THAILAND is emerging as a fast-growing market for the adoption of digital technology by the country’s organisations and enterprises, a research company says.
IDC expects that the performance of Thai organisations and enterprises will be measured by what it calls digital determination over the coming years.
Jim Chin, the head of operations at IDC Thailand, said that most organisations and enterprises in the country still spend much more on hardware devices such as mobile phones, personal computers, storage items, and notebooks, with such items collectively accounting for 60-65 per cent of their total spending on information technology (IT).
Their counterparts in Singapore spend much more on services, disruptive technology and for the adoption of new technology to support their business with high performance. This also helps them to create new experiences for their customers.
The countries in the Asian region that stand at the same level include Malaysia and Indonesia.
Singapore was able to reach its level of digital determination as organisations in the city state spend much more to adopt disruptive technology to support their businesses, such as for payment systems, data modernisation, and on platforms for digital lending and marketing.
However, IDC believes that organisations and enterprises in Thailand will reach that status of digital determination over the next few years.
Chin said that digital transformation is creating new digital economies in the areas of the auto passengers, the microgram economy, the last-mile economy and open-banking economy.
IDC has found that 36.8 per cent of organisations and enterprises in Thailand are digitally determined. These companies include Mitr Phol group, CIMB Thai, Ananda Development PCl, and SCB Abacus. They have integrated continuous enterprise-wide digital transformation innovation with operations and with the customer experience.
Some 10.5 per cent of companies have an enterprise strategy for the use of digital transformation (DX) to transform markets and customers by creating new business models and products as well as services.
Chin said the main components – making up a blueprint – for organisations and enterprises to drive their traditional enterprises to achieve digital transformation are a digital native enterprise driven by customer-centric needs and an empowered workforce; innovation that takes place much faster than at traditional business; more efficient operations, new revenue streams and customers loyalty through use of the technology and data; and embracing risk taking for the sake of continuous learning and adaptation.
Forces at work
Chin said that the main types of disruptive technology to drive digital determination include artificial intelligence (AI), blockchain, machine learning, the Internet of Thing (IoT) and robotics.
Meanwhile, Kunal Jha, the regional director for Asean at Silverpeak, said that technology trends that will build the next generation of enterprises are the cloud, the Internet of Things, Big Data, artificial intelligence and machine learning.