Technology buyers across Asia/Pacific are addressing their digital trust concerns

According to a recent IDC report titled, IDC Asia/Pacific (Excluding Japan) Trust and Resilience Update, the topic of digital trust is becoming increasingly important. The report also found there is an increased emphasis on consumer faith in cybersecurity, data privacy, and responsible artificial intelligence (AI).

This IDC report explores how security technology buyers across Asia/Pacific are addressing their digital trust concerns and challenges for 2023. This report also aims to help technology vendors better understand how macroeconomic factors are changing how organizations in the region view and deal with digital trust necessities.

“Trust, in its basic form, is a condition that enables decisions to be made between two or more entities with a level of confidence and quantifiable risk and subjective reputation for an exchange of mutual benefit to occur,’ says Christian Fam, Research Manager, Cybersecurity Services, IDC Asia/Pacific. “Yet, digital trust can only be borne out of transparency. To foster a trusted, long-lasting partnership, vendors must be transparent in validating and verifying the trustworthiness of their services, products, internal processes, and business operations,” added Fam.

At the foundational level, establishing trust and robust risk management processes are interlinked and interrelated so much that organizations in the region are heavily investing in creating trust throughout their organization, with their partners, and with their customers. According to IDC’s FutureScape: Worldwide Future of Trust 2022 Predictions – Asia/Pacific (excluding Japan) ( APeJ ) Implications, by 2026, 25 per cent of APeJ organizations will replace net promoter score-like metrics with trust indices in request for proposals (RFPs) to align traditional security risk solutions with customer success, brand, and reputation.

At the aggregate level, erosion of trust is the biggest concern for organizations in the region, followed by financial loss, and reputational damage. But there is little consistency across the region regarding primary concern. Even though businesses are adopting more security solutions to counteract the evolving threat landscape, organizations continue to struggle with the frustration of managing disparate tools and chasing false positives. Without integration, security teams spend too much time making sense of data across the siloed tools and platforms, creating a hurdle for businesses wanting to establish trust, internally and externally.

“Digital trust is the confidence that users and customers have in the ability of people, process, and technology to create a secure digital world. With the rise in cybersecurity attacks, security hygiene, cyber resilience, and trust indices will be key demands from service partners,” ends Fam.

Digital transformation has expanded the availability, velocity, and mission-critical need of data. Enterprises need to be prepared to respond to any cyberattack, data breach, and privacy concerns. IDC’s Asia/Pacific Security Opportunities: Trust and Resilience provides a comprehensive look at the full breadth of the security market that includes hardware, software, services, and people. This research program examines security market trends, vendor performances, strategies, customer preferences, and buying behaviours for the Asia/Pacific region. It highlights unique perspectives in the Asia/Pacific region around cyber resilience, compliance, and digital trust issues. The service also provides an analysis of technology advancements, emerging trends, players, and best practices for the Asia/Pacific security market.

Tags: Asia Pacificdigital trustIDC

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Watcher economies are still in the early stages of their sustainability initiatives

The International Data Corporation (IDC) has identified three distinct country segments in the Asia Pacific market for sustainability and Environmental, Social, and Governance (ESG) related technology products and services. These segments are called Pacesetters, Emerging Leaders, and Watchers, representing different levels of sustainability maturity based on national policies and regulations.

Pacesetter economies have a strong regulatory environment for sustainability/ESG adoption, leading to high demand for sustainability/ESG-related technologies and services. Companies in these economies are focused on expanding their sustainability initiatives and may require sophisticated emissions tracking and analytics technologies.

Emerging Leaders economies are experiencing increasing interest in sustainability/ESG initiatives, driving demand for ESG data management, supply chain data management, product lifecycle data management, ESG reporting, and decarbonization technologies.

Watcher economies are still in the early stages of their sustainability initiatives and are focused on establishing their baseline and extracting emissions data from their operations. They may not require advanced technologies at this stage.

The speed of regulatory changes in the Asia Pacific region is impacting the demand for technologies that enable companies to meet stricter sustainability and ESG reporting requirements. Organizations are re-evaluating their business models, asset utilization, and supply chains to improve their sustainability performance and ESG metrics.

