The race to reinvent is on in Thailand as businesses scramble to gain competitive advantage through digital transformation.
IDC says by 2022 more than 60 percent of the country's GDP will be digitalised, with growth in every industry driven by digitally-enhanced offerings, operations, and relationships. This will fuel around US$72 billion in IT-related spending from 2019 through to 2022.
According to IDC, the digitalised economy will stimulate intense competition especially when digital disruptors are heavily penetrating into the local market.
In light of this, IDC says its imperative for business leaders to embrace emerging technologies in order to gain opportunities with the rise of the new economy, with local organisations moving towards becoming digitally-determined organisations.
IDC says these are organisations that demonstrate the ability to visualise how the markets and customers will change and reinvent themselves to better respond to the needs of these future stakeholders through new and emerging technologies, capabilities, and business models.
"The race to reinvent is inevitable, and we foresee a steady growth in adoption of emerging technologies in the country mainly because Thailand is working to improve economic growth by shifting its economy from an industry-driven country to one that is driven by high-tech innovations,” says IDC Thailand Software market analyst Anchalee Sudechawongsakul.
“Innovation will continue to disrupt every industry and business leader should focus on technologies that enable business outcomes. This is the right time to realise that enabling the digital industry will drive other industries to grow as well.”
IDC Thailand’s technology and industry analysts have revealed the key trends that are set to present both opportunities and challenges to the nation’s IT leaders in 2019 and beyond:
#1: Digitalised economy. By 2022, over 61% of Thailand GDP will be digitalised, with growth in every industry driven by digitally enhanced offerings, operations, and relationships, driving US$ 72 billion in IT-related spending from 2019 through 2022.
#2: Digital-native IT. By 2022, 60% of Thailand’s IT spending will be on 3rd Platform technologies, as over 30% of all enterprises build "digital-native" IT environments to thrive in the digital economy.
#3: Expand to the edge. By 2022, over 20% of Thailand’s organisations' cloud deployments will include edge computing, and 25% of endpoint devices and systems will execute AI algorithms.
#4: AppDev revolution. By 2022, 70% of Thailand’s new apps will feature microservices architectures that improve the ability to design, debug, update and leverage third-party code; 25% of all production apps will be cloud-native.
#5: New developer class. By 2024, a new class of professional developers producing code without custom scripting will expand the developer population by 20% in Thailand - accelerating digital transformation.
#6: Digital innovation explosion. From 2018 to 2023 - with new tools/platforms, more developers, agile methods and lots of code reuse – 4.0 million new logical apps will be created in Thailand.
#7: Growth through specialisation. By 2022, 15% of public cloud computing will be based on non-x86 processors (including quantum) in Thailand; by 2022, organisations will spend more on vertical SaaS apps than horizontal apps.
#8: AI is the new UI. By 2024, AI-enabled user interfaces and process automation will replace one-third of today's screen-based apps in Thailand. By 2022, 20% of enterprises will use conversational speech tech for customer engagement.
#9: Expanding/scaling trust. By 2023, 25% of servers will encrypt data at rest and in motion in Thailand; over 20% of security alerts will be handled by AI-powered automation; and 3.5 million people will have blockchain-based digital identities.
#10: Consolidation vs multi-cloud. By 2022, the top four cloud "mega platforms" will host 80% of IaaS/PaaS deployments in Thailand, but by 2023 70% of Thailand 100 (T100) organisations will mitigate lock-in through multi-cloud/hybrid technologies and tools.