Thailand Digital Transformation Survey Report 2021 The Impact of COVID-19 - Deloitte
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Thailand Digital Transformation Survey Report 2021 The Impact of COVID-19 June 2021
Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Preface
The fieldwork for the 2020 Digital While we were working and crunching numbers based on our first digital
Transformation Survey began transformations survey in 2019-2020, the world has faced a global pandemic
COVID-19. It goes without saying that our analysis will quickly becoming dated
in late November 2019 and
and even irrelevant.
concluded in early January 2020.
During the final phase of our Though, there was still relevancy to the information, but undoubtedly, we need
analysis, the unprecedent global a new set of data to fulfil and complete our endeavor in understanding the
pandemic COVID-19 occurred. landscape of digital transformation in Thailand.
We had no way of knowing it, but
Subsequently, we quickly developed and administered a ‘pulse’ survey to
the world was about to change understand the impact of COVID-19 toward the digital initiatives among Thai
dramatically. businesses.
Hence, we decided to According to our comparative analysis between pre vs. post COVID-19
phenomenon, there are some similarities and differences discovered.
conducted the pulse survey
in November 2020 to January For instances, the pace of digital adoption among different sectors are
2021 to understand the impact dramatically changing in post COVID era as founded in financial service and life
of COVID-19 towards digital sciences & health care sectors. In addition, almost technology implementations
transformation in Thailand. are rapidly accelerated and well adopted. While most of talent skills required to
help organization driving the digital transformation remain the same.
As we move toward another new normal, we all have an opportunity to reset
and reimagine a better normal, a brighter future reshaped. Unquestionably, the
digital transformation will play a critical role, becoming a business imperative.
B
Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Digital Transformation Plan Digital Adoption Technology Implementation
Digital Leader
6%
Energy, Resources Traditional web
Digital Adopter technology 87% 13%
& Industrials
BASIC TECH
56%
Consumer
Mobile 15%
application 75%
Technology,
Cloud 78% 19%
Media & Telecom
Financial
Services Digital Follower Digital Evaluator
12% Data analytics 44% 7%
21%
Life Sciences
& Health Care Robotics 24% 1%
ADVANCE TECH
Internet of 16%
things 36%
Exp
ect
ed Artificial
24% 13%
dig Intelligence
ita
l di Digital Laggard
str 5%
ibu Blockchain 15% 6%
tio
nt
im
ing AR or VR 18% 10%
The COVID-19 outbreak results in a Most of the companies has shifted Both advance and basic technology, except
tremendous shift in the Financial Services their digital adoption phase from robotics , have increased in implementation
& Life Sciences and Health Care sectors’ digital evaluator to digital adopter rate.
digital transformation plans
3
Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Contents
Interpreting perceptions towards digital disruptions
Exploring digital transformation implementations
Pinpointing digital transformation skill demands
Identifying areas of government support in digital transformation
4Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Methodology
The survey aims to understand how businesses in Thailand are integrating digital
transformation into their services, and to gain insight into the challenges faced. The
survey was conducted twice (Primary survey and Pulse survey) to understand the
impact of the COVID-19 pandemic on the digital transformation journey.
Primary survey: An online survey was conducted in October 2019,
2019
polling 91 executives across five industries in Thailand (Energy,
Resources & Industrials, Consumer, Financial Services, Technology,
Media & Telecommunications, Life Sciences & Health Care, and
Public Sector) for insights on digital transformation.
Pulse survey: A second online survey was conducted during
2020 2021 November 2020 to January 2021. 77 leading companies in Thailand
were polled to gain understanding on how business and technology
leaders’ digital transformation plans were impacted by the COVID-19
pandemic.
5Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Primary Survey Demographics
Industries Sample size, n = 91 Primary survey
2019
In the Primary survey,
30% Company type Worldwide employee headcount
the Energy, Resources &
Energy, Resources Others 1-1,000 42% Industrials sector accounted for 30%
& Industrials 4% 30%
Public sector
11%
1,001-5,000 of the total respondents, making
2020 2021
5,001-10,000 4%
Privately
up the highest proportion, followed
10,001-20,000 8%
27% Publicly
45%
held
20,001-100,000 11% by the Consumer sector. In terms
Consumer 40%
held 100,001+ 5% of company type, privately held
companies accounted for the largest
segment of respondents. The plurality
25% of respondents amongst the Business
Financial Services
Leaders group held a Board of
Directors title, followed by CFO. In the
13% Corporate title
group made up of Technology Leaders,
Technology, Media &
Telecommunications Business Leaders Technology Leaders
CIO made up the largest proportion.
