The Asia-Pacific region is beginning to face the inflationary pressures and looming recession that major economies in North America and Europe faced in 2022. However, 2023 will set the stage for the future as the long shadow of uncertainty continues to stretch as technology leaders prepare to make smart investments that will strengthen their resilience and ensure future growth.
Here are some of Forrester’s key predictions for technology in APAC in 2023:
- Adoption of digital industrial platforms in the region will increase by 30%. APAC’s manufacturing, construction, utilities and other industrial companies, which account for 45% of global industry value creation, will lead industry-wide adoption of clouds via digital industrial platforms (DIPs) that enable companies to connect and analyze industrial data (bridging operation technology). [OT] and information technology [IT]) and deliver sustainable customer benefits. With government encouragement and demand for business resilience and technology self-sufficiency, we expect companies in China, Japan, South Korea and Australia to accelerate their local DIP adoption in 2023.
- Investments in industrial metaverse initiatives will double. In 2022, BMW opened the world’s first digitally designed manufacturing facility in China and Hyundai announced a partnership with Unity Technologies. None of these are fully realized metaverses, but Manufacturing is leading the way in moving beyond today’s metaverse precursors to more integrated environments. Manufacturers should take a closer look at existing industrial metaverse initiatives and decide how they can deliver real employee or customer value.
- Ten percent of automation budgets will be shifted toward resiliency, and process intelligence will revitalize 20% of failed RPA programs. The uncertainty will push tech leaders into a defensive position, addressing known issues and risks, and moving from transformation to resilience – a more rational approach. In particular, 40% of APAC companies that have adopted robotic process automation (RPA) are still beginners and are struggling to identify high-value processes for automation. You need process intelligence solutions to revitalize stalled or stagnant RPA programs.
- 35% of relevant companies will integrate physical robotics into mainstream technology. Japan’s population is the oldest in the world; Singapore, South Korea and China are also facing population declines. Labor shortages are forcing companies to seek robot workers to maintain resilience. Industries such as food and beverage, janitorial services, commercial and home deliveries, healthcare and manufacturing will all benefit from autonomous mobile robots, collaborative robots, robotic security personnel and drones for inspection.
- The number of cybersecurity startups headquartered in APAC will increase by 10%. Before the outbreak of the COVID-19 pandemic, only 61 out of 1,547 global startups were from APAC. As organizations in Australia, Singapore and India invest, support and nurture cybersecurity startups and governments increase investment in cybersecurity in the region, we expect the number of APAC cybersecurity startups to increase in 2023. CISOs in the region should develop a startup scouting capacity and support the local innovation scene.
- Cloud native first strategy and cloud financial operations will be the focus. APAC companies will continue to prioritize container-based, microservices-focused architectures with distributed capabilities that can benefit a range of technology areas including AI/ML, data management, IoT, 5G, edge computing and blockchain. While many users rely solely on cloud-native tools due to free access and lightweight optimization features, they must opt for third-party cloud cost management and optimization tools to face the looming inflation and threat of a recession.
- One in four technical leaders will report to their board on AI governance. Eighty percent of data and analytics decision makers in APAC are developing AI technologies, ahead of their global peers (73%). With this widespread adoption, regulation and demand for trust in AI, one in four CIOs and CTOs will be driven to lead AI governance, which will become a board-level issue alongside cybersecurity and compliance. Future-ready tech leaders should embrace their new AI governance role and seize the opportunity to put an ethical technology strategy into practice across the organization.
Discover the Hub for predictions for additional resources and insights.
This post was originally written by Principal Analyst Danny Mu here.