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
Disrupted by Covid-19, will South-east Asia’s super apps join forces?
– Super apps explore inorganic growth options
– Gojek in talks with e-commerce company Tokopedia over $18bn merger
– Grab reported to be preparing for a public listing in the US
– Food delivery and financial services increasingly important segments
After a year of external expansion and internal reorganisation due to Covid-19, South-east Asia’s super apps appear to be looking towards mergers and public listings as a strategy for future development.
In early January international media reported that Indonesian ride-hailing and payments giant Gojek was in advanced talks about merging with local e-commerce company Tokopedia, in a deal estimated to be worth $18bn.
Any potential merger between the two would be significant for Indonesia. The two local unicorns could create a digital powerhouse, with integrated services ranging from ride-hailing to digital payments, e-commerce and delivery.
A tie-up would also create numerous synergies, such as Gojek’s fleet being able to serve Tokopedia’s online shopping orders. However, there is also some overlap in the digital payments space, where Gojek’s GoPay platform competes with Ovo, which is 35% owned by Tokopedia, although there is speculation that Tokopedia may look to sell its stake in Ovo.
The news was followed by separate reports in late January that Grab, Gojek’s biggest competitor in South-east Asia, had selected investment banks Morgan Stanley and JP Morgan to help work on an initial public offering (IPO) in the US, set to take place in the second half of the year.
The Singapore-headquartered company, which operates ride-hailing, food delivery, e-payment and insurance services in around 400 cities across eight South-east Asian countries, is valued at around $16bn. Its IPO is expected to raise at least $2bn, which would make it the largest overseas share offering by a South-east Asian company.
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Has Covid-19 prompted the Belt and Road Initiative to go green?
– Chinese overseas investment dropped off in 2020
– Government remains committed to the wide-ranging infrastructure programme
– Sustainability, health and digital to be the new cornerstones of the initiative
Following a year of coronavirus-related disruptions, China appears to be placing a greater focus on sustainable, digital and health-related projects in its flagship Belt and Road Initiative (BRI).
As OBG outlined in April last year, the onset of Covid-19 prompted questions about the future direction of the BRI.
Launched in 2013, the BRI is an ambitious international initiative that aims to revive ancient Silk Road trade routes through large-scale infrastructure development.
By the start of 2020 some 2951 BRI-linked projects – valued at a total of $3.9trn – were planned or under way across the world.
However, as borders closed and lockdowns were imposed, progress stalled on a number of major BRI infrastructure developments.
In June China’s Ministry of Foreign Affairs announced that 30-40% of BRI projects had been affected by the virus, while a further 20% had been “seriously affected”. Restrictions on the flow of Chinese workers and construction supplies were cited as factors behind project suspensions or slowdowns in Pakistan, Cambodia and Indonesia, among other countries.
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