Expert pushes PPP for Asean’s full-scale digital transformation

COLLABORATION between government and the private sector is the best option for Asean governments to build their capabilities towards digitalization.

“The private public partnership [PPP] is the best model to explore and manage the digital transformation of countries in Asean region,” said Sudev Bangah, managing director of International Data Corp (IDC) Asean, at an online briefing Wednesday afternoon.

“It is good to see the government and the providers developing connectivity because it is always faster in the manner of rolling out the infrastructure,” Bangah added.

In its recent Future Enterprise Resiliency Survey (FERS) 2022, IDC listed the three top digital initiative priorities by governments in Asia Pacific policies that promote the development of technology, regulation around responsible use of artificial intelligence and the use of technology to develop smart cities.

Bangah observed that Asia Pacific countries are putting importance to achieve a digital first economy in Asia Pacific. He added it is a surprise given that in 2022 IDC expects more than half of the global economy will be based on or influenced by digital as most products and services utilize a digital delivery model or require digital augmentation to remain competitive.

Just like the rest of the world, Asean economies have also been pummeled by disruptive forces such as global health crisis, rising costs, supply chain disruptions and geopolitical tensions that have provided the impetus for these economies to re-think and re-align how business is conducted.

However, impetus alone will not be sufficient without a clear digital road map and priorities to drive Asean economies into a digital-first future.

“According to IDC’S Future Enterprise Resiliency Survey 2022, around 70 percent of organizations in Indonesia and Malaysia still feel that their digital transformation strategy is more tactical and focused on the short term. However, a whopping 90 percent of those organizations agree that adopting a clear digital-first strategy is imperative to manage disruptions in the long run. This shows a huge potential, as those organizations understand the need to be digitally resilient and innovative. However, they need clear long-term digital transformation road maps and investment to successfully march towards a digital-first economy,” said Dharmaraj Sivalingam, Senior Research Manager, IDC Asean.

Bangah said Asean organizations would need to focus on building digital resiliency and innovation to be able to pivot quickly to any form of disruptions, which will help them to drive ahead the Asean digital economy and keep abreast with the rest of the world.

“IDC views such organizations as the Future Enterprise, those organizations that can capitalize on change by continuously deriving value from its core business activities, while symbiotically benefiting and contributing to all its stakeholders, within the enterprise, the broader ecosystem, as well as the larger society and environment,” Bangah said.

However, he said Asean organizations will need support and close collaboration with the government to successfully drive towards a digital-first economy.

Bangah said clear national digital road map, digital infrastructure investment, upskilling of technology skillsets in the local work force and improved policies in data governance and privacy would be a huge factor to enable the base for a digital-first economy to be built upon.

“The digital-first economy will continue to bring disruption and opportunity in equal measure; therefore, it is imperative for Asean organizations to keep abreast and continue to derive and provide value in this form of economy,” Bangah said.