Digital transformation is imperative for business success and most of Asia has some catching up to do to reach the global leaders’ levels of connectedness.

These are the findings of a large-scale new research piece commissioned by Telstra’s Global Enterprise and Services division.

The survey of 870 senior executives found only 30% believe their country has a very good environment for digital transformation – although 88% say digital transformation will be important to their organisation over the next 3 years.

The research called Connecting Capabilities, The Asian Digital Transformation Index, serves as a useful country-by-country digital capability review for telco and tech companies considering entering those markets.

The research was undertaken by the Economist Intelligence Unit commissioned by Telstra. It indicates that business in Asia is focused on gaining access to quality telecommunications and technology services – 94% of companies interviewed acknowledged that a country’s infrastructure is very important or important to their organisation’s digital transformation.

The Asian business leaders’ focus on digital transformation is mirrored in Telstra Wholesale’s research into digital disruption here in Australia, Powering Your Business Through Relentless Change, Four Strategies to Win in a Digitally Disrupted World.

The Connecting Capabilities research found:

• Digital transformation is essential for the present and the future. Almost three quarters of organisations (72%) agree that investment in digital transformation is already paying off, while 87% say digital transformation will be important to them over the next three years
• The external environment matters. Access to high quality network services, a digitally literate workforce and a vibrant technology ecosystem is increasingly a core competitive advantage for countries and companies alike.
• Asia has some catching up to do. Singapore, South Korea and Japan are leading the way in Asia thanks to their generally strong enterprise grade networks, access to the latest services and technology and well-educated populations. However, while these countries lead Asia, the region as a whole is behind the United States, Australia and the United Kingdom on key measures

• Large emerging markets have particular challenges. Large developing countries with big populations, like China, India, the Philippines and Indonesia, are behind the regional and global leaders when it comes to factors like digital infrastructure and e-services. These countries are connecting more people to the internet than anywhere else and many boast world class services in major cities, but emerging markets do face challenges at a national infrastructure level. Nonetheless, they are improving fast and have huge potential.

In the face of technology-led disruption driven by new products, competitors and behaviours, companies have little choice but to embrace digital transformation.

Introducing the Connection Capabilities research, Martijn Blanken, Group Managing Director, Global Enterprise and Services, Telstra, wrote: “In the face of technology-led disruption driven by new products, competitors and behaviours, companies have little choice but to embrace digital transformation. Technology offers the opportunity to reach new customers and industries as well as reduce costs, but your ability to successfully transform your business is impacted both positively and negatively by the digital environment around you. “This year’s report explores the building blocks for success in a digitally disrupted world and highlights the countries and industries that are best creating an environment for change.”

Download Connecting Capabilities Research

WHAT YOU NEED TO KNOW:

• New research called Connecting Capabilities, The Asian Digital Transformation Index shows digital transformation is imperative for business success and most of Asia has some catching up to do to reach Australian levels of connectedness
• Singapore, South Korea and Japan lead the way–thanks to their superior digital infrastructure
• But overall Asia is lagging behind Australia, the UK and US, in particular when it comes to digital infrastructure
• China and India face challenges in bringing their entire populations online
• Business is focused on access to quality telecommunications and technology services
• The Asian business leaders’ focus on digital transformation is mirrored in Telstra Wholesale’s eye-opening research into digital disruption here in Australia, Powering Your Business Through Relentless Change, Four Strategies to Win in a Digitally Disrupted World