Singapore leads the way in Asia in terms of possessing the requrired building blocks to ensure business success in a connected world, according to the Economist Intelligence Unit.
The EIU’s “Connecting Capabilities” report includes the first ever Asian Digital Transformation Index, a quantitative ranking of 11 Asian markets and three global comparators using 20 indicators across three key categories relevant to business performance — digital infrastructure, human capital and industry connectedness.
The EIU has surveyed more than 850 businesses and 94% said a country’s infrastructure is important to their organization’s digital transformation, reinforcing the fact that access to high quality telecommunications and technology services is vital for business success.
Singapore’s strong performance is primarily due to its well-developed digital infrastructure, as well as a highly supportive and coordinated set of government policies in support of infrastructure development, business use of technology and entrepreneurship.
The city state ranks behind Japan in industry connectivity, which is broadly, the ability to draw on resources external to the organization such as digital partnerships with other companies, networks or communities.
Recruiting the right talent is a challenge in Singapore, which ranked fourth on human capital. Building talent pools with advanced digital skills and expanding data sharing to enrich its firms’ digital partnerships are key areas for improvement.
While several Asian countries are performing well, a comparison with the other three markets United States, Australia and the United Kingdom shows the region as a whole is behind when it comes to digital infrastructure and human capital.
“In the EIU survey, 87% of companies globally agreed digital transformation will be important to their organization over the next three years, but if your business lacks access to the necessary infrastructure, skills and ideas, then it would be difficult to take full advantage of the opportunities created by digital technology,” Telstra group MD for international Paul Tyler said.
“In this regard, 55% of companies in Singapore say the country has been only ‘somewhat successful’ in providing an environment for digital transformation,” said Tyler.