NetSuite Study Reveals Cloud Has Enabled 63 Percent of Singapore Businesses Surveyed to Effectively Respond to Industry Disruption and 83 Percent to Gain Competitive Advantage
Singapore—30 October 2014—Research sponsored by NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, has revealed that 37 percent of Singapore executives surveyed believe the rate of change to their industry is intensifying, largely driven by digitalization, new disruptive competitors, servitization and new business models. The 'Disrupt, Collapse, Transform' study, conducted by Frost & Sullivan, indicated that Singapore organizations are responding by adopting cloud computing at a greater rate than other markets, due to its greater adaptability to rapid industry transformation—63 percent of Software-as-a-Service (SaaS) users surveyed indicated that cloud has helped them react more effectively.
The Frost & Sullivan study of 1,500 senior executives across multiple industry sectors in seven countries, including Australia, Singapore, U.S., U.K., Japan, Hong Kong and the Philippines, was carried out in October 2014 to examine what is driving disruption across all industries and how the modern business is responding. The study, which involved 200 respondents from Singapore, highlighted the pace of transformation in most industry sectors is very high and appears to be accelerating.
"Businesses based in Singapore, the trading hub of Asia Pacific, are challenged by disruptive forces that are changing rapidly and unpredictably due to shifting economic conditions globally," said Andrew Milroy, Asia Pacific Head of Research for Frost & Sullivan. "Companies need the agility to innovate; launch new products and services; deliver new revenue or business models; and access new geographical markets. That adaptability is being enabled by cloud computing—it has become a necessary response to the rapid pace of transformation."
Key factors driving industry transformation
According to the study, digitalization was identified as one of the top trends driving change in Singapore, particularly in the media, entertainment and retail sectors. This is reflected by the fact that 69 percent of Singapore businesses now use ecommerce, an increase from 52 percent in 2009. This does differ greatly by sector, however, with financial and business services as leading markets, but adoption lags in many sectors, particularly wholesale distribution, retail and manufacturing.
More than 40 percent of organizations in Singapore surveyed identified the entry of new, disruptive competitors with new business models as one of their greatest threats, which is forcing change in the way that they interact with customers. This includes the emergence of competitors using low-cost models, for example, or those using online only distribution channels. In response, 41 percent of Singapore businesses surveyed said that they are likely to change their distribution model in the next five years.
Servitization is another significant driver of change worth noting. Many businesses are developing the capabilities they need to provide services and solutions that supplement their traditional product offerings. In Singapore, 50 percent of manufacturers, for example, are servitized, compared to almost 60 percent in the U.S. and 30 percent in Australia, according to the study.
"There is no doubt that the speed of change in almost every industry is accelerating, but the direction of disruption is unpredictable," added Mr Milroy. "In these circumstances, organizations need the flexibility to rapidly adapt to the changing industry environment."
Need for greater adaptability now more important than cost savings
Frost & Sullivan believes that cloud computing is both a contributor to industry transformation, as well as a necessary response for organizations to survive. The study revealed that greater adaptability to industry change is now a main driver of SaaS adoption, with cost savings and ease of upgrading becoming less important than they were four years ago.
Sixty-three percent of SaaS users in Singapore surveyed indicated that the cloud has helped them respond more effectively to changing market conditions and 83 percent believe that they have gained competitive advantage, which is above the global average of 81 percent according to the study. As well as lower costs, the main benefits achieved have been improved speed to market with new products or services (20 percent) and the ability to enter new global markets (20 percent).
According to the study, Singapore leads the Asia Pacific region for SaaS adoption, with 62 percent of organizations surveyed using it for at least one main business application, particularly CRM, ecommerce, finance and accounting, compared to 51 percent globally. The study indicated that the highest adopters are from the information technology and financial services sectors, with healthcare the lowest.
"Cloud is at a tipping point in Singapore," said Mark Troselj, managing director of APAC and Japan for NetSuite. "It is a highly developed economy and acceptance of cloud as a relevant business model is growing rapidly. The ability for businesses in this regional trading hub to run their supply chains through ERP systems over the cloud provides greater flexibility, speed and agility to move quickly with the market as it changes. Trading adaptability is essentially what Singapore was founded on."
NetSuite cloud provides the valuable tools to enable business to adapt
NetSuite's cloud-based business management software solutions play a crucial role in helping businesses expand more easily and cost effectively, by giving them the agility, flexibility and speed to set up new business operations or change business models. Its leading solutions remove the hassle and weighty costs of traditional on-premise software that cramp growth. Customer relationships, ERP, financials, e-commerce, HR, manufacturing, inventory, distribution, supply chains and more can be managed from one NetSuite cloud-based business management solution. This provides deep and up to the minute visibility of every interaction, transaction and relationship occurring within a business in every market, anywhere in the world.
Today, more than 20,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud ERP suites for divisions of large enterprises and mid-sized organizations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations, as demonstrated by a recent Gartner study naming NetSuite as the fastest growing top 10 financial management systems vendor in the world. NetSuite continues its success in delivering the best cloud ERP/financial suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud accelerates.
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