Local firms tread cautiously into digital transformation
Most companies in Thailand are in the beginning stages of exploring opportunities for digital transformation and will gain more momentum in 2018, says IDC Thailand.
Singapore is the leader in Asean for digital transformation, while Thailand and Malaysia are at the same level, according to the technology research firm.
“Digital transformation is changing the way local enterprises operate, reshaping the Thai economy and driving the country to the digital era,” said Jarit Sidhu, head of operations for IDC Thailand.
IDC divides digital transformation into five phases: ad hoc small scale, exploring opportunities, scaling up, implementing functions, managing all projects and optimisation.
“This year, business firms are aware of digital transformation, but they await proof of concept and finding the right opportunity,” Mr Jarit said. “But in 2018, the use of technology will be increasing with more confidence.”
In 2018, most organisations will focus on “data utilisation” and technologies such as the Internet of Things (IoT), big data analytics, artificial intelligence and machine learning.
In Asean, Singapore has taken a leading role in digital transformation, according to IDC. Thailand and Malaysia are on a par, especially in banking, but Thailand is more advanced in the manufacturing sector.
“By 2020, IDC predicts that 30% of the top 500 companies in Thailand will see the majority of their business depending on the ability to create digitally enhanced products, services and experiences,” said Tipyada Sricharoen, senior research manager of IDC Thailand.
At the moment, not only local banks and telecoms but also property, healthcare, media and retail firms are eager for digital transformation.
In IDC’s estimation, the essential components in the digital transformation economy are third-platform technologies such as the cloud, mobile and big data, plus digital leadership for vision, digital mindset and change management.
IDC Asean recently selected six winners from Thailand in the first-ever IDC Digital Transformation Awards.
Si am City Cement won Digital Transformer of the Year, as it launched the first major IoT project in the manufacturing sector in Thailand, and the first for cement manufacturing in Asia-Pacific.
Siam City’s flagships in 2018 will be machine learning, predictive analytics and digital maintenance inspection for digitally connected plants.
True Money won Digital Disruptor of the Year for its e-wallet with 770,000 active users in 2016 and 3 million users in October 2017.
Bangkok Dusit Medical Services Plc (BDMS) and True Corporation won the award for L3D (leadership in three dimensions), due to their ability to innovate, integrate and incorporate.
BDMS was deemed outstanding in precision medicine and will introduce more IoT projects, while True plans to increase its data scientist team by five times in four years.
TMB Bank was awarded the DX Leader in Information Visionary award as the first bank to use geographic information for property valuation, a system that can shorten the process of loan approval from 2-3 weeks to five days.
AIA Co Ltd won the award for OmniExperience Innovation.