Eight economies in Asia Pacific, including China, Hong Kong, India, Indonesia, Japan, Malaysia, Thailand, and Vietnam, are identified as hotspots for sustainability strategies and technologies. Companies operating in these countries will have an increased need for ESG data management, supply chain management, ESG reporting, and decarbonization technologies.

Sustainability performance and ESG scores are becoming important for accessing cheaper capital through green financing and preferred procurement in government and enterprise contracts.

To succeed in this evolving regulatory environment, organizations need to stay updated on sustainability/ESG policies and regulations and invest in ESG-related technologies and services to enhance their data collection, monitoring, validation, reporting capabilities, and sustainability credentials.

The IDC Sustainability Research Framework, which measures the impact of regulatory drivers on the adoption of sustainability strategies and technologies, was used to derive these insights. The framework considers factors such as the rule of law, public policy implementation, business compliance, implementing structure, and the conversion of international sustainability commitments to national public agendas across 16 Asia Pacific countries.

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Average supply chain IT budget will be allocated to growth and performance

According to Gartner, Chief Supply Chain Officers (CSCOs) are increasingly recognizing the opportunity to invest in new technology to drive growth in supply chain management. A survey of supply chain leaders revealed that 65 per cent of respondents believe it will be easier to fund new technology investments, with 73 per cent of supply chain IT budgets allocated to growth and performance enhancements.

Gartner has identified the top eight supply chain technology trends that will likely receive significant investment:

• Actionable AI: Actionable AI enables data-driven decision-making by mimicking human problem-solving and adapting to real-world circumstances based on past decisions and experiences.
• Smart Operations: Smart operations extend the concept of smart manufacturing to encompass all core operational capabilities, including manufacturing, service, and logistics. It involves orchestrating distributed processes and systems to transform businesses.
• Mobile Asset Optimization: Mobile asset optimization maximizes the use of an enterprise’s mobile assets through the combination of business process software, sensory technologies, and operational research techniques. This trend includes intralogistics smart robots in warehouses and transportation visibility platforms for improved collaboration.
• Industry Cloud Platforms: Industry cloud platforms combine SaaS, PaaS, and IaaS with specific functionality for vertical industry use cases. They serve as agile composable platforms with industry-specific packaged business capabilities, expanding technology innovation into business innovation.
• Employee Engagement: Employee engagement tools and applications aim to improve frontline worker performance, satisfaction, and retention. This trend encompasses mixed reality, mobile devices, wearables, collaboration tools, and more, anchored in a broader workforce strategy.
• Composable Application Architecture: Composable business applications follow the principles of modularity, autonomy, orchestration, and discovery to address specific business use cases. These encapsulated software components represent well-defined business capabilities.
• Cyber Resilient Supply Chains: As supply chains adopt advanced technologies, they become more interconnected, leading to increased cybersecurity vulnerabilities. Cyber resilience involves implementing tools, processes, and governance methods to mitigate cybersecurity risks.
• Supply Chain Integration Services: Supply chain integration services include technology platforms, integration teams, strategic decision-making on application connections, and cloud services to manage integrations. Integration is elevated to a strategic vision of a more interconnected world.

These trends reflect the evolving landscape of supply chain management, driven by the need for growth, resilience, and scalability. Organizations that stay informed about these technology trends and make strategic investments can enhance their supply chain capabilities and drive competitive advantage.

Tags: GartnerSupply chain IT

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The Ministry recognizes the integral role of the Internet in Indonesian society

The Ministry of Communications and Informatics (MCI) and the National Digital Literacy Movement (GNLD) Siberkreasi have organized the Digital Literacy Week in East Nusa Tenggara, Indonesia, as part of the #MakinCakapDigital campaign. The one-day workshop, held on May 9, 2023, aimed to promote digital literacy to support digital transformation in the region.

The Ministry recognizes the integral role of the Internet in Indonesian society, including East Nusa Tenggara. The workshop aimed to educate the community and various groups in Ende Regency and other areas of the region about digital literacy and increase internet penetration rates in the country.

The importance of digital literacy was highlighted by Suprianto, Acting Head of the Ministry of Communications and Informatics in Ende Regency. He mentioned that many social media users are exposed to issues related to ethnicity, religion, race, and hoaxes due to a lack of understanding of the consequences of their actions. Thus, the Digital Literacy Week aimed to raise awareness among the communities in Ende.

