As ASEAN nations continue to grapple with the impact brought by the pandemic including the impact on the economy and the way organizations have to react quickly to changes, digital transformation acceleration continues to be at the forefront for a large number of ASEAN organizations. The motivation for the future enterprises of ASEAN to be successful and innovative in a digital-first economy is only getting stronger with time and this trend is seen to be gathering even more pace.
ASEAN organizations are increasingly not only looking to innovate and generate revenue from digital products and services but to also be part of the ever-growing and evolving industry ecosystems. “We will see more and more ASEAN enterprises of the future forging partnerships and collaboration with ecosystem players to derive value from shared data, applications, and operations initiatives. This will only lead to the birth of innovative products, services as well as better engagement and experience for customers”, says Dharmaraj Sivalingam, Senior Research Manager for IDC ASEAN.
Listed below are the top ICT and business predictions that will shape how ASEAN organizations and industries operate in a digital-first world:
• Prediction 1: Digital rules: By 2023, 1 in 3 companies will generate more than 15% of their revenues from digital products and services, as compared to 1 in 6 in 2020.
• Prediction 2: Diversity matters: By 2025, 55% of successful digitally innovative products will be built by teams that include people with creative, critical thinking, analysis, and automation skills as well as software engineers.
• Prediction 3: The value in trust: By 2023, 35% of organizations will allocate half of their security budget to cross-technology ecosystems/platforms designed for rapid consumption and unified security capabilities to drive agile innovation.
• Prediction 4: The value in ecosystems: By 2026, on average 30% of ASEAN top 500 company revenue is derived from industry ecosystem shared data, applications, & operations initiatives with partners, industry entities, and business networks.
• Prediction 5: Scaling with digital twins: From 2021 to 2027, the number of new physical assets and processes that are modeled as digital twins will increase from 2% to 24% resulting in operational performance optimization.
• Prediction 6: Scaling with knowledge: 25% of large enterprises will see 20% improvement in information usage by 2026 due to investments in intelligent knowledge networks that turn structured/unstructured data into findable and actionable knowledge.
• Prediction 7: An evidence-based culture is paramount for digital-first enterprises: By 2026, 20% of organizations will use forms of behavioral economics and AI/ML-driven insights to nudge employees’ actions leading to a 60% increase in desired outcomes.
• Prediction 8: Digital infrastructure is at the core of future enterprises: By 2025, a 6X explosion in high dependency workloads leads to 65% of ASEAN top 500 companies using consistent architectural governance frameworks to ensure compliance reporting and audit of their infrastructure.
• Prediction 9: Business value of networks: By 2022, more than 50% of organizations will prioritize connectivity resiliency to ensure business continuity, resulting in uninterrupted digital engagement to customer, employees and partners.
• Prediction 10: Business value of IT: By 2024, digital-first enterprises enable empathetic customer experiences and resilient operating models by shifting 50% of all tech and services spending to as-a-service and outcomes-centric models.
“The future of ASEAN enterprises is truly in the palm of their hands. It is time for organizations to take control of their journey and dictate the desired outcomes for their business. Technology is an enabler and tool – and it’s what they choose to do with it that will be telling in the next 12 – 60 months. With more than 85% of ASEAN enterprises choosing to push through or accelerate their DX initiatives, technology will play a ‘make or break’ compass in navigating the cross-winds of a Digital-First world”, says Sudev Bangah, Managing Director, IDC ASEAN.
This article is written by International Data Corporation (IDC)