Report highlights the importance of digital infrastructure, skills and technology ecosystems in the modern global economy
22 NOVEMBER 2016, HONG KONG – Today the Economist Intelligence Unit (EIU) has released a global research project commissioned by Telstra showing which countries in Asia have the necessary building blocks in place to ensure business success in a connected world.
The EIU’s ‘Connecting Capabilities’ report includes the first Asian Digital Transformation Index, a quantitative ranking of 11 Asian markets, and three global comparators using 20 indicators across three key categories relevant to business performance: digital infrastructure, human capital and industry connectedness.
The report paints a mixed picture of the state of digital transformation in Hong Kong, which comes in fourth place of the overall Connecting Capabilities Index. Although Singapore, South Korea, and Japan are leading the way in Asia, Hong Kong comes in third in the development of ICT infrastructure and the availability of talent to support digital transformation.
There is, however, room for improvement in industry connectivity to stay ahead – namely companies’ digital partnerships and interaction with other organisations, networks and communities.
Darrin Webb, Telstra’s Chief Operating Officer, Global Enterprise and Services, and Managing Director, North East Asia said that overall the research showed high quality digital infrastructure, an educated and technically literate workforce and a well-functioning technology ecosystem were the building blocks of success for companies and countries alike right across Asia.
“As part of their research, the EIU has surveyed more than 850 businesses and 94 per cent said a market’s infrastructure is important to their organisation’s digital transformation, reinforcing the fact that access to high quality telecommunications and technology services is vital for business success right across the region,” said Mr Webb.
“It’s positive to see that Hong Kong is performing well when it comes to digital infrastructure and skills. Looking ahead, there needs to be a focus on developing connectivity across industries and technology ecosystems to really see the digital environment flourish. There are major growth and investment opportunities ahead for Hong Kong and its companies alike.”
Key findings of the research include:
- In Hong Kong more than six in ten executives reported that investments they have made in digital transformation initiatives have already proven their value. Nearly eight in ten said their digital transformation efforts have led their companies to change their business model in some respect.
- Digital transformation initiatives in Hong Kong have concentrated heavily on the use of social media in marketing and other areas. With attention shifting to the greater use of big data and analytics, over half (57 per cent) of respondents say their firms use analytics to a large extent, and 43 per cent say this will be the major focus of transformation efforts in the future.
- The use of cloud for storing data and accessing applications is increasing, with 42 per cent of the Hong Kong companies saying they store 75 per cent or more of their data in the cloud.
- Overall the region still has some catching up to do. While several Asian countries are performing well, a comparison with the United States, Australia and the United Kingdom shows the region as a whole is behind when it comes to digital infrastructure and human capital.
Digital Transformation Index
| Market | Score | Comparator markets | Score | ||
| 1 | Singapore | 75.6 | United States | 77.3 | |
| 2 | South Korea | 72.5 | Australia | 74.3 | |
| 3 | Japan | 70.7 | United Kingdom | 72.6 | |
| 4 | Hong Kong | 65.7 | |||
| 5 | Taiwan | 65.1 | |||
| 6 | Malaysia | 42.0 | |||
| 7 | China | 33.9 | |||
| 8 | Thailand | 23.9 | |||
| 9 | India | 19.3 | |||
| 10 | Philippines | 18.8 | |||
| 11 | Indonesia | 16.0 | |||
The EIU survey also looked at the difference between industries when it comes to their approach to digital transformation, finding that there are significant differences. Across all countries the financial services industry led the way in their commitment to digital transformation, while logistics and transportation has the lowest results for taking responsibility for digital disruption.
“The research shows companies across all major sectors are looking to digital transformation to deliver benefits like lower costs as well as new customers, products and markets. This research makes an important contribution to digging deeper into what is required to realise these goals,” said Mr Webb.
The full report and the data used to compile the Index can be found at http://connectedfuture.economist.com.
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The Connecting Capabilities report includes:
- The first Asian Digital Transformation Index, which is a quantitative ranking of 11 major Asian markets and three global comparators (the United States, Australia and the United Kingdom). The Index is comprised of 20 indicators across three categories relevant to enterprises and large organisations: digital infrastructure (including the reach and quality of telecommunications networks), human capital (including education, citizen e-participation and Internet usage) and industry connectedness (including e-commerce maturity and strength of digital partnerships).
- A survey with 870 executives in the same 14 countries across six industries – manufacturing, financial services, media, healthcare, professional services, and logistics.
About Telstra
Telstra is a leading telecommunications and technology company. We offer a full range of services and compete in all telecommunications markets in Australia, operating the largest mobile and Wi-Fi networks. Globally, we provide end-to-end solutions including managed network services, global connectivity, cloud, voice, colocation, conferencing and satellite solutions. We have licenses in Asia, Europe and the United States and offer access to more than 2,000 points of presence across the globe. For more information visit www.telstra.com.
Media contact:
| Telstra Charlene Leung +852 2531 0534 / +852 6131 9387 charlene.leung@team.telstra.com |
Edelman Gladys Kwok +852 2837 4730 Gladys.kwok@edelman.com |