Region lags behind in digital transformation
- 06 July, 2016 10:55
Enterprise organisations in Asia-Pacific are still at a nascent stage of digital transformation, putting them in danger of losing their competitive edge.
Nearly half of the region’s enterprises are operating as ‘digital resisters’, unable to adapt to systematic digital solutions, purveyor of poor customer experiences and only using digital technology to counter threats, according to a report by analyst firm IDC.
Only 45 per cent of organisations treading water in the first stage of digital transformation (DX) maturity, compared with 14 per cent in the US.
"These APAC businesses will soon face irrelevance," warned IDC lead and associate director of digital transformation research practice APAC, Daniel-Zoe Jimenez.
The research showed the A/NZ sub-region had similar results to the US than the total results at the APAC level.
"DX is not just another technology trend, but a critical business priority for many CEOs and their leadership teams across Asia/Pacific,” said Jimenez.
“Processes and business models that were optimal a few years ago are now outdated, or simply don't provide the speed and agility required to compete.”
Thirty three percent of organisations (the second largest group) fall within the “opportunistic” stage of DX maturity.
These organisations have already established basic digital capabilities, but to progress to the next stage, they need to focus on increasing the integration and consistency of its digital initiatives, according to Jimenez.
“The fact that the majority of Asia/Pacific organisations are in the first 2 stages of maturity shows that digital transformation is not as simple as buying a technology solution. DX involves a radical rethink of how to do business.”
If successfully done, this will help drive competitive advantage, grow revenue, and ultimately increase market share,” he added.
IDC said the financial services, communications and healthcare sectors were the most relatively mature industries at the overall DX level.