Business World

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.

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