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Frost & Sullivan: Economic Pressures To Drive Asia Pacific Adoption of Enterprise 2.0

  • 30 June, 2008 08:30

<p>SYDNEY, 30 June 2008 – Enterprise social software tools, including blogs and wikis, otherwise known as Enterprise 2.0, will become increasingly important to Asia Pacific organisations as the slowing global economy and tightening credit markets continue to bite, predicts consulting company, Frost &amp; Sullivan in its latest Market Insight, Supercharging Innovation in Asia Pacific: The Impact of Enterprise 2.0 on Economies.</p>
<p>The study forecasts that Enterprise 2.0 initiatives will grow in popularity as companies seek to modernise legacy systems and make their workforces more productive. However, it warns that the new collaborative business tools pose a significant challenge to existing business models, especially in previously protected markets and areas dominated by a few players. It will be critical to address the command-and-control paradigm dominant in many organisations across the region if the Enterprise 2.0 technologies are to be used to their full effect.</p>
<p>Niche marketing is expected to greatly improve with the rise of social networking applications, blogs, wikis, interactive web applications and Unified Communications. Innovation should also increase and the study points to the region’s potential to foster new businesses which will be made cost-effective by the new technologies. On the flip side, it also suggests companies should anticipate a massive increase in customer expectations around service delivery.</p>
<p>Enterprise 2.0 technologies are of particular significance to Asia Pacific nations as countries seek to make the transition from efficiency- and resource-driven economies to innovation-driven economies. The ability to create, capture and leverage knowledge and collaborate between individuals is the major driver for the uptake of these technologies.</p>
<p>At a national level, use of Enterprise 2.0-related technologies is also being influenced by issues such as investment in broadband infrastructure, human capital and use of the Internet by businesses and consumers.</p>
<p>Demand factors</p>
<p>The analysis highlights three main factors driving the adoption of Enterprise 2.0 technologies: productivity, innovation and service.</p>
<p>Organisations seeking productivity gains look to improve their use of staff resources through technologies such as instant messaging, conferencing, collaboration, mobility and knowledge management. The concern for productivity is a response to the potential global economic slowdown and due to the difficulty of recruiting staff due to the region’s very low unemployment rates and rising wages.</p>
<p>The second factor, innovation, relates to the transfer and trading of knowledge, a process that is increasingly being sought through the use of intranets, CRM systems and wikis. When truly embraced, collaboration for innovation results in increasingly decentralised, non-hierarchical corporate structures and stronger engagement with customers.</p>
<p>The final factor, service, is ultimately a need for better communication. The demand for service anywhere and everywhere is encouraging organisations to seek technologies such as web contact centres, VOIP, and mobility solutions so that they can provide 24/7 service across multiple channels and multiple organisations.</p>
<p>The Restraints</p>
<p>The study cautions that for Enterprise 2.0 technologies to become widespread, Asia Pacific organisations will first have to come to grips with their concerns relating to collaboration and the loss of control over staff and customers. They will also have to become more confident in the business benefits of the technologies, recognising that they are not time-wasting toys but tools that can increase business efficiency. Other major concerns include the potential for loss of intellectual property, security, and the cost of implementing and training for new technologies.</p>
<p>Simon Hayes, Senior Industry Analyst, Frost &amp; Sullivan, observes, “Usually the challenge with any new technology is to identify how to apply the tools for the greatest return. With Enterprise 2.0 it becomes a little trickier. There is also the question of how to adapt to a new business model.”</p>
<p>Frost &amp; Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost &amp; Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost &amp; Sullivan’s Growth Partnerships, visit</p>

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