Technology & Innovation

Technological change in Asia

March 12, 2013

Asia

March 12, 2013

Asia
Our Editors

The Economist Intelligence Unit

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Technological change in Asia is an Economist Intelligence Unit research programme, commissioned by SAP

As decision-makers in global firms seek to expand their businesses in this post-financial-crisis world, they are being pulled in opposite directions. On the one hand, they have to contend with several growth constraints, including tightened budgets, a lack of resources and added regulatory burdens. On the other hand, they have abundant growth opportunities, as continued globalisation increases access to dozens of fast-growing emerging markets.

Technological changes have the potential to enable firms to better address these growth challenges and opportunities, partly by improving strategic planning and decision-making processes. But how do senior executives of global firms in Asia assess the value of technological change? And which factors drive new technology adoption in the region?

With these and other questions in mind, the Economist Intelligence Unit (EIU) was commissioned by SAP, a technology firm, to conduct a survey of more than 350 C-level executives in Asia. The survey reveals, among other things, that C-suite executives in Asia have found that investments in new technologies in areas such as data capture and analytics can accelerate the planning process. This in turn increases the ability of decision-makers within the organisation to achieve their strategic objectives.

These and other issues are discussed here in three briefing papers, two video panel interviews and an infographic. To access these, click on the multimedia tab.

Key findings of the report include:

  • Leading-edge technology adoption is accelerating decision-making processes, prompting changes to organisational mindsets. Roughly half of all respondents say that new technologies—with the exception of cloud computing infrastructure—have a positive benefit on collaborative decision-making. A similarly high percentage say there is a link between their technology choices and the pressure placed on managers to make decisions more quickly. Technology-driven collaboration only works, however, if the firm’s management enables all its decision-makers to access and leverage insights enabled by the technology.
  • But technology adoption is held back by the lack of established track records, misalignment between current processes and the new technologies’ outputs, and the bewildering diversity of technologies available. While the drivers for change appear obvious, and the links between technology adoption and meeting business objectives are recognised, it is striking that not even one of the six different technologies— cloud computing, data capture and analytics (managing big data), enterprise mobility, software as a service, IT security and social media—has been implemented by a majority of companies. They are primarily held back by three factors: a lack of proven success metrics; misalignment between current business processes and the outputs of new solutions; and the diversity of the technology landscape in the Asian markets in which they operate.
  • Industry leaders understand the need for a symbiotic relationship between the CEO, CFO and CIO in strategic decision-making and technology planning. Among survey respondents who regard their firms as industry “leaders” in terms of technology adoption, more than 45% feel that their CIOs are actively involved in the planning stages of all firm-wide strategic initiatives. Meanwhile, their CEOs are more likely to be involved in technology selection decisions. This tightening link between business strategy and technology is playing out in companies today. Though C-suite executives disagree on who is leading the decision-making process, they recognise that a collaborative approach can benefit their business.
  • IT “consumerisation” has made technology crucial to relationships with employees and customers, and these stakeholders have become influential in decisions about technology. The availability of relatively sophisticated technology to consumers is influencing the way workers use technology and increasing their expectations of the technology’s utility, both on and off the job. Almost two-thirds of respondents said customers have an important influence on their technology decisions in Asia. Harnessing insights from increasing amounts of customer data and social network-delivered information (among other sources) is requiring a constant evaluation of new technology capabilities.
  • Data capture and analytics (managing big data), enterprise mobility, software as a service and IT security are of primary importance to the business strategies of firms in Asia… A majority of respondents consider four technology initiatives—data capture and analytics (managing big data), enterprise mobility, software as a service and IT security—to be of primary importance to their business strategy in Asia. Among them, more than a quarter of respondents believe that big data and IT security have a “critical” impact on their business.
  •  ... but cloud computing and social media are of less importance. Less than half of all respondents consider social media to be of primary importance to their business strategy in Asia; and only one-third feel that cloud computing is important. Some industry participants see this as a function of historical IT hesitance, as firms may be unwilling to implement new technologies that do not yet have a long track record.

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