Gina McNamara, Regional Chief Financial Officer at SAP Asia Pacific and Japan (SAP APJ), emphasizes the growing recognition among businesses that sustainability and financial performance are closely interconnected. Indonesian businesses, in particular, are becoming acutely aware of this link. A recent study by SAP shows an overwhelming majority of Indonesian companies acknowledging a moderate to strong relationship between their sustainability efforts and organizational profitability (90%) and competitiveness (91%). These figures notably surpass the average across Asia Pacific and Japan, indicating a unique and forward-thinking approach by Indonesian enterprises.

Investing in Sustainability: A Strategic Move for Indonesian Businesses

Reflecting on this paradigm shift, the investment trends in Indonesia are telling. With 66% of businesses planning to increase their sustainability investments in the next three years, it’s evident that Indonesian organizations are not just paying lip service to sustainability; they are actively redirecting resources to foster sustainable practices. This trend is not just a response to environmental concerns but a strategic move to strengthen their market position and financial performance.

The SAP study, encompassing responses from 250 Indonesian professionals well-versed in their organization’s sustainability objectives, sheds light on how sustainability strategies are directly contributing to business growth. An impressive 93% of businesses reported a positive impact on revenue or profit growth due to sustainability strategies, while 92% observed enhanced efficiency in business processes. These figures underscore the tangible benefits that sustainability brings to the table, transcending the traditional view of it being a cost center.

SAP Insights Study Reveals Challenges to Environmental Strategy Implementation

Despite the optimistic outlook, challenges persist. The most significant barrier for Indonesian companies is the development of a comprehensive environmental impact strategy, a hurdle for 42% of businesses. This concern surpasses the global average, highlighting the unique challenges faced by Indonesian organizations. Other issues include the after-effects of the COVID-19 pandemic, doubts about measuring environmental impact, and aligning potential actions with organizational strategy.

The key to overcoming these challenges lies in effectively utilizing sustainability data. Indonesian businesses are increasingly satisfied with the quality of their sustainability data, with satisfaction rates rising to 40%, a 10-point increase from the previous year. This data, however, needs to be accurate, granular, and integrated with financial data to inform sound business decisions.

Indonesian businesses are not just focusing internally but are also demanding sustainability data from their suppliers and partners. This holistic approach is critical in creating a sustainable ecosystem, driving not only individual company growth but also contributing to broader environmental and societal goals.

The Role of Technology Partners in Driving Sustainable Growth

Gina McNamara concludes by highlighting the importance of technology partners like SAP in this journey towards sustainability. By providing tools and insights to accurately measure and act on sustainability data, technology partners are indispensable in helping businesses navigate the complexities of sustainable practices. This collaboration is essential for Indonesian companies to fully realize the potential of sustainability in driving competitiveness, profit, and revenue.

The SAP Insights report illuminates a crucial trend in the Indonesian business sector: sustainability is now a pivotal element in shaping business strategies, driving growth, and enhancing competitiveness. As companies continue to navigate this landscape, the role of accurate data and strategic partnerships becomes increasingly vital in ensuring that sustainability is not just a goal but a fundamental driver of business success.

The post SAP Insights Unveils Indonesia’s Sustainable Business Revolution appeared first on InsideSAP Asia.

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.

The post SAP Studies ASEAN Enterprises’ Success in the New Economy appeared first on InsideSAP Asia.