Microsoft Corp yesterday said that about half of the nation’s GDP would be derived from digital products and services by 2021 amid an ongoing technological transformation, citing a study conducted in partnership with market researcher International Data Corp (IDC).
That represents a leap from the 6 percent contribution to the GDP from digital technologies including mobile apps, cloud computing, Internet of Things and artificial intelligence (AI) applications.
Digital technologies are also expected to raise the nation’s compound annual economic growth rate by 0.5 percent by 2021, while also raising GDP by US$15 billion, the study showed.
The benefits of technological advancements have begun to take shape in improved customer retention, higher profit margins, better productivity, shorter production time and cost reductions.
While 79 percent of existing jobs are expected to be transformed in the next three years, Microsoft and IDC are optimistic that the effects would be benign, as the results would be more higher-value jobs, smarter, safer and more efficient cities, as well as enhanced healthcare facilities.
Technologies, in particular AI, would enhance the capabilities of humans rather than replace them, Microsoft Greater China region chief executive Alain Crozier said.
Crozier said that 51 percent of respondents in the study are optimistic that they are equipped with the skills needed to transition to new jobs.
Companies are also looking beyond cost savings and aiming to leverage technologies to create new revenue models.
Most notably, the study, in which 100 Taiwanese companies participated, showed that 40 percent have been adopting non-conventional key performance indicators that place more value on improving business and customer service.
In addition, 38 percent of businesses now view data as an important asset for improving business models and productivity, while 31 percent said that achieving “digital leader” status is one of the best ways to boost brand recognition.
However, due to a lack of analytic tools, local companies have reported difficulties in devising practical project plans that would further their digital transformation, the study showed.
Other difficulties include a misalignment between the data tracked by an organization and the goals it wishes to meet.
Microsoft also said that companies are having difficulties finding the right partners to carry out their transformation plan, as they might be dealing with a large number of vendors each overseeing a different business process.
Emerging technologies are no longer buzzwords, and their effects are already materializing and can only increase in magnitude, Microsoft Taiwan general manager Ken Sun (孫基康) said.
Businesses have to be careful about the partners they choose, Sun said.
“Your data could end up as their product,” he said.
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