Intelligent CXO Issue 05 | Page 57

REGIONAL ROUND-UP

AFRICA APAC EUROPE MIDDLE EAST NORTH AMERICA

BUSINESSES IN ASIA PACIFIC STRUGGLING IN RACE TO DIGITALISE , DESPITE COVID ACCELERATING EFFORTS

The pandemic has had a transformative effect on the digitalisation of companies across the Asia Pacific region , but the vast majority of companies still believe they are either barely keeping pace with their industry from a digital perspective , or in many cases actively falling behind .

This is according to a new report from Baker McKenzie , Riding the Next Wave – Digital Transformation Strategies in Asia Pacific , which has revealed a huge acceleration in business digitalisation , but also deep anxieties around the pace and risks associated with this Digital Transformation across almost every market and sector .
In fact , 79 % of executives see themselves facing significant competitive headwinds , describing themselves as digitally disrupted within their industry , compared to just 21 % that see themselves as proactively disrupting their sector . This is even starker than in 2019 , when the same survey showed that 75 % said their organisations were among the disrupted .
Across the region , Singaporean business leaders are most confident that their companies are leaders in their respective industries with 30 % saying they are in fact digital disruptors . Respondents from Hong Kong ( 28 %) and Mainland China ( 27 %) were also reportedly more disruptive than in other parts of the region , underlining where disruptive companies may more likely be headquartered today .
Despite the misgivings of many business leaders , the pandemic has unquestionably
accelerated their digitalisation efforts , with 72 % of respondents saying that the impact of COVID has been a major accelerant , including almost a third describing it as transformative .
According to the report , the key areas that are seeing the greatest digital investment include sales and distribution channels , enhanced Customer Relationship Management ( CRM ) systems , supply chains and compliance functions .
When asked about the greatest technologyrelated risks facing their businesses , regulatory investigations topped the list , followed by theft of sensitive information and major systems failure . This focus on regulatory pressures was also highlighted by the fact two thirds of respondents predicted tech and data-related regulatory
ACROSS THE REGION , SINGAPOREAN BUSINESS LEADERS ARE MOST CONFIDENT THAT THEIR COMPANIES ARE LEADERS IN THEIR RESPECTIVE INDUSTRIES WITH 30 % SAYING THEY ARE IN FACT DIGITAL DISRUPTORS .
and compliance enforcement would become significantly more rigorous in the year ahead .
Paolo Sbuttoni , Partner , Baker McKenzie , Hong Kong , said : “ Mapping regulatory risks is crucial for businesses currently undertaking Digital Transformation activities . Companies active in many jurisdictions need to
ensure they can comply with regulatory requirements in different geographies and stages of Digital Transformation . At a time where many businesses are focused on strengthening their Digital Transformation capabilities to ensure that they can continue to compete in the increasingly online business environment , an early assessment of the global and regional regulatory hurdles is essential to ensure a smooth roll-out of Digital Transformation projects .”
One area where businesses have improved their operations significantly is around the managing and protecting of data . Almost two thirds ( 64 %) of respondents now describe their business as somewhat or highly adept at data protection , with only 8 % believing their data and tech risk profile was getting worse . x
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