ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

IDC Philippines on DX, cybersecurity and hyper-disruptive marketplaces

By Heather Wright
Tue 31 Jan 2017
FYI, this story is more than a year old

Filipino organsations are upping their digital transformation game, with IDC Philippines forecasting that by 2020, 25% of its top 1000 companies will see the majority of their business depend on their ability to create digitally enhanced products, services and experiences.

Jubert Alberto, IDC Philippines business operations head, says the rise of DX has ‘an incredible effect on the market’ with IDC expecting DX to attain macroeconomic scale over the next three to four years.

“It opens massive opportunities for businesses as it helps strengthen relationships with end users, flattens organisational structures and redefines traditional industries,” Alberto says.

The DX economy is top of the list for IDC Philippines and its top predictions for the year ahead.

The analyst firm says market dynamics are quickly changing and the enterprise must continually improve productivity and effectiveness while lowering costs in order to enable a transformation that will allow it to best compete in the constantly evolving market environment.

Karen Rondon, IDC Asia Pacific research manager for enterprise computing – networking, says: “Year 2020 will see Filipino companies level up their DX journey to a macroeconomic scale, as their ability to offer digitally transformed offerings and experiences becomes an important measure of competitiveness and success in the market.”

IDC Philippines’ other top predictions and major technology trends presenting opportunities and challenges to IT leaders in 2017 and beyond are:

Pinoy DX Teams. By 2018, 25% of Philippine organisations will have dedicated digital transformation/innovation teams, IDC says.

"These specialised 'PH DX teams' will be in charge of formulating plans both for internal and external applications of digital technology. These include identifying and using new technologies to improve operations, creating digital marketing strategies, developing their IT capabilities, and other related initiatives," says Jan Edward Tañeca, Market Analyst - Imaging, Printing, Document Solutions (IPDS), IDC Philippines.

More Strategic ICT Push. By 2021, the government will have a more strategic ICT push to enable technology adoption among Philippine organisations.

Year 2016 has been a good year as far as the country’s ICT agenda is concerned. According to the latest findings of the United Nations E-Government Survey, the Philippines went up 24 notches to rank 71st out of 193 countries in e-government development. With a dedicated, centralized agency at the helm of the country’s ICT development, IDC sees that by 2021, the government will be able to lay the much-needed groundwork that would enable robust technology adoption among Philippine organizations and raise the nation’s standards to be on par with other digital economies.

Cybersecurity. By 2018, cybersecurity will become a tier-1 business priority receiving fixed capital spending for 30% of the top 1,000 companies in the Philippines.

Increasing security breaches and attacks has significantly raised interest in and awareness of the need to modernize security infrastructure in the Philippines. "In the coming years, enterprises will realize that rather than reacting to global security trends, the best-run businesses try to anticipate them. Thus, they will make cybersecurity a core part of their overall business strategy, taking into account the existing security industry trends and evolving criminal tactics and couple those factors with the organization's risk tolerance, security program maturity, a holistic security strategy and, most importantly, business targets," says Jan Edward Tañeca, Market Analyst - Imaging, Printing, Document Solutions (IPDS), IDC Philippines.

Information-Based Products. By 2020, revenue growth from information-based products will be double that of the rest of the product/service portfolio for a quarter of the top 1,000 Philippine companies.

“In the Philippines, companies in the telecommunications, retail, and banking industries, among others, have unlocked new opportunities in creating revenue through analyzing and making sense of the aggregated customer information. Some organizations that have explored these options benefited in the form of penetrating new markets and generating new revenue streams as the information may vary from customer data to consumer buying patterns,” says Nicolo Santos, Market Analyst – Imaging, Printing, and Document Solutions (IPDS), IDC Philippines. "This opportunity requires a constant effort for organizations to address data privacy and security issues, and government regulations that surround the collection, storage, use, and sale of consumer data.”

Hyper-disruptive marketplaces. By 2019, 40% of customer-facing top 1,000 companies will experiment with augmented reality/virtual reality (AR/VR) as part of their marketing efforts. 

The potential impact of AR/VR across industries will become so big that by 2019, IDC sees 40% of the Philippines’ top 1,000 companies experimenting with these technologies to create their own unique experiential marketing strategies. "Consumer brands will be compelled to think out of the box and reinvent their marketing approaches – incorporating more AR/VR elements and placing emphasis on gamification – in a bid to gain the patronage and loyalty of consumers, especially young and tech-savvy millennials," says Sean Agapito, Market Analyst - Client Devices, IDC Philippines.