Dr. Laurentius D. Gadi Djou, an Accounting Lecturer at Flores University, emphasized the importance of fundamental aspects in the digital world, such as respecting cultural norms, maintaining ethical conduct, and prioritizing personal and others’ safety online.

Indonesia’s digital literacy has been improving each year, with the Digital Literacy Index 2022 indicating a moderate level of digital literacy in the country. The index measures digital skills, digital ethics, digital safety, and digital culture. Initiatives by the Ministry have helped bridge the gap between digital literacy levels in urban and rural areas, leading to more even development of digital competitiveness in Indonesia.

Fernando Watu, the Head of West Detusoko Village in Ende Regency, emphasized the importance of collaboration between universities, villages, and the use of appropriate technologies to achieve the desired future. Digitalizing villages focuses on empowering micro, small, and medium enterprises (MSMEs), enhancing their competitiveness by leveraging the right technology. Digitalization provides benefits such as broader marketing, direct consumer communication, and 24-hour availability, eliminating barriers related to education, age, physical condition, and location.

To promote digital competitiveness, various initiatives have been undertaken, including accelerating ICT infrastructure, fostering digital talent competitiveness, and promoting financial literacy. The workshop in Ende Regency involved diverse groups, including the Waste Bank Community, Mobile Legend Community, and MSMEs, showcasing the enthusiasm of the local communities. The event concluded with performances by local bands, stand-up comedians, and exciting door prizes.

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KR Kounsulting successfully partners with Hoku apps

HokuApps, a global enterprise mobility solutions provider, has become the strategic technology partner for KR Konsulting Pte Ltd (KRK), an organizational development consultancy based in Singapore. KRK offers customized consulting services to support leaders and organizations in navigating real changes in the workplace. Recognized as one of the Top Ten Organization Development (OD) Consultants from Asia-by-Asia Business Outlook, KRK identified the need for an enterprise mobility solution in the post-pandemic era, as more organizations face people change challenges.

Through the partnership with HokuApps, KRK’s consultants can cater to a wider consumer base and expand their change consultancy services in the ASEAN region. The collaboration utilizes HokuApps’ low-code mobile application development platform to create a fully integrated digital solution that includes gamification and client-customized reporting capabilities.

As part of the partnership, HokuApps has delivered a mobile-centric integrated solution to enhance KRK’s support for change leadership, with a focus on middle manager core. The solution, called CHANGELEADER, facilitates middle managers’ growth in adaptive team leadership specific to their organizations’ demands. CHANGELEADER offers first-level change diagnostics, engagement with KRK’s associate consultants, access to consultant-grade learning content, one-on-one remote coaching, and communication channels between consultants and client members.

The unified digital solution features an automated first-level diagnostics and self-assessment system to provide support and guidance to middle managers. It includes a decision engine based on specific business rules and diagnostic questions, as well as leadership learning accessible through an on-demand self-serve process. The solution also incorporates an auto-triggered notification system for real-time communication between KRK’s associate consultants and clients, along with customized reporting capabilities.

KRK, in partnership with HokuApps, aims to disrupt the change consulting space by offering a digital application that functions as a self-sufficient micro-consultant. The partnership also supports the expansion of KRK’s business operations in ASEAN. KRK expects to increase its client base with the introduction of its middle-manager targeted digital solution.

Dr. Karuna Ramanathan, Founder and Principal Consultant at KRK, expressed the company’s commitment to leveraging technology and a low-code platform to accelerate digital transformation initiatives and deliver value-based results to clients. Kieran Kishore, Head of Operations and Analytics for CHANGELEADER, highlighted the streamlined operations, enhanced agility, and scalability that the solution brings, leading to potential cost savings and increased change effectiveness for clients.

HokuApps Director of Sales, Arif Gafar, expressed enthusiasm for the deployment of process automation and the digital leap forward for KRK. The partnership aims to help KRK maintain its leadership position in the highly competitive ASEAN market and adapt to the evolving business landscape following the pandemic.

