Understanding The Changing Needs Of Online Consumers In China, India And Japan

Reineke Reitsma

Historically, consumers in Asia Pacific have done far more activities on their mobile phones than in other regions. With the increasing availability of affordable smartphones in the region, mobile phones are now the No. 1 device for consuming media for many consumers in Asia Pacific. Similarly, activities like playing games (such as word games and puzzle games), listening to music (both streaming and non-streaming), and using social media are increasingly done via mobile phones, and activity levels are now approaching those of PCs.

In recent months, Forrester’s Data Insights team has been analyzing our Technographics® data for the Asia Pacific version of our annual global series, “Understanding The Changing Needs Of Online Consumers.” For the past seven years, Forrester has been tracking consumers’ online and offline behavior in Asia Pacific. In 2012, we surveyed 16,616 Asia Pacific consumers across two surveys to find out about their use of the Internet for media, entertainment, shopping, communication, and social computing.

Some other highlights of our analyses include:

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Making Sense Of The Mobile Opportunity In Asia Pacific: A Forrester Webinar Series

Katyayan Gupta

Forrester’s recent research shows that, while Asia Pacific lags developed regions like North America and Europe in terms of smartphone penetration, the growth of smartphones will be highest in APAC between 2012 and 2017. As indicated in our recently published report, Forrester Research World Smartphone Adoption Forecast, 2012 To 2017 (Global), by end of 2013, Forrester estimates that smartphone penetration in North America will be 57%, followed by Europe with 42% and APAC with 21%. But in terms of the compound annual growth rate during the same period, smartphone penetration in APAC will grow by 20%, followed by Europe with 11% and North America with 10%.

The sharp increase in the number of smartphone users will greatly affect both the consumer and enterprise landscapes. Building on Forrester’s deep research on the Asia Pacific mobility opportunity, we will be holding a series of complimentary quarterly webinars to help our clients make sense of this rapidly changing landscape and position for success. Starting in March and covering the consumer and enterprise mobility markets, the webinars will bring together Forrester analysts from around the world to present a global and Asia Pacific perspective.

On March 5, 2013, I will present a mobile trends and summary webinar with my colleagues Thomas Husson and George Lawrie. This session will cover our key findings from this year’s Mobile World Congress in Barcelona, share our view of key 2013 mobile trends, and share best practices for building a successful business case for mobile initiatives. You can register for the webinar here.

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India Ranks Second In Expected 2013 Asia Pacific Mobile Software Spending Growth

Manish Bahl

Data from Forrester’s Forrsights Budgets and Priorities Tracker Survey, Q4 2012 highlights that a total of 53% of IT organizations interviewed in India plan to increase their software spending on mobile applications in 2013. Among all the countries, India ranks second only after Australia/New Zealand and considerably higher than the regional average:

It’s encouraging to see Indian CIOs start to give a high priority to mobility software spending, but our research shows that the majority of mobile application initiatives are skewed toward employees and BYOT (and, to some extent, partners) with little focus on mobile customer engagement. Forrester research findings indicate that mobile applications will be a more critical channel to reach consumer markets in Asia Pacific in the future compared to more developed western markets.  This is especially true in India, where the population is younger (according to the UN, 27% of the population is between the ages of 15 and 29), the mobile Internet user base is growing at the rate of more than 30% annually, and sub-$100 smartphones are further fueling mobile Internet growth.

What It Means For CIOs:

  • Put customers at the center of your mobile strategy. If you’re not establishing the architectures and capabilities to reach these mobile customers now, you won’t be positioned for success three years from now. CIOs have an opportunity to lead their organizations by leveraging technology in strengthening customer relationships.
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Asia Pacific Tech Market To Grow By 4% In 2013

Fred Giron

The Asia Pacific (AP) growth engine did not fire on all cylinders in 2012, leading Forrester to revise its IT purchases growth forecasts for the year. While Australia, South Korea, and several ASEAN tech markets are showing continued solid growth, in other markets like China, India, Japan, Malaysia, and Vietnam, political leaders are struggling in the face of growing economic problems. My colleague Andy Bartels and I, with the help of Forrester’s AP analyst team, have recently published our revised IT purchase growth forecasts for 2013. Here are our key expectations by country:

  • 2012’s slowdown in China will be short-lived. Despite a slowdown in 2012, China continues to attract intense vendor interest because of its size and potential for further growth. The expected government stimulus efforts in the country will offset factors such as weak demand from businesses and governments. The slowdown in 2012 (+9%) is therefore likely to be short-lived, with stronger growth resuming in 2013 (+10%).
  • India’s IT growth will remain slower than expected through 2014. 2012 (+7%) was a relatively lackluster year for the tech market in India. Worse than expected economic growth, combined with political gridlock on economic reforms, kept the tech market from reaching its full potential in 2012. While we expect the public sector to drive India’s IT spending growth, the impact will be limited through 2014 due to the parliamentary elections scheduled for that year.
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What's Your APAC Enterprise Software Strategy — SAP Or SaaP?

A number of Forrester analysts from the Asia Pacific region attended the recent SAP analyst event in Singapore. Meetings with SAP global and regional executives and a large number of detailed breakout sessions over the 1½-day event all clearly indicate that SAP is continuing to try and reposition itself as a true generalized application platform player.