85% 15%
4% 19%
16%
Life Sciences 14%
& Health Care 7%
5%
1%
Board of CFO CEO CIO Senior CDO
directors technology
decision maker
6Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Pulse Survey Demographics 2019
Industries Sample size, n = 77 Pulse survey
2020 2021
In the Pulse survey, the
Company type Worldwide employee headcount Consumer sector accounted
35% Non-profit 1-1,000 42% for 35% of the total respondents,
Consumer Public sector
2% 30%
9% 1,001-5,000 followed by Energy, Resources &
5,001-10,000 2%
Publicly Industrials. In terms of company type,
30% held
17%
10,001-20,000 7%
privately held companies accounted
Energy, Resources 20,001-100,000 11%
72% Privately for the largest fraction. The proportion
& Industrials held 100,001+ 7%
of the number of worldwide employee
headcount is not significantly different
13% from the Primary survey. The plurality
Financial Services
of the respondents amongst the
Business Leaders group held a CFO
13% Corporate title
title, followed by the Board of Director
Technology, Media &
title. For the Technology Leader group,
Telecommunications Business Leaders Technology Leaders
the CIO position made up the largest
12%
88% proportion.
9%
Life Sciences 34% 30%
& Health Care
13% 10% 10%
6% 6%
CFO Board of Executive or CEO CIO or CISO CTO
directors Management equivalent
Committee
7Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
There are 4 key topics in the study
Exploring digital
transformation Identifying areas of
implementations government support in
digital transformation
How have companies Pinpointing digital
Interpreting perceptions initiated digital transformation skill demands How can the government assist
towards digital disruptions transformation? these companies towards their
What are the skill set that digital transformation journey?
How do the companies perceive companies look for?
digital transformation?
8Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Exploring digital
transformation Identifying areas of
implementations government support in
digital transformation
How have companies Pinpointing digital
Interpreting perceptions initiated digital transformation skill demands How can the government assist
towards digital disruptions transformation? these companies towards their
What are the skill set that digital transformation journey?
How do the companies perceive companies look for?
digital transformation?
9Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
The vast majority of global executives admit that their industries will be disrupted to a major or transformative extent
Global perspective on the impact of digital disruption • According to The Digital Vortex 2019 study, 88%
(% of respondents, n=1,200)
of total respondents across the globe reported
that digital disruption would have a major or
transformative impact on their companies
3%
4% whereas only 3% believed that digital technology
9%
26% 27%
would not disrupt their businesses.
21%
• Over the years, there has been increasing
2015 2017 2019 recognition by executives on the impact of digital
disruption.
• The Digital Vortex 2015 study showed that only
47% 75% 88% 27% of total respondents believed that digital
disruption would have a major or transformative
impact on their companies. This number grew
to 75% and later to 88% in 2017 and 2019,
Major to transformative impact Moderate impact No to minor impact
respectively.
Source: Digital Vortex 2019
10Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
5 major sectors reflects on the digital disruption timing
Perspective on digital disruption timing by industry
(% of respondents, n=88) • Approximately half (48%) of the respondents
believe that a digital disruption has already
occurred. In comparison to the Primary survey
6% 12% conducted before the COVID-19 pandemic, the
27% 22%
33% proportion of those who perceived that the
5%
47%
60% 22% disruption would occur within the next 1-3 years
17% rose by 8%.
38% 11%
48%
68% 12%
• The Consumer sector saw roughly a 20% increase
50% 44%
in the number of firms that believed that digital
40%
29% disruption had already occurred, compared with
8%
pre-COVID-19 times. However, there was no
change in the Life Sciences & Health Care sector,
Consumer Energy, Resources Financial Life Sciences & Technology, Media and the remaining sectors showed less interest
& Industrials Services Health Care & Telecom in the matter. Finally, the perception that digital
disruption is to occur within the next 1-3 years
After the next 3 years Within next 1-3 years Within 1 year Already occurring
increased across all sectors.
Source: Deloitte analysis based on Digital Transformation and Technology survey in October 2019
11Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
5 major sectors reflect on the degree of digital disruption impact
Perspective on level of digital disruption impact by industry
(% of respondents, n=64) • Before the COVID-19 pandemic, over 50% of the
respondents believed that digital disruption had
a moderate to transformative impact on their
6% 6%
14% 6%
17% company. However, the remaining respondents
11% 33% believed that the disruption had a minor impact on
27% 41% 50%
their company, which was a 12% increase from the
50%
34% previous year’s survey.
36%
30%
56%
• Life Sciences & Health Care sector drastically shifted
47%
42%
17% their views after the pandemic began. Approximately
23% 20% 17% 11% one-third believed the disruption to have a major
6%
and transformative impact, while the remaining half
said a moderate impact.
Consumer Energy, Resources Financial Life Sciences & Technology, Media
& Industrials Services Health Care & Telecom • In the Primary survey, Technology Media & Telecom
sector had the highest number of respondents who
Transformative impact Major impact Moderate impact Minor impact No impact
believed the industry would be disrupted to a major
Source: Deloitte analysis based on survey in October 2019 or transformative extent, at 42%. When asked after
the COVID-19 pandemic began only 11% faulted
digital disruption to make a major impact.
• Consumer and Energy, Resources & Industrial
sectors’ respondents who believed that digital
disruption had no impact tallied to 14% and 6%
respectively.
12Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Exploring digital
transformation Identifying areas of
implementations government support in
digital transformation
How have companies Pinpointing digital
Interpreting perceptions initiated digital transformation skill demands How can the government assist
towards digital disruptions transformation? these companies towards their
What are the skill set that digital transformation journey?
How do the companies perceive companies look for?
digital transformation?
13Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
How digital transformation differs from digitization and digitalization
Digital transformation
+
Strategy Digital tech
Digital transformation
+
Digitalization Working process Digital tech
Digitization
Analog Digital
Source: North Carolina State University and Ionology
14Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
93% of total respondents plan to implement digital transformation initiatives and among that over 50% have already
implemented the plan
When will company implement digital transformation initiatives
(% of respondents, n=66)
93%
52%
24%
14%
3%
Have plan Already Within Within next After the
implemented 1 year 1-3 years next 3 years
15Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Perceived level of urgency and impact of digital transformation prior to the COVID-19 pandemic
When will company implement digital transformation initiatives (Primary survey)
(% of respondents, n=88)
2019
Primary survey,
In the Primary survey, most
sectors started implementing
Consumer digital transformation initiatives ahead
of the expected impact time of digital
2020 2021
disruption, except Financial Service
Energy, Resources and Life Science & Health Care sector.
& Industrials
Financial
Services
Life Sciences & Expect the impact of
Health Care digital disruption
Implement digital transformation
ahead expected distrubtion timing
Technology, Media Implement digital transformation
& Telecom behind expected distrubtion timing
After the Within Within Already
next 3 next 1 year occurring
years 1-3 years /implementing
Timing
16Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
COVID-19 impact and COVID-19 accelerated digital transformation by industry
When will company implement digital transformation initiatives (Pulse survey) 2019
(% of respondents, n=77)
2020
All 4 sectors, apart from
2021
High Technology, Media &
Energy, Resources
& Industrials
Telecommunications,
Life Sciences &
considered the COVID-19 pandemic
Health Care to have had a high impact on their
Consumer
business. Notably, Life Sciences &
Covid-19 Impact
Financial Services
Health Care, and Financial Services
Technology, Media & Telecommunications sectors regarded the pandemic to
have had a high impact as well as
contributing to a high acceleration on
digital transformation.
Low Covid-19 Accelerated Digital Transformation High
17Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Perceived level of urgency and impact of digital transformation after the COVID-19 pandemic
2019
When will company implement digital transformation initiatives (Pulse survey)
(% of respondents, n=77)
2020 2021
Pulse survey
The COVID-19 outbreak
Consumer
greatly affected the Finance
services & LSHC sectors’ plans to
implement digital transformation
Energy, Resources
& Industrials initiatives. For both these sectors,
digital transformation has now been
given a higher priority and recognized
as necessary to implement within 1
Financial year, contrary to prior the pandemic
Services
where digital transformation was only
a plan in the works. There is an evident
trend of a higher importance placed on
Life Sciences & Expect the impact of
Health Care digital disruption
digitalization and an increased urgency
to adapt as a result of the COVID- 19
Implement digital transformation
ahead expected distrubtion timing pandemic.
Technology, Media Implement digital transformation
& Telecom behind expected distrubtion timing
After the Within Within Already
next 3 next 1 year occurring
years 1-3 years /implementing
Timing
18Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Enhancing end-user experience and transforming business processes are key purposes for companies to implement digital
transformation initiatives
Main purposes
(% of respondents, n=87)
62% 62%
60%
57%
Sector: Financial services
The purpose of the digital
Key focus: Enhancing
end-user experience transformation within the Life
Sciences and Health Care sectors is
to transform the business process.
This will provide the firms with
Sector: Technology, Media and
agility that will enhance and refine
Telecommunications operational processes, improve the
Key focus: Using digital patients’ experiences, and save lives.
technologies to accelerate new
product or service development.
Enhancing the Transforming Better utilizing Using digital
digital customer business processes data technologies to
and end-user accelerate new
experience product/services
development
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
19Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Thai companies highly concentrate on both frontend and backend functions, especially sales and marketing as well as production
and finance when implementing digital transformation.
Main focus functions
(% of respondents, n=87)
Sales and
Marketing
78% • 78% of respondents identified Sales and Marketing as the main
function of their companies’ digital transformation initiatives
• This was followed by the Production function, which was
considered by 60% of the total respondents. It is expected that
Production 60%
artificial intelligence will revolutionize the manufacturing sector
due to several benefits such as refining Root Cause Analysis
(RCA), improving production defect detection, and streamlining
predictive maintenance.
Finance 47%
• The Finance function followed, selected by 47% of total
respondents.
Human • Almost all industries, especially Consumer and Financial Services
38%
Resource acknowledge that the Sales and Marketing function is their main
focal area. However, Energy, Resources, and Industrials have
differing views as respondents in these industries prioritize the
Production function.
