The Filipino Chief Executive Officers (CEOs) have acknowledged that the disruptive innovation technologies have impacted their industries.
In the Philippine CEO Survey 2018, a survey that was recently launched by the Management Association of the Philippines and the PwC Philippines, leaders were asked about the disruptions happening in their industries as well as the preparations that they are doing to minimise the negative impact, at the same time harness the positive rewards of such disruptions.
According to a recent report, more than half of the business leaders, around 54% of the respondents, recognise that disruptive innovations have caused significant changes on their businesses.
122 top executives were included in the survey. 68% of which said that they expect to change their business model in the coming 3 to 5 years because of the disruption in the business environment introduced by the new technologies.
Business models need to be changed to address the changing consumer behaviour, new kinds of competition, and shifting regulations.
There are nine emerging technologies that are currently expected to create a significant impact across all of the industries worldwide.
These technologies are blockchain, artificial intelligence (AI), 3D printing, robotics, autonomous vehicles, Internet of Things (IoT), drones, augmented reality, and virtual reality.
Emerging technologies that include cybersecurity and data analytics should also be in the centre of everyone’s strategy and a big part of the CEO’s agenda.
Businesses are shifting their emphasis from being product-centred to delivering the right consumer experience.
95% of the leaders understand that they need to work together to introduce new technologies or methodologies to their businesses.
Among the other strategies that they are planning includes investing in start-ups, forming joint ventures, and entering into commercial agreements.
These strategies are for traditional leaders who will not be creating new technologies themselves and would, instead, enter into commercial agreements with technology providers.
Moreover, aside from forming partnerships and acquiring technology firms to adopt disruptive innovation, about 44% of the traditional CEOs of business plan to invest in start-ups.
Most of the start-ups that they will be investing in are in the sectors of retail and e-commerce, healthcare, software-as-a-technology, financial technology, and artificial intelligence (AI).
On the other hand, start-ups would prefer that they do create their own technology or methodology. In fact, around 2/3 or 66% claimed that they would invest in their own technology.
According to the survey, local start-ups are looking into other markets such as Indonesia, Singapore and Vietnam and are considering them as important countries for growth of their businesses.
This is because start-ups have cited in the survey that the top constraints in the Philippine business landscape are availability of financial resources, regulatory factors, and lack of talent.