DBS Research: Delegation and Empowerment of Teams are Key Drivers of Digital Transformation for Companies in Indonesia | Bahasa
● Main priority of digital transformation is increasing profitability and capturing value
● Unclear organizational strategy and gaps in talent are the biggest obstacles in accelerating digital transformation
Indonesia, 26 Jan 2023 - Latest research by DBS Bank Ltd (DBS) on digital transformation found widespread enthusiasm among companies to digitalise customer experience and engagement but was combined with frustration about the challenges they faced in achieving success.
The findings were based on a global survey of 1,225 executives from commercial and finance/treasury teams across 22 markets in APAC, Europe and the United States, representing one of the firsts of its kind to balance the perspectives of these two groups.
The research revealed that 64% of businesses globally carried out a structured approach to customer-facing digital transformation with a further 33% pursuing ad-hoc upgrades. Nonetheless, just 17% said their activity in this area had been very effective, and about four in 10 (39%) said their transformation efforts had either failed or were underwhelming.
This survey finds the readiness of companies globally to succeed in digital transformation which is divided into three categories, one of them is "leaders" or companies that are able to carry out transformations in a consistent, strategic and effective manner. In Asia, Indonesia has the highest proportion of leaders (13%), followed by Vietnam and India (12%), Singapore and China (10%), Taiwan (9%), and Hong Kong (7%).
Lim Soon Chong, Group Head, Global Transaction Services, DBS, said, “Besides investing in technology, the market leaders in digital transformation understand that new skills are needed for a more digital future. The market leaders act to build a strong talent pipeline and to inculcate a partnership mindset across teams.”
The challenge that is often faced by companies in Indonesia when the finance and treasury divisions work together for digital transformation is the difference in measuring success (49%) and the difficulty of accessing data (43%). These companies say Cloud (49%), advanced analytics (46%), and Application Programming Interface or API (44%) are the most important digital and payment technologies for realizing digital transformation in the finance and treasury divisions.
Within the scope of the treasury, respondents prioritized financial reporting (46%) as the main aspect of digitization. In addition, there are investment (38%), procurement (33%), capital management (26%), cash and liquidity management (23%), and risk management (23%). When collaborating with external parties to develop banking innovation and digital transformation, more than half of respondents prefer to work with banks (54%), followed by fintech (21%), consultants (8%), and a combination of the three (18%).
To help businesses achieve their commercial goals, sales and marketing (36%) are the areas most needed in digital transformation, followed by finance/treasury (25%), while human resources or HR is at the bottom (3%).
Tan Su Shan, Group Head of Institutional Banking, DBS, said, “With the acceleration of digital adoption in a post-COVID-19 world, treasury and commercial functions have to collaborate and adapt to a new way of working that encompasses the use of data analytics, AI and even blockchain-enabled platforms to function more effectively and efficiently.”
“This new way of working will necessitate a cultural mindset shift to one where business owners and treasurers are open to using machine-driven models to help make predictions, stress-test risk parameters or just to make more informed decisions,” she added.
She highlighted that digital transformation is a continuous journey for organisations that are willing to take the leap of faith. “Teams need to be aligned on a north star with a clear strategic vision. To be successful, they must also be open to accepting failures, be quick to learn from them and continuously improve.”
Indonesia is also taking steps to achieve digital transformation. Therefore, a customer-centric approach and radical innovation are increasingly important to accelerate digital transformation.
About the research
The survey was completed by 1,225 respondents between June and August 2022, from a total of 15 industry sectors and 22 markets worldwide. Respondents were 50% C-suite and 50% C-1, with 50% from finance/treasury and 50% from commercial functions including sales and digital transformation teams focused on customer engagement. The majority (60%) of respondents were from $1bn+ businesses.
Research was carried out by FT Longitude, the specialist thought leadership division of the Financial Times Group. More information
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
The findings were based on a global survey of 1,225 executives from commercial and finance/treasury teams across 22 markets in APAC, Europe and the United States, representing one of the firsts of its kind to balance the perspectives of these two groups.
The research revealed that 64% of businesses globally carried out a structured approach to customer-facing digital transformation with a further 33% pursuing ad-hoc upgrades. Nonetheless, just 17% said their activity in this area had been very effective, and about four in 10 (39%) said their transformation efforts had either failed or were underwhelming.
This survey finds the readiness of companies globally to succeed in digital transformation which is divided into three categories, one of them is "leaders" or companies that are able to carry out transformations in a consistent, strategic and effective manner. In Asia, Indonesia has the highest proportion of leaders (13%), followed by Vietnam and India (12%), Singapore and China (10%), Taiwan (9%), and Hong Kong (7%).
Lim Soon Chong, Group Head, Global Transaction Services, DBS, said, “Besides investing in technology, the market leaders in digital transformation understand that new skills are needed for a more digital future. The market leaders act to build a strong talent pipeline and to inculcate a partnership mindset across teams.”
The challenge that is often faced by companies in Indonesia when the finance and treasury divisions work together for digital transformation is the difference in measuring success (49%) and the difficulty of accessing data (43%). These companies say Cloud (49%), advanced analytics (46%), and Application Programming Interface or API (44%) are the most important digital and payment technologies for realizing digital transformation in the finance and treasury divisions.
Within the scope of the treasury, respondents prioritized financial reporting (46%) as the main aspect of digitization. In addition, there are investment (38%), procurement (33%), capital management (26%), cash and liquidity management (23%), and risk management (23%). When collaborating with external parties to develop banking innovation and digital transformation, more than half of respondents prefer to work with banks (54%), followed by fintech (21%), consultants (8%), and a combination of the three (18%).
To help businesses achieve their commercial goals, sales and marketing (36%) are the areas most needed in digital transformation, followed by finance/treasury (25%), while human resources or HR is at the bottom (3%).
Tan Su Shan, Group Head of Institutional Banking, DBS, said, “With the acceleration of digital adoption in a post-COVID-19 world, treasury and commercial functions have to collaborate and adapt to a new way of working that encompasses the use of data analytics, AI and even blockchain-enabled platforms to function more effectively and efficiently.”
“This new way of working will necessitate a cultural mindset shift to one where business owners and treasurers are open to using machine-driven models to help make predictions, stress-test risk parameters or just to make more informed decisions,” she added.
She highlighted that digital transformation is a continuous journey for organisations that are willing to take the leap of faith. “Teams need to be aligned on a north star with a clear strategic vision. To be successful, they must also be open to accepting failures, be quick to learn from them and continuously improve.”
Indonesia is also taking steps to achieve digital transformation. Therefore, a customer-centric approach and radical innovation are increasingly important to accelerate digital transformation.
About the research
The survey was completed by 1,225 respondents between June and August 2022, from a total of 15 industry sectors and 22 markets worldwide. Respondents were 50% C-suite and 50% C-1, with 50% from finance/treasury and 50% from commercial functions including sales and digital transformation teams focused on customer engagement. The majority (60%) of respondents were from $1bn+ businesses.
Research was carried out by FT Longitude, the specialist thought leadership division of the Financial Times Group. More information
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
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World's Best Bank 2025, 2018 - 2022
Euromoney, Global Finance, The Banker
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