R&D 28%
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
20Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Technology, Media and Telecom (TMT) and Financial services industries spend higher on digital transformation initiatives
than peers
Budgets on digital transformation initiatives by industry
(% of respondents, n=72)
15% 16% 11%
25%
8% 35% 11%
8%
21%
45% 47% 33%
21% 40%
75%
22%
25% 16%
20%
42% 10% 22%
16%
Consumer Energy, Resources Financial Life Sciences & Technology, Media
& Industrials Services Health Care & Telecom
Less than 1% of total revenue 1-3%of total revenue 4-6% of total revenue 7-9% of total revenue 10% of total revenue or more
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
21Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Pulse Survey shows companies expediting their digital transformation plans to align with the pace of digital disruption
2019
Primary Survey
59%
56%
Pulse Survey
2020 2021
Between the Primary
and Pulse survey we see
21% 22% substantial right shift in
the next stage of digital
10% 12% disruption. In the Pulse
survey, double the number
5% 6%
of companies from the
5% 3%
Primary survey, now identify
Digital Digital Digital Digital Digital themselves as digital adopter
laggard follower evaluator adopter leader and digital leader.
22Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
2019 Basic technologies have already been deployed while only few companies have implemented
advanced technologies
Digital technologies implemented or plan to invest (Primary survey)
2020 2021
(% of respondents, n=87)
Traditional web
technology 74% 15% 9% 2%
Mobile
application 60% 17% 18% 5%
Cloud 1%
59% 29% 9%
2%
Data
analytics 37% 40% 20% 3%
Robotics 25% 21% 17% 15% 22%
Internet
of Things 20% 28% 25% 8% 20%
Artificial
Intelligence 11% 26% 30% 8% 24%
Blockchain 9% 18% 20% 17% 36%
AR or VR 8% 25% 33% 6% 28%
Already implemented Within 1 year Within 1-3 years After the next 3 years No plan
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
23Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
2019
2020 2021
Consistent with results before COVID-19, basic technologies have already been deployed while
only few companies have implemented advanced technologies
Digital technologies implemented or plan to invest (Pulse survey)
(% of respondents, n=55)
Traditional web
technology 87% 4% 9%
Mobile
application 75% 9% 4% 13%
Cloud 78% 4% 7% 4% 7%
Data
analytics 44% 25% 16% 15%
Robotics 24% 7% 20% 4% 45%
Internet
of Things 36% 18% 18% 7% 20%
Artificial
Intelligence 24% 15% 13% 15% 35%
Blockchain 15% 9% 18% 11% 47%
AR or VR 18% 5% 24% 53%
Already implemented Within 1 year Within 1-3 years After the next 3 years No plan
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
24Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Companies escalate plans to implement digital transformation while others deviate
The number of companies that have The number of companies that have
Comparison between the
NO PLAN to implement digital technologies ALREADY IMPLEMENTED digital technologies
Primary and Pulse Survey
displays an increase in all
2% Traditional web 74%
9% technology 87%
+18% technological advancements
Primary Survey
BASIC TECH
apart from Robotics.
Pulse Survey 5% Mobile 60% Significant increases can
+24%
13% application 75%
be seen in Traditional
1%
Cloud
59%
+33%
Web Technology, Mobile
7% 78%
Application, and Cloud.
3% Data 37% Despite this increase, the
+12%
15% analytics 44% opposite phenomenon can
also be observed from the
22% 25%
+23% 45%
Robotics 24% right figure. Not only does it
ADVANCE TECH
show a counter viewpoint,
20% Internet 20%
0%
20% of Things 36%
but also an increase in the
number of companies that
+11%
24% Artificial 11% have no plans to implement
35% Intelligence 24%
digital technologies.
36% 9%
+11% Blockchain 15%
47%
Primary Survey
28% 8% Pulse Survey
+25% AR or VR 18%
53%
25Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Proportion of companies that have implemented basic technologies by sector
Results from both the Primary and Pulse Survey suggests that basic technologies are becoming increasingly popular
among Consumer and Life Sciences & Health Care sectors.
Basic Technologies
Traditional web technology Mobile application Cloud
79% 67% 71%
Consumer
95% v 95% 90%
76% 56% 68%
Energy, Resources & Industrials
79% 64% 57%
68% 64% 36%
Financial Services
100% 56% 78%
75% 25% 50%
Life Sciences & Health Care
80% 80% 80%
67% 58% 58%
Technology, Media & Telecom
71% 57% 86%
Primary Survey Pulse Survey
26Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Proportion of companies that have implemented advance technologies by sector
The Consumer industry exhibits the greatest change in advanced technology implementation percentage from the
Primary to Pulse Survey.
