Bridging Digital Transformation Gaps in Southeast Asia

Abstract

This thesis explores the Digital Transformation Gaps in Southeast Asia, specifically focusing on the challenges faced by companies in the region when adopting Western-based business systems such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems. While these systems are technically equipped to meet the business requirements in Southeast Asia, there is a notable disconnect in their practical application due to distinct regional differences. These disparities include variations in business culture, workforce competency, geographical constraints, economies of scale, as well as distinct best practices and processes, and workforce power dynamics. The research methodologically examines case studies and interviews of Southeast Asian companies and their experiences with Western systems, highlighting the nuances that lead to inefficiencies and operational challenges. The study delves into the cultural and structural aspects of Southeast Asian business environments, contrasting them with Western models. It argues that the one-size-fits-all 4approach of Western business systems fails to accommodate these unique regional characteristics, leading to a digital transformation gap. This thesis proposes a framework for adapting Western business systems to better align with Southeast Asian contexts. It emphasizes the importance of localizing these systems to bridge the digital transformation gap, ensuring that they are not only technically sound but also culturally and operationally relevant. The conclusion offers strategic recommendations for companies and system developers, aimed at fostering more effective and sustainable digital transformations in Southeast Asia. This work contributes to the broader understanding of global digitalization, emphasizing the need for regional customization in global business solutions.