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Rise of digital start ups could be the end for other industries

14 Oct 2016

83% of Asia Pacific and Japapn (APJ) businesses believe digital start-ups pose a threat to their organisation, either now or in the future.

That’s according to new research from Dell Technologies in conjunction with Vanson Bourne and involving 4,000 business leaders across 16 countries.

More than half of businesses surveyed fear they may become obsolete in the next three to five years due to competition from digital-born start-ups.

Some companies are also feeling badly bruised by the pace of change. A total of 61% of APJ business leaders have experienced significant disruption in their industries over the past three years as a result of digital technologies.  

Amit Midha, president for commercial APJ at Dell EMC, says the influence of digital revolution has led to a significant decline in the barriers to entry across industries.

“Aided by the strong entrepreneurial spirit and government support in the APJ region, we have witnessed the rise of numerous digital start-ups,” he explains.

“Failing to innovate will impact the competitiveness of established APJ businesses in the digital era.”

With this in mind, some companies have barely started their digital transformation. According to Dell, only a small minority have almost completed their digital transformation journey.

Just one in three businesses surveyed are performing critical digital business attributes well.

David Webster, president for APJ Enterprise Business at Dell EMC, says APJ is at the epicenter of fourth industrial revolution and with customers expecting intuitive and personalised experiences, it’s important for businesses to transform digitally in order to remain competitive.

“Although businesses across the region are making progress, now is the time to accelerate their digital transformation journey beginning with IT transformation,” he says

“With demand for new digital products and services meaning an exponential increase in users and data, a focus on IT infrastructure modernisation and investment in software development skills is key for businesses to continue delivering value to their customers.”

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