Organizations in Australia made the greatest progress and ranked first this year, followed by Singapore, New Zealand and South Korea.
Although increased technology adoption during the pandemic has accelerated digital transformation, seven out of 10 organizations in Hong Kong (69%) still lag behind in digital agility and fall into the slow or tactical stages of maturity digital agility. Especially since cross-departmental collaboration was the biggest challenge for organizations in the pursuit of digital transformation, according to research commissioned by Workday.
Conducted in association with IDC, the IDC-Workday Asia/Pacific Digital Agility Index 2022 surveyed more than 800 HR, IT and finance leaders from nine Asia-Pacific (APAC) markets. They all come from large companies with more than 1,000 employees.
The study highlights the extent to which APAC organizations have advanced in digital agility since the COVID-19 pandemic, and assesses and ranks organizations based on the Digital Agility Index (DAI). Based on their scores, organizations are identified as either “Agility Leaders” if they are in the Agile/Integrated stages of digital agility maturity, or “Agility Followers” if is determined that they are in the slow/tactical stages.
Hong Kong ranked fifth – as in 2020 – among the nine markets surveyed in this year’s Digital Agility Index, seeing DAI scores increase by 0.3 from 1.9 in 2020 to 2.2 This year. Although only three in 10 organizations (31%) are in advanced stages of digital agility, the city is seeing a leap in this figure, with a 16 percentage point increase from 2020.
Organizations in Australia have made the greatest strides in digital transformation efforts and ranked first this year, followed by Singapore, New Zealand and South Korea. Only 38% of APAC organizations were in advanced stages of digital agility. Nevertheless, progress is being made overall, as this figure reflects an increase of 18 percentage points compared to 2020.
Complete digital agility rankings in APAC:
- New Zealand
- South Korea
- hong kong
The study also found that the lack of integrated HR, finance, and automation processes hampered digital agility. Key findings include:
- 88% of organizations in Hong Kong, HR and finance processes are disconnected, lacking a holistic view of resources for HR and finance planning;
- Only 7% of finance professionals have automation capabilities to detect and predict potential financial disruptions;
- 47% of IT professionals said their organizations have monolithic architectures with tactical technology upgrades;
- 53% of HR managers in Hong Kong said they face challenges in delivering high HR service standards in times of rapid change;
- Only 40% of organizations in Hong Kong have enterprise talent management systems and policies that maximize talent attraction and retention; and
- About one in three (31%) manage talent by having a holistic strategy with employee engagement and data analysis to identify training needs and areas for growth.
“As the war for talent escalates, organizations must take a strategic approach to talent management and ensure the right technologies are in place to support and engage employees holistically,” said Daniel Cham, Managing Director of Workday Greater China.
“Organizations must emulate agile leaders and move from tactical transformations to enterprise-wide transformations in their culture, people, processes, and technology implementation,” echoes Lawrence Cheok, Associate Research Director of Digital Transformation at IDC.
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