Customer-/Ecosystem-Facing Digital Services. By 2019, 65% of Philippine IT organizations will create new customer-facing and ecosystem-facing services to meet the business DX needs.

Customer-experience initiatives are on the rise across organizations, and as they increase the level of control customers and business-to-business (B2B) organizations have over their own experience, the scale of interactions will concurrently explode. "Failure to scale up the number of direct and indirect customers with whom an organization does business will lead to revenue shortfalls and uncompetitive cost structures. Improve profitability, we expect organizations to increase their use of virtual agents or digital assistants. Intelligent assistants will use artificial intelligence (AI)/cognitive technology to automatically adjust experiences to the users' preferences and context," says Alon Anthony Rejano, Market Analyst - IT Services, IDC Philippines.

Digitalised customer support interaction

By 2018, 60% of customer support interactions will be digitalized and occur in online communities. 

With an increasing proportion of the Filipino population – reaching nearly half of the country's total population in 2016 – actively using social media, IDC expects more organizations to interact with customers through social and online communities. Online customer support not only help solve customer problems but it also improves brand image. Additionally, a successful community will create brand champions or advocates and will not only recommend the product or the service to customers but will help solve customer problems on behalf of the brand. "This will make the theme of customer reciprocity strong moving forward. Also in the near future, more organizations will use IT to integrate existing customer services and support systems like integrating pre-built connectors, mining the community for insight into customers’ behavior, and proactively solve any emerging issues," says Jerome Dominguez, IDC Philippines client devices market analyst.

Next-Wave Sari-Sari Store

By 2020, 30% of Philippine sari-sari stores will evolve to become another channel for one-stop payments and remittance centers.

Something unique in the Philippine retail scene will be the presence of sari-sari stores in different localities. IDC foresees a future where sari-sari stores, a Pinoy cultural phenomenon, can offer services such as payment of utility bills, e-loading, and buying of travel tickets can also be done through these neighborhood stores. Serving as complimentary touchpoints especially in the rural areas, sari-sari stores play a pivotal role in filling the "unbanked" gap in the countryside. Organizations looking to engage more in the rural areas will have a viable channel, as in alternative to building brick-and-mortar branches, which may be cost-prohibitive to most companies.

 ICT and BPO Disruption

By 2020, ICT and BPO markets will be disrupted by the pivot and policy changes from the Duterte and Trump administrations, if the industry does not take critical steps safeguarding the country's inherent growth drivers.

The BPO industry is one of the great contributors to the total ICT spending in the country. IDC maintains that the burgeoning and evolving to higher-value services around contact centers, medical transcription, software development, animation and game development, and global captive operations centers will still be very much viable in the short term, given the country's inherent strengths.

“In the longer-term view, however, this may change due to the shift in pivot and policy changes from the Duterte and Trump administrations. This may lead to an impression of the country's volatility and together with issues on manpower and availability of skillsets, it may result in the industry stagnating in the near future due to lack of new investments and expansionary plans from incumbents. Far-reaching measures to address key issues are of paramount importance this year,” adds Alberto.

