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View all search resultsWhy digital transformation must be on the leadership agenda
In companies that succeed, adoption is driven from the top down and reinforced from the bottom up, making digital tools integral to daily decision-making and execution.
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Buildings light up during sunset on Dec. 20, 2023, in Jakarta. (AFP/Yasuyoshi Chiba)
I
ndonesia holds a strong and strategic position in the global digital economy, supported by a large internet user base, rapid technological development and high levels of digital adoption across businesses, from MSMEs to large corporations.
Yet amid this optimism, one fundamental question is rarely addressed candidly: Are Indonesian businesses truly becoming more productive in the digital era?
From working closely with companies across industries on their digital transformation journeys, I have observed recurring challenges: slow execution, fragmented operations and limited visibility into ongoing work. Management often struggles to obtain a clear view of priorities and progress. These issues risk suppressing company performance, national productivity and ultimately Indonesia’s collective competitiveness.
Digital transformation does not happen automatically. It is a strategic leadership decision. Business leaders must go beyond funding technology to redesign how work gets done and embed workplace-specific digital platforms across the entire organization, starting with the C-suite. In companies that succeed, adoption is driven from the top down and reinforced from the bottom up, making digital tools integral to daily decision-making and execution.
Many executives assume that once digital tools are purchased, productivity will automatically follow. In reality, competitiveness is not determined by procurement, but by how seamlessly tools are integrated into daily workflows and how effectively work is executed, turning ideas into solid, efficient and scalable outcomes without adding unnecessary complexity.
Research by Gartner in 2023 found that 47 percent of digital workers struggle to find the information they need to work effectively. On average, employees use 11 different applications, nearly double the number in 2019. This reflects the reality of modern work: information scattered across multiple platforms, with teams spending more time searching for data than executing tasks efficiently.
In daily business operations, this fragmentation becomes a tangible burden. Many companies today incur significant costs due to disconnected ways of working. The visible costs include subscriptions for multiple applications, employee training, integration requirements and system maintenance. Yet there are less visible costs often overlooked: time wasted searching for information, duplicated work, miscommunication between teams, slower decision-making and weakened accountability.
