Around 60% of global firms ready for digital transformation: Capgemini Research

Nearly, two thirds of organizations today have digital and leadership capabilities required to successfully implement digital transformation. According to Digital Mastery 2020: How organizations have progressed in their digital transformations over the past two years–a new report by the Capgemini Research Institute, around 62 per cent of the organizations believed they were capable of digital transformation and have the leadership capabilities to do so, an increase from 36 per cent in two years.

In May and June 2020, the Capgemini Research Institute surveyed 1,000 executives from organizations with at least $1 billion in revenue across sectors to gauge their views on the maturity of their organization’s digital and leadership capabilities required for digital transformation. Twenty per cent of the organizations reported revenue of more than $20 billion in FY 2019.

Large organizations, with $10 billion or more in revenue, have been found to have an edge in both digital and leadership capabilities. Some 68 per cent of these organizations say they have the required digital capabilities, compared with 55 per cent of those with less than $10 billion in revenue. When it comes to leadership capabilities the gap is similar: 57 per cent of smaller organizations say they have the required leadership capabilities, marginally lower than the overall average of 62 per cent and the 70 per cent seen among large organizations.

To understand how organizations progressed their digital capabilities in the past two years, Capgemini examined average ratings across four categories: talent and organization, operations, business model innovation, and customer experience (CX). Capgemini’s 2020 research, in comparison with its 2018 research on digital mastery, found that while all organizations are doing better in their digital transformation journeys in 2020, digital masters – organizations with a high level of mastery across digital and leadership capabilities – are widening the gap with their competitors.

COVID-19 has been a powerful accelerator, and, given the urgency for change, organizations have become more enthusiastic and optimistic about the maturity of their capabilities. Alongside this, organizations have taken time since 2018 to evaluate the challenges that stand in the way of success, increasing their investment in digital transformation and their adoption of emerging technologies and putting a renewed focus on talent and culture.

From a sector perspective, every industry has progressed in both its digital and leadership capabilities in the past two years, the research said. Retail now surpasses all other sectors, with 73 per cent of retail organizations saying they have the digital capabilities required for transformation, up from 37 per cent two years ago.

After retail, the telecom sector follows with 71 per cent of organizations saying they have the digital capabilities required. Telecom operators are reshaping the consumer value proposition by creating full-fledged digital experiences. The automotive sector leads in terms of capability growth, having increased its digital capabilities to 69 per cent per cent from 32 per cent in 2018.

Talent and culture determinants

Capgemini’s 2018 research had revealed that the people dimension was a significant barrier to digital transformation, as organisations failed to bring employees along in the transformation journey. However, more organizations today involve employees in their digital initiatives: 63 per cent in 2020, up from 36 per cent in 2018.

Despite this progress, when it comes to skill building, Capgemini found less than half of organizations (48 per cent) are investing in building soft skills such as emotional intelligence, adaptability, and collaboration. Capgemini’s research also consistently found that culture is a top barrier to successful digital transformation, with some organizations, for example, not having a culture where new ideas and experimentation are valued.

Accelerating investments in sustainability

The report highlights that while organizations must keep their eye on factors such as customer experience, operations and business technology, they should also place emphasis on sustainability and their broader purpose, which has become important for customers and employees alike. Consumers are increasingly concerned about environmental footprint and climate change impact and want to make a difference with their actions – 78 per cent of consumers agree that companies have a larger role to play in society beyond their self-interests. Interestingly, research found that currently only 45 per cent of organizations are accelerating sustainability investments, projects, and commitment.

To advance their digital transformation journey further, the report recommends that organizations reinvent the employee experience, leveraging the fluid workforce and ensuring employees’ social contracts align with the digital age. In addition, they should build robust data and platform capabilities, scale new business and engagement models and embed purpose and sustainability as a core part of the business, making it part of the organizational culture and viewing technology from the twin aspects of digital transformation and sustainability.

The progress made in building the necessary digital and leadership capabilities in just two years is striking which led us to undertake this research. The continued rapid pace of technology innovation and business model disruption over the past two years – with COVID-19 forcing many companies to reinvent themselves – has possibly driven this advancement,”said Claudia Crummenerl, Managing Director, People and Organization at Capgemini Invent.

“While organizations have progressed on a wide variety of measures across areas such as customer experience, operations, business and technology, many are still challenged to incorporate purpose and sustainability into their transformation strategies. By reinventing the employee experience and ways of working, embedding purpose into the operating model, truly becoming a data-powered enterprise, and scaling new business models beyond the pilot stage, organizations can attain digital maturity and demonstrate the resilience required to adapt to future uncertainties,” Crummenerl added.

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STT GDC forms JV with Hyosung Heavy Industries to Develop and Operate Data Centers

ST Telemedia Global Data Centres has forayed into the South Korean market and has partnered with Hyosung Heavy Industries to develop and operate data centers.

This partnership will be done through a joint venture, wherein 60 per cent of the partnership will be held by STT GDC and the remaining 40 per cent by Hyosung Heavy Industries.

