Capitalizing on the power of data and technology to win in Asia’s relatively borderless economy is one of the core capabilities companies need to build. Why? There are three compelling reasons.
First, Asia is adopting technologies faster than anywhere else in the world. In the ten years before the pandemic, the region accounted for 52 percent of global growth in technology company revenue. Digital engagement is also high at both ends of the age spectrum. For example, by 2030, almost 100 percent of seniors in Japan and South Korea are expected to be online.
Second, Asia’s digital landscape is arguably more fluid and borderless, with a less rigid industry structure than in other regions. For example, the spread of “superapps”—one-stop-shop digital platforms—is much more prevalent in Asia than in western economies. This blurring of boundaries implies that leaders need to develop ways of working within ecosystems, as well as leading them.
Third, the digitization of Asian economies is generating a vast pool of data, and companies in the region appear to be in a good position to monetize the value of this data. It is notable that Asian consumers tend to be more willing to share data with service providers than their western counterparts. Yet, concerns about privacy and the ability to control their own data is growing among consumers.
In sum, Asia’s technology landscape is changing rapidly. Companies will need to strengthen the capabilities they need in order to manage digital transformations, and also strike a balance between reaping the economic benefits of using exploding data pools, while being sensitive to risks and concerns.