Digital transformation study reveals surprising trends
Financial services, life sciences and healthcare businesses have reportedly transitioned towards digitalisation much sooner than expected as the pandemic drove more economic activities online, according to the Thailand Digital Transformation Survey 2021.
Meanwhile, consumer businesses that had been leaders in technology adoption before the pandemic reportedly integrated digital technology into their businesses much later than anticipated.
The online survey, conducted by Deloitte Thailand from November 2020 to January 2021, assessed the progress of 77 leading companies in Thailand in their digital transformation plans, digital adoption and technology implementation.
This was a follow-up to the primary survey conducted from November 2019 to January 2020, to glean a specific understanding of how the pandemic has impacted Thai businesses' digital transformation.
"The majority or 56% of surveyed companies have already transitioned to a digital adoption stage, compared to 12% before the pandemic, from a digital evaluation stage. Businesses in the digital evaluation stage now contribute to just 12% from 59% before the pandemic," said Narain Chutijirawong, Deloitte's executive director of clients and industries.
Furthermore, the adoption rate of advanced technologies, except robotics, in all business sectors rapidly increased after the pandemic. According to the survey, the adoption rates of cloud technology, Internet of Things and mobile applications have risen 19%, 16% and 15%, respectively.
The technology, telecommunication and media sectors are most advanced in adopting technology in business operations as they are heavily impacted by digital disruption. The sectors will serve as a tech enabler of digital transformation of businesses in other sectors, he said.
According to the survey, finance and healthcare sectors have also been successful in implementing their digital transformation plans after the pandemic.
The sectors' technology adoption has drastically changed from the primary survey in which their digital transformation was expected to lag behind the distribution timing.
"However, the two sectors also reportedly struggle to recruit data analysts and scientists who play a crucial role in digitalisation," Mr Narain said.
Mr Narain said businesses in the energy, resources and industrial sectors will be in the next wave of digital transformation, especially those related to electronic vehicles and green energy which requires information technology and digital data collecting.
Viney Hora, executive director of Deloitte Consulting, said three things the private sector must confront during the digital transformation are a talent shortage, outdated digital culture in the organisation, and silo management structure.