Advance Technologies
Blockchain Artificial Intelligence Internet of Things
4% 4% 21%
Consumer
15% v 35% 45%
8% 8% 16%
Energy, Resources & Industrials
7% 7% 50%
14% 23% 9%
Financial Services
22% 22% 0%
75% 25% 0%
Life Sciences & Health Care
20% 20% 20%
17% 17% 50%
Technology, Media & Telecom
14% 29% 43%
Primary Survey Pulse Survey
27Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Challenges to achieve digital transformation implementation
Challenges to achieve digital transformation implementation
(% of respondents, n=87)
49% 26% Notably, technology is
Lack of internal and Insufficient budget & resources not a major challenge
external expertise
in implementing digital
23% transformation. Rather,
45% Legacy on premises information systems
challenges arise from a lack
Immature digital culture did not easily mesh with new technology
of internal and external
expertise in the relevant
18% fields. Thai corporates reveal
Data privacy & security concerns the three main challenges
37%
Organizational silos they are facing include talent
gap, digital culture, and
10% organization silo. All of which
Lack of the right technologies
have almost nothing to do
30% with technology but revolve
Lack of a coherent
digital strategy & vision
13% around recruiting people with
Lack of senior the right skills to get the job
support & sponsorship done.
11% 9%
Inadequate training programs Regulatory barriers
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
28Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Challenges to achieve digital transformation implementation
Life Sciences & Health Care and Technology, Media & Telecommunications appear to have faced all the top three challenges.
Barriers and Challenges of Digital Transformation Implementation by sector (N=74)
Consumer 65%
Lack of internal and
Financial Services 55%
external expertise
Life Sciences & Health Care 100%
Energy, Resources & Industrials 41%
Immature digital culture
Life Sciences & Health Care 50%
Technology, Media & Telecommunications 50%
Energy, Resources & Industrials 45%
Organizational silos
Life Sciences & Health Care 50%
Technology, Media & Telecommunications 63%
Source: Deloitte analysis based on survey in October 2019
29Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Setbacks in digital transformation can be credited to concerns about low ROI and lack of internal talent
Barriers and Challenges by technology
Blockchain Artificial Intelligence Internet of Things
Not currently Expense of Lack of in-house
identified as a infrastructure capabilities
business priority upgrades
Lack of in-house Inadequate Implementation
capabilities talent/skills
Uncertain ROI Incomplete or Uncertain ROI
incorrect data
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
30Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Digital transformation has shown to improve customer experience, employee productivity, and reduce costs
Successful results
(% of respondents, n=87)
Improved
customer experience 59% • Data suggests that digital
transformation improved customer
Increased experience, increased employee
43%
employee productivity productivity, and reduced cost.
• Only 25% of respondents noted an
Reduced cost 38% increase in revenue due to digital
transformation, ranking lowest out of
Created new all the results.
business model 32%
• The sectors that reported increase
Enabled better utilization revenue were Technology, Media
of existing asset 31% and Telecommunications, and Life
Sciences and Health Care.
Delivered new
product or service 28%
Increased revenue 25%
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
31Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Digital transformation initiatives results
More than half of respondents credited digital transformation for successfully improving their business performances.
Digital transformation initiatives result
(% of respondents, n=76)
• Only 13% of total respondents stated that
13% 59% digital transformation improved their respective
Successfully improved Partially successful company’s business performance which they
business performance in improving business were able to sustain long term. Most of these
and also sustained performance companies were from the Financial Services and
performances in the Technology, Media, and Telecommunications
long term sectors.
• On the contrary, 7% of total respondents,
particularly from the Life Sciences and Health
7% Care sector, stated that digital transformation
21% Successfully improved Unsuccessfully did not improve their business performance.
business performance improved business
• Nonetheless, almost 60% of total respondents
but were not performance
regarded their company as partially successful
sustained
in improving business performance. This aligns
performances in the
with previous data that only one-fourth of total
long term
respondents saw an increase in revenue.
Source: Deloitte analysis based on survey in October 2019
32Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Deloitte’s recommendations to overcome these challenges
To overcome these challenges businesses should consider the following suggestions.
Breaking down functional silos Build digital mindset by shifting Technology is not the only
and focusing on cross-functional cultural mindsets to learn most important element for
collaboration or cross-functional cheap, learn fast and fail fast. conducting digital
team is considered crucial to transformation but also
success in digital environments. talents.
Source: Deloitte analysis
33Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Exploring digital
transformation Identifying areas of
implementations government support in
digital transformation
How have companies Pinpointing digital
Interpreting perceptions initiated digital transformation skill demands How can the government assist
towards digital disruptions transformation? these companies towards their
What are the skill set that digital transformation journey?
How do the companies perceive companies look for?
digital transformation?
34Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Thai companies are seeking out for individuals with analytical thinking, creativity, adaptability and leadership skills
Soft skills requirement
(% of respondents, n=77)
Survey results show that
49% analytical thinking is the
top soft skill requirement.
This is followed by
38% 36% 36% creativity, adaptability,
32% and leadership skills. The
30%
top four skills suggests
22% that there is a growing
21%
demand for individuals
who have learning
12% 12%
agility and hold strong
emotional intelligence.
