Digital Transformation (DX)

The company which did the research report - UOB and Digital Realty

About the company - UOB provides commercial and corporate banking services, personal financial services, private banking and asset management services, as well as corporate finance, venture capital, investment, and Insurance services. It has 68 branches in Singapore and a network of more than 500 offices in 19 countries and territories in Asia Pacific, Western Europe and North America. Whereas, Digital Realty Trust, Inc. is a real estate investment trust that invests in carrier-neutral data centers and provides colocation and peering services.

Area of research - With disruptions facing the world today due to COVID-19, enterprises need to move away from traditional business models to survive.

Name of the organization which did the survey - UOB and Digital Realty

The main points of discussion in the survey:

1. COVID-19 acted as a catalyst to speed up DX

2. Top technology priorities are related to DX

3. Higher growth rates for DX professional services spending in the Asia Pacific region compared to global figures

4. Government support measures help drive DX

5. Importance of getting on the DX roadmap fast

6. Challenges of getting on a DX roadmap

7. Considerations in getting on a DX roadmap

Findings of the survey:

1. COVID-19 acted as a catalyst to speed up the DX process for organisations as a whole. IDC’s Worldwide Public Cloud Services Spending Guide also forecasts that total Asia Pacific spending for Public Cloud will reach US$34.5 billion (S$46.8 billion) in 2020 – increasing from US$26 billion (S$35.3 billion) in 2019.

2. In 2020, there is a large increase in the number of organisations that intend to shift processes to the cloud compared to a year ago.

3. 41.2% chose ‘Increase in IT technology investment’ as the implementation priorities of organisations to improve businesses.

4. The total Compound Annual Growth Rate (CAGR) for spending in the Asia Pacific, at 13.9%, is much higher than the worldwide total CAGR of 7.1%.

5. The Singapore Government allocated S$500 million to support the DX of businesses, including support for e-payments, adopting digital solutions and deepening digital capabilities. This has also helped drive the momentum of DX in the market. As of June 2020, more than 10,000 businesses have joined the nationwide e-invoicing network, a tenfold increase from the numbers in March 2020.

6. In Malaysia, RM$700 million (S$229 million) has been allocated for the digitalisation of SMEs, and the government has tried to motivate SMEs to get on a DX process by providing grants and loans.

7. In Hong Kong, HK$500 million (S$87 million) has been allocated to support enterprises to continue businesses with technology adoption and related training.

8.  Key benefits of remote work:

   1. 58.3% Increase in productivity rate
   2. 53.2% Increase in talent retention
   3. 50.7% Decrease in operational expense
   4. 38.6% Increase in talent acquisition
   5. Process improvement to drive efficiency
   6. Increase savings and improve revenue growth
   7. Flexibility to increase productivity
   8. Drive sales

9. Singapore SMEs have said that DX allowed them to enjoy 22% in average projected cost savings and 26% in average projected revenue gains.

10. According to an IDC study, remote work can lead to a 58.3% increase in productivity rate, and working from home can lead to a 53.2% increase in talent retention.

11. Mercer research indicates that over 70% of companies will examine remote and/or flexible working as a workforce priority in the next three to six months.

12. Despite the drop of 30% in dine-in sales as of July 2020, Seonggong’s online delivery business was boosted by 20% with the new digital solutions in place.

13. Challenges include pushback from employees, lack of management buy-in, insufficient resourcing both from a financial and technical perspective, as well as the lack of knowledge or expertise to get on a DX journey.

14. The following ASSESS framework can provide some initial points for companies to consider as they embark on their DX journey:

    1. Ascertain the problem(s)
    2. Set goals. 
    3. Select partners
    4. Empower employees
    5.  Streamline processes 
    6. Support forward-thinking ideas

Data Gravity is a barrier to Digital Transformation because it inhibits enterprise workflow performance, raises security concerns, and increases costs, all complicated by regulatory requirements and other artificial constraints.

With the right approach to an optimised infrastructure, it can mean the difference between keeping a business on life support or thriving in the new digital economy. As enterprises seek to look for partners to get on this journey, UOB can be a key partner to help organisations with the DX journey, to assist companies with solutions around funding and financing for DX.

Questions :

1) COVID-19 has ____ the DX process for organisations as a whole.

1. Speed up
2. Slow down
3. Not effected
4. Postponed

2) In 2020, there is _____ in the number of organisations that intend to shift processes to the cloud compared to a year ago.

1. No change
2. Decrease
3. Increase
4. None of the above

3) _____% chose ‘Increase in IT technology investment’ as the implementation priorities of organisations to improve businesses.

1. 52.3
2. 41.2
3. 68
4. 70

4) Where is the total Compound Annual Growth Rate (CAGR) for spending is higher than the worldwide total CAGR?

1. USA
2. The UAE
3. Asia pacific
4. Europe

5) Continued from Q4, by what is the % of the higher CAGR?

1. 13.9
2. 25.6
3. 40.1
4. 32.8

6) What is the worldwide total CAGR?

1. 4.2
2. 3.6
3. 5.8
4. 7.1

7) The Singapore Government allocated _____ to support the DX of businesses.

1. S$500 million
2. S$500 billion
3. S$200 million
4. S$200 billion

8) In Malaysia, _____ has been allocated for the digitalisation of SMEs.

1. S$29 million
2. S$229 million
3. S$46 billion
4. S$72 million

9) In Hong Kong, _____ has been allocated to support enterprises to continue businesses with technology adoption and related training.

1. S$92 million
2. S$56 billion
3. S$87 million
4. S$87 billion

10) According to an IDC study, remote work can lead to a _____% increase in productivity rate.

1. 58.3
2. 65.8
3. 32.4
4. 71.2

11) According to an IDC study working from home can lead to a _____% increase in talent retention.

1. 42.8
2. 53.2
3. 70.4
4. 24.6

12) Mercer research indicates that over _____% of companies will examine remote and/or flexible working as a workforce priority in the next three to six months.

1. 56
2. 40
3. 32
4. 70

13) _____% of the drop was seen in dine-in sales as of July 2020. 

1. 30
2. 48
3. 23
4. 12

14) Seonggong’s online delivery business was boosted by _____% with the new digital solutions in place.

1. 32
2. 20
3. 112
4. 45

15) There has been _____% increase in productivity rate due to remote work.

1. 58.3
2. 62.5
3. 42.6
4. 23.7

16) There has been _____% increase in talent retention due to remote work.

1. 40.8
2. 53.2
3. 65.1
4. 70.2

17) There has been _____% decrease in operational expenses due to remote work.

1. 62.3
2. 48.6
3. 50.7
4. 23.9

18) There has been _____% increase in talent acquisition due to remote work.

1. 52.3
2. 40.5
3. 12.7
4. 38.6

19) The report was done by?

1. Standard Chartered
2. Global markets
3. UOB and Digital realty
4. BNY

20) What is the title of the report?

1. Digital Transformation
2. Study insight
3. Future of payment
4. Purchase study