News on digital disruption, digital economy, platform economy, and digital transformation is ubiquitous in the media today, much more than ever before. There is plenty of hype and debate on how Blockchain
technologies, algorithms, Artificial Intelligence (AI), and the Internet of things (IOT) would transform industries and create new growth opportunities.
In Southeast Asia, the digital wave is dominated by technology start-ups such as Lazada, Traveloka, Tokopedia, Grab, and Gojek, where the latter two have morphed from ride-hailing companies to ‘super apps’ that offer everything from food, transport, delivery, payment, and insurance services in a single experience. These start-ups have provided income opportunities for many individuals and businesses and have delivered value to millions of customers. They were able to come this far by fully embracing the digital and platform economy, coupled with their customers’ readiness and ecosystem infrastructure and support. They derive their competitive edge from customer data, algorithms, network of partners, brand, and–at the core–innovation. The fact that business media brand Fast Company crowned Grab as the second most innovative company in the world in 2019 is testament to this.
While much of the spotlight appears to be on the arena of start-ups and purely digital companies, many large corporates and traditional industries are also harnessing the benefits of digital operating models, where digital transformation appears to be eclipsing innovation as a corporate agenda. Many companies have created digital teams, hired Chief Digital Officers, developed digital labs, and initiated hackathons to explore new technologies, businesses, or operating models. The latest Altimeter report also showed that digital transformation is becoming more pervasive, evolving beyond IT and becoming an enterprise-wide movement. This journey, however, does not appear to be the same for all industries.
Read more in the article.