4%
Analytical Creativity Adaptability Leadership Collaboration Active Complex Critical Complex Productivity Emotional
thinking learning problem- thinking communication and intelligence
solving Accountability
Source: Deloitte analysis based on survey in October 2019
35Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Thailand and Global market seeks out for those with analytical thinking and innovation skills
Comparing skills demand, 2020 vs. 2025, top ten
Skill demand in Thailand market in 2020 Expected skill demand in Global market in 2025
According to the survey
1. Analytical thinking and innovation 1. Analytical thinking and innovation from World Economic
2. Active learning and learning strategies 2. Active learning and learning strategies Forum, skills that were
most in-demand in
3. Critical thinking and analysis 3. Complex problem-solving and ideation
Thailand in 2020 were
4. Leadership and social influence 4. Critical thinking and analysis analytical thinking
5. Complex problem-solving 5. Creativity, originality and initiative and innovation, active
learning and learning
6. Creativity, originality and initiative 6. Leadership and social influence
strategies, and critical
7. Technology use, monitoring and control 7. Technology use, monitoring and control thinking and analysis.
8. Technology design and programming 8. Technology design and programming This aligns with the
expected skillset demand
9. Reasoning, problem-solving and ideation 9. Resilience, stress tolerance and flexibility
in the global market
10. Resilience, stress tolerance and flexibility 10. Reasoning, problem-solving and ideation in 2025 which are also
topped by analytical
thinking and innovation,
Source: Future of Jobs Survey 2020, World Economic Forum
active learning and
learning strategies.
36Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
2019
Talent gap prior to the COVID-19 pandemic
Talent
2020
gap for digital skills (Primary Survey)
2021
(% of respondents, n=77)
High
Data Analysts and Scientists
This graph shows a cluster in the
top-right quadrant, which are
Digital Transformation Specialists
considered to most important
Recruitment challenge
AI and Machine
Digital Marketing and yet most challenging to recruit
Learning Specialists
Process Automation Strategy Specialists
Specialists roles including Data Analysts and
Software and Applications
Developers and Analysts Scientists, Digital Transformation
Ecommerce and Specialists and Digital Marketing, and
Social Media Specialists User Experience
Information Designers Strategy Specialists.
Robotics Specialists Security Analysts
and Engineers
Cloud and IT Infrastructure Specialist
Low Important High
372019 Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Talent gap after the start of the COVID-19 pandemic
2020 2021
Talent gap for digital skills (Pulse survey)
(% of respondents, n=77) This graph indicates that while
some positions have become less
important since the start of the
High
COVID-19 pandemic, positions
such as Data Analysts, Software
and Applications Developers and
Analysts and Digital Marketing and
Software and Applications
Strategy Specialists remain in high
Recruitment challenge
Developers and Analysts Data Analysts
and Scientists demand. This could be attributed
AI and Machine Digital Marketing and to the limited size of workforce
Learning Specialists Process Automation Strategy Specialists
Specialists
available in the market during these
Digital Transformation Specialists
unprecedented times. Notably,
Information
Ecommerce
Security Analysts
Digital Marketing and Strategy
User Experience Designers and Social Media
Specialists
Specialists gained more importance
Robotics Specialists and Engineers since the COVID-19 outbreak.
Cloud and IT Infrastructure Specialist
Low Important High
382019 Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Demand for Data Analyst and Scientists after COVID-19 pandemic by sector
2020 2021
Talent gap for digital skills (Pulse survey)
(% of respondents, n=77)
High
Financial Services
Life Sciences & Health Care
Recruitment challenge
Technology, Media & Telecom
Data from the Pulse Survey shows
the Financial Services and Life
Consumer
Energy, Resources & Industrials Sciences & Health Care sectors in
top-right quadrant, which indicates
a high demand in these industries to
recruit Data Analysts and Scientists.
This further denotes that in order
to make digital transformation
initiatives during the COVID-19
Low High
pandemic, these two sectors must
accelerate their plans to seek out
talent with digital skills.
39Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Exploring digital
transformation Identifying areas of
implementations government support in
digital transformation
How have companies Pinpointing digital
Interpreting perceptions initiated digital transformation skill demands How can the government assist
towards digital disruptions transformation? these companies towards their
What are the skill set that digital transformation journey?
How do the companies perceive companies look for?
digital transformation?
40Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Tax incentive, ease regulation and infrastructure are the most popular requirements from companies
Requirement from companies to government • Tax incentives, easing regulations, and well-
(% of respondents, n=76) established infrastructure are the most
popular demands companies wish they
had from the government. According to our
survey, of the total respondents regardless
11%
7% 4%
17%
7% of their industries, respondents argued that
9% 14% 11% tax incentives, easing regulations and well-
15%
7% 14%
16% 17% 14% established infrastructure are the demands
22% 8%
13% they wish they had from the government
8% 17% 8% 11%
18% with 22%, 18%, and 15% of total respondents,
15% 17% respectively.
