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Effects of Digital Transformation on the economy, businesses, and society

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IDC study commissioned by Microsoft predicts that approximately 40% of the Philippines’ GDP will be derived from digital products or services by 2021.

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Digital Transformation to Contribute US$8 Billion to the Philippine GDP by 2021

Through the years, we have seen a big leap on how digital technology has transformed all aspects of human society. Digital transformation is inevitable. From giant conglomerates, government offices, and even households are openly embracing new types of innovation brought about by technological advancements.

According to a new business study produced by Microsoft in partnership with IDC Asia/Pacific, “Unlocking the Economic Impact of Digital Transformation in Asia Pacific”, digital transformation will add an estimated US$8 billion to the Philippines’ GDP, and increase the growth rate by 0.4% annually.

“The Philippines is clearly on the digital transformation fast track. Within the next four years, we expect to see approximately 40% of the Philippines’ GDP to be derived from digital products and services,” said Hans Bayaborda, Managing Director of Microsoft Philippines. “At the same time, organizations in Asia Pacific are increasingly deploying emerging technologies such as artificial intelligence as part of their digital transformation initiatives, and that will accelerate growth even further.”

Digital Leaders to Gain Lion’s Share of Economic Opportunities

The study indicates that while 93% of organizations in the Philippines are in the midst of their digital transformation journey, only 7% in the entire region can be classified as Leaders. What sets them apart from others are their ability to ride on the digital transformation wave from an organizational culture perspective. “For businesses to remain competitive, organizations must establish new metrics, realign organization structures, and re-architect their technology platform,” said Daniel-Zoe Jimenez, Research Director Digital Transformation Practice Lead, IDC Asia/Pacific.

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Top 5 Benefits Obtained by Organizations Undergoing Digital Transformation in the Philippines

  1. Higher profit margins
  2. Greater productivity
  3. Increased revenue from new products and services
  4. Improved customer advocacy, loyalty and retention
  5. More cost reductions

Digital Transformation in the Philippines will ultimately benefit citizens

According to the business leaders surveyed, digital transformation will bring about these top three benefits to society:

  1. Potential increment to personal income through freelance and digital work
  2. Creation of more higher value jobs
  3. Increased education and training opportunities

Riding the waves of Digital Transformation

Microsoft recommends organizations to adopt four major strategies to become a digital transformation leader:

  1. Create a digital culture: Build a culture of collaboration, where data is readily available to aid better business decisions, ultimately serving the needs of customers and partners better.
  2. Build an information ecosystem: The key to becoming a leader is for organizations to be able to convert data into capital assets, and enable data sharing and collaboration internally and externally in an open yet trusted manner.
  3. Embrace micro-revolutions: Start with small, quick projects that deliver positive business outcomes and accrue to bigger and bolder digital transformation initiatives.
  4. Develop future ready skills for individuals and organizations: Train and equip workforce with future ready skill sets such as complex problem solving, critical thinking and creativity for the digital economy.

In a nutshell, digital transformation becomes a must. Embracing change and continuous innovation is utmost crucial to remain competitive. Finding the right technology partner with a proven and solid background such as Microsoft can provide smart and realistic solutions.

For more information, you may visit www.microsoft.com/en-ph

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