Asia Pacific (APAC) is no stranger to digital transformation. As 5G increasingly enables a new era of digitalization and smart technologies, the impact of can vary based on the market maturity and how digitally advanced customers are, but it also depends on the quality of your customer experience. Let’s take a closer look at the opportunities and challenges of implementing digital transformation, the market shifts to expect, and what is on the horizon for the region.
The rapid growth mentality propelling digital transformation in APAC
There is generally a strong recognition of the opportunities that 5G and the public cloud enable and the benefits of combining low latency, charging for network slices, and complex bundling with elastic infrastructure costs and scalable cloud based systems.
APAC is divided between advanced post-paid markets like Japan, Singapore and Australia and emerging ones. Emerging markets are often driven by a rapid growth mentality, which is led by consumer behaviors like an openness to change and willingness to adapt. Take, for example, markets like Indonesia, where most cell phones contain multiple pre-paid SIM cards. This allows the consumer to shop around and switch CSP depending on the best deal that day. Since customers are ready to adjust and make changes so quickly, CSPs must be ultra-responsive to their needs, even if that results in marginal gains. When compared to developed postpaid markets, long-term customer loyalty does not carry the same weight. In a developed postpaid environment like Australia or Singapore, customers stick to their provider for several years, and if you lose a customer to the competition, they are unlikely to be regained. In contrast, an emerging market pe-paid customer can be won back within the day with better connectivity, experience, and, primarily, a better price.
The flexibility and openness to change is driving a cultural willingness to experiment, adapt, and move forward quickly. Consumers constantly look for a better deal and are willing to switch in a heartbeat. The same applies to the enterprise market where business is fast paced compared to western markets, and new offerings need to be developed and launched quickly to compete. Low labor costs in some markets enable low-cost legacy systems to be maintained, increase time to market, and the missed opportunity with lengthy workflows means digital transformation becomes inevitable.
As we look to the present and the future, how can companies prepare for growing opportunities in the region?
Laggard or leapfrog?
I previously mentioned that we can divide the APAC market into developed and emerging markets. As we enter an era of accelerated growth, innovation, and collaboration with public cloud/software-as-a-service (SaaS) and 5G infrastructures, operators in emerging markets often leapfrog those in developed markets. Traditionally and predominantly, digital maturity has grown faster in the more advanced parts of the region like Japan, South Korea, and Australia. But many ‘emerging’ markets are surpassing their developed competitors in the race to digitalization. An example of this would be Singapore, which is ranked fifth in the world in IMD’s 2021 World Digital Competitiveness Index. The country has embraced digital transformation as a culture and priority in the business world. This allows companies in the country to quickly adapt to emerging technologies like 5G.
To meet the moment and keep up with a new era of customer expectations and digital tools, enterprises and CSPs alike are keen to pursue new business models. That’s where a catalogue-focused, products-first approach comes into play. Working through a dynamic, agile, and scalable collaboration platform allows providers to reduce the complexities of the fast-moving B2B2X ecosystem and stand out from the competition. This business model is much more sustainable in the current economy. It not only empowers CSPs to embrace innovation in digital commerce but also to collaborate with partners to quickly build and launch compelling offers that keep customers coming back for more.
Digital growth in APAC has spanned multiple industries, including tourism, manufacturing, healthcare, and agriculture. The question is, how are they using these technologies in their favor?
CSPs stand at the ready to transform every industry
Across industries from tourism to healthcare, an innovation-first partnership with CSPs is critical. Now, as the world recovers from the worst of the pandemic, the conversations are less focused on the saturated consumer market and more geared towards how CSPs can support and prepare businesses of all kinds to manage greater volumes, achieve greater efficiency, and advance the customer experience.
Tourism
With borders reopening, the Pacific Asia Travel Association is projecting growth of 100% between 2022 and 2023. As a result, every level of the hospitality industry is seeking support from CSPs and new generations of connectivity to create an ideal customer experience and process greater volumes of tourist activity and sales.
Manufacturing
To make up for supply chain disruptions and chip shortages, car manufacturers, primarily based in APAC, need to produce high volumes of vehicles. To build those cars, these companies need smart factories. By utilizing IoT technologies and 5G, these car companies can automate their processes and add sensors to make production more efficient.
Healthcare
Countries like Singapore are innovating in healthcare by adopting technologies like machine learning, AI, and 5G to help remove the burden from the hospital staff and accommodate a higher number of patients. CSPs are mission-critical for the healthcare industry as digital health becomes widespread.
Agriculture
Tea farmers are increasingly leveraging IoT and sensors to monitor temperature. In fact, the APAC market for IoT in agriculture is set to grow by 17% annually between 2020-2030, presenting a major opportunity for 5G. As telecom providers continue to support enterprises, it is important to have a strategy that fits the market, consumer, and country’s landscape.
Enterprises and consumers in APAC have always been early adopters of digital innovations and technologies. As the world enters a new normal, we will continue to see companies in APAC embrace changes and quickly adapt. The region runs on rapid growth, nimbleness, and flexibility. Whether it’s a change in business strategy or venturing into a new market, telecom providers in the region are ready. It’s what we’ve always done. It’s truly an exciting time for the region.
