Introduction to the DIGITAL TRANSFORMER
We all know that digital disruption and Covid-19 require organizations to accelerate adaptation through Digital Transformation. These are making many companies struggle and rush to transform digitally.
Most organizations, or more than 70%, are unsuccessful in their business transformation because there are no clear explicit plans or approaches of how to make future changes to address this new challenge in order to develop an appropriate digital-driven business strategy.
Digital Leaders VS. Digital Laggards
Digital Leaders or the successful organizations can achieve 1.8x higher earnings growth and 2x higher business value than Digital Laggards.
Digital Leaders can also drive revenue growth 2-3x faster than their competitors.
The gap is growing wider during the COVID-19 pandemic.
Source: Digital Transformation Compass (2021), Ethan Than & Dr. Nattaporn Virunhagarun
What happened before 2023
Image: Digital Transformation Compass (2021), Ethan Than & Dr. Nattaporn Virunhagarun
Digital Transformation 1.0
The First Wave of Transformation
Many years ago before the COVID-19 outbreak, we underwent a digital change to achieve new competitive advantages and thrive in the digital economy through:
Digitization, it is the process of converting information from an analog to a digital format so that computers can store, process, and transmit such information;
Digitalization, it is the use of digital technologies that alters life and work;
Digital Transformation, it is a fundamental change in how we do business, including our core competencies, through digital business transformation.
Digital Transformation 2.0
Entering into The Second Wave of Digital Transformation
A previous study by Accenture showed that leading enterprises are compressing a decade of digital transformation in just 1-2 years following the COVID-19 pandemic.
The next evolution in Digital Transformation: The Post-Digital Transformation Era
According to IDC, the world is moving from Digital Transformation to Digital-First.
By 2022, more than half the global economy is based on or influenced by digital.
Strong digital transformation investment growth is forecast across all sectors, with a compound annual growth rate (CAGR) ranging between 15% to 20% for 2017-2022. This will accelerate to a CAGR of 16.5% for 2022-2024.
And by 2023, one in two companies will generate more than 40% of their revenue from digital products and services, as compared with one in three companies in 2020.
Conquer 2023 and beyond
To succeed in the digital-first era in 2023 is to be a digital-first enterprise. In other words, preparing for the digital transformation is not enough, you must be a “Digital Transformer” to respond to and tackle changes with positive mindsets towards the business world today and in the future.
In the “Digital Transformer” special edition, you will see the steps towards and case studies of a successful “Digital Transformer” especially in ASEAN the fastest growing Internet market in the world.