Related stories
Top stories
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
PaaS
New digital traffic light system to tackle construction defects
Smarter Defects Management launches its PaaS digital system and says it will revolutionise managing defects in the construction industry.
Story image
Testing
Google and CSIRO use AI to help protect the Great Barrier Reef
Google has partnered with CSIRO in Australia to implement AI solutions that help protect the Great Barrier Reef.
Story image
Fortinet
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Jabra
Jabra reveals its latest portable headset Engage 55
Jabra has launched the Engage 55, the newest product in Jabra's Engage series designed for ultimate call security and quality.
Story image
Ransomware
Zerto unveils updates to ransomware recovery capabilities
"Organisations face increased risks from the volume and sophistication of ransomware attacks prevalent today."
Story image
Cybersecurity
HackerOne launches Attack Resistance Management solution
HackerOne has launched Attack Resistance Management - a new category of security solution that targets the root causes of the attack resistance gap. 
Story image
Red Hat
Red Hat expands capabilities to provide streamlined application development in cloud
"Application development is undergoing significant change and developers need tools to support this transformation."
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Fastly
Fastly named 2022 Gartner Peer Insights Customers’ Choice
Fastly has announced it has been named a Customers' Choice in the 2022 Gartner Peer Insights "Voice of the Customer": Global CDN.
Story image
Nokia
Nokia and Optus reaches new 5G levels using Samsung
Nokia and Optus have achieved the world’s first 3CC Carrier Aggregation 5G SA data call using a commercial Samsung headset in Australia.
Story image
Corsair
Hands-on review: Corsair 32GB Vengeance 5200MHz DDR5 DRAM kit
Corsair’s Vengeance 5200MHz DDR5 DRAM offers PC users an entry-level upgrade to the new memory standard allowing them to get a little bit more out of their new Alder Lake CPUs.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
D-Link
D-Link launches new G415 Smart Router as part of EAGLE PRO AI range
D-Link A/NZ has announced the launch of its new G415 AX1500 4G Smart Router as part of the new EAGLE PRO AI Series.
Story image
Wireless
Sony to bring new 1000X series WH-1000XM5 headphones to the market
Sony has announced the newest edition of its award-winning wireless headphones, with the 1000X series WH-1000XM5 noise-cancelling model.
Story image
Wireless
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Cybersecurity
Three key security challenges facing the Australian insurance industry 
Insurance companies must ensure they proactively address security challenges and protect the privacy of customer data.
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
Hybrid Cloud
Hewlett Packard Enterprise hosts Channel Reignite sessions
Hewlett Packard Enterprise (HPE) hosted its HPE Channel Reignite sessions in Sydney and Melbourne last month to reconnect with the channel partner community.
Story image
Malware
Use of malware, botnets and exploits expands in Q1 2022
"As zero-day attacks and other vulnerabilities among companies like Google and Microsoft come to light, threat actors are quickly adjusting their tactics."
Story image
SAS
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Telstra
Telstra and Silver Trak Digital delivers 5G to the cinemas
Telstra and Silver Trak Digital say they've launched Australia's fastest and most secure delivery of content over 5G for cinemas.
Story image
SaaS
Atturra partners with Focus HQ to support Aus organisations
Atturra has executed a partnership agreement with Focus HQ, to resell and support the company's Australian developed SaaS-based portfolio management platform.
Story image
Appian
Appian awarded billions in damages against Pegasystems Inc.
Appian has been awarded USD$2.036 billion in damages against Pegasystems Inc as the result of a jury verdict in the Circuit Court for Fairfax County, Virginia.
Story image
Training
Fortinet training edges toward closing cybersecurity gap
The Fortinet Training Institute has made significant progress in closing the cybersecurity skills gap, on track to train one million people by 2026.
Story image
Manufacturing
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Review
Hands-on review: MSI MPG Z690 Carbon WIFI motherboard
It’s all change with Intel’s 12th generation CPUs. We have a new chipset in the 600-series, a new socket with the LGA 1700, and new DDR5 memory.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Poly
Poly introduces new smart devices and announces Amazon e-store in Australia
Poly is introducing two new pro-grade devices to the market and announcing its first official Australian e-store on Amazon.
Story image
Artificial Intelligence
Google to enter the smartwatch market with the Google Pixel Watch
Google has provided a first look at its new Google Pixel Watch, which is set to make an entry into the competitive smartwatch market.
Story image
VPN
Palo Alto Networks says ZTNA 1.0 not secure enough
Palo Alto Networks is urging the industry to move to Zero Trust Network Access 2.0 because previous versions have major gaps in security protection.
Story image
Ransomware
Ingram Micro Cloud adds Bitdefender solutions to marketplace
Ingram Micro Cloud has announced the expanded availability of Bitdefender solutions on the Ingram Micro Cloud Marketplace.
Story image
Wasabi Technologies
Wasabi opens new cloud storage in Australia with Equinix
Wasabi Technologies has opened a new hot cloud storage region in Sydney, Australia, using Equinix services. This is the company's 12th global storage region.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Logistics
TeamViewer and SAP combine AR and warehouse operations
TeamViewer combines its AR platform, Frontline, with SAP's Extended Warehouse Management solution, to make warehouse and logistics operations more efficient.
Story image
Mobility
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Review
Hands-on review: Amazon Kindle Paperwhite Signature Edition
In almost every respect it works like a book, apart from the fact that it weighs next to nothing, fits in my hand perfectly, and is soothing on my eyes.
Story image
Malware
Sharp increase in phishing as cybercriminals leverage SEO to lure victims
"Malware lurking everywhere, from cloud apps to search engines, leaving organisations at greater risk than ever before."
Story image
Artificial Intelligence
Updates from Google Workspace set to ease hybrid working troubles
Google Workspace has announced a variety of new features which will utilise Google AI capabilities to help make hybrid working situations more efficient and effective.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Gaming
Mastercard users can now use rewards points in gaming
Mastercard has launched Mastercard Gamer Xchange (MGX), allowing APAC consumers to convert their rewards points into gaming currency.