Accelerating Digital Transformation with Digital Solutions
Asia Pacific and Japan Vice President, Enterprise Segment and Digital Transformation
Vision & Strategy, Technology, Innovation, Thought Leadership, Digitization
In this digital era, will your company “disrupt or be disrupted”? Having established the fundamental urgency for digitization, how can you capture the unprecedented opportunities that it presents?
Make no mistake – digitization is already sweeping across the Asia Pacific region, and no industry will be spared its transformational impact. Customers are demanding more convenient, more efficient, and smarter and better ways of going about their daily lives as society becomes increasingly connected. As a result, we are seeing the emergence of digital innovators that challenge or have already upended traditional business models across entire value chains.
In India, for example, we see more and more shoppers turning to online megastore Flipkart for its user-friendly interface, extensive offerings, secure transactions, and 24 x 7 customer service. On Google Android Play Store alone, Flipkart became the first Indian app to cross the 50 million installs landmark earlier this month. Digital innovators are also edging into financial services, traditionally the domain of established institutions. In South Korea, mobile payment service KakaoPay exceeded 5 million users within 12 months of its launch, drawn to its simplicity and effectiveness. The list goes on.
Clearly, going digital is no longer a “nice to have” but a strategic imperative. Business leaders in Asia Pacific recognize this reality – some 80% of CEOs from the region surveyed by PwC believe that technology is a primary force shaping their business, where “all roads lead to digital.” If companies fail to rise to the occasion, they will fade to irrelevance. According to a survey by the Global Center for Digital Business Transformation, four out of today’s top 10 incumbents will be displaced by digital disruption in the next five years.
Despite this urgency for digital transformation, most companies are just getting started on the digitization journey. A recent report from Cisco showed that companies across 16 private sector industries worldwide captured only 20% of the total “Digital Value at Stake” available to them in 2015. Digital Value at Stake is a measure of financial gain or loss based on entirely new sources of revenue (or savings) or value shifting between players, based on their digital investments, innovations, and capabilities.
In other words, 80% of digital business opportunity is still untapped and up for grabs. Analysis shows that emerging countries in Asia Pacific have the opportunity to not only catch up to, but also overtake developed economies in digital transformation. In certain industries like manufacturing, Asia Pacific will drive the majority of Digital Value at Stake for the next decade, while dramatically increased mobile and online activity in countries like China and India is reshaping the global retail landscape.
Digital Value at Stake in the private sector is a massive $6.4 trillion in Asia Pacific from 2015 to 2024. I would argue that one of the most meaningful ways to invest in digital is in the user experience, whether that user is a customer or employee. In 1998, Joseph Pine and James Gilmore first introduced the term “Experience Economy,” a concept that businesses must create memorable events and experiences for their customers. The same could be said of businesses today as an employer brand and talent magnet.
To help companies accelerate their digital business transformation, Cisco has launched new Digital Solutions in three categories: Customer Experience, Workforce Experience and Digital Ceiling. Based on business outcomes, the new set of Digital Solutions will help you address these critical questions for becoming a successful digital business:
This is the first in a series of blog posts over the next few weeks focused on how we’re bringing Digital Solutions to life in the region, where we’ll be providing an in-depth view at Cisco Live Melbourne from March 8-11.
I encourage you to join the conversation by leaving your feedback in the comments section.