17%
13% 14% 18%
18%
15% • At the industry level, the majority of
16% 25%
20% respondents in Technology, Media, and
14% 28% 32% Telecom admitted they would like to receive
15% 21% 17%
12% tax incentives. Also, a similar story is seen
in Consumer and Energy, Resources and
Industrials with tax incentives receiving the
Consumer Energy, Resources Financial Life Sciences & Technology, Media highest percentage. Meanwhile, Life Science
& Industrials Services Health Care & Telecom
and Health Care and Financial Services prefer
easing regulation the most. For financial
Tax incentive Ease Regulation Infrastructure eGovernment Collaboration Skill Development Funding institutions, their business model is strictly
regulated by policymakers i.e., Ministry of
Source: Deloitte analysis based on Digital Transformation and Technology Survey in October 2019
Finance, Bank of Thailand, etc. As a result,
unsurprisingly, reducing or easing regulations
has become the top priority for Financial
Services.
41Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Thai Government Initiatives for Digital Transformation
Ease regulation
Tax incentive Over the past few years, the Thai government has
The Board of Investment launched various new laws and regulations to support the
(BOI) is currently promoting implementation of its digital economy policy.
the digital industry through
a corporate income tax The goal is to enhance convenience, reduce obstacles, and
exemption of 5-8 years with a increase efficiency in online activities and transactions.
focus on four groups;
• Software Example of Thai laws and regulations
• Infrastructure • Electronic Transactions Act
• Technology development and • Computer Crime Act
startups through software • Digital Development for Economy and Society Act
development • Data Privacy Act
• Digital services such as • National Cyber Security Act
software applications, games,
IoT, Big Data, and AI
Infrastructure
The government aims to provide infrastructure
to ensure high- speed internet access, internet
connectivity, as well as the connection of submarine
cables and clusters for the digital industry.
Source: BOI
42Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
The Secret Sauce of
Driving Successful Digital
Transformation
The roles and characteristics of Chief Digital
Officer (CDO) and how CDO can help orchestrate
the digital transformation journey
As information technology has dramatically reshaped all industries,
many companies are pursuing and driving the digital transformation
initiatives, in an effort to capture the benefits of these trends or
simply catch up their peers. Yet, success in these transformations
is not guaranteed, and in fact, facing a highly challenging as being
observed from Deloitte’s Thailand Digital Transformation survey.
43Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
The Secret Sauce of Driving Successful Digital Transformation
The roles and characteristics of Chief Digital Officer (CDO) and how CDO can help orchestrate the digital transformation journey
THE CDO ENHANCES THE REST OF THE C-SUITE
• To make digital industrial
transformation a reality, a company
CEO
needs both a nerve center and a
CFO Be the catalysts for the dedicated digital function.
transformation and innovation CMO
Drive better outcomes to the
agenda of the CEO. • Creating an operational structure
bottom line. With the right
mandate and direction,
Support the shift from with digital leader is key to drive the
transactional marketing to
digital becomes an enabler
engagement served up
transformation successfully.
to save money and drive
through social, mobile,
new revenue. Either way,
search and wearables.
• The organization would need to
gross margins can rise. appoint so-called a chief digital officer
(CDO), a senior leader responsible for
the organization’s long-term digital
The CDO
vision and the subsequent execution
can: of the transformation efforts.
CSO
CIO • CDO think holistically about how a
Build a complementary team company’s strategy is executed across
Support the strategic direction of technical resources with all digital channels. They own and
of the organization by creating new skills, new outputs and
new opportunities to enter new time to value.CDO = front drive digital strategy throughout the
markets, drive new COO end;CIO = back end organization to help business unit
opportunities and change the
direction of the company.
leaders unlock value.
Enable operational efficiencies in the
organization. This includes digitizing
internal operations as well as creating
end user tools that can lessen the
burden on contract centre resources.
44Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Core leaderships skills for CDO
Many required core leadership skills remain the same whether it is a business or digital leader, there are some demands of digital disruption
call for certain new skills.
• Transformative vision and forward-
looking perspective - the most important
Transformative Vision & skill which includes the ability to anticipate
Forward-looking perspective markets and trends, make savvy business
decisions and solve tough problems in
turbulent times.
• Digital literacy - a must-have skill, the
leader needs to have general digital
literacy, as opposed to hard-core technical
skills. It is often much easier and more
effective to equip the business leaders
CDO become digitally literate than it is to teach
Leadership
technologists the strategic and business
Skills
knowledge.
• Adaptability - as the pace of change in
digital world, a leader must also be change
oriented - that is open-minded, adaptable,
and innovative.
Adaptability Digital
Literacy
45Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Chief Digital Officer Archetypes
Digital Leaders are categorized into one of the four archetypes, with each driving distinct strategic objectives
The The innovative The market-minded The technology • The Disrupter - focus on transforming
disrupter integrator maven integrator
existing business models and ways of working
who typically reporting to the CEO
• The innovative integrator - integrates
ARCHETYPE DESCRIPTION ARCHETYPE DESCRIPTION ARCHETYPE DESCRIPTION ARCHETYPE DESCRIPTION
customer sensing and insights with
CDO has mandate to CDO integrates customer CDO drives new digital CDO is technology-
operational capability improvements.
transform existing sensing and insights with solutions for customer- centric and uses digital Primarily focus on the highest-priority
business models and ways operational capability facing channels and innovation to accelerate innovations and may lack of full control over
of working improvements routes to market change
all digital execution.
