Unlocking the impact of digital transformation

gross domestic product ( GDP) by 2021. This translated to a 0.4% annual contribution to the country’s GDP growth rate.

The study titled “Unlocking the Economic Impact of Digital Transformation in Asia Pacific” was conducted in 15 economies across the region, namely: Australia, China, Hong Kong, Indonesia, India, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.

It involved some 1,500 information technology ( IT) and business leaders, or a hundred from each economy representing organizations with more than 250 employees, including those in government, education, financial services, health care, manufacturing, and retail.

Microsoft Asia-Pacific President Andrea Della Mattea said the first thing organizations should address in their bid to become DX leaders is to adopt a leader’s mind-set in building their digital ecosystem and growing their value chain. Based on the research findings, only 7% can be classified as leaders in the entire region, with at least one-third of their revenue derived from digital products and services.

In 2017, about 3% of the Philippines’ GDP was created directly through the use of digital technologies like cloud, mobility, artificial intelligence ( AI), and Internet of Things ( IoT). “The Philippines is clearly on the DX fast track. Within the next four years, we expect to see approximately 40% of the GDP to be derived from digital products and services,” said Microsoft Philippines Managing Director Hans Bayaborda.

According to IDC Philippines Country Head Jubert Alberto, survey respondents identified five key benefits of DX to their bottom line: higher profit margins, greater productivity, increased revenue from new products and services, improved customer advocacy, and more cost reductions.

Filipino IT and business leaders believe that DX will transform 92% of jobs in the country, and 65% of current jobs in the market would be redeployed to higher value roles or reskilled to meet the needs of the digital age. They think DX will bring about these major benefits to society: potential increment to personal income through freelance and digital work, creation of more high value jobs, increased educational and training opportunities.

For an organization to become a DX leader, Microsoft recommends the following strategies:

— Create a digital culture of collaboration among employees, customers and partners.

— Build an information ecosystem that enables data sharing internally and externally in an open yet trusted manner.

— Leverage new technologies to accelerate DX in enterprises, allowing businesses to start their AI initiatives in identifying connections, insights, and trends.

— Embrace “micro- revolutions” through a series of small, quick projects that deliver positive business outcomes instead of starting with widespread change.

— Develop future- ready skills for workers such as complex problem solving, critical thinking, and creativity for the digital economy.

One of the first Southeast Asian institutions to conduct trials in blockchain technology was Union Bank of the Philippines, which partnered with Microsoft Azure to support its digital journey. This strategy will allow the bank to reach a largely underserved market in the country’s rural areas and promote greater financial inclusion.