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The “Power of AND:” Asia Pacific leading in the As-a-Service economy

Anoop Sagoo, Senior Managing Director, Accenture Operations, APAC | March 11, 2016
Anoop Sagoo of Accenture talks about the benefits of the As-a-Service approach.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

The pressure is on for Asia Pacific enterprises to find new ways to increase value by leveraging technologies such as cloud, automation, analytics, artificial intelligence and mobile. These technologies have created an entirely new "As-a-Service" business model, where the whole is more powerful than the sum of its parts.

This is the "Power of AND," integrating software, infrastructure AND business processes on demand, providing companies with plug-in, modular, scalable AND consumption-based services. It enables business services and operations to become more intelligent, agile and robust, while supporting innovation that disrupts existing business processes.

A survey by Accenture and HfS Research of more than 700 enterprise service buyers, advisors and service provider executives revealed that many Asia Pacific companies are leaving their Western competitors behind when it comes to leveraging As-a-Service.

The research shows that companies in Europe and North America remain intrigued but hesitant about the As-a-Service approach, while those in Asia Pacific express a greater willingness to explore and experiment in this area. Twice as many Asia Pacific respondents viewed it as "critical" or "absolutely critical" to their company's success (62 percent), compared with their counterparts in Europe (31 percent) and North America (30 percent).

However, it is not just a matter of viewing As-a-Service as critical. To lead in this area, businesses have to invest in the technology that enables them to fully leverage the model. And companies in Asia Pacific are doing exactly that.

According to the research, Asia Pacific companies are leading their global peers in making As-a-Service investments that focus on the cloud, automation, business redesign and operations talent. They are among the most willing to write off legacy service-delivery investments to accommodate As-a-Service solutions. For example, 31 percent of Asia Pacific respondents say they expect to make significant progress in this area over the next two years, compared with 15 percent of respondents in North America and 6 percent in Europe.

Of course, not many companies in Asia Pacific emerging markets have the same legacy burdens as established companies in developed markets, such as Japan and Australia. However, Asia Pacific companies in both developed and emerging markets share a sourcing mindset.

Emerging economy companies in the region are willing to embrace a model that provides cost savings and enables agility and innovation, while developed economy companies are second- and third-generation business service users, already comfortable with the benefits that sourcing can bring. This mindset may be why Asia Pacific is so far ahead when it comes to leveraging As-a-Service.

The As-a-Service model allows companies to "plug in," accessing services quickly in days or weeks, versus months. The model is also scalable so that companies can ramp up and down to match actual business volume needs; and standardised, with uniform processes and delivery.

 

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