Wednesday, 28 February 2018 20:00

Need for digital transformation across APJ reaches 'critical level'


A new study shows APJ companies have a critical need for digital transformation, but only 17% of organisations have a fully-formed digital transformation strategy.

CA Technologies has unveiled its latest Asia Pacific and Japan study on digital transformation, and notes that nearly 80% of business and IT leaders surveyed agreed that their industries have been "impacted by digital disruption".

However, despite this realisation, the study shows that "most organisations are lagging when it comes to staying relevant and competitive in this digital economy, as only 17% surveyed have fully-formed digital transformation strategies."

We're told CA Technologies' "Asia Pacific & Japan Digital Transformation Impact and Readiness Study," a detailed 21-page report available for free download after free registration, was carried out in late 2017, and "examined the digital transformation strategies of 900 business and IT leaders across nine APJ markets: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea and Thailand".

According to the survey findings, not only have 78% of respondents felt their industries and their jobs have been impacted by digital disruption, but that "the majority also agreed that these changes will be augmented in the next three to five years".

Mismatched pressures and priorities for digital transformation in APJ

In a new world that is defined by digital engagement, CA Technologies says "the competitive differentiation for organisations, and even governments, is increasingly determined by their ability to transform themselves digitally and build software into their business strategies".

The survey found that "fast evolving economic conditions, meeting of changing customer expectations and using digital transformation as a new edge in winning against traditional competitors were listed as the biggest pressures for digital transformation in the region".

However, as noted above, only "17% have fully-formed digital transformation strategies, and only 9% are looking at fully digitising their entire organisations".

Further, "while just a little over half (51%) of the organisations surveyed have launched digital transformation projects with clear corporate goals, such as increasing productivity and boosting revenue".

CA Technologies says this finding "mirrors the top three business priorities that organisations in APJ are focused on solving today, namely optimising operational efficiency, improving workforce collaboration, and reducing operational costs".

According to the findings, priorities such as "creating different business models and/or revenue streams; developing new products and services; improving customer experience; and attracting and retaining workforce are deemed to be less important".

"This demonstrates a clear misalignment between the business priorities that leaders are focused on achieving today and the top pressures that are driving their organisations’ digital transformation journey.

"The discrepancy between business priorities and the pressure to change is particularly evident when it comes to customer experience. Although changing customer expectations is highlighted as one of the main drivers for digital transformation, improving customer experience has been ranked sixth out of the seven priorities."

Martin Mackay, president and general manager of CA Technologies, Asia Pacific & Japan, said: "In an era where brands are defined by the digital experiences they offer, it is imperative that companies put customers at the heart of their business.

"When software is built into their business strategies, organisations will be able to deliver an enhanced customer experience; and have the insights and tools to shape and predict new customer demands, create new services, revenue streams and business models.”

Mackay continued: “To thrive in the application economy, organisations need to move IT, especially software, from a supporting role to a central enabler by reinventing their software development and delivery processes so that they can consistently develop high-quality applications that can enhance customer experience and deliver business value at scale.

“In short, organisations need to build a Modern Software Factory where agility, automation, insights and security work together to power their digital transformation.”

Janice Cox, CA Technologies A/NZ Managing Director said: “Australian consumers are increasingly becoming social and digital natives. Consumers want to interact with brands on their terms - when they want to and via their preferred communication channels.

"For organisations to thrive in this digital economy they must embrace and be prepared to tackle changes head on. Businesses can no longer be built to last, but must be built to change. A significant contributor to this shift is digital transformation.”

Here's the infographic summarising the key findings of the research, which can also be seen here in full size and full resolution

Here's more on the CA Technologies Asia Pacific & Japan Digital Transformation Impact and Readiness Study:

CA Technologies notes that it "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 organisations are managing their digital transformation.

"All survey respondents came from mid- to large-sized organisations with more than 250 employees, with almost half (47%) of those interviewed representing large organisations with more than 1,000 staff. All respondents were decision makers – 74% for business decisions and 26% for IT decisions. All surveyed leaders were also involved in digital transformation initiatives in their organisations, with 74% being key decisions makers in digital transformation projects."

The full 21-page research paper is here, available for free download after free registration. 

iTWire's three-part series on the content at last year's CA World 2017 can be seen and read here

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Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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