The latest SAP study in collaboration with Oxford Economics surveyed 400 small and midsize enterprises with less than $500 million revenue and 200 larger organisations, across six Southeast Asian countries – Singapore, Malaysia, Indonesia, Philippines, Vietnam, and Thailand. The regional survey revealed challenges and growth opportunities to enable ASEAN enterprises’ achieve success in the new economy.
One year into the pandemic, ASEAN enterprises have shown resiliency and swift adaptability to uncharted territory, leveraging technology. As an example, a commendable roster of finalists in the 2021 SAP Concur Innovation Awards came from the Asia Pacific region, proving that despite unprecedented challenges, businesses in the region continue to champion innovation to help them survive and thrive in the post-pandemic world.
As organisations progress in navigating the new world of work while tackling the evolving challenges of COVID-19, SAP and Oxford Economics survey offers actionable information that enterprises in Southeast Asia can take into account as they strategise for growth. Titled “Digital, resilient, and experience-driven: How enterprises in Southeast Asia can prepare for the new economy”, the regional study revealed significant challenges and growth opportunities in key business areas of enterprises, both large and SMEs.
Succeeding in the New Economy
SAP Southeast Asia President and Managing Director Verena Siow, who was appointed at the height of the fight against the coronavirus in September 2020, shared that Southeast Asian businesses are now at a crucial transformative point to achieve long-term competitive growth. She said:
“Regardless of industry, businesses must embrace true business transformation into intelligent enterprises while keeping in mind that customers are the lifeline to survival and sustainable growth.”
“In an ever-increasing digital economy, the enterprises that thrive are those that adapt the quickest. There is a strong need to shift mindsets while constantly seeking new ways of working and redesigning processes,” Siow added.
Growth Drivers
- Customer Experience. The SAP study revealed that 35{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of participants agreed that customer experience, specifically service excellence, is now their primary source of value and differentiation. Personalisation (59{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), high-quality products and/or services (55{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), data protection and privacy (53{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}) and competitive pricing (51{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}) are the key factors in creating positive customer experiences that are crucial for business growth and success.
- Automation and Digital Technologies. Respondents said that automation and digital technologies help companies achieve business objectives such as increasing process efficiency and reducing error, risk, and cost (56{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), reducing overhead costs (45{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), allowing employees to focus on higher-level business tasks (39{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), and increasing productivity through transformation and intelligent process automation (37{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}).
- Skilled workforce. Many enterprises in the region recognise the importance of engaging the workforce to be successful in a fast-growing digital economy. Businesses expect moderate growth in employee productivity (74{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), customer loyalty and satisfaction (71{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), market share (71{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}) over the next three years.
Internal and External Challenges
- Changing Marketplace. 40{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of SMEs and 29{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of larger enterprises surveyed stated that adapting to a rapidly changing marketplace remains a challenge.
- Evolving Customer Behaviors. 38{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of SMEs and 43{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of the larger enterprise said that they find it difficult to keep up with changing customer wants and needs as well as retain customers or drive repeat business (34{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} vs. 30{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}).
- Competing and Scaling for Growth. 50{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} said they have difficulty competing with larger organisations and scaling for growth (33{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}), especially with the lack of a capable and motivated workforce (40{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22})
- Upskilling Talent. 1 in 3 enterprises surveyed shared that upskilling internal talent is their top internal challenge with 29{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} facing an inability to gain insights into the employee.
- Lack of Visibility. Concerning technology, 43{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} said they lack an analytics solution and 38{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} stated lack of data that hinders their visibility over operations.
ASEAN enterprises’ flexibility and agility, as proven in the recent past, will be paramount to their success in the new digital economy. SAP continues to support organisations as they equip and compete in an environment that continues to be impacted by the pandemic.
“Flexibility is a crucial ingredient of success today and through our new RISE with SAP initiative, we are confident customers will get the flexibility required to accelerate the speed of digital transformation and excel in the diverse environment they operate in – wherever they are on the digitalisation spectrum.” Siow highlighted.