Tags: ASEANHokuAppsKR Konsulating

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Focusing investment on SaaS and AI Projects

HANCOM, a company led by CEO Sung-Jun Byun and Yeon-Soo Kim, has recently sent a letter to its shareholders for the first half of 2023. The company had previously promised continuous communication with its shareholders, and this letter fulfills that commitment.

In the letter, HANCOM highlights its transition from an installation software-focused business structure to a cloud Software-as-a-Service (SaaS) model. The company plans to restructure its portfolio to expand its cloud SaaS projects and take a leading position in the domestic and international AI editor markets through AI development.

To improve product competitiveness and cater to customer needs, HANCOM will incorporate generative AI technology into its HANCOM Office software. This move aims to establish a growth engine for expansion in overseas markets. Additionally, HANCOM Office Editor will be integrated with robotic process automation (RPA) through partnerships with domestic and international entities, adopting a SaaS model to generate new revenue streams across various industries and services.

Last year, HANCOM achieved its largest-ever cashable assets through the sale of HANCOM MDS. The company plans to utilize these assets to aggressively expand into overseas markets by investing in and acquiring companies with growth potential as part of its global strategic initiative called ‘HANCOM Alliance.’

Furthermore, HANCOM intends to enhance the quality of its businesses and lay the foundation for long-term growth. This includes actively supporting the growth of its subsidiaries with high growth potential, such as genetic analysis and digital healthcare company HANCOM Carelink, and travel start-up MadX Company. The company also plans to actively restructure the business portfolios of its subsidiaries.

CEO Yeon-Soo Kim expressed the company’s commitment to business innovation, financial improvement, and the transformation of corporate and organizational culture. Despite the challenging market environment, HANCOM aims to achieve continuous growth through these efforts.

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Businesses seek cost-cutting measures and explore new hiring opportunities

The economic downturn has led companies worldwide to downsize and reduce their workforce. However, despite these challenges, Vietnam and the Philippines have shown resilience and continue to attract job opportunities from the Asia-Pacific (APAC) region. According to Recruitery, there has been a significant increase in their Employer of Record (EOR) and payroll services for companies hiring from these countries, with a 300 per cent growth in Q1 2023 compared to the same period last year. On the other hand, jobs from domestic employers have decreased by 51 per cent.

Vietnam is attracting jobs in software development, product management, marketing, and accounting roles, while the Philippines is a preferred destination for educational expertise, customer service, and sales positions, according to Toan Nguyen, the founder and CEO of Recruitery.

There are several key drivers contributing to this trend:

• Cost savings: Companies worldwide are looking to reduce costs, and hiring talent from developing countries such as Vietnam, India, and the Philippines provides access to skilled professionals at affordable rates.
• Proximity and cultural ties: Vietnam and the Philippines have regional proximity and cultural connections with countries like Singapore, Japan, South Korea, and Hong Kong. This makes employment and collaboration easier, as there are fewer language and cultural barriers.
• Growing talent pool: Vietnam has a population of over 97 million, with more than 50 per cent of its citizens under the age of 30. The Vietnamese government has set ambitious targets to create a pool of 1.3 million IT workers by 2025, demonstrating their commitment to developing a skilled workforce. Similarly, the Philippines has over 100 million people, with more than 60 per cent of the population under the age of 30. The country’s strong emphasis on English-language education makes it an attractive option for businesses seeking an English-speaking labour force across various fields.

To facilitate the hiring process in different countries, global payroll, and Employer of Record (EOR) solutions like Deel, Recruitery, and Remote have emerged. These solutions allow companies to form teams in any country without the need for a local entity, unlocking the benefits of geo-arbitrage. This strategy has become increasingly popular as businesses seek cost-cutting measures and explore hiring opportunities in developing countries.

In addition to the talent attraction, Southeast Asia, particularly Vietnam, has become an appealing destination for companies looking to shift their production from China due to geopolitical tensions. Vietnam offers a skilled and cost-effective workforce, a stable government, and a growing focus on high-tech industries. Companies such as Samsung and Bosch are investing in research and development (R&D) centres in Vietnam, further fuelling the shift of operations from China to Southeast Asia. This trend is expected to continue as companies diversify their supply chains away from China to mitigate rising costs and geopolitical risks.

