More than 65 per cent of gross domestic product (GDP) across Asia Pacific is expected to be digitised within the next three years as the enterprise accelerates recovery plans post-pandemic.
Offering a ray of sunshine amid an otherwise gloomy forecast, fast-tracked digital transformation investments are expected to create “economic gravity” with regional technology spending set to hit US$1.2 trillion between 2020 and 2023.
That’s according to IDC, which claims that while the immediate Covid-19 crisis is past, recovery from economic, social and business disruptions will dominate investment decisions during the next five years.
“As organisations accelerate their race to recovery, we will see three waves to market dominance in 2021, and beyond,” outlined Sandra Ng, group vice president of ICT Research across Asia Pacific at IDC. “Organisations will leverage technologies to adapt for survival, accelerate for growth and reimagine to lead.
“Asia Pacific is already leading the race with digital core investments to strengthen organisational foundation and digital innovation initiatives to overcome Covid-19 pandemic exposed gaps as well as acceleration projects that introduce new business / operating models and help to gain market shares.”
Unveiled during IDC FutureScape - Future Enterprise: Building Resiliency to Thrive in the Next Normal, the analyst firm outlined its top eight predictions for the technology sector during the months and years ahead.
#1: Leadership matures: By 2023, 70 per cent of leaders in A2000 (top 2000 Asia Pacific-based organisations) will have shifted management orientation from processes to outcomes, establishing more agile, innovative and empathetic operating models.
#2: A digital-first approach in employee engagements: While ‘digital-first’ prevails in every experience, 60 per cent of enterprises will invest heavily in digitalising employee experience (EX) in 2021, transforming the relationship between employers and employees.
#3: Increasing digitalisation to deliver customer empathy at scale: By 2021, 65 per cent of organisations will have shifted to digital-first through automated operations and contactless experiences, as physical interactions become an amenity of the past.
#4: Acceleration requires digital resiliency: In 2022, enterprises focused on digital resiliency adapt to disruption and extend services in response to new conditions 50 per cent faster than ones fixated on restoring existing business resiliency levels.
#5: Risk management and growth acceleration can (and should) co-exist: By 2022, driven by board level agenda, 50 per cent of A2000 companies will formalise human oversight of AI-based decision automation to combat distrust of auto generated recommendations and reputational risk.
#6: Growth will rapidly shape permanent work models: By 2021, 25 per cent of organisations will leverage employee productivity software to monitor and improve the digital workflows of their full-time, work-from-home employees.
#7: Business model reinvention is the crown jewel: By 2021, at least 50 per cent of organisations will accelerate innovation to support business and operating model reinvention, fast-tracking transformation programs, to future proof their businesses.
#8: The rise of digital and connected extended ecosystems: By 2025, driven by volatile global conditions, 75 per cent of business leaders will leverage digital platforms and ecosystem capabilities to adapt their value chains to new markets, industries, and ecosystems.
“A key pillar to becoming a future enterprise in a post-Covid outbreak era is digital resiliency,” Ng added. “We now know that resiliency as we knew it pre-Covid is not good enough. We need a new benchmark to futureproof us from forward crisis and disruptions, be it the next infection cycle or the next economic crisis.
“Digital resiliency is the ability of an organisation to rapidly adapt to business disruptions, leverage digital capabilities to maintain continuous business operations, and quickly adjust to take advantage of changed conditions.”