STT GDC is one of the leading data centre service providers based out of Singapore. Hyosung Heavy Industries is a leading high voltage electrical equipment manufacturing and construction company in Korea.

Further, both the companies will jointly develop and operate their first carrier-neutral data centre campus in, South Korea, according to company officials.

South Korea ranks among the world’s most digitally competitive economies and we are delighted to be partnering Hyosung Heavy Industries as we expand into South Korea, growing our presence in Asia to five markets. Hyosung Heavy Industries has strong local capabilities in power, industrial systems and construction technology.

Leveraging our global track record in designing, constructing and operating state-of-the-art, carrier-neutral data centres, we are well poised to support the increasing demands from our customers and businesses in the country and region, brought about by the rising adoption and consumption of cloud and digital services globally,” said Bruno Lopez, Group CEO, ST Telemedia Global Data Centres.

Hyosung Heavy Industries has been focused and reputed for decades in providing power, industrial systems and construction technology in various residential, commercial and industrial facilities. We have observed the data centre industry in South Korea to be fast-growing on the back of increasing demand for digital solutions and services. With our long-standing expertise and leveraging STT GDC’s operational Data Centre excellence, we are excited to extend our capabilities and venture into building green data centres to support the surging demands of IT infrastructure sustainably,” said Takeshi Yokota, Representative Director of Hyosung Heavy Industries.

The joint venture is in the final stages of securing a land site in Greater Seoul, South Korea. Once finalised, the new data centres will be built to the highest quality standards and will be one of the few carrier-neutral, high-capacity facilities in South Korea capable of serving both hyperscale and retail colocation customer requirements, according to a company statement.

South Korea leads the world in ICT adoption and 5G network rollout, and tops Asian countries with an Internet penetration rate of 96 per cent as of January 2020, while its number of mobile connections was equivalent to 118 per cent of its population. The country’s public cloud market is expected to double in size over five years from $1.5 billion in 2018 to $3.1 billion in 2023, which translates into a compound annual growth rate of 15 per cent with digital native businesses, and media and gaming companies driving spend in South Korea’s public cloud market.

The world’s first commercial 5G network was launched in South Korea in 2019. With faster data speeds, it enables businesses and consumers alike to enjoy the benefits of consistent ultra-low latency and high quality real-time digital content and services such as the Internet of Things (IoT), artificial intelligence and virtual reality. It is an opportune time for us to expand our offerings and delve into the data center business based on our collective industrial capabilities with STT GDC, who is recognised as a leading data center provider in Asia, to build the infrastructure needed for the thriving digital economy,” said Hyun-Joon Cho, Chairman, Hyosung Group.

Also, this partnership marks the continuing expansion of STT GDC’s data centre footprint globally particularly in Asia, with strong bases in China, India and Southeast Asia markets.

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ATMs at Japan’s Lawson Bank to accept SBI Remit’s international money transfer

International remittance services provider SBI Remit Corporation and Lawson Bank, said that ATMs at Japan’s Lawson Bank will accept SBI Remit’s international money transfer service.

SBI Remit is the largest money transfer provider in Japan with over 10 billion Japanese yen monthly, with 90 per cent of its customers being foreigners living in Japan, the company said in a statement.

Through the partnership with Lawson Bank, its customers can use the “Remit Card” to make international money transfers 24 hours a day, 365 days a year and at more than 13,400 Lawson Bank ATMs, according to SBI Holdings.

The ATMs are located in Lawson convenience stores throughout Japan and offer an international money transfer service that allows customers to send money to more than 220 countries and regions around the world in as little as 10 minutes.”

SBI Remit can be used to send money to students abroad, to send living expenses to family members, or to send money to a local agent if users do not have a bank account abroad.

In a letter published on Ripplenet, SBI remit’s customers would be enabled to benefit from Lawson’s ATM network without even holding an account with the bank. The users are just required to have SBI’s “remit card” to utilize Lawson’s quality remittance services through its 13,400 ATMs.

The Lawson bank offers its services in 220 countries so, Bank’s scope will also enable customers to make transactions all over the world at any time or day of the week including on public holidays as well. The network only takes 10 minutes to perform the transaction no matter how far the two dealing parties are.

Singapore Government looks to accelerate digitalisation and tackle COVID-19 with $3.5 billion ICT spend increase

The Singapore Government has announced it will spend $3.5 billion on information and communications technology in 2020 to accelerate digitalisation and support businesses.

This is an increase of 30% from 2019’s spend of $2.7 billion. The money will be used to help citizens and workers in Singapore resume normal activities, said the Government Technology Agency (GovTech) in a press release on Monday 8 June.

Mr Kok Ping Soon, the Chief Executive of GovTech, said: “As we take on the new normal of COVID-19, we are re-engineering our back-end digital infrastructure, which underpins the delivery of front-end government digital services to citizens, businesses and public officers.”

The movement to digitally transform Singapore has been going on for quite some time by developing plans for the Future Economy and investing heavily to upgrade workers through SkillsFuture, digitalising the public and private sectors and building innovation capabilities. 

