Over Half of APAC Executives Expect Their Organization To Undergo Vast Digital Transformation in the Next Two Years
HONG KONG — December 6, 2016 — According to a new report by Forbes Insights, in association with Hitachi Data Systems (HDS), a wholly owned subsidiary of Hitachi Ltd. (TSE:6501) titled "How to Win at Digital Transformation: Insights from a Global Survey of Top Executives,” companies in Asia Pacific are pulling ahead when it comes to the implementation of digital projects. Amongst those surveyed, 55% of APAC respondents expect their organizations to undergo vast digital transformation in the next two years, 6% more than the global average of 49%.
The global study—based on a survey of 573 senior executives worldwide of which 34% were from the Asia-Pacific region, as well as on one-on-one conversations with top executives—reveals that, regardless of industry or location, companies are being placed under increasing pressure to transform to keep up with market demands.
“Digital transformation is now essential for corporate survival,” said Bruce Rogers, chief insights officer at Forbes Media. “And it’s more about people and culture—about change management—along with investing in the technology.”
“At the center of transformation is data. It is both the creator and accelerator that has proven to be the currency of IT organizations. By failing to unlock the potential of data, organizations are falling short of their own transformation,” said Mark Ablett, general manager and senior vice president, Hitachi Data Systems Asia Pacific. “Hitachi Data Systems is at the center of this customer transformation and the leader in data strategy, creating opportunities for organizations to manage, govern, mobilize, learn from and ultimately transform insights into actions for business.”
The research suggests that those in APAC are further along the road to digital maturity than their global counterparts, with the transition toward digital maturity pointing to five major steps:
At the same time, there are issues companies still grapple with and must resolve:
The findings also point to a growing awareness of cloud and the internet of things (IoT) in the region. When asked about the technology focus for digital transformation, 64% of respondents in APAC selected cloud as a priority (same as the global average), while 41% opted for IoT, which was 10% more than the global average, making IoT the second most important focus for APAC respondents. In addition to this, when asked about top investment priorities, 45% of APAC respondents selected IoT technologies, versus the global average of 38%.
About this research
This report’s findings are based on responses of 573 C-level executives from North America, Latin America, Europe and Asia-Pacific. They represented enterprises with revenues above US$500 million, with 62% of companies having revenue of more than $1 billion, and 19% with revenues of $10 billion or more. The majority of respondents were chief executive officers (CEO) (23%), chief technology officers (20%), chief information officers (15%), and chief financial officers (7%), and all were involved in the planning or implementing of digital transformation in their organizations. Respondents represented a wide range of industries, including technology and services (20%), telecommunications (10%), financial services (14%), and healthcare (10%).
The report also includes econometric research, conducted by the Department of Business Technology, University of Miami, in association with Forbes Insights. This research examined the relationship between increasing technology expenditures during the last recession (2007 through 2009) and an increased compound annual growth rate (CAGR) during economic recovery (2010 through 2015). It is based on the analysis of 99 of the world’s biggest companies. In APAC, companies that prioritized technology spend during recession experienced 86% greater revenue growth during the recovery, which is significantly higher than the global average of 61%.
About Forbes Insights
Forbes Insights is the strategic research and thought leadership practice of Forbes Media, a global media, branding and technology company whose combined platforms reach nearly 75 million business decision makers worldwide on a monthly basis. By leveraging proprietary databases of senior-level executives in the Forbes community, Forbes Insights conducts research on a wide range of topics to position brands as thought leaders and drive stakeholder engagement. Research findings are delivered through a variety of digital, print and live executions, and amplified across Forbes' social and media platforms.
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About Hitachi Data Systems
Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help global organizations open new revenue streams, increase efficiencies, improve customer experience and ensure rapid time to market in the digital age. Only Hitachi Data Systems powers the digital enterprise by integrating the best information technology and operational technology from across the Hitachi family of companies. We combine this experience with Hitachi expertise in the internet of things to deliver the exceptional insights business and society need to transform and thrive. Visit us at http://www.hds.com/hk/.
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society’s challenges. The company’s consolidated revenues for fiscal 2015 (ended March 31, 2016) totaled 10,034.3 billion yen ($88.8 billion). The Hitachi Group is a global leader in the Social Innovation Business, and it has approximately 335,000 employees worldwide. Through collaborative creation, Hitachi is providing solutions to customers in a broad range of sectors, including power & infrastructure systems, information & telecommunication systems, construction machinery, high functional materials & components, automotive systems, healthcare and others. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
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