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63 percent of APAC companies estimate taking 3-6 years for company-wide digital transformation

Nurdianah Md Nur | May 24, 2017
The region is also leading the way in digital transformation, with 57 percent of companies there having a formal digital transformation strategy, according to a study by 451 Research and CenturyLink.

Asia Pacific (APAC) is leading the way in digital transformation, according to the APAC Business in Pursuit of Digital Transformation study by 451 Research and CenturyLink.

More than half (57 percent) of the 613 APAC large companies surveyed said they have a formal strategy for digital transformation and are actively digitising some of their business processes, as compared to 47 percent in Europe and 45 percent in North America. Countries surveyed for the study include Australia, China, Hong Kong India, Japan, Singapore, U.S., Canada, Austria, UK, Germany and Switzerland.

The three key factors driving digital transformation are: desire to improve customer experience (44 percent), to manage risk (43 percent), and to reduce operational costs (41 percent).

The study also found that 63 percent of organisations in Asia Pacific estimate taking three to six years to achieve a company-wide digital transformation. 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); and the inability to migrate legacy IT and business applications to the cloud (31 percent).

CenturyLink and 451 Research advised organisations to partner third-party service provider to help overcome those roadblocks.

To overcome those obstacles, Gery Messer, CenturyLink managing director, Asia Pacific, advised organisations to "simplify the foundational steps behind digital adoption".

Agatha Poon, research director, APAC Services, 451 Research, on the other hand, suggested partnering a third-party service providers. "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."

Some organisations in Asia Pacific are already doing so. According to the study, 55 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 49 percent are using or will use a specialist cloud service provider.

 

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