MANILA -- Filipino CEOs or chief executive officers have acknowledged the impact of disruptive innovation in their industries and are ready to roll out strategies to harness such disruptions in the marketplace.
The Management Association of the Philippines (MAP) and the PwC Philippines launched Monday the Philippine CEO Survey 2018, showing that 94 percent of respondents believe that disruptive innovations have changed their industries in the past 10 years.
Of the 122 surveyed top executives, 68 percent said they expect to change their business model in the next three to five years given the disruption in the business environment introduced by new technologies.
PwC Philippines Managing Partner for Deals and Corporate Finance Jade Roxas-Divinagracia said businesses are shifting their emphasis from being product-centered, to delivering the right consumer experience.
Divinagracia mentioned that nine technologies are currently expected to create significant impact across all industries worldwide. These include blockchain, artificial intelligence, 3D printing, robotics, autonomous vehicles, internet of things, drones, augmented reality, and virtual reality.
“It is also understandable that half of our traditional business leaders will only enter into commercial agreements with technology providers. They will not create new technology themselves but they will enter into commercial agreements,” she noted.
Aside from forming partnerships and acquiring technology firms to embrace disruptive innovation, about 44 percent of the traditional business’ CEOs plan to invest in startups. Most of these are in the sectors of retail and e-commerce, healthcare, software-as-a-technology, financial technology, and artificial intelligence.
“While startups on the other hand, would prefer that they do create their own technology or methodology. About two-thirds would say they would invest in their own technology,” she added.
In the survey, startups also cited top constraints in the Philippine business landscape including availability of financial resources, regulatory factors, and lack of talent.
Divinagracia said local startups are looking into other markets such as Indonesia, Singapore, and Vietnam, considering these as important countries for the growth of their businesses.
“Emerging technologies, including cybersecurity and data analytics, should be the center of everyone’s strategy and a big part of the CEO’s agenda,” she pointed out. (PNA)
