A study predicts a dramatic acceleration in the pace of digital transformation across Asia Pacific economies. In 2017, about 3% of the Philippines’ GDP was derived from digital products and services created directly through the use of digital technologies, such as mobility, cloud, Internet of Things (IoT), and artificial intelligence (AI).
The survey conducted with 1,560 business decision makers in mid and large-sized organizations across 15 economies in the region highlights the rapid impact and widespread disruption that digital transformation is having on traditional business models.
The study, which included 100 respondents from the Philippines, identified five key benefits to their bottom line from digital transformation.
According to the research findings, organizations are seeing significant and tangible improvements from their digital transformation efforts across these benefits in the range of 6% to 12% today. Business leaders expect to see more than 50% improvements in those key areas by 2020, with the biggest jump expected in profit margin and productivity.
The study indicates that Leaders experience double the benefits of Followers, and these improvements will be more pronounced by 2020. Almost half of Leaders (48%) have a full digital transformation strategy in place.
According to the business leaders surveyed, digital transformation will bring about these top three benefits to society:
⦁ Potential increment to personal income through freelance and digital work
⦁ Creation of more higher value jobs
⦁ Increased educational and training opportunities
Respondents in the Philippines felt that 92% of jobs will be transformed in the next three years due to digital transformation, and 65% of the jobs in the market today will be redeployed to higher value roles or reskilled to meet the needs of the digital age.
In the Philippines, Microsoft recently partnered with UnionBank to support its digital journey with blockchain technology on Azure, one of the first Southeast Asian banks to conduct such trials. Microsoft’s technology allows the bank to have wider coverage at a lower cost, lower risk, and greater efficiency.
This will allow the bank to reach a big under-served market in rural areas of the Philippines. This blockchain technology will enable UnionBank to offer a more open and transparent system, which will help promote greater financial inclusion in the Philippines.
Organizations in Asia Pacific need to accelerate their digital transformation journey to reap the full benefits of their initiatives and to address the invisible revolution brought about the mass adoption of AI. More importantly, companies need to focus on capitalizing their own data in order to gain new market insights, create new digital products and services, and monetize data through data sharing securely, and in collaboration with its ecosystem.