Thailand
Malaysia: Dentsu research finds crisis of confidence in digital economy
PETALING JAYA: The Digital Society Index 2019: Human Needs in a Digital World, released by Dentsu Aegis Network (DAN), reveals a crisis of confidence in the digital economy.
Despite widespread recognition of the utility of digital services, a range of basic, self-fulfilment, psychological and societal needs are failing to be met.
Alongside a growing distrust of digital technology, this is prompting consumers to take back control of their digital experience, with significant implications for business.
The research, conducted in partnership with Oxford Economics and surveying over 43,000 people, measures performance in 24 countries across the dimensions of dynamism, inclusion and trust.
Commenting on the research, DAN Asia-Pacific executive chairman Takaki Hibino said: “For Asia, this year’s Digital Society Index presents a tale of two halves. There’s great optimism about the future of technology and its ability to solve the world’s most pressing challenges. At the same time people’s trust in technology is waning and concerns about the pace of technological change are mounting.
“It’s no longer a question that people need to be at the heart of the digital economy. However, there’s still a long way to go in meeting the digital needs of many. If this aspect is not fulfilled, innovation will always fail. The report calls for a more balanced approach to engage people through digital products and services – to truly grasp the opportunities presented by technology.”
Across Asia Pacific, there is a gap between the promise of digital technologies and its human impact. Fifty-six per cent are optimistic that digital technologies will have a positive impact on society but they’re concerned that the pace of change is too fast.
People are also worried about technology’s impact on their well-being and quality of life as only 28% agreed that technology fulfils their psychological needs.
Nevertheless, they continue to embrace digital products and services, with 55% more likely to book taxis with an app and 81% more likely to shop online.
People are also becoming increasingly mindful of data management, taking steps to reduce the amount of data shared online for instance. Eight out of 10 say they would stop doing business with an organisation that misused their data, representing the most prominent driver of distrust.
Critically for businesses, those consumers most active in taking back control of their online data and time, in ways that will make it harder for brands to engage them, are also those with the highest propensity to use digital products and services.
Trends identified from the findings carry significant implications for brands and businesses and the report includes a series of recommendations such as:
Businesses need to compete on openness and transparency around data usage. By focusing on engagement, not reach, brands can also maximise the value of interactions, as consumers increasingly initiate those moments themselves;
Amid a growing debate around the negative impact of social media and digital technology on health, brands need to work out how they can be part of helping people undertake their own digital detox and create a loyalty premium by helping them interact on their own terms; and
Harness technology to enable more effective learning. The more positive people are about digital technology in terms of their own skills, the more likely they are to engage with digital products and services.
Source: https://www.thestar.com.my/business/business-news/2019/04/22/dentsu-research-finds-crisis-of-confidence-in-digital-economy/#tmZ7uDiRKKIqGiLY.99