Singapore: Asia Pacific’s GDP is expected to gain additional US$387 billion by 2021 with extra one percent growth annually—if the region’s manufacturing sector embraces digital transformation, according to new figures released by Microsoft on 23 April 2018.
Results for manufacturing are outlined in the study, “Unlocking the Economic Impact of Digital Transformation in Asia Pacific”, produced by Microsoft in partnership with IDC Asia/Pacific. It was based on the survey of 615 business leaders from the manufacturing sector across 15 markets in Asia Pacific.
“Those organisations that had already embarked on their digital transformation journeys gained improvements in the range of 13 percent to 17 percent last year. They will see at least 40 percent improvements in three years, with customer advocacy registering the highest improvement rate,” said Victor Lim, vice president, IDC Asia/Pacific.
The Study identifies the top three benefits of digital transformation that have a direct impact to bottom line performance:
- Improvement in productivity
- Improvement in profit margins
- Costs reductions
Businesses are seeing long-term benefits in embracing digital transformation. Increased revenue from new products and services and improved customer advocacy rounded up the top five tracked benefits.
The Study identified key traits of Manufacturing Leaders against other Leaders, including the former’s higher likelihood to have a key executive leading their Digital Transformation efforts. It also recommends organisations to adopt a three-step data strategy to become a digital transformation leader—including collection of data, optimisation of existing products and services through data, and creating new business models with data.