REPORTING INTO REPORTING INTO REPORTING INTO REPORTING INTO
CEO CEO CMO/CRO CIO/CTO
• The market-minded maven - drives digital
initiatives for customer-facing channels and
PROS PROS PROS PROS
routes to market. Focus on customer growth
• High decision efficiency • Focused on highest- • Digital initiatives • Stable demands and work
• Very agile and responsive priority innovations prioritized on customer plans increase
and customer experience, downsides may
to customer demands • Able to respond with and growth impact development efficiency be disconnected from other ‘non’ front-end
agility to customer need • Accountability for • Focus on single outcomes business units.
end-to-end ustomer can result in optimized
experience operations • The technology integrator - technology-
CONS CONS CONS CONS centric and uses digital innovation to
• Too many changes at once • May not have full control • Removed from CEO, which • Less adaptable to accelerate change in the organization. Usually
may overwhelm the over all digital execution could restrict large changing business needs report to CIO or CTO with single-outcome
organization (e.g., product RandD) investments • Key components of
• Accountability falls all on • Disconnected from business strategy may be
initiatives and highly stable workplans, might
the CDO business units, which may overlooked be limit perspective and not quick enough to
limit adoption adapt to the changing business needs.
46Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Digital Function
The key elements that will help CDOs achieving their vision and goals delivery of transformation initiatives across the company.
Digital strategy
• Digital strategy - acts as a digital North star to help better
Establishes a well-defined digital strategy and policies that align with the broader business
priorities, and develops a prioritized road map for digital transformation efforts
communicate and guide all digital initiatives across the enterprise.
Organization should seek inputs from various stakeholders
(customers, partners, shareholders, communities), prioritize and
Digital investment
schedule the plan and finally get validated.
Develops the funding governance mechanism for transformation efforts, drives alignment of
investments to the strategy, and attains cross-functional buy-in on the road map • Digital investment - CDO should oversee the investment
governance model to help creating influence across the
Digital operations organization.
Drives accountability across the organization through scorecards and business capability
maps; facilitates alignment and execution of road map across business and technical teams • Digital operations - served as a backbone of all digital activities.
It must be clearly lay out governance, accountability and metrics to
Customer-centricity consistently monitor digital initiatives’ efficiency and execution.
Implements structured mechanism to aggregate customer feedback and develops customer-sensing • Digitalization of customer journey - may begin with the
capabilities that use insights to deliver solutions that respond to customer needs
development of a sense-and-respond capability to gather
customer information and leverage feedback to take action to
Digital DNA
deliver business capability improvements.
Embeds an adaptive and responsive culture across the business to strengthen the adoption of
digital mindset, especially a product-centric mindset and agile ways of working • Digital DNA - which is centered around embedded a digital-first
mindset and ways of working into an organization. It can serve
as a blueprint for bringing a digital transformation to life, to help
companies to organize, operate and behave in digital ways.
47Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Digital Operations
Three primary operating models are used during digital transformations
KEY
• The decentralized model – for well-communicated
Level of digital function control
and relatively high maturity of digital literacy in an
High Low
openness and trusted environment. CDO team acts
as a center of excellence that shares knowledge and
enables delivery teams.
• Federated model – for organizations that
Digital Digital Digital
Function Function Function executives in other units are mandated to deliver
sustainable operational change plus the initiatives
that affect and require multiple or cross-functional
collaboration team for success. In this model, digital
Function 1 Function 2 Function 3 Function
Fun 1 Function 2 Function 3 Function 1 Function 2 Function 3
team member is embedded within the business
Decentralized Unified unit’s delivery teams.
The decentralized model The federated model The unified model
• Unified model – for organizations that has
relatively low levels of digital capability maturity or
the digital strategy is focused on specific and limited
scope in less complex organizational structure. The
Digital function acts as a center of Digital function collaborates with Digital function establishes strategy CDO team will owns end-to-end execution teams for
excellence that shares knowledge functions to create strategic direction and evaluates all digital initiatives
and enables delivery teams
all initiatives.
A digital team member is The digital function owns
embedded within the delivery teams end-to-end execution teams
to drive end-to-end execution of for all digital initiatives
initiatives
Source: Deloitte analysis.
48Thailand Digital Transformation Survey Report 2021 | The Impact of COVID-19
Contributors
Thailand Digital Transformation Survey Report 2021: The Impact of COVID-19
Narain Chutijirawong. Ph.D. Viney Hora
Director Executive Director
Clients and Industries Deloitte Consulting
nchutijirawong@deloitte.com vhora@deloitte.com
Malee Ekviriyakit Chananya Bunyalug
Consultant Analyst
Clients and Industries Clients and Industries
mekviriyakit@deloitte.com cbunyalug@deloitte.com
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