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Thailand Embracing a Digital Transformation, Spending Big on IT Infrastructure



E-payments play a growing role in cash transactions. Thailand is poised to spend big on IT infrastructure in the coming years.

E-payments play a growing role in cash transactions. Thailand is poised to spend big on IT infrastructure in the coming years.



BANGKOK – Jarit Sidhu, research manager and lead analyst of IDC Thailand, said organisations in Thailand are embracing the dawn of digital transformation with total spending on enterprise IT infrastructure expected to reach 500 billion baht by 2020, says IDC Thailand.

The country’s IT infrastructure spending in 2016 is expected to total 400 billion baht, up 3.9% year-on-year.

Jarit Sidhu, said organisations in Thailand have started the journey towards digital transformation this year, while the government is embarking on the development of digital economy.

Digital technologies have dramatically changed the culture of work and working, forcing enterprises in the digital era to adapt to the changing business environment.

Digital transformation in Thailand could be powered by cloud computing, mobility, artificial intelligence, the Internet of Things (IoT), augmented reality and virtual reality.

“We expect the digital transformation processes in Thailand to be complete and to impact and shape the entire macroeconomy by 2020,” Mr Jarit said.

By 2020, IDC predicts that 30% of the top 500 companies in Thailand will see the majority of their business depend on the ability to create digitally-enhanced products, services and experiences.

Mr Jarit said digital technologies will lead a massive shift in enterprise development by transforming the way they develop products and do business as well as engage customers in new ways.

He said it’s not just technical skills that are needed for digital transformation; creativity is another crucial element for driving innovation.

IDC Thailand released yesterday its top 10 technology predictions for 2017-20, aimed at alerting enterprises from all industries to realise the potential for a significant impact on them in the next four years.

The predictions cover many trends from how the entire economy will be reshaped by digital transformation, the transition of all enterprises from being digital immigrants to being digital natives, the scaling up of innovation accelerators, the emergence of new-generation digital services and digital revenue streams, drastic changes in how enterprises connect to their customers, and the ecosystem becoming as important for business success.

According to figures cited by Mr Jarit, 25% of IT projects in 2019 will create new digital services and revenue streams that monetise data because data will be digital capital for enterprises.

By 2018, 60% of customer support interactions will be digitalised and occur in online communities.

“We expect more organisations to interact with customers through social and online communities,” Mr Jarit.

In addition, 30% of top 100 consumer-facing enterprises will experiment with augmenting and virtual reality technologies as part of their marketing efforts.

IDC also predicted that connected vehicles, insurance telematics, personal wellness and smart buildings will be the four key users of IoT across Thailand, accounting for 7 billion baht in spending.



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