Asia Pacific could add between US$10.6 to 14.6 trillion to its GDP by 2024, according to forecasts by International Data Corporation (IDC) Digitalization of SMBs could account for as much as 25 percent of that growth. 86 percent say they believe digitalization will help in developing resilience against crises like COVID-19.
According to the respondents, shortage of digital skills and access to talent is the top hurdle for SMBs. This is followed by the lack of necessary technologies to enable digital transformation. Despite the challenges, the region’s SMBs continue to make progress in their digitalization journeys.
Mainland China, Taiwan, and Thailand surpassed Korea, Hong Kong, and Malaysia. There has been notable progress made by SMBs in Indonesia and Vietnam. The 2020 study aims to further the understanding of how SMBs can progress in their digital transformation journey.
Four stages of digital maturity
● Stage 1 – Digital Indifferent: A company that is reactive to market changes and digital efforts do not exist
● Stage 2 – Digital Observer: A company whose digital efforts have started but remain tactile and in bite-sized initiatives
● Stage 3 – Digital Challenger: A company that has a strategy for the use of digital technologies and is more proactive in market responsiveness
● Stage 4 – Digital Native: A company that has an integrated digitalization strategy and is focused on driving continuous innovation
Digitalization of SMBs could add as much as US$3.1 Trillion to Asia Pacific’s GDP by 2024