Digitisation

Technology adoption will add $154 billion to GDP by 2021: Microsoft

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Digitisation or digital transformation will add $154 billion to India's GDP by 2021, according to a new study conducted by Microsoft, with IDC Asia Pacific.

The study predicts that approximately 60 per cent of India's GDP will be derived from digital products and services. Digitisation has increased productivity, customer advocacy, cost reduction, revenue from new products and services, as well as profit margin for organisations. These benefits will also improve by at least 40 per cent in three years.

According to the research findings, organisations are witnessing significant and tangible improvements from their digital transformation efforts across these benefits in the range of 11 per cent to 14 per cent today.

In 2017, about 4 per cent of India’s GDP was derived from digital products and services created directly through the use of digital technologies, such as mobility, cloud, Internet of Things (IoT), and artificial intelligence (AI).

“Organisations are increasingly deploying emerging technologies such as artificial intelligence, and that will accelerate digital transformation-led growth even further”, said Anant Maheshwari, president, Microsoft India.

Maheshwari gave the example of Apollo Healthcare, which has used Microsoft's AI tools for predicting risk factors of cardio vascular disease. With data being generated at an exponential proportion, technology is helping organisations like Apollo derive insights to predict and suggest preventive steps with utmost accuracy .

The study indicates that while 90 per cent of organisations in India are in the midst of their digital transformation journey, only 7 per cent in the entire region can be classified as Leaders. These are organisations that have full or progressing digital transformation strategies, with at least a third of their revenue derived from digital products and services.

In addition, these companies are seeing between 20 to 30 per cent improvements in benefits across various business areas from their initiatives.

Leaders experience double the benefits of Followers, and these improvements will be more pronounced by 2020. Almost half of Leaders (48 per cent) have a full digital transformation strategy in place.

Some of the challenges faced by organisations in adopting technology include lack of skills and resources, Siloed and resistant culture, and finding the right technology partner.

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