86% of business leaders in the Philippines believe they need to be a digital business to succeed, a recent Microsoft study shows.
The Microsoft Asia Digital Transformation survey, conducted in the last quarter of 2016 involving 1,494 business leaders, 111 from the Philippines, in 13 Asia Pacific countries to understand how business leaders are embracing the digital era, reveals that “business leaders are just starting to embrace disruptions as region ushers in the 4th Industrial Revolution.”
In the Philippines, the study shows business leaders are showing urgency in embracing the 4th Industrial Revolution. 86% of them believe that “they need to transform to a digital business to enable future growth and that new data insights can lead to new revenue streams for their organizations.”
In an article published by weforum.org the Fourth Industrial Revolution is “the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.”
Technology advancements have ushered in the 4th Industrial Revolution, where cutting-edge technologies such as Internet of Things (IoT), artificial intelligence (AI), advanced data analytics, and mixed reality are powered by cloud computing to create limitless possibilities in transforming the way people work, live and play.
The 4th Industrial Revolution, “together with rapid urbanization, emergence of the millennial workforce and a fragile global economic climate, is ushering societal and economic changes at an unprecedented pace,” Microsoft statement said.
Even as majority of business leaders are aware of the urgent need to transform digitally to address the changing business climate, the study found that the transformation journey for most businesses in Philippines is still at its infancy.
According to the study, only 32% of business leaders have a full digital transformation strategy while 43% are in progress with specific digital transformation initiatives for selected parts of their business. 25% of respondents have very limited or no strategy in place.
“The Microsoft Asia Digital Transformation Study has shown that business leaders have started to act on the need for digital transformation to address the challenges and opportunities of the 4th Industrial Revolution in the region,” said Karrie Ilagan, Managing Director for Microsoft Philippines.
“Lessons from past industrial revolutions have taught us that organisations that do not evolve fast enough will be less competitive or even obsolete as they face disruptions in every industry. We urge organisations of all sizes to digitally transform themselves amidst changing demands externally and internally, to stay relevant,” Ilagan said.
“At Microsoft, we believe this involves transformation in four key pillars – empowering employees, engaging customers, optimizing operations and transform with new products, services or business models, and data and the cloud are key enablers of these,” Ilagan said.
According to Microsoft, the following four key pillars define what it means to transform:
- Engage customers: Consumers are savvier than ever before, with access to data ensuring they are often educated on a product or service before engaging. To stand out, organisations will need to deliver a new wave of deeply contextual and personalized experiences, while balancing security and user trust.
- Empower employees: The nature of how we work—and the workplace itself—has undergone a dramatic evolution. Organisations can empower their people and help them do their jobs better with the power of mobility, which allows employees to collaborate from anywhere, on any device, and access apps and data they need, while mitigating security risks.
- Optimize operations: Technology disrupters such as IoT are accelerating the potential for businesses to optimize their operations. This can be done by gathering data across a wide, dispersed set of endpoints, drawing insights through advanced analytics, and then applying those learnings to introduce improvements on a continuous basis. Organisations in manufacturing, retail, and even healthcare can shift from merely reacting to events to respond in real time, or even pre-emptively anticipating and solving customer issues.
- Transform products & business models: The opportunity to embed software and technology directly into products and services is evolving how organisations deliver value, enabling new business models, and disrupting established markets.
The Study found that business leaders are putting people at the forefront of their digital transformation strategies.
“It’s concerning to see that while there is widespread acknowledgement on the need to transform, they are doing so incrementally. With constant pressure from newer, agile and tech savvy players disrupting across industries in Asia, the transformation of products and new revenue models provides the greatest opportunity for organisations to truly lead rather than be disrupted,” Ilagan said.
Leaders need to rethink business models, find new data insights which lead to new revenue streams. And they need to do this by embracing a different way of bringing together people, data, and processes. which create value in a new digital business,” Ilagan said.
The study includes Australia, China, Hong Kong, Indonesia, India, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Thailand. All respondents were pre-qualified as being involved in shaping their organisations’ digital strategy, and are working in firms with more than 250 employees.