CA Technologies Research Finds Thailand to be the Most Digitally Disrupted Market in Asia Pacific and Japan
97 percent of Thai respondents state their organizations are equipped to be competitive but only seven percent have fully digitalized their organizations
CA Technologies (NASDAQ:CA) today revealed results of an Asia Pacific & Japan (APJ) study that showed that Thailand is the most digitally disrupted market in the region.
With 95 percent of business and IT leaders in the country stating that the market has been impacted today, as compared to 80 percent average across the region.
In addition, 95 percent of respondents indicated that their organization has been impacted today by digital disruption and almost all of them (98 percent) said that their job has been changed by it.
Thailand ranked the highest in APJ for these two aspects as well, scoring well above the APJ average of 78 percent.
The study also showed that there is a high level of confidence – amongst the 97 percent respondents surveyed – that their organizations are equipped to be competitive in the next three to five years.
Despite the positive outlook, businesses have yet to capitalize on the potential of digital transformation today.
Only 44% of the respondents surveyed, the lowest percentage in the region, indicated that their organizations have digital transformation projects launched with clear corporate goals.
Furthermore, only seven percent of the respondents shared that they are fully digitalized their organization and another 17 percent have fully-formed digital transformation strategies.
“Digital transformation can disrupt the competition when it is approached holistically and used to create new products and services, improve customer service and even build different business models or revenue streams,” said Nick Lim, vice president, ASEAN & Greater China, CA Technologies.
“To succeed in today’s digital economy, business and IT leaders have to be bold in harnessing disruptive technologies such as artificial intelligence, automation, data analytics and microservices, while ensuring that everyone in the organization is aligned and working collaboratively towards a common goal.”
Mismatched Pressures and Priorities for Digital Transformation
In a new world that is defined by digital engagement, the competitive differentiation for organizations, and even governments, is increasingly determined by their ability to transform themselves digitally and build software into their business strategies.
The survey found that 1) meeting of changing customer expectations, (2) fast evolving economic conditions, and (3) using digital transformation as a new edge in winning against traditional competitors were the biggest pressures for digital transformation in the region.
This finding mirrors the top three business priorities that organizations in Thailand are focused on solving today, namely optimizing operational efficiency, reducing operational costs and improving workforce collaboration.
The discrepancy between business priorities and the digital transformation drivers is particularly evident when it comes to customer experience. Although changing customer expectations is highlighted as the top pressure for digital transformation, improving customer experience is ranked fifth out of the seven priorities.
Organizations in Thailand More Confident About Their IT Capabilities
While organizations in Thailand still have ways to go in terms of digital transformation readiness, one of the areas that Thai business and IT leaders are faring better than their APJ peers is their confidence in their organization’s IT capabilities to support digital transformation.
In fact, one in two respondents (51 percent) stated that their organization has clearly laid out a roadmap and role that technology plays in the company’s digital transformation vision, which is the highest percentage across the region.
“To stay competitive in the digital era, organizations need to be Built to Change. By building software into the business DNA, organizations will be able to deliver an enhanced customer experience; with insights and tools to shape and predict new customer demands, create new services and business models. The Modern Software Factory blueprint helps businesses leverage software to achieve their digital transformation goals and win in the market,” added Lim.
About the CA Technologies Asia Pacific & Japan Digital Transformation Impact and Readiness Study
CA Technologies commissioned and completed a survey of 900 business and IT leaders across nine markets in the APJ region – Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea and Thailand – in late 2017. The objectives of the study were to measure the impact of digital disruption in the region and understand how organizations are managing their digital transformation.
All survey respondents came from mid- to large-sized organizations with more than 250 employees, with almost half (47 percent) of those interviewed representing large organizations with more than 1,000 staff. All respondents were decision makers – 74 percent for business decisions and 26 percent for IT decisions. All surveyed leaders were also involved in digital transformation initiatives in their organizations, with 74 percent being key decisions makers in digital transformation projects.
Download the complete report here
How will oil prices shape the Covid-19 recovery in emerging markets?
– After falling significantly in 2020, oil prices have returned to pre-pandemic levels
– The rise has been driven by OPEC+ production cuts and an improving economic climate
– Higher prices are likely to support a rebound in oil-producing emerging markets
– Further virus outbreaks or increased production would pose challenges to price stability
A combination of continued production cuts and an increase in economic activity has prompted oil prices to return to pre-pandemic levels – a factor that will be crucial to the recovery of major oil-producing countries in the Middle East and Africa.
Brent crude prices rose above $60 a barrel in early February, the first time they had exceeded pre-Covid-19 values. They have since continued to rise, going above $66 a barrel on February 24.
The ongoing increase in oil prices, which have soared by 75% since November and around 26% since the beginning of the year, marks a dramatic change from last year.
Following the closure of many national borders and the implementation of travel-related restrictions to stop the spread of the virus, demand for oil slumped globally.
In the wake of the Saudi-Russia price war in early 2020, Brent crude prices fell from around $60 a barrel in February that year to two-decade lows of $20 a barrel in late April, as supply increased and demand plummeted. The value of WTI crude – the main benchmark for oil in the US – fell to record lows of around $40 a barrel last year on the back of a lack of storage space.
While global demand for oil remains low, one factor credited with reversing the trend is the decision to make significant cuts to oil production, which subsequently tightened global supplies.
How the Rural-Urban Divide Plays Out on Digital Platforms
It is one thing for entrepreneurs, whether urban or rural, to create and operate an online store, as some digital platforms have made it relatively easy to manage an e-store – even by using just a smartphone.
Will South-east Asia’s tech giants turn to SPACs to boost post-pandemic growth?
– The vehicle is widely used to help tech start-ups go public
– Both Singapore’s and Indonesia’s exchanges are set to allow SPACs
– Several South-east Asian tech unicorns may use SPACs to list publicly
South-east Asia is seeing a wave of interest in special purpose acquisition companies, or SPACs, with various major tech players considering them as a means to fast-track public listings. In parallel to this, several exchanges in the region are moving to allow SPAC listings, with a view to boosting post-coronavirus growth.
SPACs are shell companies set up by investors and then listed on a given stock exchange. Their sole function is to acquire a private company, enabling it to go public without having to go through a traditional initial public offering (IPO).
A SPAC does nothing beyond its essential function – it neither produces nor sells anything, and a SPAC’s only assets are the funds raised from its own IPO.
Crucially, people who buy into a SPAC do not know what its eventual acquisition target or targets will be. This is why SPACs are often referred to as “blank cheque companies”: they give the founders a free rein to back their choice of private company. A key feature of SPACs is that they are often headed by big-name business executives or fund managers, who trade on past successes to inspire trust in investors.
While they are far from a novel phenomenon, SPACs have become a hot button topic in recent times: SPAC initial offerings quadrupled last year, with the vehicles raising a record $80bn.
Merging with a SPAC enables a company to go public and raise capital more quickly and painlessly than with a traditional IPO, circumventing some of the volatility that Covid-19 unleashed on global markets. At the same time, they function rather like venture capital, helping investors to buy into high-growth start-ups on the ground floor.
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