In late 2020, we fielded a Forrester Analytics Enterprise Technographics® survey in two key Southeast Asian markets to grasp the present state of digital transformation and cloud adoption. This weblog submit seems to be on the state of digital transformation (DT) in Indonesia. My previous blog post looked at the state of DT in Malaysia.
Simply 43% of corporations in Indonesia are on a digital transformation journey
We discovered that lower than half of corporations in Indonesia are at the moment implementing or increasing their DT. The excellent news is that one other 34% of Indonesian corporations are planning to start out their transformation by the tip of 2021. Most organizations focus their transformation efforts on a selected enterprise unit, product, or service traces. Solely 40% point out they take a extra mature, companywide strategy.
Indonesia corporations focus their enterprise priorities on Adaptiveness, CX and progress in 2021
COVID-19 has emphasised the crucial significance of adaptiveness for enterprise resiliency and progress. Income progress tops the listing of enterprise priorities for corporations in Indonesia. Enhancing services and products is available in an in depth second. Enhancing buyer expertise, and priorities aligned to adaptiveness – rising innovation and accelerating responses to enterprise adjustments – make up the remainder of the highest 5. Nearly all of surveyed companies determination makers in Indonesia said that accelerating the shift to digital is a excessive or crucial precedence.
Digital Transformers have recorded improved enterprise outcomes alongside operational effectivity and CX
Digital transformers in Indonesia have already seen advantages for his or her transformation efforts, specifically within the areas of digital experiences and digital operations. Indonesian corporations profitable of their DT report improved operational effectivity and improved CX most frequently as causes for achievement. Higher innovation and agile capabilities in IT together with services and products innovation are additional success drivers. These corporations have additionally recorded direct affect on the highest (income progress) and backside line (price discount). Nonetheless, corporations in Indonesia should enhance the expertise of their staff and adoption of agile past IT to maintain their early successes.
Digital transformation efforts are challenged by expertise and worker availability, safety and information points
Indonesian corporations are going through people-related challenged most frequently of their digital transformation. Lack of know-how expertise and data, and a scarcity of worker availability point out a crucial expertise crunch. Corporations could pay a value already for not placing worker expertise greater on their enterprise agenda. Apart from information points, challenges additionally embrace securing the digital transformation. Solely 17% of corporations in Indonesia are at the moment adopting a ZeroTrust strategic cybersecurity framework. Lower than 20% point out securing budgeting and funding for DT as a key problem. This means that early successes are acknowledged in boardrooms and with govt leaders, and the overwhelming majority of corporations in Indonesia have ready their transformation budgets effectively.
Indonesian tech executives should steadiness investments in know-how and staff to proceed the success
Indonesia corporations face much less finances challenges for digital transformation than their friends in different markets. Corporations are additionally prioritizing cloud and are constructing new functions and companies totally on public cloud. Tech executives in Indonesia due to this fact face their most quick challenges round individuals, expertise and tradition. Upskilling, retention and aligning worker priorities to digital transformation is essential for ongoing success – and corporations should act instantly. Agile has efficiently taken maintain in IT organizations, however tech executives should take the lead and collaborate throughout traces of enterprise to drive adaptiveness throughout the group.
What’s subsequent on Indonesia’s journey to digital innovation
By the tip of 2021, we anticipate greater than three quarters of Indonesian corporations to be implementing or increasing their digital transformation. Tech executives of those corporations — notably these beginning out in 2021 — should deal with the challenges head-on. This implies investing in individuals, expertise and tradition, and allocating components of the finances to speed up this. To maintain up their success story, tech leaders should mature their initiatives to focus extra on organization-wide digital transformation. They need to proceed to drive operational efficiencies, buyer expertise, and product and companies innovation throughout their organizations.
Organizations nonetheless hesitant about DT will see their rivals speed up and can more and more fail to draw digital expertise. They could run in need of finances and sources, and due to this fact fail in getting off the grounds totally.
Forrester shoppers can entry my report The State Of Digital Transformation In Indonesia .
Please connect with me on LinkedIn!
In case you’d like to debate how this impacts you and your group, please don’t hesitate to schedule an inquiry call with me.