Information Technology (IT) Trend 2022 in Indonesia

Rapid developments and adoption of Information and Communication Technology (ICT) in the enterprise is contributing to the digital transformation that slowly started since few years ago. Pandemic situation due to COVID-19 has been accelerating ICT trend for many companies in Indonesia.  

As one of ICT trend indicators, in terms of Growth of Population vs Internet Users from Figure-1, Indonesia has the highest growth compared to most of countries in Asia as well as USA. While Singapore and Japan have almost zero growth. 

High growth of Internet users implies that consumers or people have awareness and needs on ICT. For example, people expect to work from anywhere, using Digital Workplace supported by ICT. People expect to learn from anywhere, anytime, accessing online class or online course from education provider. People expect to have virtual tour of property from property developer before visiting site location of the property. People expect to visit virtual showroom while comparing car of choice from automotive dealer. Ride hailing service which supported by ICT is becoming a need for people in the city. People also find information and compare products/services through online before decision to buy for himself/herself personally, or even for his/her company needs. In short, people awareness and needs on ICT in Indonesia is growing significantly.  

Other indicator is about business innovation by Information and Communication Technology (ICT). All industries are doing business innovation by utilizing ICT. It is shown in Figure-2 which describe Business Volume and Business Innovation by ICT in Indonesia. 

Innovation by utilizing ICT is emerging in industries in Indonesia. Even though they are not the same maturity level, however they are innovating. The innovation maturity level seems not depends on the business volume. It means, industries with lower business volume are also doing innovation by ICT to keep them competitive in the market. 

Financial & Insurance industry and Wholesale & Retail are repeating practice of effective innovation for business. As shown in Figure-2, their score for Maturity Level of Business Innovation by ICT is around four. Financial technology is growing fast in Indonesia, ranging from digital wallets, digital payment, online loan, online insurance, value added insurance service for ecommerce, and many more. Wholesale & Retail is using ICT to improve supply chain management, warehouse management, adopting B2B system to reach corporate customers, and ecommerce to reach retail customers. While Manufacturing industries just start implementing innovation by ICT. As shown in Figure-2, their score for Maturity Level of Business Innovation by ICT is around two. Some manufacturing industries start collecting data from equipment to measure effectiveness of equipment in production lines in terms of availability, performance, and quality. Some industries just start considering Enterprise Resource Planning (ERP) to improve internal processes. 

From the previous explanation, customers or people have a growing awareness and needs on ICT. Customers or people are having higher expectation to business. That condition will force the business to think and act innovatively, utilizing ICT as vehicle to get into business objectives. At the same time, Top Management from various industries are becoming executive sponsor for business innovation in their companies. Most of the case Top Management expects CIO or ICT department becomes business innovator, contribute to optimize business operation, doing breakthrough or business disruption by leveraging ICT. In recent years, CIO is facing various challenges from stakeholders and technology trend itself as shown in the Figure-3.  

 Technology trend also forces CIO to have leadership in ICT adoption for company, including adaptation to the change on ICT stack and its trend as shown in Figure-4 below. 

Data is not only generated by human using PC, but also it is generated by machines / equipment and captured by Internet of Thing (IOT) devices. High data volume from IOT could be potential to utilize for Artificial Intelligence (AI) by having ‘machine learning’ which in turn can learn from the data to take autonomous decision. Manufacturing companies are starting to use IOT for industrial automation. 

Social commerce features give us direct access to our customers’ social profiles. Sellers can use this information to confirm existing voice of customer. Until three years ahead, the metaverse will be an extension of social media which will bring new experiences to consumers. The metaverse will combine several familiar aspects of social media, such as collaboration, ecommerce, and live events with immersive experiences based on virtual reality (VR) and augmented reality (AR). 

In Supply Chain Management, Distributed Ledger Technology (DLT) applications enable global trading partners to transact securely and with consensus over shared facts to increase efficiency, transparency, and visibility. Blockchain use cases for supply chain include immutability into the provenance of goods, the elimination of reconciliation pain across multiple parties and the real-time visibility to perform track and trace analysis. This trend needs to be anticipated in two or three years ahead from now. 

Low code is a software development approach that requires little to no coding to build applications and processes. As they are a quick and simple alternative to conventional software development, these platforms have grown in popularity. Now, this approach should be considered as new way to respond high demand of applications for business. 

In the infrastructure, many things can be realized through software. Software Defined Data Center (SDDC), Software Defined Network (SDN), and Software Defined WAN (SD-WAN) are example of how we can have ‘virtual’ infrastructure using software. It is a change of paradigm on how we can manage our ICT infrastructure. 

In the next newsletter, we will cover topics about each technology trend as follows:  

  1. AI and IOT, the trend in IOT and how AI can leverage data from IOT for analytic 
  2. Social commerce, what and how is social commerce adoption to support the business 
  3. Metaverse, how is potential business benefit from metaverse adoption 
  4. Augmented reality and Virtual Reality application for business 
  5. Low Code Development, as new way to respond high demand of applications for business 

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