Bridging the Digital Divide
STATE OF DIGITAL TRANSFORMATION
SINGAPORE REPORT
In today’s rapidly evolving business landscape, the term “digital transformation” (DX) can become a buzzword, devoid of meaning. It refers to the integration of digital technology into all aspects of an organisation, fundamentally changing the way it operates and delivers value to customers.
Companies are investing in digital transformation services, aiming to enhance employee performance / productivity and transform existing business processes.
In gearing up for 2024, technology and business leaders are urged to strategically allocate resources for optimal ROI and to position their companies for future growth. With our 2024 State of Digital Transformation report, let’s dive into the details.
DIGITAL LEADERS THRIVE AND TRANSFORM
Accelerating Spending Plans
Spending projections for 2024 indicate a resurgence in digital business transformation investments, illuminating a collective recognition of its indispensable role in fostering resilience and agility. Organisations in Singapore are increasing the average size of their investment per digital transformation initiative. However, inflationary pressures may limit spending, as 54% of organisations anticipate significant impacts on technology expenditures due to IT cost increases.
of organisations plan to increase technology spend in 2024.
Survey on the State of Digital Transformation, TEKsystems, 2024
Transforming in the Digital Era
The goals of any digital transformation plan must be closely aligned with the business strategy. First and foremost, businesses are driven to enhance employee productivity, empowering staff with tools and technologies that enhance their efficiency and effectiveness.
Next, efforts are directed towards transforming existing business processes.
Finally, digital transformation seeks to reducing operational inefficiency through automation and improved data management.
DX efforts are filled with challenges that organisations must grapple with strategically. The multifaceted hurdles that accompany the journey towards digital evolution can slow progress and decrease competitive advantage.
As companies seek to harness the potential of new technologies and realise the value of transforming the enterprise, they must confront various obstacles and navigate increasingly complex technical and business environments.
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20242023Top DX Goals
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43%*Enhance employee performance / productivity.
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37%49%Transform existing business processes.
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31%51%Reduce operational inefficiency.
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31%27%Replace or upgrade legacy IT systems.
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26%*Gain competitive advantage.
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22%23%Increase / achieve innovation.
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22%20%Introduce new business models / revenue streams.
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22%22%Bolster cybersecurity.
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22%45%Improve customer experience and engagement.
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15%20%Improve employee experience.
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15%20%Introduce new products or services.
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11%24%Increase speed to market of existing products or services.
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20242023Top Challenges
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15Complexity of current environment / siloed mindset and behaviours.
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27Change management and implementation complications / aversion to risk.
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3*Too many competing tech priorities.
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43Operating-model transformation complications (current business process are too rigid).
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54High or unforeseen costs associated with digital transformation.
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62Aligning digital transformation with business objectives / KPIs.
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710Economic uncertainty affecting budgets.
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86Gaps in technical talent.
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99Creating a culture of continuous learning / upskilling or reskilling workforce.
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10*Security concerns and compliance constraints.
PEOPLE AND TECHNOLOGY
of organisations report needing many new types of talent, or the need to completely revise the nature of their talent base.
Survey on the State of Digital Transformation, TEKsystems, 2024
People: The Essential Element of Success
A critical aspect lies in identifying, quantifying and implementing training and development programmes that focus on instilling new behaviours and mindsets in existing staff. For leading technologies skills such as software engineering, artificial intelligence (AI), machine learning and robotic process automation, organisations face a significant challenge, with just under half (48%) of companies saying it takes more than six months to find talent, potentially causing bottlenecks in transformation efforts.
While the integration of AI, automation and collaboration tools can alleviate skill gaps, addressing these challenges demands creative and holistic talent strategies. This approach allows companies to not only acquire but also nurture the skills essential for cultivating a future-ready workforce.
organisations say it takes 10+ months to fill critical IT roles.
Survey on the State of Digital Transformation, TEKsystems, 2024
Ways of Working
Technology has profoundly reshaped the landscape of work, prompting the widespread adoption of hybrid work strategies. The ability to seamlessly connect and collaborate virtually has become paramount, enabling teams to transcend geographical boundaries. Video conferencing, cloud-based tools and collaborative platforms have emerged as linchpins, fostering communication and project continuity. This technological shift has not only redefined the traditional office structure but also empowered individuals to achieve greater flexibility and work-life balance in the evolving realm of hybrid work strategies.
Remote workforce expectations
- 32% Fully onsite
- 34% Hybrid (2 to 3 days in the office per week)
- 34% Fully remote
Technology: Transformation Enabled by the Cloud
A collective embrace of cloud-based technologies suggests a broader digital transformation strategy, emphasising the need for streamlined processes, implementation of FinOps principles, enhanced collaboration, and the leverage of advanced analytics and automation to stay competitive in the evolving business landscape.
Top five most impactful technologies for organisations over the next 12 to 24 Months
- 55% Automation technologies
- 51% Artificial intelligence / machine learning tools
- 43% Big data analytics
- 38% Software as a Service (SaaS)
- 30% Platform as a Service (IaaS)
AI Everywhere, All at Once
Notably, the data reveals a sweeping majority of organisations are not merely acknowledging the significance of AI but actively prioritising its integration into their operations. Signalling their commitment to ramp up AI-related expenditures in 2024, reflecting a recognition of AI as a transformative force.
State of artificial intelligence implementation
- 13% we’ve implemented AI technologies enterprise-wide
- 34% we’ve implemented AI technologies within a single / multiple business unit(s)
- 25% we’re currently piloting AI technologies
- 23% we’re currently researching / exploring se cases for AI technology
- 5% no plans for / not interested in AI technology at this time
of organisations plan to ramp up AI-related expenditures in 2024.
Survey on the State of Digital Transformation, TEKsystems, 2024
Primary Use Cases and Challenges of AI Technologies
As businesses increasingly embrace AI, its multifaceted applications come to the forefront. However, amidst this rapid AI adoption, the survey unveils a complex landscape of challenges.
TEKsystems' Tips to Digital Transformation Success
For businesses wanting to thrive in today’s competitive environment, digital transformation is not a choice; it’s a necessity. It’s a race where the finish line keeps moving, and the only way to win is to keep up with the pace of digital progress.
Global Research Overview
TEKsystems conducted an online survey from November to December 2023 with 855 technology and business decision-makers. Respondents included members of the C-suite, company executives, vice presidents, directors and managers who have final decision-making authority and/or influence on their organisation’s digital transformation efforts. The sample includes a balance of decision-makers in enterprise IT and line-of-business functions in the United States, Australia, Canada, China, India, Singapore, Belgium, France, Germany, Ireland, Netherlands and the United Kingdom across a broad spectrum of industries.
Digital transformation refers to the process of using technology to create new business processes, culture and customer experiences to meet changing business and market requirements.
The ‘Singapore Report’ of DX2024 focuses on data from 56 respondents in Singapore.
About TEKsystems
We’re partners in transformation. We help clients activate ideas and solutions to take advantage of a new world of opportunity. We are a committed team working with over 6,000 clients across North America, Europe and Asia-Pacific. As an industry leader in talent solutions and services, we work with progressive leaders to drive change. That’s the power of true partnership. TEKsystems is an Allegis Group company.