At the core of (almost all) initiatives is the HANA in-memory database technology. Whatever the problem, HANA will solve it (said with tongue planted very firmly in cheek). While the technology clearly has immediate performance benefits, particularly for existing SAP clients, net-new customers will likely need to compare the value of SAP’s offerings with others much more seriously.

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IT Industry Disruptions Will Fuel Renewed Asia Pacific Market Growth In 2013

Michael Barnes

The Forrester team of Asia Pacific (AP) analysts has just published its 2013 IT industry predictions. Below is a sneak peek at some key regional trends I wanted to highlight.

2013 will be a transformative year for IT adoption in AP, as multiple IT trends converge to drive industry disruptions and help spur renewed growth in IT spending. Forrester expects IT spending in AP to rebound in 2013, with regionwide growth of 4% — rising to 8% when the large but slow-growing Japan market is excluded. While India IT spending growth will remain sluggish, the 2012 economic slowdown in China will be short-lived as government stimulus policies take effect in 2013. The Australia, New Zealand, and ASEAN markets will all remain resilient, with Vietnam, Indonesia, and the Philippines leading the way in IT spending growth.

Below are some other key predictions shaping the Asia Pacific IT industry in 2013:

  • End user computing strategies will be limited to mobile device management (MDM). AP organizations are feeling the pressure to deliver applications and services across multiple devices, including traditional desktops/laptops, smartphones, and tablets. But lack of skills will hinder bring-your-own-technology (BYOT) policies, which will remain limited to MDM, including basic device control and security/identity management.
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IBM STG Is Upbeat On PureSystems And Growth Markets

Manish Bahl

 

Last month, I attended an IBM Systems and Technology Group (STG) Executive Summit in the US, where IBM outlined its key strategies for accelerating sales in growth markets, including:

·         Aggressively marketing PureSystems. IBM is positioning PureSystems (a pre-integrated, converged system of servers, storage, and networking technology with automated self-management and built-in SmartCloud technology) as an integrated and simplified data center offering to help organizations reduce the money and time they spend on the management and administration of servers. 

·         Continuing to expand in “tier two” cities. Over the next 12 months, IBM plans to continue its expansion outside of major metropolitan areas by opening small branches in nearly 100 locations in growth markets, most notably India, China, Brazil, and Russia.

·         Expanding channel capabilities and accelerating new routes to market. IBMplans to certify 2,800 global resellers on PureSystems in 2013 and upgrade the solution and technical expertise of 500 of its partners. Also, the company plans to drive the revenue of managed service providers (MSPs) by working with them closely to develop cloud-based services and solutions on PureSystems.

Considering the vast potential demand from growth markets and slowdown in developed markets, IBM is among the growing camp of multinational vendors aggressively targeting them as an engine for future business. Some of my key observations on IBMs event and recent announcements:

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SingTel Makes Good Progress, But Questions Over IT Services Capabilities Remain

Fred Giron

Clement Teo, Dane Anderson, Frederic Giron

At an analyst briefing in Singapore on November 7, newly minted SingTel Group Enterprise CEO, Bill Chang, laid out his vision on how the group’s reorganization aims to build the foundation for SingTel to become the largest ICT services provider in Asia Pacific in an ambitious five years.

For Sourcing and Vendor Management professionals, here’s a quick summary:

  • SingTel Group Enterprise: SingTel Business Group, NCS, Enterprise Data and Managed Services (EDMS) and Optus Business (including Alphawest) are now one entity as of 1 Nov 2012.
  • Converged capabilities: This organizational transformation converges SingTel’s Telco and IT service competencies for a one-stop ICT experience, and simplifies delivery capabilities to enable large scale global deployments. In a nutshell:  SingTel is aiming to create a repeatable and more scalable product set.
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SingTel Makes Good Progress, But Questions Over IT Services Capabilities Remain

Clement Teo

At an analyst briefing in Singapore on November 7, newly minted SingTel Group Enterprise CEO, Bill Chang, laid out his vision on how the group’s reorganization aims to build the foundation for SingTel to become the largest ICT services provider in Asia Pacific in an ambitious five years.

For Sourcing and Vendor Management professionals, here’s a quick summary:

  • SingTel Group Enterprise: SingTel Business Group, NCS, Enterprise Data and Managed Services (EDMS) and Optus Business (including Alphawest) are now one entity as of 1 Nov 2012.
  • Converged capabilities: This organizational transformation converges SingTel’s Telco and IT service competencies for a one-stop ICT experience and simplifies delivery capabilities to enable large-scale global deployments. In a nutshell: SingTel is aiming to create a repeatable and more scalable product set.
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BI Adoption In Asia Pacific: Four Factors To Consider

Michael Barnes

As John Brand and I recently wrote, business intelligence (BI) adoption drivers, technology understanding, and organizational process maturity continue to vary widely across Asia Pacific (AP). But there is one constant in this market: the regularity with which BI appears at or near the top of CIOs’ priority lists.

While the gap between global best practices and regional implementations is closing, social, cultural, economic, and underlying technology trends will continue to affect BI adoption in the region for the foreseeable future:

  • Social. The adoption of social computing is expanding rapidly across all AP markets, but is particularly strong in growth markets like China, Indonesia, and the Philippines. As in North America and Western Europe, this adoption is already having profound effects on how organizations identify, understand, and engage with customers and other market influencers. But the lack of significant BI investments means that organizations in these growth markets are far more likely to consider issues like sentiment analysis, predictive analytics, and near real-time data access when sourcing initial BI projects.
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