Singapore’s Prime Minister, Lee Hsien Loong, addressed the nation on Sunday 7 June: “All this has enabled us to stand out in Asia and the world. Nobody can predict what exactly the world will look like after COVID-19 but however things turn out, these Future Economy strategies will stand us in good stead.”

Singapore’s modernised digital infrastructure helps to fight COVID-19

The Singapore Government’s investment in digitalisation, focusing on leveraging cloud and modernising ICT infrastructure, has been instrumental in the country’s technological response to the pandemic.

By using cloud infrastructure, GovTech engineers were able to build the TraceTogether contact tracing application and wearable technology. 

The wearable technology known as the TraceTogether token has been met with controversy, as some online have labelled this a “GPS tracking device”.

Minister Vivian Balakrishnan, who is in charge of Singapore’s Smart Nation Initiative, reassured users in a press conference: “It is not a tracking device. There is no GPS chip on the device. There isn’t even any Internet or mobile telephone connectivity.”

The data on the device is ‘only bluetooth proximity data’, which is encrypted and stays on the device. The data is only uploaded to the Ministry of Health if a user tests positive for COVID-19.

Along with TraceTogether, the Government has also used digital infrastructures and artificial intelligence to roll out services, including SafeEntry for a National Digital Check-in System, MaskGoWhere to help Singaporeans find mask collection points and SPOTON to support safe social distancing operations using an AI-powered robot.

GovTech said: “By modernising its ICT infrastructure, the Government enabled the large number of public officers to continue to serve the public by working from home seamlessly, aided by digital tools.”

The pandemic accelerated digitalisation plans in Singapore

The COVID-19 outbreak has brought forward ICT projects by agencies, including tech solutions to the pandemic as well as Sport Singapore’s ActiveSG Circle, which was launched in April 2020.

The Active SG Circle initiative looks to elevate the sporting industry in Singapore by offering a ‘virtual super sport club’ with a ‘rich repository to inspire and enable citizens to live better and maintain their active lifestyles’ beyond the pandemic.

On top of this, the Singapore Government will carry forward digitalisation for the whole nation by investing heavily in projects like the National Digital Identity and Moments of Life, which will integrate public services onto a single digital platform.

Migration of eligible ICT systems onto commercial cloud will continue as part of the five-year Government on Commercial Cloud initiative that began in 2018. The Digital Workplace Programme will also encourage modernisation of ICT infrastructures, which hopes to empower public officers.

Supporting the digital transformation of Singapore’s SMEs

As part of the Government’s increase in ICT spending, small and medium-sized enterprises will be eligible to participate in 80% of these potential procurement opportunities.

The Government will put up bulk tenders with a projected value of $1.2 billion with the hopes of broadening the chance for SMEs to participate in and win ICT contracts with government agencies.

GovTech has sought to streamline and improve SMEs access to these opportunities by working with the Ministry of Finance to incorporate dynamic contracting and shortening the ICT procurement process.

Bulk tenders will include services such as User Experience Design, Agile Development, Application Development, Data Science, AI and more.

In the last financial year, SMEs were awarded nearly 70% of the total ICT contracts.

SimplifyNext was awarded the robotics process automation bulk tender for the whole of the Singapore Government. Their work looked to help customers deploy software that automated business processes.

“Unlike larger companies, SMEs like us have limited resources and we used to spend more time trying to win contracts than to deliver them,” said Mayank Gupta, the Managing Director of SimplifyNext.

The bulk tender has since helped SimplifyNext open many doors for the company to do business with Government agencies.

Strengthening the future tech community and digital economy

GovTech has set up a number of initiatives to strengthen the technology community.

The Singapore Government Developer Portal has been soft-launched in order to help developers learn more about GovTech’s products and how they can work to co-create digital solutions with the agency.

GovTech said: “The portal will be a platform for the tech community to engage and share ideas on technology and their possible applications for public good.”

The technology community will also be given the chance to strengthen their engagement through more STACK-X meet-ups, which focus on topics like Cybersecurity, Cloud Strategy, Data Science, User Experience Design and Software Engineering.

To further develop the community and accelerate the pace of digitalisation in Singapore, GovTech is actively recruiting fresh graduates and experienced technology professionals as part of the SGUnited Jobs initiative.

There are currently more than 400 vacancies available in roles such as software engineers, digital business analysts, cybersecurity specialists, data scientists, AI engineers and infrastructure specialists.

This search for talent will be enhanced by GovTech’s five-week recruitment drive known as TechHunt to find ‘applicants who believe in tech for public good’.

Overall, the Government’s ICT expenditure will focus on five key areas to accelerate digitalisation in Singapore:

  • Development of new tech tools to respond to COVID-19
  • Development of citizen- and business-centric digital services
  • Development of ICT systems on cloud
  • Modernisation of government ICT infrastructure
  • Use of data analytics, artificial intelligence (AI) and sensors within the public sector.

More details on the Government’s digitalisation efforts and areas for spending will be provided from Wednesday 10 June onwards.

Get started with your digitalisation by choosing the best data center for your needs

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