Since 2017, Asia has been touted as one of the fastest-growing regions in global digital transformation. This is even more true in specific industries like manufacturing, logistics, energy, and transportation. From Tokyo to Jakarta, Asian countries are leveraging technologies to drive innovation and efficiency in processes and create more opportunities. However, there are a few strategies that Asian countries have to employ to ensure the success of digital transformation in the region.
Digital Transformation In Asia
Asia is home to some of the most technologically advanced economies in the world. According to International Data Corporation, the Asia-Pacific region will spend the majority of its global spending on digital transformation. This is mainly because of the availability of smartphones, affordable internet, and robust digital infrastructure.
Asia, China and India are leading the charge in digital transformation, and this is evident by the size of their digital economies. For example, China’s digital economy in 2020 was estimated to be around $5.4 trillion in 2020. On the other hand, India’s digital economy is poised to reach $1 trillion by 2025. The fact that two of the most populous countries in the world are moving towards digital transformation is a good sign for the whole region and the world.
Key Strategies For The Digital Transformation Success
Here, we will list the strategies that can significantly increase technology adoption in the Asia region.
Government Support and Framework Of Policies
One of the most vital factors in the success of digital transformation is the government support and policies that promote it. For instance, the government of Singapore has introduced a Smart Nation initiative aimed at harnessing technologies to improve the standard of living, create more job opportunities, and build stronger communities. For this, the Singapore government have invested heavily in infrastructure and training programs. Similarly, Singapore’s Digital New Deal plans to invest around $58 billion in AI and other technologies and aims to produce at least 900,000 jobs in the future.
Investment in Technology
Investing in cutting-edge technology is important for digital transformation. China understands this, and for this reason, the nation has invested heavily in 5G technology and has around 1.1 million 5G base stations, which is almost 70% of all global 5G base stations. Moreover, Chinese companies like Tencent and Alibaba are leveraging AI to streamline their processes. India is another country that is investing heavily in AI and 5G technology.
Focus On Skill Development And Talented Workforce
A bleeding-edge infrastructure is useless without personnel who know how to leverage it. This is why investing in training and skill development for the masses is also very important. Governments worldwide are organising workshops and training programs to upskill the workforce. This is quite evident in the case of Japan, which is facing a difficult situation where the population is mainly comprised of old people. As a result, Japan has launched an initiative called Society 5.0. The initiative aims to reskill and upskill its workforce to make them compatible with the growing technological advancements. Similarly, Malaysia’s National Fourth Industrial Revolution is also enhancing the digital literacy of its workforce and promoting education and careers in the STEM field.
Embracing Digital Ecosystem and Collaboration
Collaboration between governments and organisations is key to successful digital transformation. Such partnerships allow organisations to leverage each other’s strengths, share risks, and innovate faster with a relatively low capital. Another benefit of collaboration is the fact that organisations can tap into a bigger talent pool of people from various organisations. In Indonesia, the government’s Making Indonesia 4.0 initiative encourages collaboration between the public and private sectors to drive industrial digitalisation. This is also seen in India, mainly in the telecommunication, manufacturing and defence sectors. Additionally, multinational corporations are partnering with local businesses to tap into Asia’s digital potential. For instance, Google has invested $10 billion in India to accelerate the adoption of digital services, support local businesses, and promote digital literacy. Such partnerships are vital for creating a robust digital ecosystem that fosters innovation and growth.
Robust Cybersecurity And Data Privacy Solutions
None of this will be anything if the government does not come up with robust cybersecurity and data privacy resolutions. It’s no surprise that digital infrastructure is susceptible to cyber-attacks and privacy issues. According to Kaspersky, Asia alone witnessed around 1.5 billion cyberattacks in the first half of 2021. This paints a picture of how important cybersecurity really is. Digital transformation can only be successful if people and organisations trust the technology and the risk of data leak is at the bare minimum. A poor cybersecurity and data privacy policy can prove to be fatal for the digital transformation ambitions of some nations, as other countries and organisations will never want to invest in an infrastructure which is not safe from attacks.
A Journey Towards Achieving Digital Supremacy
Digital transformation in Asia requires strategic planning, investment, and collaboration. Governments and organisations must collaborate to harness the power of technology and build a well-trained and educated workforce. After employing these digital transformation strategies, Asia will lead the world in digital innovation and economic growth. Not only in Asia but there is a need for global collaboration to ensure that we are all in this together, which will be another step towards an inclusive digital transformation approach.
