Optimising the potential of the digital economy: Three key areas to focus on in 2016

We have all seen digital disruption influencing the way organisations in the Asia Pacific and Japan region operate and conduct business today. This trend will continue to make waves this year, almost to the point of being a digital tsunami. Here are three key areas for business leaders to focus on in 2016 to help them gain the maximum value from the digital economy.

 

Keeping on the path to business transformation

Digital transformation is the ultimate challenge in change management. It impacts not only strategic positioning but tasks, activities and processes at all levels of an organisation, and even beyond to the extended supply chain. In 2016, leaders must constantly monitor their organisations to be more adaptable and adopt digitisation practices in a timely manner. 

No one can afford to ignore new digital disruptors. Some will partner with the upstarts while still others will reinvent themselves with a different value proposition. 

 

The right type of talent

Digital technology has become so pervasive that employees with the skills to take advantage of it will be needed well beyond the IT department, across all industries. Recruitment staff will increasingly look to fill functions such as operations, marketing and customer service with people who are comfortable with using the mobile, social and analytical tools that companies need for digital transformation. 

Many of these new competencies are often overlooked, as they are traditionally not considered to be necessary job skills and are rarely found in academic curricula in APJ. This reality is echoed in Capgemini’s estimates that only a third of over 4.4 million IT jobs created in 2015 around big data opportunities will be filled. Organisations will have to address the challenge by developing existing talent even as they move forward on digital projects this year. 

 

Supporting automation 

The Internet of Things (IoT) has generated excitement over the past few years, with governments, start-ups and established businesses in APJ all placing their bets on the industry’s growth. Developments on interoperability and hardware have progressed to a point where some of the earliest investments have begun to pay off, with smart thermostats, wearable fitness devices and other innovations developing comprehensive ecosystems and gaining significant market share. 

Early movers to develop supporting software for the IoT could reap a significant competitive advantage. Software that analyses the massive volumes of data from IoT devices and then accurately automates what is currently manual decision-making will soon come into the limelight. 

Organisations will thrive in 2016 and beyond by going future-ready. They have to understand how the drivers, threats and opportunities in the new digital landscape will impact their businesses. Preparing the ground for success will be critical. Adopting the right best practices for digitisation in increasingly globalised and regionalised businesses will be essential, as will implementing cost-efficient, open and easily scalable technology. This is my recipe for providing the ideal environment for leaders working on optimising strategy and leading change in 2016, the year of the digital-first customer.

 

Amit Midha is president of Asia Pacific & Japan and chairman of Global Emerging Markets, Dell.