Business leaders must embrace emerging technologies to maximise opportunities in the Thailand’s new digital transformation economy, according to new research from IDC.
The analyst firm predicts that by 2022, over 61 per cent of Thailand’s GDP will be digitalised, with growth in every industry driven by digitally enhanced offerings, operations, and relationships, driving US$72 billion in IT-related spending from 2019 through 2022.
Furthermore, IDC believes that the digitalised economy will lead to more "intense competition" especially when digital disruptors are heavily penetrating into the local market.
“The race to reinvent is inevitable, and we foresee a steady growth in adoption of emerging technologies in the country mainly because Thailand is working to improve economic growth by shifting its economy from an industry-driven country to one that is driven by high-tech innovations,” said Anchalee Sudechawongsakul, market analyst of software at IDC Thailand.
“Innovation will continue to disrupt every industry and business leader should focus on technologies that enables business outcomes. This is the right time to realise that enabling the digital industry will drive other industries to grow as well."
As such, local organisations, in Thailand, should move towards becoming digitally determined organisations, advised IDC.
These are organisations that demonstrate the ability to visualise how the markets and customers will change and reinvent themselves to better respond to the needs of these future stakeholders through new and emerging technologies, capabilities, and business models.
The 10 key trends that are set to present opportunities and challenges to IT leaders in 2019 and beyond, according to IDC, are:
#1: Digitalised economy: By 2022, over 61 per cent of Thailand GDP will be digitalised, with growth in every industry driven by digitally enhanced offerings, operations, and relationships, driving US$72 billion in IT-related spending from 2019 through 2022.
#2: Digital-native IT: By 2022, 60 per cent of Thailand’s IT spending will be on 3rd Platform technologies, as over 30 per cent of all enterprises build "digital-native" IT environments to thrive in the digital economy.
#3: Expand to the edge: By 2022, over 20 per cent of Thailand’s organisations' cloud deployments will include edge computing, and 25 per cent of endpoint devices and systems will execute AI algorithms.
#4: AppDev revolution: By 2022, 70 per cent of Thailand’s new apps will feature microservices architectures that improve the ability to design, debug, update and leverage third-party code; 25 per cent of all production apps will be cloud-native.
#5: New developer class: By 2024, a new class of professional developers producing code without custom scripting, will expand the developer population by 20 per cent in Thailand - accelerating digital transformation.
#6: Digital innovation explosion: From 2018 to 2023 - with new tools/platforms, more developers, agile methods and lots of code reuse – 4.0 million new logical apps will be created in Thailand.
#7: Growth through specialisation: By 2022, 15 per cent of public cloud computing will be based on non-x86 processors (including quantum) in Thailand; by 2022, organisations will spend more on vertical SaaS apps than horizontal apps.
#8: AI is the new UI: By 2024, AI-enabled user interfaces and process automation will replace one-third of today's screen-based apps in Thailand. By 2022, 20 per cent of enterprises will use conversational speech tech for customer engagement.
#9: Expanding/scaling trust: By 2023, 25 per cent of servers will encrypt data at rest and in motion in Thailand; over 20 per cent of security alerts will be handled by AI-powered automation; and 3.5 million people will have blockchain-based digital identities.
#10: Consolidation vs multi-cloud. By 2022, the top four cloud "mega platforms" will host 80 per cent of IaaS/PaaS deployments in Thailand, but by 2023 70 per cent of Thailand 100 (T100) organisations will mitigate lock-in through multi-cloud/hybrid technologies and tools.