Microsoft Korea said Tuesday the ongoing digital revolution will add roughly $42 billion to Korea’s gross domestic product by 2021 and push up the country’s growth rate by 0.5 percent annually.
The projection was based on research conducted with market tracker IDC Asia Pacific. IDC surveyed 1,560 decision makers in mid- and large-sized business organizations across 15 economies in the Asia-Pacific region on the economic impact of digital technologies.
According to Microsoft, application of digital technologies like the cloud, big data and artificial intelligence to business processes will increase profit margins and productivity, and create new sources of revenue for companies.
The study predicted that while about eight percent of Korea’s GDP was derived from digital products and services created directly though the use of digital technologies last year, that percentage is expected to surge to around 65 percent by 2021.
“Digital transformation has a positive and measurable impact on Asia Pacific’s economy,” said Andrea Della Mattea, president of Microsoft Asia Pacific, in a press briefing during the Digital Transformation Summit hosted by the computer software company on Tuesday.
“In fact, organizations are seeing tangible improvements from their digital transformation initiatives today between the ranges of 15 to 18 percent, which shows digital transformation is no longer an idea, but a reality.”
According to the study, about 77 percent of companies in Korea are in the midst of digital transformations while only seven percent can be classified as so-called leaders. The leaders in digital transformation have full or progressive digital transformation strategies with at least a third of their revenue from digital products and services.
Microsoft introduced Korean partners that are rapidly adapting to digitization by using the software company’s AI and cloud platforms, such as 365mc Hospital, which is known for liposuction surgeries.
“Until recently, liposuction procedures depended almost entirely on the surgeon’s experience and capability,” said Kim Nam-chul, CEO of 365mc Hospital.
“Hence our motion capture and artificial intelligence-assisted liposuction system was built to collect data and enhance precision and safety of liposuction procedures.”
Other Korean partners of Microsoft include Samsung Electronics, LG CNS, NH Investment & Securities, Hyundai Motor and Asiana Airlines.
