Progress uncovers the urgency Singapore businesses feel about digital transformation

• Six in 10 (62%) globally say their organisation is in denial about the need to transform digitally
• Half (55%) worldwide say they have a year or less to make digital inroads before suffering financially and competitively
• More than half (59%) globally are worried it is already too late

While most businesses in Singapore and other markets around the world recognise the inherent benefits of “going digital,” most of them are hitting roadblocks—lack of internal alignment, lack of adequate skills and plenty of cultural resistance. Coupled with technology constraints and an overall inability to execute, the result is a growing state of anxiety about embarking on digital transformation, with some fearing it may already be too late.

These are some of the findings from a recent Progress global survey, Are Businesses Really Digitally Transforming or Living in Digital Denial? The survey, conducted in Q116 by Loudhouse, the specialist research division of Octopus Group, aimed to better understand how business leaders view digital transformation and discover how they plan to address its challenges. Respondents included individuals from 10 countries including Singapore, Australia, the UK and the US.

All respondents in Singapore said digital transformation is important.

Key findings from Singapore revealed:

All of the organisations view digital transformation as important or critical. About half (49%) of respondents in Singapore, against 62% globally, say their organisation is in denial about the need to transform digitally.

Nine in 10 (92%) say they have two years to make inroads before suffering financial or competitive consequences (49% say a year or less); 43% are worried they may already be too late.

Seven in 10 (69%) say the main driver for digital transformation is optimising customer experiences and engagement; 71% say customer engagement is a No. 1 priority for the next 12 months and 57% plan to invest in building applications in the next year.

A further seven in 10 (69%) feel IT is more likely to be the final decision maker/budget holder for digital initiatives; 75% say better alignment of IT and marketing is needed to deliver on digital transformation efforts.

Nearly nine in 10 (88%) of respondents in Singapore say lack of digital skills is a barrier to providing improved customer experience through digital transformation; more than half cite lack of leadership and cultural resistance as key barriers. Other top challenges listed by global respondents included high reliance on IT and lack of a centralised digital strategy.

“Digital disruption is now part of our daily existence as it has changed how we live, communicate and work. Yet, many organisations in Singapore continue to deny that digital technologies have already radically transformed the business landscape and struggle to embark on the transformation journey, consequently risking their survival,” said Benjamin Wong, Managing Director, Asia, Progress.

“This survey brings to light the reality of today’s digital transformation challenges. By providing business leaders with tangible data points, we hope they will better understand the key aspects to focus on in order to succeed in the changing business landscape.”

Wong said the human aspect of digital transformation is critical for success. Without creating an emotional link to a brand, product or service, companies will find it difficult to attract sales, he noted. Understanding the way people buy today is part of this process. People tend to read product reviews today before they buy, and companies whose products receive many complaints online are equally unlikely to attract sales, Wong added.

There is often a mismatch between what a company thinks customers like and what customers really like, Wong continued, calling websites of such companies 'digital brochureware'. "It is not content, it is just out there because competitors have something out there. You are not giving customers what they want; you are just giving customers what you think they want," he said.

"Progress is not just providing a technology. It is building a ecosystem of people who understand the emotional part of the customer experience," he said. "(We) work with companies to increase their reach...the only way is through content that is available through the Internet, anytime, anywhere, anyhow."

Digital transformation is a journey, Wong said, one that will generally take between three and four years. While making the website appealing is the initial focus, the back end also has to be upgraded. "(Companies) have to go from great content to great products to being able to deliver on their promises, and delivering in a timely fashion, everywhere in the world," he said.

Survey respondents included a mix of more than 700 global C-Level/VP decision makers; heads of marketing, digital and IT; as well as developers, IT architects, directors, engineers and line of business managers. These individuals represent organisations ranging from small and medium sized businesses (SMBs) through large global enterprises.

Interested?

Read the full survey findings

Read the TechTrade Asia blog post about Wong's appointment
 

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