Looking East for Digital Gold: Digital Transformation Through an Asia-Pac Lens

ne Cognizant Looking East for Digital's Future Digital Transformation through an Asia-Pac Lens The region is fast becoming the hotbed of digital transformation. Cognizant's Center for the Future of Work asked 300-plus business leaders across the region to share their point of view on going digital. The digital transformation agenda is now a top priority for the C-suite 37% are undergoing a formal digital transformation effort 33% plan to take on a formal digital transformation initiative sometime in 2015 .•●• 26% plan to take on a formal digital transformation initiative over the next two years 4% don't see a need for digital transformation at their ●.• organization Response base: 314 Digital's impact is rapidly expanding 2017 13.5% average revenue increase TODAY 7.6% average revenue increase Response base: 314 Colliding forces shape the growth agenda Inability to respond fast enough 64% to changes in the marketplace and new developments Inability to meet the speed of 63% technological change 63% 61% Inability to gather, understand and act on all of the customer, product, Increased competition from new disruptive startups company and employee data 62% Inability to get/keep the right skills for the fast-changing business environment 57% Risk of existing partners or suppliers bypassing us 55% 61% Inability to monitor customers and our own performance in a hybrid world Competition from compa- nies in other verticals Response base: 314 Regional leaders are relying on a variety of technologies to power digital business transformation Today 2017 DIGITAL FOUNDATION Mobile apps for customers DIGITAL INNOVATION Internet of things Advanced analytics Social media for customer engagement High-performance computing Mobile apps for employees & partners Telematics Private cloud Wearables Big data Gamification Public cloud Robotics/drones O 10 20 30 40 50 60 70% O 10 20 30 40 50 60 70% Response base: 314 Smart companies focus on specific business processes to deliver a superior customer experience Digitized customer-facing processes will result in a significant revenue boost 62% 46% O 60% 45% 41% 34% New product/ service Sales, marketing & Strategy- setting & implementation development customer service Financial planning, tracking, analysis & reporting Manufacturing/ supply chain/ service delivery Revenue Operations management Cost Companies will need to overcome five key challenges to reap digital's benefits Poor perception of the value of digital transformation Inadequate organizational structures, internal skills and partnerships Lack of vision or failure to communicate Insufficient budget and resources Minimal collaboration across business units Response base: 314 To succeed, companies focus on strong technology leadership How involved are the following executives in making or executing digital transformation strategy in your organization? LET'S GET DIGITAL! EO- CIO/CTO 89% 11% смо 72% 28% CEO 62% 38% CFO 55% 45% Response base: 314 Very involved Partially involved Many companies foresee a time in the not-too-distant future when a chief digital officer leads the charge your organization appointed a senior executive to lead the digital transformation strategy? Has 31% Yes 23% Will soon 16% Likely in 2-3 years 25% No plans 6% Don't knoW Response base: 314 To strengthen the digital agenda, businesses can take the following steps: Dedicate investment funds. Companies should allocate at least 2% of their annual revenue on transformation efforts and increase their expenditure every year after that, based on factors such as outcomes, vision, strategy and risk appetite. Spending should be tightly linked to clear business outcomes like revenue growth and cost-cutting. Consider a converged West-East strategy for innovation and growth. Businesses must fend off aggressive, technology-charged Asia-Pac players, many of which have ambition beyond their home turf. Companies must also see emerging markets as more than low-cost, low-quality product-push destinations. This will require a radical mindset change that few companies have mastered. Improve the company-wide digital quotient, first. Senior leadership must be perceived internally as digital innovators and advocates to accelerate the transformation journey. Start by assessing digital capabilities across the organization to understand the current state of digital leadership and plan/act accordingly. Embrace a dual agenda moving forward. Organizations should generate operational effectiveness and efficiency while simultaneously investing in business and technology areas that will deliver new capabilities that drive "digital-first" success. For more insights and information, read our white paper at http://cogniz.at/asiarising and visit http://www.cognizant.com KEEP CHALLENGING" © Copyright 2015, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information containedherein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Codex 1403 INTERNAL FORCES DIGITAL TRANSFORMATION EXTERNAL FORCES