CHANGE makes a company grow its potential and thrive better in the future. This was the message of SGV Knowledge Institute’s recent event, “Transformation Realized: Impossible to Unstoppable,” its third for 2024.
Hosted by top accounting firm SyCip, Gorres, Velayo & Co. (SGV), the forum discussed successful business transformation through the power of people, technology and innovation.
Guest speakers from Globe Telecom, Ernst & Young (EY), Tenaga Nasional Berhad and Singapore Pools Ltd. expounded on their direct experiences and decisions that made their companies’ respective transformations meaningful.
Transformation within companies is caused by changes in society, the economy and technology in a rapidly evolving world, EY Asia Pacific Chief Innovation Officer Steve Lo said.
“Transformation is an urgent and essential topic as we navigate a landscape that is changing at an unprecedented [pace.] Since the year 2000, 50 percent of [Fortune 500] companies have already been replaced. This statistic underscores the importance and critical need to evolve continuously and adapt to survive,” Lo explained.
The major factors that make companies fail to sustain market leadership, Lo said, are technological advancements, geopolitical and economic landscapes, and climate and sustainability. These are trends that companies have to monitor carefully, specifically the rise of generative artificial intelligence (AI), multipolarity, elections, global economic policies, changing workforce and climate change.
A recent survey EY conducted among chief executive officers (CEOs) sought to identify key disruptive factors shaping the global business landscape. First on the list was emerging technology, especially AI, followed by changing customer needs and expectations.
“CEOs are recognizing they need to adapt to new technology for them to survive and create a competitive advantage. The pandemic has also accelerated the shifts in consumer behavior, making it necessary for companies to remain agile and responsive,” Lo said.
Third disruptive factor is the shifting economic environment and geopolitical tension and conflict. Interestingly, this emerged as the top concern for Asian companies.
“This is significant, given the region’s positioning amid the heightened global tensions, the need for a strategic response to the global dynamics is more critical than ever,” Lo noted.
EY’s researchers focused on geostrategic outlook, such as AI’s cross-border data security, data ownership issues, regulatory challenges and ethical use.
“Companies may want to create strategic partnerships or alliances that can enhance their ability to adapt, survive and become more resilient. [Companies may also] want to create a more robust risk management framework that will allow for real-time monitoring and switch responses to potential emerging effects,” Lo said.
While most companies are willing to automate operations with AI, only 10 percent of their budget is allotted to this endeavor. This shows a clear gap between aspiration and actual engagement, Lo stressed.
“Companies must avoid getting swept up in the excitement, but instead focus on understanding the true potential and also the practical implementation of the technology,” Lo said.
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