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Indian companies are bullish on accelerating the digitialisation process with an aim to increase revenue from digital products and services, according to a recent Microsoft and IDC report.
Indian companies are aiming at increasing their revenue from digital products and services to 50 per cent in the next 3 years from 36 per cent at present.
According to Vasant Rao, Managing Director – India and South Asia, IDC, the confidence and the investments going into digitalisation are a lot more and therefore, close to 50 per cent of revenue will come in from digital products and services in the next three years.
Innovation is key
With the increased focus on digitalisation, companies are realising the value of innovation. With Covid-19 has accelerating the pace of digital adoption, 77 per cent of businesses in India consider that innovation is now a ‘must’ for them to respond quickly to market challenges and opportunities, as per the report.
“Innovation is no longer an option, but a necessity. We have seen how the recent crisis has spurred the need for transformation; for organizations to adapt and innovate in order to emerge stronger,” said Rajiv Sodhi, COO, Microsoft India.
“We commissioned this research to gain better understanding of the relationship between having a culture of innovation and an organization’s growth. But now, more than achieving growth, we see that having a mature culture of innovation translates to resilience, and strength to withstand economic crises to recover,” he added.
As per the report, 78 per cent of Indian organisations are accelerating the pace of digitalisation in response to the crisis. For 64 per cent of respondents, innovation in products and services has become easier in the post-COVID-19 era, as compared to 32.5 per cent prior to the pandemic.
“In a short span of six months, organizations in India have increased their ability to innovate by 4 per cent by maturing their Culture of Innovation,” the report said.
“We see amongst leaders a constant appetite for growth and evolution. During COVID-19, 31 per cent of firms in India said they think their business model will lose competitiveness in five years’ time. This desire and urgency for continuous improvement through agility and adaptation to change will determine the success of businesses in this new normal,” said Rao.
Moving forward, 45 per cent of Indian organisations stated that that they will focus on technology while 18.5 per cent businesses will focus on their workforce. This includes the diversity of their workforce as well.
Some best practices in organisations will include “developing a culture that promotes investing in disruptive technologies and leveraging data to differentiate and enhance products and services.” Companies will also focus on skilling their workforce to drive innovation through ongoing learning.
“The ability to reconfigure your entire HR practices, your internal operations and systems to ensure that employees can work from anywhere while delivering goods and services is now going to be their priority over the 12 month period,” said Rao.
The study is based on a survey of 439 business decision-makers and 438 workers in India within a 6-month period, before and since Covid-19. The India study was part of a broader survey among 3,312 business decision-makers and 3,495 workers across 15 markets in Asia Pacific region.
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