By Hans Bayaborda, Managing Director, Microsoft Philippines.
Every organization will need to be digital-first to be relevant both today and tomorrow – while such a viewpoint may have been controversial five years ago, it is certainly not the case today as digital transformation is now a key item on the agenda for C-suites, boardrooms, and even governments.
In the Philippines, the government has made strides to create a digital transformation framework. In 2017, the Department of Information and Communications Technology (DICT) issued a circular addressed to both the national and local government, prescribing the Philippine government’s Cloud First Policy. The policy aims to eliminate the fragmentation of databases, as well as to promote the use of cloud computing technology to reduce costs, increase employee productivity, and develop excellent citizen online services.
From an organizational standpoint, DBS, one of the largest banks in Southeast Asia, is perhaps one of the more vocal proponents and early adopters of digital transformation. “In 2013, the DBS Board took the view that the future for us and for our industry would have to be digital. We felt that if we didn’t lead the charge, frankly, we might die,” said DBS CEO Piyush Gupta.
Race to transform
Microsoft recently partnered with IT analyst firm IDC to map the digital transformation landscape across Asia Pacific. Titled “Unlocking the Economic Impact of Digital Transformation in Asia Pacific”, the study involved some 1,560 business and IT leaders from 15 economies.
The study clearly showed that there will be widespread disruption to the traditional business and operations models of all organizations – approximately 48% of South East Asia’s GDP will be derived from digital products and services by 2021, created directly through the use of technologies. In comparison, only 6% of South East Asia’s GDP today is derived from digital products and services. This is the speed of change that all organizations must grapple with.
Imagine that you are operating a fast-fashion clothing chain in the Philippines. This means that by 2021, half of your business will be derived from online or digital channels.
The study has shown organizations are seeing significant and tangible benefits from their digital transformation efforts today. The top five digital transformation benefits that organizations experienced include increased profit margins, productivity, customer advocacy, loyalty & retention, cost reduction, and revenue from new products and services. Even more interesting is that these digital transformation benefits are set to grow by 50% or more in the Philippines in three years.
Winners take it all