Global businesses have been impacted by digital disruption especially over the past few years with the digital adoption rate expedited due to the COVID-19 pandemic. Understanding of digital implementation perspectives and trends is important for companies in Thailand to gain insights on company positioning in comparison to the market.
Deloitte Thailand has been conducted a Digital Transformation survey during the past 3 years (2020-2022) with the objective to examine the attitudes towards digital transformation among companies. In 2020 and 2021, quantitative methodology was adopted with the survey questionnaires while we perceived 2022 as a critical stage of the digital transformation hence additional in-depth interviews with c-suite level respondents were applied on top of a questionnaire. The surveys emphasize on the following topics in order to draw developments of digital transformation implementation before and during the COVID-19 pandemic:
1. Exploring digital transformation implementations
2. Unlocking success in digital transformations
3. Understanding industry snapshots
After the analysis for 2022, we found that 41% of the companies perceived that digital transformation has a moderate impact for businesses. The digital transformation adopted during the COVID-19 pandemic was rather a survival mechanic in response to the situation and as a tool for future differentiation.
The rapid adoption during the early COVID-19 period with 20% companies entering ‘Becoming Digital’ phase was a reactive adoption while in 2022, 43% of companies shifted back to the ‘Doing Digital’ phase as they realized that not all technologies are applicable to the situation and are more selective in the implementation process across digital for customers, internal assets, and backend processes.
Cyber security and customer centricity are the two aspects most companies found important and prioritized as 30% of the companies have a mature digital plan, investments and innovation in place and integrate customer centricity in company DNA while 43% of the companies have a mature digital plan, investments and innovation in place and intergrade cyber security in company DNA.
In terms of technology, basic technology which are Cloud, traditional web technology and mobile application are the most popular across all sizes of companies since before the COVID-19 while data analytics, categorized as advanced technology, has gained popularity of late. The correlation between the bigger companies and the wider range of technologies invested can be found.
“Digital transformation is the key to protect your enterprise and there is no such thing as a one-size-fits-all journey to future readiness. Executives should carefully choose the one that fits their company best” , said Mr. Viney Hora, Executive Director of Deloitte Consulting
Moreover, since 2020 human resource and digital mindset have faced challenges as in lack of internal and external expertise, immature digital culture and organization silo found in 41%, 31% and 29% of the companies respectively. It is further found that most people still perceive that digital disruption concerns the IT improvements and IT personnel only more than the overall corporate responsibility.
Dr. Narain Chutijirawong, Executive Director, Clients & Industries, Deloitte Thailand, added “Many organisations mistook digital transformation by simply doing digital things and launching new digital projects. But the pandemic shows that this is only an illusion of being digital. Critical changes are needed to the digital mindset.”
The higher digital transformation rate coupled with an immense and unforeseeable impact from the COVID-19 pandemic across all business are evident. Businesses should therefore be more vigilant about the digital transformation movement and the digital environment in the market especially during this unprecedented global event and transitional period.