Digital Transformation: A New Era for ASEAN Businesses
KUALA LUMPUR - The rapid evolution of digital technology is reshaping the business landscape in Southeast Asia, with companies adapting to new technological trends to stay competitive. Andrew Lim, the ASEAN Managing Director for Kyndryl, an IT infrastructure services provider, shared insights on the ongoing digital transformation during a recent interview with People Matters.
Lim highlighted that the past five years have seen significant shifts, starting with the urgent push towards digitalization in 2020, followed by a surge in cloud adoption in 2021, and the introduction and growth of generative AI in 2022 and 2023. These changes are evident across the Asia-Pacific, with government investments, tech companies expanding talent pools, and HR departments focusing on keeping up with tech disruptions.
From Digitalization to Optimization
As the initial rush to digitalize has subsided, companies are now in an optimization phase, reviewing how to best utilize their digital investments. Lim pointed out three key trends:
Cyber Resilience: With cyber threats escalating, especially after notable incidents like the CrowdStrike outage, businesses are enhancing their cybersecurity measures.
Cloud-Based Technologies: The adoption of infrastructure as a service (IaaS) and software as a service (SaaS) is booming, with companies like ServiceNow and SAP leading the way.
Leveraging Data for AI: The vast data generated by digitalization is being harnessed for AI applications, with companies setting up specialized AI departments, particularly in financial services.
Lim mentioned a project with iHub Solutions in Singapore, where Kyndryl helped implement AI to enhance customer experience in smart warehousing and logistics.
Opportunities in ASEAN
The ASEAN region presents numerous opportunities for IT service providers like Kyndryl. Countries such as Singapore, Malaysia, and Indonesia are at the forefront with national AI strategies, forming a hub of innovation. The Philippines is also accelerating its digital transformation efforts, with Kyndryl recently appointing a new managing director there.
Lim noted a shift where large corporations, after a hiatus during the COVID-19 period, are now investing significantly in IT infrastructure, creating openings for service providers. Major cloud service providers like AWS, Microsoft, and Google Cloud are expanding their footprints, particularly in Malaysia, which is catching up rapidly in cloud usage.
Preparing for AI
To leverage AI effectively, Lim emphasized the necessity of a robust digital foundation. This includes strategies around data quality, governance, and modernizing applications. He stressed the importance of educating the workforce about AI, not just in technical details but in understanding its impact and ethical use. Kyndryl itself has aggressively pursued certifications with Azure, AWS, and Google Cloud, reflecting a commitment to staying at the forefront of technology.
“Our people are eager to learn and engage with cutting-edge technologies,” Lim stated, underscoring the enthusiasm within Kyndryl for technological advancement.
As ASEAN nations continue to embrace digital transformation, companies like Kyndryl are poised to play a pivotal role in navigating this new digital era, ensuring that businesses not only survive but thrive in an increasingly connected world.