Forty-seven percent of businesses in Asia believe they will struggle to compete against "digital disruptors" which are more agile, digital-based market entrants, according to a research by IDC, commissioned by technology solutions company Avaya.
The study, titled 'The Promise of Digital Transformation in Asia Pacific's Leading Institutions,' polled close to 1,500 IT decision makers and business owners across 13 countries in the Asia Pacific (APAC).
IDC predicts that one third of the top 20 market share leaders in various industries worldwide will be significantly disrupted by 2018.
The research shows that companies face significant challenges in achieving their own digital transformation goals. Fifty-seven percent of enterprises cited the need to transform the culture of an organisation, and 53 percent cited the lack of skills and resources. Half of respondents raised challenges with implementing cross-team collaboration.
But companies in APAC are undertaking digital transformation initiatives despite these challenges. Almost two-thirds (63 percent) of respondents are investing in customer-facing applications and developing an omni-channel experience. Sixty percent said they were focusing on employee productivity.
"True digital transformation requires an open and collaborative culture," said Sami Ammous, Director of Sales Engineering APAC, Avaya. "Finding staff with skills and experience in 3rd Platform technologies and building capabilities in other innovation accelerators can be challenging."
State of digital transformation across APAC
The study also showed marked differences between companies in developing markets, as compared with more mature markets.
Forty-one percent of respondents in India, as well as 39 percent in Thailand and the Philippines believed that innovation was extremely important to business. On the other hand, only 14 percent of respondents in Singapore, and 15 percent in Japan felt this way.
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