Digital Transformation Helps 42% APJ Firms Up RoI

by Press Release    Oct 29, 2015

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Digital is no longer optional for companies today globally. However, the Asia Pacific and Japan are seeing a massive increase in the pace of adoption of digital technologies in organizations. In fact, digital disrupters in this part of the world are seen to be twice as profitable than the rest, according to a CA Technologies study.

The study found that Digital Transformation in APJ is being driven as a coordinated strategy across half of the organizations (50%), with many projects underway in multiple areas of the company, including customer services, sales and marketing, and product/service development. As a result, 43% of respondents in APJ have already seen measurable increases in customer retention from their digital transformation initiatives and 42% have seen an overall increase in revenue.

Digital Disrupters in APJ, or those well on their way, respondents are already seeing impressive business benefits of embarking on a digital transition, including:

- Increased Revenue: Digital Disrupters in APJ have two times higher revenue growth than mainstream organizations,

- Higher Profits: They report two times higher profit growth than the mainstream organizations

Within verticals, we see a strong showing from telecom, retail and consumer electronics firms with public sector, consumer packaged goods and healthcare lagging.

 “While markets across Asia Pacific and Japan are progressing at different paces in embracing digital transformation, many are heading in the right direction and are already reaping the benefits from going on this journey,” said Stephen Miles, Chief Technology Officer, APJ, CA Technologies. “In fact, more than two-thirds (69%) of businesses surveyed in the region acknowledged that digital transformation is critical. This strongly suggests that those who don’t start on this journey soon or are at the back of the pack, will find it increasingly hard to stay competitive or even survive.”

In APJ, there is a clear set of common traits and behaviors among today’s digital disrupters. The study, which surveyed 1,442 respondents from 16 countries across nine industry sectors, including seven countries in APJ, found that Digital Disrupters in APJ are:

 ·  Software-driven: Digital Disrupters were 4.3x more likely (than the mainstream) to recognize the importance of being a software-driven business (65% vs 15%)

· Advocates for Agile: Digital Disrupters were 2.4x more likely (than the mainstream) to fully use agile development (70% vs 29%), and in addition 2.4x more likely to have DevOps broadly in place (65% vs 27%)

· Open to APIs: The study found that digital disrupters were 2x more likely (than the mainstream) to leverage APIs for mobile app development (71% vs 31%), and 2.6x more likely to use APIs to enable third party apps (63% vs 24%).

 Additional APJ key findings of the study include:

·  India (7.1) and China (6.9) score the highest overall in terms of digital effectiveness, where organizations have seen the most benefit and impact from digital initiatives.

· Web-based applications and services (36%), along with mobile technology (34%), were ranked highly for their roles in engaging customers and market development.

· Opening of new markets (67%), ability to act quickly on opportunities (67%) and creation of new routes to market (67%) were the top three benefits of digital initiatives cited by businesses.

· Among the KPIs, customer retention (43%) saw the most significant measurable benefits as a result of digital initiatives.

· India has the highest percentage of any country where the top person driving digital initiatives is the CEO or the main board (33%), in contrast to the APJ average of 22%.