Market research shows Chinese companies getting digital edge


Visitors check out automated logistics at a booth during the CeMAT Asia, one of Asia's largest logistics exhibitions, held in Shanghai in November 2020. - Photo provided to China Daily

BEIJING (China Daily/Asia News Network): Chinese companies are speeding up their digital transformation and deploying innovative technologies including cloud computing, artificial intelligence and big data to improve operational efficiency and reduce costs, according to market research company International Data Corp.

"The next five years will be a golden period for pushing forward digitalisation, and the governments around the world have attached great significance to digitalisation," said Kitty Fok, managing director of IDC China, adding rapid development of the digital economy will bolster the advancement of digitalisation.

Fok made the remarks during the 2021 IDC Digital Transformation Summit on Friday (Oct 15). She said 65 per cent of global gross domestic product is projected to be digitised by 2022, and direct investment in digital transformation worldwide will surpass $6.8 trillion from 2020 to 2023.

More efforts must be made to enhance enterprises' organisational innovation abilities and technology architecture capacities, as well as to strengthen overall competitiveness in the process of digital transformation, Fok added.

China's information and communication technology market is expected to reach US$711.1 billion in 2021, up 9.3 per cent from 2020. The country's expenditure on digital transformation is estimated to reach $1.5 trillion in the 2021-2024 period, with an average annual growth rate of 17 per cent, IDC said in an earlier report.

As of 2025, the digital economy is expected to account for 70 per cent of the country's GDP, boosted by the "new infrastructure" and dual-circulation development paradigm, it added.

Wu Lianfeng, vice-president and chief research analyst of IDC China, said Chinese enterprises are facing unprecedented new challenges and more than 80 per cent of enterprises are poor in digital resiliency.

Digital resiliency is the ability of an organization to rapidly adapt to business disruptions, leverage digital capabilities to maintain continuous business operations, and quickly adjust to take advantage of changed conditions.

The country's digital economy was worth nearly $5.4 trillion last year, ranking second in the world. That represented a year-on-year growth of 9.6 per cent, the fastest in the world, said a white paper released by the China Academy of Information and Communications Technology, a government think tank.

Li Wei, deputy head of cloud computing and big data research at the CAICT, said the digitalisation of enterprises serves as the cornerstone of the digital economy.

Enterprises should speed up the pace of digital transformation, concentrate on consumers' requirements, integrate online and offline channels, as well as promote the transformation and upgrade of traditional industries, Li said.

Amazon's cloud service platform, Amazon Web Services, is banking on the rapid growth of the cloud computing market in China and stepping up efforts to offer more cloud services and products to boost the digital transformation efforts of enterprises.

It plans to speed up the landing of new cloud services and functions in China in accordance with the demands of Chinese customers, and help Chinese enterprises digitise their operations and enhance working efficiency.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

China , digitalisation , IDC , market , research

   

Next In Aseanplus News

Amos Yee jailed in US for child porn
Tourism pause helps clean up island
Baby elephant recovering after life-saving care
Heavenly Palace Class to be broadcast around the globe
Alleged Italian priest killer nabbed
Asean News Headlines as at 9pm on Friday (Dec 3)
Philippines tightens requirement for entry of vaccinated travellers over Omicron variant
Indonesia reports 245 newly-confirmed Covid-19 cases, 8 more deaths
Daily antigen rapid tests for all VTL travellers arriving in Singapore from Dec 7
WHO chief scientist says Omicron 'quite infectious', must not panic

Others Also Read


Vouchers