Analytics in ASEAN: Low Awareness and Adoption, but Bright Outlook

A. Amir

Summary Bullets:

  • Awareness and adoption of enterprise analytics are still low in ASEAN.
  • There is a strong outlook in the near to midterm driven by digital transformation.

Low Awareness and Adoption

A GlobalData study with 158 ICT decision-makers in ASEAN shows very low awareness and adoption around analytics in the region.  The study reveals that only 23% of enterprises see analytics as very important criteria when considering new IoT solutions, 22% in cloud, 18% in unified communications, and 17% in cybersecurity.  Analytics was also among the least important criteria for respective solutions.  This shows that while most enterprises understand the general benefits of analytics (e.g., turning data into insights), many are still unable to relate analytics to their business objectives.

Figure 1: Importance of Analytics Feature When Considering New ICT Solutions

Source: GlobalData

Promising Outlook

However, awareness and adoption are expected to increase strongly in the short to near term.  GlobalData IT Market Analyzer shows that the data and analytics market in ASEAN is forecasted to increase at a five-year compound annual growth rate of 9.7% to USD 4.1 billion in 2025.

While analytics is still not a very important requirement in the region, it is commonly packaged together in larger solutions.  Enterprises are already using some analytics features in their existing solutions.  For example, multi-cloud solutions come with analytics features for better workload management and orchestration; cybersecurity services use analytics for threat detections; and analytics is also an important part of IoT deployments to translate data collected from endpoints and sensors into insights and, in contact center solutions, to gain deeper understanding of customer behavior and enhance user experience. As the benefits become more tangible, enterprises will expand their analytics use cases and align the technology with their business objectives.

Analytics adoption will increase hand-in-hand with digital transformation.  In ASEAN, digital transformation is still in the very early phases.  As more enterprises advance in their transformation journey, there will be a significant increase in corporate data from legacy documents, business processes, and new IoT sensors.  Analytics will be crucial to enhance operational efficiency within a business unit as well as company-wide processes.  This trend is already seen in mature markets, where enterprises are integrating a different set of data across their operation.  For example, in manufacturing, machine data is integrated with ERP and other logistics information to achieve better operational efficiency.

In the midterm, as the adoption increases, enterprises will start to consider more advanced capabilities such as integrated AI, self-service analytics, and embedded analytics.  At this stage, analytics will be seen as a tool to increase operational efficiency, but also to keep up with competitors and drive business such as through data-driven sales, targeted campaigns, deeper customer insights, and better customer engagement.

What’s Next

ASEAN enterprises should assess the systems they employ and the data they generate in their operations.  Then they can look to leverage analytics features in their existing solutions and align the technology with business outcomes.  They could also consider advanced analytics features, and this would often require stronger collaboration with service providers to map the requirements, integrate different datasets, and align the analytics with business objectives.  Managed and professional service could also address the lack of analytics skillset, as data scientists are still limited in the industry.

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