Digital transformation in Asia Pacific is increasingly showing its teeth, and many industries and businesses are changing drastically in order to get a profitable ‘piece of pie’ Why? Digital transformation in Indonesia will bring more revenue, higher efficiency and productivity, and of course a more satisfying customer experience.
As a result, digital transformation is now the new commonplace. Digital transformation is needed to remain competitive in a market that shows an increase in customer demand. By joining the digital pool, Indonesia is expected to take economic growth to new heights – the prediction is to have an economic impact of US$150 billion (10% of GDP) annually by 2025.
In this article, let’s take a look at how companies will win digital transformation in Indonesia, predictions for the future, what the Indonesian government is doing to support this revolution, and success stories of digital startups.
How to win digital transformation in Asia Pacific?
Understand Digital Transformation in Asia Pacific
Understand the trend will enable to win digital transformation in Asia Pacific. For businesses in Indonesia who choose to embrace change by refusing to lag behind others and enjoy the benefits, a long and bright future awaits.
However, the digital revolution is still relatively new in Asia Pacific, and therefore there are still many opportunities wide open for investors and entrepreneurs.
According to McKinsey & Company and their research on 20 selected markets in the world, Indonesia is still in the early stages of digitization.
It’s an interesting fact—although still in the early stages of digitization, Asia Pacific’s population is considered the most active in terms of digital users and Asia Pacific is one of the largest startup hubs in the world.
Digital Transformation Strategy
If you don’t turn digital transformation initiatives into sound strategies, companies are doomed to fail in this game. Businesses can focus on the following ways to increase their chances of winning.
Designing a Customer-Oriented Experience
A fun, personalized, fast and interactive user experience is what most customers are looking for. These experiences can be achieved through innovative development and seamless design. Examples of well-known companies are Google, Facebook, Disney, Starbucks, etc.
Engaging Inter-Channel Strategy
In today’s world, customers interact with companies through a variety of channels, from physical stores to online sites, from customer service to social media, and much more. Online and offline channels are important for customers to get the best user experience.
Facilitating Big Data for Right Decisions
The number of data is growing aggressively but shows no signs of slowing down. With specific directions, companies can now use big data to analyze problems and make immediate decisions.
In this digital era, intellectual property and business data are a valuable company asset. Therefore, it also means that cybersecurity is becoming increasingly important to protect a company’s digital assets.
Pay Attention to Future Predictions for Digital Transformation
According to an IDC survey, industries and businesses that keep pace with digital transformation in Asia Pacific are doing twice as well as those who are late adopters. IDC also highlighted the top 10 technology predictions that will lead Indonesian companies to upgrade and strengthen their digital innovations.
One of example Indonesia as part of Asia Pacific region has a vision to achieve a market value of US$130 billion by 2020, becoming the largest digital economy in Southeast Asia. To realize this vision, spending on ICT (Information and Communication Technology) in Indonesia is therefore estimated to reach IDR 443 trillion in 2018.
The top 10 predictions for digital transformation that will have a major impact on all stakeholders as well as the country are:
The Critical Moment of the Digital Economy
A minimum of 40% of Indonesia’s GDP is predicted to be digitized by 2021. Investors will then facilitate digital ecosystems, platforms, value data and employee engagement to measure the value of the entire business.
Digital Transformation Platform
Twenty percent of companies will complete and implement a digital transformation strategy to compete in the digital economy.
Up-to-date and Up-to-date Cloud
Cloud services will be more distributed and specialized by 2021. Total spending on cloud services and hardware and software is estimated at US$266 million by that time.
AI Becomes the New Normal
About 10% of digital transformation plans and strategies will leverage artificial intelligence services by 2021 – 20% of commercial artificial intelligence applications, 30% of clients communicate via artificial intelligence robots, and 5% of new industrial artificial intelligence robots.
Enterprise applications will be built on a hyper-agile and scalable architecture. For example, application development on cloud platforms (aPaaS).
Human-Digital Interface (HD)
2021 is a big year. At that time, the HD interface will expand with more personalized experiences. For example, field-service technology and information workers are using voice in new mobile phone applications as the primary interface, and companies are using biometric sensors to amplify reality.
More than 10% of organizations in Indonesia will use blockchain services as digital trusts by 2021. In addition, 20% of supply chain companies and 20% of banks will use blockchain networks in their production.
Open API Ecosystem
Around 50% of businesses in Indonesia will have digital service interactions (approximately 20%) directly from their open API ecosystem.
Increasing Number of Developers
Current development tools have increased the number of non-tech developers in recent years. In 2027, Indonesia is predicted to have 50% of new application features created by developers.
More Data Providers
Fifteen percent of businesses in Indonesia are expected to generate revenue from data-as-a-service (DaaS) in 2020 – a sharp increase from just 2% in 2017.
Learn about the Efforts and Support of the Indonesian Government
Digital transformation in Indonesia is a joint effort of the Indonesian government and private entities. Especially the Indonesian government, they have played a very important role in this rapid growth with a strong will to steer the country towards digitization.
One of the best efforts made by the Indonesian government is the implementation of the use of IoT (Internet of Things) in one of the smart cities in many cities of countries in Asia Pacific.
Local governments have created more than 100 applications to help residents, which at the same time increases government efficiency and productivity.
Understand the Failure of Company Digitization
The digital transformation case doesn’t all end well and sweetly. Companies run the risk of jeopardizing existing opportunities and promising futures if they go the wrong way in dealing with digital transformation.
Here are the mistakes to avoid:
The biggest mistake that causes digital transformation to fail is digitizing almost everything. For example, digitization of manufacturing.
Not everything has to be digitized, although it can be done. Study your workflow and analyze which parts of the process need to be improved with digitization.
Collect Huge Amount of Data
Most of the time, companies will collect large amounts of data without any focus and not knowing what to do with the data. As a result, analyzing large amounts of data takes a lot of time and effort, leaving your business behind.
Use Big Data to Increase Value and Revenue
Without focus and direction, mere data sets without a solid plan to support the digitization process will not help companies generate revenue and increase value.
Keep Ahead with Digital Innovation
To be one of the winners in the digital age by making the best use of digital opportunities, innovative routes must be considered, especially for traditional businesses. Traditional or reputable companies are able to transform and create value in three important aspects:
- Product and service innovation
- Business model transformation
- Business process improvement
Digital Success Stories
The digital transformation trend is gaining a lot of momentum in Indonesia due to the many success stories, along with increased business efficiency and gross revenue growth.
Deeeplabs.com Can Help
Don’t underestimate the risks of digital transformation in Indonesia and consulting regarding market entry if you want to become one of the important players in the Asia Pacific digital market. Contact us and get the best offer for your inquiry.