ABeam Consulting (Thailand) Ltd. released a whitepaper on Thailand digital transformation. The COVID-19 pandemic has forced businesses to go digital and realize the urgency of digitalization. Understanding the impact of these changes and avoiding disruption from increasing volatility is critical to survival. More than 60% of Thailand’s GDP will be digitalized by 2022, according to Startup Thailand. Though increasing investment in technology, most Thai companies are not placed very high in ABeam’s Digital Transformation (DX) Maturity Model. DX leadership, DX culture and awareness as well as DX strategy are at the early stages of individual digitalization idea while Thai organizations do better on DX process and IT implementation. The pitfall is embarking on DX implementation projects without looking at the strategy business value chain. This results in as much as 70% of DX investment wasted on failed programs, as CNBC reported. Due to the adverse impacts of COVID-19, companies have had to prioritize their investments; therefore, ABeam advises businesses to clearly define their DX strategies and well cascade throughout their organizations with 5 principles suggested to ensure the success –Focus on long term goals, Be agile and constantly iterate, Do not prioritize technology over the customer experience, Involve stakeholders, and Preparation.
Mr. Ichiro Hara, Managing Director of ABeam Consulting (Thailand) Ltd., a subsidiary of ABeam Consulting Ltd., a global consulting company headquartered in Japan that specializes in digital transformation, revealed some key findings from ABeam’s latest whitepaper on Thailand digital transformation. Prior to the COVID-19 pandemic, companies were pushed to digitization by recognizing the existential threats from disruptors backed by venture capital companies. The pandemic has forced everyone go online which the impact of increasingly connected people, companies, services and systems will create new digital value chains. A key factor that differentiates top digital business entities from others is how quick and adaptable they are in setting, executing, and adjusting their digital strategies or in other words, companies must be agile enough to be able to quickly adapt to changing circumstances and requirements.
Despite increasing technology investments, our analysis shows many Thai companies do not place very high on ABeam Digital Transformation (DX) Maturity Model. Looking at company leadership, organization and overall approach to DX strategy, most Thai companies are in stage 1 spending time exploring some digital projects and viewing digital initiatives as Proof of Concept ideas as well as exploring small scale digital projects in specific parts of their business operations. However, Thai companies are performing slightly better in stage 3 or stage 4 on the DX process and IT implementation for instance implementing solutions e.g. ERP systems by Oracle or SAP, or RPA and OCR solutions for automating existing manual processes.
“Many organizations have embarked on DX implementation projects without properly planning for a companywide DX strategy, they; therefore, can become easily distracted by delivering short term plans for various IT projects and not focusing on the larger strategy business value chain. According to estimates by CNBC, as much as 70% of DX investments are wasted on failed programs. This is particularly true today when companies are reacting to the shock of the pandemic. The situation has shown us having reliable on digital systems enable business continuity when regular operations are disrupted, and enable new businesses opportunities when consumer behavior shifts. Businesses are advised to prioritize their investments and have clear DX strategy which involves 3 critical components –Vision, Planning with clear roadmap, and Action. One interesting figure is in the mature digital companies, 80% of respondents answered that their companies have clear DX strategy while in the new digital companies has only 15% of respondents answered the same question. This clear reflects that clear DX strategy is the key,” said Mr.Hara.
According to Startup Thailand, more than 60% of GDP in Thailand will be digitalized by 2022, with the growth in every industry driven by enhanced offering operations and relationships. Even though COVID-19 has forced many companies to re-evaluate their expenditure, the importance of having a reliable digital platform on which to operate and sell today is obvious. In order to undertake DX successfully, ABeam provides 3 principles to ensure a strategic approach is taken and learn from companies that have heeded these lesson.
- Vision: A clear definition of the digital transformation mission objective is critical. The objective of DX is creating value to users; therefore, focus on the objective and get comfortable with a realistic timeframe for completion.
- Planning: Mapping the customer journey, and designing value add for businesses allow for a clear roadmap to reach an envisioned future.
- Action: An agile mindset is required to enable constant iteration and improvements to any project involving emerging technologies and dynamic architecture.
About ABeam Consulting (Thailand) Ltd.
ABeam Consulting (Thailand) Ltd. is a subsidiary of ABeam Consulting Ltd. –headquartered in Tokyo having 6,000 people serve more than 700 clients throughout Asia, the Americas and Europe providing consulting services in Thailand since 2005, ABeam Consulting (Thailand) has 350 professionals serving more than 180 clients in Thailand with expertise in digital transformation services that create strategic advantage, improve business processes, leverage technology innovation and enhance organizational performance with ERP and all other solutions including Management Consulting, Digital BPI, Data Analysis, IT project management and outsourcing for leading companies in Thailand. Moreover, ABeam has been in a strong partnership with SAP and provided services by SAP-certified consultants to achieve clients’ transformation. ABeam partners with clients to diagnose and solve their real challenges with solutions that combine industry and operational best practices with technical expertise. Pragmatic approaches ensure that clients gain measurable value more quickly. With the management philosophy to be "Real Partner", ABeam provides real people, real solutions, and real results to ensure clients' success. For more information, please visit https://www.abeam.com/th/en.