Conducted in collaboration with Oxford Economics, the study, Digital, resilient, and experience-driven: How enterprises in Southeast Asia can prepare for the new economy, surveyed 600 senior executives from ASEAN countries about the challenges they faced in the areas of talent attraction and retention, cloud adoption, and gaining insights from data.
Forging a new experience-led growth path
As economies begin to identify emerging pockets of growth, enterprises have also continued to adapt with resilience, transforming their operations to meet evolving consumer expectations in a new digital economy.
Enterprises in the region identify customer experience as a strategic imperative for survival and growth, with more than a third (35%) saying service excellence is now their primary source of value and differentiation.
Positive customer experiences have also become the foremost strategic consideration for businesses in the region, with key factors being personalisation for the customer (59%), providing high-quality products and/or services (55%), ensuring data protection and privacy (53%) and offering competitive pricing (51%).
“Having gotten a foothold on the pandemic’s disruption, businesses across Southeast Asia are at a crucial transformative point to achieve long-term competitive growth,” said Verena Siow, president and managing director, SAP South East Asia.
She believed that businesses must embrace true business transformation into intelligent enterprises while keeping in mind that customers are the lifeline to survival and sustainable growth.
Hurdles to overcome
As enterprises adapt their operations to overcome both internal and external challenges, many of them recognise technology as an enabler to help drive greater business outcomes.
Automation and digital technologies are most believed to support business goals by increasing process efficiency and reducing error, risk and cost (56%). This is followed by reducing overhead costs (45%), allowing employees to focus on higher-level business tasks (39%), and increasing productivity through transformation and intelligent process automation (37%).
A deeper dive into the internal challenges to improving customer experiences reveals businesses’ hurdles around gaining visibility over their operations, and the lack of digital tools that help them to track and direct strategic business priorities.
Those surveyed cite difficulty competing with larger organisations (50%), lack of technology for analytics (43%), lack of capable and motivated workforce (40%), lack of adequate data (38%), and difficulty scaling for growth (33%).
“In an ever-increasing digital economy, the enterprises that thrive are those that adapt the quickest. There is a strong need to shift mindsets while constantly seeking new ways of working and redesigning processes. It is only by doing so that businesses can find a way that works best and stay ahead of the competition,” explained Siow.
To secure quick growth, enterprises surveyed are employing short-term actions to improve customer experiences, with many investing in user-friendly digital experiences (39% have made this change across the organisation), reducing prices (38%) and increasing after-sales maintenance (37%).
However 58% say they have made at least moderate progress towards digital transformation, despite the ability of such tools to grant them insights into opportunities to improve their customer experiences.
Notwithstanding these challenges, SMEs see their nimbleness and ability to build trust with customers as their inherent competitive advantage against larger competitors, which can give them the strong foundation they need to securely experiment with new technologies and business models.
“Flexibility is a crucial ingredient of success today and through our new RISE with SAP initiative, we are confident customers will get the flexibility required to accelerate the speed of digital transformation and excel in the diverse environment they operate in - wherever they are on the digitalisation spectrum,” concluded Siow.
The Skills question
Along with technology, enterprises in the region understand that an engaged workforce will help unlock future growth in a fast-growing digital economy.
Even as enterprises forge ahead towards business recovery, many recognise that their workforce is crucial to driving success. In line with this, businesses surveyed expect moderate growth over next three years in employee productivity (74%); customer loyalty and satisfaction (71%), market share (71%).
However, upskilling talent is cited as the top internal challenge by one in three (35%) of enterprises surveyed to meet strategic goals and the evolving organisational and customer needs. 29% of enterprises face inability to gain insights into the employee.
With talent critical to supporting agility and transformation, and this has seen businesses surveyed take steps to improve employee experience during this time—including streamlining organisational processes (29%), investing in employee training and development (38%), and modifying flexible work policies (25%).