Tags: The PhilippinesVietnam

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6 in 10 businesses have had their supply chains affected

According to the UOB Business Outlook Study 2023, both small and medium-sized enterprises (SMEs) and large enterprises in the ASEAN and Greater China regions are eager to expand internationally to boost their revenue and profits. The study surveyed over 4,000 businesses in Asia, including Singapore, Indonesia, Malaysia, Thailand, Vietnam, Mainland China, and Hong Kong SAR.

Key findings of the survey include:

• Expansion Plans: 83 per cent of businesses expressed a keen interest in expanding overseas, with Indonesian, Chinese, Thai, and Vietnamese companies displaying the strongest desire. However, businesses in Hong Kong, Malaysia, and Singapore showed more hesitation. Most companies (4 in 5) value having a cross-border digital trade platform for their international expansion.
• Challenges: Some challenges hindering businesses from expanding overseas include difficulties in finding the right partners, a lack of in-house talent, and insufficient support regarding legal and regulatory compliance and tax matters. Many companies cited the need for more support, including connecting with overseas partners or clients and tax incentives.
• Target Markets: The top two markets businesses want to expand to are ASEAN and China, with only 1 in 4 companies interested in expanding beyond Asia. Within ASEAN, Singapore is seen as the most important country for business ventures, followed by Thailand and Malaysia.
• Supply Chain Concerns: Around 60 per cent of SMEs reported that their supply chains have been affected by ongoing geopolitical tensions. Global inflation and challenges in procuring suppliers were also highlighted as issues. Around 3 in 10 SMEs are seeking to diversify their supply chains, build stronger supplier relationships, and leverage data analytics for decision-making.
• Sustainability Practices: While around 90 per cent of businesses believe sustainability is important, only 45 per cent have implemented sustainability practices. SMEs in Thailand and Vietnam showed higher adoption rates (more than 50 per cent), while Singaporean SMEs lagged behind at 38 per cent. Concerns about increased costs to customers and impacts on profits and revenue were cited as barriers to implementing sustainability practices.

To address these challenges, UOB, a leading bank in Southeast Asia, aims to support companies in their transition to sustainability and provide access to sustainable financing options. The bank offers tools like the Sustainability Compass to help companies overcome barriers and kickstart their sustainability journeys.

The UOB Business Outlook Study 2023 aims to understand the business outlook and expectations among SMEs and large enterprises in ASEAN and Greater China. It has been conducted annually in Singapore since 2020 and was expanded this year to include the ASEAN and Greater China markets.

Tags: ASEANAsiaUOB

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The pace of work has outstripped human capacity, affecting innovation

Microsoft Corp. has introduced Microsoft 365 Copilot, a generative AI tool, to its suite of applications including Word, Excel, PowerPoint, Outlook, and Teams. The company is expanding access to the Copilot preview and introducing new features. In conjunction with this announcement, Microsoft released insights from its 2023 Work Trend Index report, titled “Will AI Fix Work?”

The Work Trend Index report surveyed 31,000 individuals across industries in 31 countries, including 14 Asia Pacific markets, and analyzed trillions of signals from emails, meetings, chats, and labor trends on Microsoft 365 and LinkedIn. The findings indicate that the pace of work has outstripped human capacity, affecting innovation. The report suggests that next-generation AI can alleviate the burden of work, leading to increased creativity and productivity.

Vinod Muralidharan, General Manager Modern Work at Microsoft Asia, highlighted the transformative potential of AI in the workplace. He emphasized the need for leaders to leverage AI to remove mundane tasks, foster creativity, and develop AI skills among employees.

The report offers three key insights for business leaders:

