovation in their industries. Companies understand the importance of communications and its impact on increasing employee efficiency. Empowering workers should in turn lead to better customer experiences, as more productive staff should be better able to meet their needs. However, companies recognize that there is still work to do on driving digital transformation… working with leading organizations here in the region to leverage emerging technologies such as artificial intelligence, blockchain and the Internet of Things to enhance business performance,” says Sami Ammous, Managing Director, ASEAN, Avaya.
However, there are others who beg to differ.
“When we think of Digital Transformation, we often read the words separately to arrive at the meaning as ‘any change brought about by digital technologies’. However, the meaning is not so. Digital Transformation is an evolution of Digitization (converting paper processes into computer readable processes) & Digitalisation (new insights / ways to engage because of the change) into changing the business model / fundamental way of doing business because of these changes. Digitization is easy; digitization is difficult but doable; digital transformation exceedingly difficult. Real digital transformation is very hard to realize as it entails business model & cultural changes – besides usage in application of technology. So I am not surprised to see ‘increased employee productivity’ emerge as the primary driver of digital transformation,” says Kingshuk Hazra, Founder, LeadStrategus.
According to the report: “While organizations acknowledged the importance of human interaction in customer service, insufficient skills and training was seen as the biggest barrier to blending digital technologies with the “human touch,” followed by lack of appropriate procedures and processes.”
“Enterprises in Asia Pacific are poised to be trendsetters in fast-scaling the development and adoption of emerging technologies such as IoT, AI, robotics and AR/VR. This is due to the increase in demand as a result of the growing population, government efforts of urbanization and automation of delivery of citizen-centric services, uplift in lifestyle and increase in spend appetite. Consumers in this region are ready to take departure from the legacy technologies to adopt smart ways of doing business and living by choosing the connected technologies,” says Gaurav Shukla, Partner Risk Advisory, Deloitte.
The report also goes on to note to the following:
As many as 53.1% enterprises said that a digital strategy is being executed in a coordinated way across the organization (50.4% globally).
62.8% indicated that IT is responsible for their organization’s digital transformation initiatives (74.6% globally).
15.6% of organizations have a centralized digital innovation group in charge of DX (11.1% globally).
57.4% of organizations claim that most but not all customer interactions are supported by a single, seamless experience across all services, functional areas and departments (45.5% globally).
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