According to a new survey by Economist Impact and Red Hat, cloud computing is leading the adoption of emerging technologies in the Asia-Pacific region

Anatomy of adaptive leaders: Navigating emerging technologies, developed by Economist Impact and commissioned by Red Hat, has been released. According to the study, cloud computing is the dominant emerging technology in APAC, with 85% of business leaders saying their organizations have already started adopting the technology.

The transportation, retail, and insurance sectors have the highest rates of full adoption

Charles Ross, Head of Policy and Insights at Economist Impact, said: "Across the Asia Pacific region, the economic downturn has had a negative impact on the profitability of most businesses. In response, many businesses are looking to improve productivity by prioritizing investments in areas such as cloud computing, data platforms, and generative AI. But the implementation of these technologies is not an easy task, as businesses need to grapple with the cost of investment and digital skills required in the face of growing cybersecurity concerns. The good news is that in these challenging times, business leaders are stepping up collaboration and recognizing that the more effective way to succeed in business is for everyone to work towards a shared vision. ”

The emerging technology landscape in the Asia-Pacific region

This study shows that most companies in APAC have made positive progress in integrating emerging technologies into their business, particularly cloud adoption. The early adoption of AI, including generative AI and data platforms, is also evident. Respondents said the adoption of these technologies has improved competitiveness, productivity and efficiency.

Marjet Andriesse, senior vice president and general manager, Asia Pacific, Red Hat, said, "The Economist Impact report provides a better understanding of the business landscape in the Asia-Pacific region. The region's economy continues to be resilient amid the current complex situation and persistent headwinds. Most businesses in the Asia-Pacific region have made progress in integrating emerging technologies into their businesses. We are pleased to see the wider adoption of cloud computing among enterprises in the region, with high early adoption rates in APAC in terms of AI, generative AI and data platforms. As businesses look to further strengthen their capabilities in addressing future growth and transformation, Red Hat is excited to support our customers so they can unlock the world's potential. ”

Cloud adoption

While cloud technology has become ubiquitous in enterprises and organizations, it's still in its early stages and continues to evolve.

· Japan has the highest level of integration, with 87% of Japanese executives noting that they have fully adopted cloud computing technology, and 64% saying that cloud computing technology has made their business competitive and helps protect their jobs within the organization, which is a key reason for their adoption.

· In Singapore, 68% of respondents said they have fully adopted cloud computing technology.

Data science competencies

The Asia-Pacific region has a high adoption rate, especially in South Korea and India.

· Seventy-three percent of companies in South Korea have made significant or significant progress in adopting data science capabilities.

· Seventy-one percent of companies in India have made significant or significant progress in adopting data science capabilities.

Artificial Intelligence (AI)

As generative AI technology has become mainstream, the study also seeks to understand the perspectives of business leaders and whether they are adopting the technology within their organizations.

The results of the study show that the majority of businesses in APAC have not yet adopted AI technology, while some have already begun to do so.

· In Singapore, 70% of business leaders say their organizations have yet to adopt generative AI technology due to a lack of the highly skilled talent needed to integrate the technology into their business, highlighting the need to upskill people to keep up with the pace of innovation.

· However, in China, 40% of business leaders say their organizations are in the early stages of adopting AI and automation, and they have seen that their business productivity has been maximized as a result of the adoption of AI and automation.

The shortage of highly skilled labor is not only the main reason for the current low adoption of generative AI technologies in APAC, but it is also considered to be the biggest risk currently impacting businesses (77%). This is of particular interest to business leaders in Japan (87%), Australia (84%), South Korea (81%), and natural resources and services.

The role of adaptive leadership in navigating a challenging macroeconomic environment

To address the challenges and trends identified, APAC leaders surveyed intend to upskill their workforce and reduce business risks by prioritizing the following strategies:

· In the face of unfavorable and optimistic situations, make predictions about the development of the business

· Refocus on supply chain strategy (46%)

· Reduced operating costs (45%)

The study also found that these persistent complexities and headwinds have brought the role of the business leader into the spotlight. The study asked business leaders to rate the importance of specific leadership qualities in navigating the current economic and technological disruptions, citing collaboration with employees and stakeholders, building trust, and an open way of working as important (82%), followed by agility in thinking and decision-making (89%), and humility (81%), which means having a clear understanding of their limitations and a willingness to work with people who have the necessary expertise.

way

A total of 375 business leaders from across the Asia Pacific region, including Red Hat customers, were surveyed, including Indonesia, Malaysia, Singapore, Australia, Chinese mainland, Hong Kong, Taiwan, India, Japan, and South Korea. Respondents included a mix of executives in technical roles such as CTO and CIO, as well as non-technical roles such as CEO and COO. In addition, the survey interviewed business leaders from financial services, telecommunications, e-commerce, and utilities companies.

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