Red Hat, Inc., renowned as the foremost provider of open source solutions, unveiled the freshest insights stemming from the “Anatomy of Adaptive Leaders: Navigating Emerging Technologies” report. This study, curated by Economist Impact and commissioned by Red Hat, brought to light a compelling revelation: within the Asia Pacific (APAC) region, cloud technology reigns supreme among emerging technologies.
The Economist Impact report provides a comprehensive view of the intricate Asia Pacific business terrain. Despite enduring complexities and challenges, the economic fortitude of the region remains robust. Notably, a majority of APAC enterprises are navigating forward by seamlessly integrating emerging technologies into their operations.
The surge of excitement stems from the widespread embrace of cloud computing, marking its broad adoption among companies across the region. Additionally, the early stages of adoption for AI, generative AI, and data platforms among APAC businesses further underscore a growing trend toward innovation and technological evolution, shares Marjet Andriesse, Senior Vice President and General Manager, APJC, Red Hat.
Overview: Emerging Technologies in APAC Businesses
Cloud Adoption
In APAC, the integration of cloud computing technology is gaining momentum, impacting businesses positively:
- Japan’s Advanced Integration: 87% of Japanese enterprises have fully embraced cloud computing, emphasizing its role in fostering competitiveness and safeguarding jobs.
- Singapore’s Adoption: 68% of Singaporean organizations have reported full cloud adoption, showcasing its importance in enhancing competitiveness.
Data Science Capabilities
Significant advancements have been noted in data science capabilities, particularly in South Korea and India:
- South Korea’s Progress: 73% of South Korean companies show high to very high levels of adoption in data science capabilities.
- India’s Embrace: 71% of Indian companies exhibit high to very high progress in adopting data science capabilities.
Artificial Intelligence (AI)
Generative AI technology’s emergence prompts exploration within businesses across APAC:
- Singapore’s Talent Gap: 70% of Singaporean leaders attribute the non-adoption of generative AI to a lack of skilled talent, signaling the necessity to upskill the workforce.
- China’s Early Adoption: In China, 40% of leaders report early-stage adoption of AI and automation-based technologies, linking it to heightened productivity.
Skilled Labour Challenges
The shortage of skilled talent stands as a significant hurdle in AI adoption across APAC:
- Overall Concerns: 77% of organizations identify shortages in skilled labor as a top risk affecting their operations.
- Regional Concerns: Japan (87%), Australia (84%), and South Korea (81%) display heightened concern about skilled labor scarcity.
- Sectoral Impact: Natural resources and services sectors express notable concern regarding skilled labor shortages.
The research highlights both the promising strides and the persistent challenges in integrating emerging technologies across APAC, emphasizing the need for talent development to propel technological innovation.
“Across the Asia-Pacific region, economic headwinds are negatively impacting the profitability of most companies. In response, many firms are seeking to improve productivity by prioritising investments in areas such as cloud computing, data platforms and generative AI. But implementation is not easy, as firms grapple with the required investment costs and digital skills–amidst increasing cybersecurity concerns. Encouragingly business leaders are reinforcing the need to be collaborative during this challenging period, recognising that the more effective path to business success is one where everyone is working towards a shared vision.” –CHARLES ROSS, principal of policy and insights, Economist Impact
The Impact of Adaptive Leadership in a Demanding Macroeconomy
The significance of adaptive leadership in navigating complex macroeconomic landscapes has prompted APAC leaders to devise strategies to enhance employee skills and mitigate business risks. According to a survey encompassing 375 business leaders across APAC regions like Indonesia, Malaysia, Singapore, and others, certain pivotal strategies have emerged as priorities:
- Developing forecasts for business performance under various scenarios (54%)
- Repurposing supply chain strategies (46%)
- Implementing operational cost reductions (45%)
In recognizing the critical role of leaders amidst ongoing challenges, specific leadership traits were highlighted for effective navigation through economic and technological disruptions. Collaboration, trust-building, and open engagement with employees and stakeholders ranked as crucial (82%), followed by agility in decision-making (89%) and humility, denoting self-awareness of limitations and a willingness to collaborate with skilled individuals (81%).
The survey encompassed leaders from diverse sectors, including financial services, telecom, e-commerce, and utilities, spanning technical roles like CTOs and CIOs and non-technical roles such as CEOs and COOs. Supplementary insights were gathered through interviews with business leaders, reinforcing the comprehensive nature of the study.
FAQs
1. What challenges hinder the adoption of AI, particularly generative AI, in certain APAC regions?
In Singapore, 70% of leaders attribute the non-adoption of generative AI to a lack of skilled talent. Despite a 40% early adoption of AI and automation-based technologies in China, a talent gap is also apparent, linking skilled labor scarcity to productivity.
2. How do APAC businesses address the shortage of skilled talent in emerging technologies?
The report reveals that 77% of organizations across APAC identify shortages in skilled labor as a top risk affecting their operations. Countries like Japan, Australia, and South Korea express heightened concern about skilled labor scarcity. Some strategies include enhancing employee skills, developing forecasts, and implementing operational cost reductions.
3. What essential leadership traits are highlighted in the report for navigating economic and technological disruptions?
Collaboration, trust-building, open engagement with employees and stakeholders, agility in decision-making, and humility rank among the crucial leadership traits noted by 375 business leaders across diverse sectors in APAC.
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