Digital transformation: Outlook and trends for businesses and organizations in Southeast Asia

In conversation with prisila, correspondent, Asia Business outlook Magazine. Bhavya shares his views on insights into the industry trends shaping the digital landscape in Southeast Asia. In the conversation, he also discussed about how organizations harness data to transform their business and drive critical business outcomes.

Bhavya Kapoor is an Avanade’s Southeast Asia Managing Director; Bhavya is responsible for accelerating the growth of Avanade’s business as well as expanding the company’s capabilities and pool of talent in the region. He is also responsible for setting Avanade’s strategic direction, operations, brand and talent in the region. Bhavya is a passionate champion for inclusion, diversity, and sustainability – and sits on the board of International Institute of Rural Reconstruction (IIRR), a global non-profit organization whose mission is to empower rural people to build resilient communities and attain socioeconomic equity through creative and community-led action.

Could you provide insights into the industry trends shaping the digital landscape in Southeast Asia and how your company is positioned to capitalize on them?

When we analyze the outlook for Southeast Asia, we can see two distinct phases that organizations need to undergo – the challenging, uncertain climate in the immediate future, and an optimistic, recovering landscape after that.

Organizations today are still affected by economic headwinds and macroeconomic conditions, and many are facing significant pressure to bring down costs without compromising efficiency. They will continue to lean into their digital investments to help them reduce costs, improve productivity, and navigate these challenging times. They will also prioritize projects with the highest potential to deliver business values and return on investments.

Beyond the immediate future, we believe the markets will eventually rebound and recover, opening doors to new growth opportunities. To ensure organizations have the agility and capabilities to seize emerging opportunities and stay ahead of their peers, they must reconfigure and reinvent how they do business to emerge stronger from the current disruption.

Part of their transformation strategy should include protecting the core operations of their business and building a resilient and scalable process that is fit for a flexible future. Organizations should also anticipate how products and services will evolve in the near and long term to minimize disruptions.

One significant technology trend that will impact the evolution of services and products is artificial intelligence, specifically generative AI. In recent years, AI has already demonstrated its ability to improve decision-making and optimize workflows, but the potential benefits of generative AI go even further. Leveraging advanced algorithms to create new content, designs, and even entire product lines. Responsible use of this technology has the potential to help businesses reinvent productivity, process, human experiences, and more.

Additionally, cybersecurity remains a critical concern in the digital landscape. As cyber threats continue to evolve and become more sophisticated, organizations are prioritizing robust cybersecurity measures to protect their assets and maintain trust with customers. We have developed a comprehensive cybersecurity practice that combines cutting-edge technologies, threat intelligence, and industry best practices. We work closely with our clients in Southeast Asia to assess their security posture, implement robust defenses, and provide ongoing monitoring and incident response to ensure their digital assets remain secure.

"By upskilling employees and creating a people-first culture, businesses can create an environment where innovation thrives."

What can organizations do practically to reduce complexity, make the most of what they got and demonstrate impact?

There are three broad approaches that businesses can consider when looking for ways to maximize the return on investments (ROI) of their assets and deliver critical business outcomes during this period:

Focus on what matters: More and more organizations are defining what matters most to the business and focusing on those priorities. This requires aligning people, processes, and technology to achieve specific business outcomes. Key steps in this approach are to identify key business drivers, establish clear metrics for success, and ensure that everyone in the organization is aligned around these goals.

Prioritize practical steps to continual change: Enterprises are using this time of recalibration to welcome fresh perspectives on how to tackle critical issues such as sustainability, the future of work, new business models post-pandemic, and embracing continual evolution rather than just the end goal. By taking the time to identify and prioritize practical actions, businesses can save costs and innovate differentiated solutions that maximize engagement with employees, customers, communities, shareholders, and partners.

Do more with less: The key to doing more with less is to focus on digital transformation and harness the power of technology to enable better decision-making. Our clients are prioritizing investments in cloud infrastructure, security, and data analytics to optimize their operations and drive business value. In addition, organizations are increasingly adopting a growth mindset and empowering their employees with the tools and resources they need to innovate and succeed in a fast-changing digital landscape.

What are the steps an enterprise can take now to create greater value faster with digital innovation when resources are limited?

While organizations are tailoring their digital strategy according to the nature of their business, the state of their industry, and market conditions – there are three critical elements to consider when formulating their strategy:

Maximize the value of your digital investments and assets: Businesses are increasingly focused on realizing the full potential and value of their technology investments. This involves identifying and prioritizing the most impactful use cases for technology, optimizing processes and workflows to maximize efficiency, and measuring the ROI of technology initiatives. This calls for a disciplined approach to technology adoption and an ongoing commitment to drive continuous improvements.

Harness the power of data: In today's world, data is both powerful and vital for organizations seeking to remain competitive. Harnessing the power of data can translate into informed decision-making, actionable insights and a proactive approach to tackling challenges – which is key to staying ahead of macroeconomic developments and competitors. Through strategies that leverage data and intelligence, companies can better drive automation, efficiency, and productivity.

Upskill and create a people-first culture: Digital transformation isn't just about technology, it's also about people. By upskilling employees and creating a people-first culture, businesses can create an environment where innovation thrives. Actively and accurately addressing long and short-term employee needs paves the way for a consistent workplace culture and builds a workforce that is agile, flexible, and resilient to the demands of the future.

Can you share more about how organizations harness data to transform their business and drive critical business outcomes?

In today's world, data is both powerful and vital for organizations seeking to remain competitive. Harnessing the power of data and AI can translate into informed decision-making, actionable insights, and a proactive approach to tackling challenges – which is key to staying ahead of macroeconomic developments and competitors. Companies can better drive automation, efficiency, and productivity through strategies that leverage data and intelligence.

For example, as part of KrisShop’s vision to revolutionize the airline retail industry, they partnered with us to augment customers' traditional in-flight shopping experience by migrating their legacy finance and supply chain management platforms to a Microsoft Dynamics 365 ERP system. This allows KrisShop to optimize inventory and operational efficiency, boost sales, and deliver a personalized customer experience. Through this transformation, KrisShop now harnesses data and insights into customers' purchasing behavior, which helps to ensure that travelers have access to the products they want when they want them.