Vijay Sundararaman, Country Manager, IDC Malaysia (pic), said: In 2015, Malaysia faced economic challenges that impacted the ICT market but IDC still saw innovation in technology continuing to accelerate.
The adoption of Third Platform technologies such as Cloud, Big Data and Mobility are rapidly disrupting the ICT landscape in Malaysia. Uncertainty in adopting these new technologies has proven to be an early stumbling block in enterprises looking to leverage the benefits these technologies provide. Nevertheless, these uncertainties are slowly being alleviated through strategic road maps, eco-system support structures, start-up and accelerator programs that are not only led by government initiatives, but also through series of frameworks that IDC has produced to support the journey these enterprises are looking to embark on. Today, the Third Platform is already the core of the IT market growth worldwide. Over 100% of IT spending growth, and virtually, all of enterprises' strategic new digital transformation initiatives are being built on 3rd Platform technologies and solutions.
IDC believes that by the end of 2017, two-thirds of the CEOs of Global 2000 enterprises will have digital transformation at the centre of their corporate strategy. This is the "new norm" and with that, Malaysia needs to maintain its momentum in digital transformation into 2016 and beyond. With that being case, 2016 will be another exciting year for the Malaysian ICT industry.
There is potential for significant growth in the digital economy as enterprises are already discovering its journey to digital transformation (DX). As traditional industry incumbents feel the heat from the mushrooming of innovative competition, what is at stake is the viability to not only maintain leadership but to evolve in such a way that green field opportunities are captured.
Organisations need to be faster to market and improve customer service, so as to increase market share. Against the backdrop of new competition, rising costs, and the inherent issues in legacy systems, the key question is: Where does one invest?
IDC is of the opinion that having a digital transformation (DX) strategy is fundamental for any organization to survive and thrive in today's fast-changing marketplace. Therefore, it is shape up or ship out. Without a clear strategy, today's leaders risk becoming tomorrow's followers instead. While the idea of digital transformation may not necessarily be new, it is imperative that organisations look at it from a more holistic manner. Business leaders need to master not only the disciplines but also the alchemy of combining and managing their interactions to create digital gold. IDC suggests addressing DX along 5 key dimensions:
4.Operating Model DX
While Malaysian businesses decide on how they plan to shape up, one thing is certain: With disruptive market forces at Malaysia's doorstep, this thousand-mile journey is an opportunity for digital transformation, and at the end of the day, anyone's game.
Sign up for CIO Asia eNewsletters.