Image Credit: Eric Wong, President of Asia Pacific, Expereo
Anecdotally, about 70 percent of digital transformation do not work in APAC. Why do so many digital transformation projects fail? A tendency to focus on a short-term strategy can often stymie the digital initiative. Opportunistic and digital plans which are not well thought-out are never the best approach.
To find out more about the challenges, and how to navigate the complexity of digital transformation, ITNews Asia speaks with Eric Wong, President of Asia Pacific, Expereo.
iTNews Asia: We often see digital transformation initiatives fail or were not sustainable. Why is digital transformation a challenge for so many organisations here in APAC?
Wong: Digital transformation in APAC can be challenging. Our recent Enterprise Horizons survey found that the complexity of integrating new technologies with existing IT systems is a major hurdle for 41 percent of organisations.
About a third or 35 percent of organisations find that their external IT partners lack the necessary capabilities to support their digital initiatives. When you throw into the mix the diverse regulatory landscapes and cultural nuances across different countries in APAC, it is obvious that digital transformation in the region is a complex undertaking that also needs in-depth understanding of local culture to succeed.
At the end of the day, however, leadership must buy in to the digital transformation plan, not just on top, but at all levels. To enable a fully digital business, CEOs must be more involved in decision-making relating to digital initiatives, as well as being more involved in orchestrating and leading digital transformation efforts.
iTNews Asia: Would it be right to say that digital maturity is the most important predictor of an organisation’s ability to succeed in digital transformation?
Wong: Not exactly, while digital maturity is a significant factor in the success of digital transformation, it is by no means the sole predictor. However, those with higher digital maturity are more prepared to adopt and leverage new technologies effectively as part of a long-term digital business strategy and an integrated, enterprise-wide approach to digital innovation. This strategic alignment and cohesive effort can significantly enhance their overall chances of success in digital transformation.
We must recognise that organisations simply cannot complete the journey to digital maturity overnight. To have a better chance of success, organisations must be able to commit to a long-term strategic outlook that focuses on building both technology and business capabilities that hopefully better prepares them to adapt to rapid changes in the digital landscape.
iTNews Asia: Are APAC organisations too short-term in the digital strategy planning? Why is this so?
Wong: About a quarter of enterprises in APAC have reached full digital maturity. The reality is that most organisations are still working on opportunistic and short-term digital plans with isolated and siloed digital excellences across both IT and Business units.
A similar number feel that while the CEO does support digital initiatives, more must be done in working with technology leaders to advance digital transformation initiatives. About a third of APAC enterprises feel that their digital strategy is too focused on short-term goals. While most leaders are confident about their transformation journeys, being unable to recognise short-termism is having unintended effect of putting growth ambitions under threat for many as they lose sight of the bigger picture.
iTNews Asia: How do you balance the right digital strategy and technology innovation against growth and the need to deliver returns on their investments? What advice can you give on how an organisation can become both digitally and financially competitive?
Wong: Here are three actions that business and technology leaders can take:
- Is your IT Infrastructure ready?
Take a comprehensive assessment of your existing IT infrastructure, and identify where improvements are needed.
If a complete overhaul is too challenging, then consider phased implementations that help smoothen the transition and with lesser risk of disruption.
-Eric Wong, President of Asia Pacific, Expereo
- Do you have the knowledge and support?
Figure out how to address the lack of expert knowledge and support. To start, appointed partners must have the necessary expertise and proven track record in handling similar projects. Even better if your partner also has an established international network and understanding of the regional landscape and regulatory requirements.
- Do you need to modernise your network?
To ensure optimal connectivity, consider investing in modern network solutions such as SD-WAN to better support your cloud and multi-cloud strategies. Having the right network can act as a force multiplier of success for your digital transformation plans.
iTNews Asia: Are there any positive examples of a company in this region that has embraced digital transformation successfully?
Wong: I see many companies on their own digital transformation journeys in APAC. In my conversations with customers and partners, some might be just starting out while some others are well-advanced. Whether rolling out Cloud Based Applications, SaaS Deployments, or even GenAI-based projects, what unites all these is the dependency on the underlying network infrastructure to ensure these transformations fulfil both the expectations and the promises made.
We see that tech leaders fully understand the benefits of transformation for revenue growth and innovation, and encouragingly, that they also see the network as the bedrock and foundation that is enabling them to take those steps.
Increasingly aligned to this is having Network Visibility as an enabler for tech leaders to view the health of their global networks wherever they are connected, as the ability manage the increasing network complexity for their teams is key.
iTNews Asia: AI is now emerging as the number one technology investment priority for enterprises. What should organisations look at when exploring AI from a digital strategy planning perspective?
Wong: To be sure, companies that can effectively leverage AI stand to benefit from competitive advantage and by extension, accelerated growth. In our view, effectively integrating AI into strategic planning is a multi-step process starting with a thorough audit of their business’ digital maturity, and defining which areas of the business would benefit the most from AI deployments. To kickstart your transformation programs, it might be a good idea to take it small with a specific use case first and expanding from there.
Just as important is ensuring that your network infrastructure is up to the task of meeting the high-speed processing and real-time connectivity demands that AI applications bring to the table. Organisations should conduct a thorough assessment of their current network infrastructure, paying particular attention to elements like bandwidth, latency and overall network performance.