• Digital debt hinders innovation: The volume of data, emails, and chats has surpassed our ability to process it efficiently, resulting in digital debt. This debt affects productivity, with 72 per cent of individuals in the Asia Pacific region reporting a lack of time and energy to complete their work, making them three times more likely to struggle with innovation. The average person spends 57 per cent of their Microsoft 365 time on communication and only 43 per cent on creation. Inefficient meetings were identified as the top productivity disruption.
• AI-employee alliance: Employees prioritize the promise of relief over fears of job displacement, while managers seek to empower employees with AI rather than replace them. Although 58 per cent of respondents in Asia Pacific expressed concerns about AI replacing their jobs, 78 per cent would delegate tasks to AI to reduce their workloads. Three out of four people in the region are comfortable using AI for not just administrative tasks but also analytical and creative aspects of their roles. Leaders are more likely to see AI as valuable for boosting productivity rather than cutting headcount.
• AI aptitude for all employees: All employees, not just AI experts, will need to develop core competencies to thrive in the AI era. Leaders anticipate that 85 per cent of employees in the Asia Pacific region will require new AI-related skills. However, 71 per cent of individuals currently feel they lack the necessary capabilities to perform their work. The demand for an AI-centric skillset will impact everything from resumes to job postings.

To support businesses in the AI era, Microsoft is launching the Microsoft 365 Copilot Early Access Program for select enterprise customers. They are also introducing new capabilities to Copilot and Microsoft Viva, such as Copilot in Whiteboard, Copilot in PowerPoint with DALL-E integration for custom image creation, Copilot in Outlook for email writing guidance, Copilot in OneNote for drafting plans and organizing information, and Copilot in Viva Learning for personalized learning journeys.

Additionally, Microsoft is rolling out the Semantic Index for Copilot to all Microsoft 365 E3 and E5 customers, aiming to assist customers in becoming AI-ready.

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Digital workplace leaders should provide visibility and audibility for participants

A recent survey conducted by Gartner, Inc. reveals that 77 per cent of digital workers desire active involvement in shaping their hybrid work model. The survey findings highlight the significance of aligning worker preferences with organizational needs to maintain productivity and avoid attrition.

Gartner’s biannual Digital Worker Experience survey, involving 4,861 full-time employees in the U.S., U.K., India, and China, examined the evolving employee experience in the context of hybrid work. The results indicate that while 14 per cent of digital workers prefer a mandated hybrid work environment, a substantial majority of 77 per cent desire the opportunity to participate in creating their own hybrid work model.

Caitlin Duffy, Director in the Gartner HR practice, emphasizes the need for organizations to respond thoughtfully to the shifting wants and needs of employees to ensure sustained productivity and retention. “One of the biggest challenges to hybrid work is the lack of alignment between the variability between what workers want and the predictability organizations, managers, and workers need to be effective,” said Duffy.

The survey also sheds light on the dynamics of hybrid meetings, revealing that 47 per cent of digital workers prefer spending most of their time in virtual meetings with audio and/or video. Hybrid meetings, where some participants are in-person while others join remotely, were ranked as the second-least productive (17 per cent), with audio-only meetings being the least productive, and in-person meetings deemed the most productive (46 per cent).

To enhance productivity and improve the user experience during hybrid meetings, digital workplace leaders are advised to ensure clear visibility and audibility for all participants, facilitate seamless interaction with in-meeting content, simplify meeting join processes, and enable compatibility across various operating systems and devices. Additionally, leaders should evaluate the meeting culture within their organizations, striking a deliberate balance between asynchronous and synchronous work.

The survey also addresses the topic of employee monitoring in the hybrid work environment. While organizations have implemented monitoring systems to gain visibility into employee activities and attendance, the level of trust significantly impacts employee acceptance. When monitoring efforts are seen as beneficial to employees, 96 per cent of respondents express a willingness to accept monitoring:

• One-third of digital workers would accept monitoring in exchange for support in finding information or data.
• Thirty percent would accept monitoring in return for proactive outreach from support.
• Twenty-eight percent would accept monitoring for streamlining information and notifications, as well as receiving performance improvement guidance.

Organizations that embrace transparency and allow employees to opt-in to information and data gathering are seen as more progressive in their approach to monitoring.

The survey also delves into motivators for digital workers to return to the office. While “facetime” or face-to-face interaction is a significant motivator for 40 per cent of workers, other factors such as workplace amenities, the ability to focus, workplace belonging, IT support, and office facilities were highlighted by 45 per cent of respondents. Consequences and expectations from managers ranked lower as motivators (10 per cent).

Caitlin Duffy concludes that as the workplace evolves, HR and digital workplace leaders must collaborate to craft the desired digital employee experience, ensuring alignment with employee preferences and organizational goals.

Tags: Digital workplaceGartner

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