Enterprises in Asia Pacific (APAC) are leading the way in digital transformation, according to a new global study conducted by 451 Research and CenturyLink, Inc.
Fifty-seven percent of large companies across Asia Pacific now have a formal strategy for digital transformation and are actively digitizing some of their business processes, compared with 47 percent in Europe and 45 percent in North America, the comprehensive study of more than 600 large enterprises across APAC found.
As the adoption of digital disrupts every industry, it is critical that large enterprises transform the way they do business to keep pace with the competition. According to the study, the three key factors driving digital transformation are desires to improve customer experience (44 percent), manage risk (43 percent), and reduce operational costs (41 percent).
However, despite leading the way in embarking on digital transformation, the majority of enterprises in APAC are mindful about how long it will take to successfully complete a full transformation within the organization. Almost two thirds (63 percent) of respondents estimate that it will take three to six years to achieve a company-wide digital transformation, and another seven percent estimate going beyond seven years.
This is largely due to the length of time it takes to overcome complexities that surround digital transformation, both from a business and a technological standpoint.
The top three barriers to successful digital transformation identified by enterprises in APAC are:
- Potential failure to secure sensitive data – 35 percent
- Inflexible IT systems and lack of operational agility – 32 percent
- Inability to migrate legacy IT and business applications to the cloud – 31 percent
“In a global business economy dominated by disruption, reinvention and escalating threats, speed to market is of the essence,” said Gery Messer, CenturyLink managing director, Asia Pacific.
“While it’s encouraging to see the majority of enterprises in APAC have begun digital transformation projects, the complexity that surrounds their journeys can result in significant roadblocks. However, by simplifying the foundational steps behind digital adoption, APAC enterprises can focus their resources on innovation and customer experience, and truly lead the world in digital transformation.”
On top of long-term commitment and planning, the study identifies choosing the right partner as a critical factor for success. Fifty-five percent of companies are using or expect a need for an IT or communications service provider partner in support of their digital transformation programs, and just under half (49 percent) use or will use a specialist cloud service provider.
“Digital transformation programs are now being viewed as strategic, long-term initiatives that receive top-level executive backing in APAC,” said Agatha Poon, research director, APAC Services, 451 Research. “Sixty-nine percent of businesses are actually increasing their spending levels to push through the business benefits and commercial gains they expect as digital transformation outcomes. A critical aspect of these transformation roadmaps is entrusting some of the transformational fundamentals to third-party service providers, enabling business leaders to refocus internal resources on developing new services and applications to support innovative business initiatives.”