Image Commercially Licensed From: Unsplash
It is no longer a question of whether an organization should invest in digital transformation (DX) but how quickly and how much. According to an IDC report, worldwide digital investment will reach US$3.4 trillion by 2026. The pandemic propagates this effect, which sets off a wave of unprecedented capital assets.
A McKinsey research report stated that between now and 2027, the surge of investment will reach $130 trillion on sustainability projects and updating critical infrastructure. Adding complexity to this mix are emerging technologies, such as AI, which have fundamentally reshaped the nature of work. These factors are forcing brick-and-mortar organizations worldwide to expedite their digital transformation roadmap.
New Tsinghua Unigroup, an intelligent technology industry group, identified the five major trends in digital transformation: digitization of the service sector, network infrastructure optimization, cross-border data flow, digital platform integration of the global industry chain and value chain, and evolving production and distribution models.
Due to the pressure to integrate unfamiliar (and often costly) digital solutions into their operations, it takes a lot of work for organizations to make costly mistakes due to unclear transformation strategies. Not even established organizations are immune to pitfalls. Another McKinsey report concluded that half of all large IT projects, defined by an initial spending of $15 million or more, overshoot their budgets. 17% of IT project failures threaten the very existence of the company. Given the seemingly innumerable choices and paths, digital transformation consulting has become a critical link in the DX chain.
In 2022, the new Tsinghua Unigroup emerged from its ties with Tsinghua University, transforming it from an investment group into an independent intelligent technology industry group. In its new identity, while Tsinghua Unigroup retained the name “Tsinghua,” the original representation of the Chinese government, Tsinghua University no longer holds any shares in the company. Within one year, the group has managed to lower its debt by two-thirds. The company now operates with healthy finances.
Following the restructure above, the new Tsinghua Unigroup targets the massively untapped opportunities in the Association of Southeast Asian Nations (ASEAN), comprising ten nations, including Indonesia, Malaysia, Myanmar, and others. According to New Tsinghua Unigroup, the digital economy in the ASEAN regions grew from $72 billion to $194 billion at a 28.8% CAGR between 2018 and 2022. Still, the market size pales compared to more advanced economies like the U.S. and Japan. This is precisely where New Tsinghua Unigroup sees an opening.
With a history of successful business cases, New Tsinghua Unigroup offers complete digital transformation services in ICT infrastructure, mobile & automotive electronics, cloud network & service, finance, and education to empower critical infrastructures in markets of all scales. Moreover, the group is actively recruiting top international talents to deliver end-to-end digital transformation services that span the entire business operation, from planning to execution.
The benefits of a well-executed DX strategy extend beyond individual entities; it also bolsters the digital economy, creating new domestic and international business opportunities. A hallmark of an advanced economy, the digital economy is critical for job creation, enhancing public services, and driving new business models.
This is why New Tsinghua Unigroup clarified that its mission is to help individual companies digitally transform and elevate the economy as a whole through establishing an independent and compliant native digital ecosystem. A robust digital ecosystem can have a snowball effect that leads to higher innovation and demand generation.
That’s the vision, at least. As its first step, New Tsinghua Unigroup appeared at the 43rd ASEAN Summit held in Jakarta, Indonesia, to discuss sustainable development and foster local innovation. The group’s proven track record has resonated with Indonesia’s business leaders, but tangible progress still needs to be seen.
