How can CEOs capitalise on disruptive forces?
There are three actions that EY-Parthenon noted that CEOs can do.
Forty-three percent (43%) of CEOs in Asia-Pacific believe that changes in global economic environment and geopolitical disruptions, including trade and tension conflicts, are the disruptive forces expected to drive significant changes in their industry and markets over the next 12 months, according to EY-Parthenon’s Global CEO Confidence Index.
Other factors CEOs cited were emerging technology, including Artificial Intelligence (AI), and changing customer needs and expectations, with 42% and 38%, respectively.
To navigate these disruptions, the report noted three actions that CEOs can take:
Scan, focus, and then act
CEOs should establish a culture within the organisation that encourages employees at all levels to stay informed about emerging technologies and changing market dynamics, the report said.
CEOs and all decision-makers must understand how each development is likely to unfold in the year ahead (scan), assess the impact of each development on specific business functions (focus) and provide considerations for how the company can successfully manage them (act).
Enhance customer engagement and insights
CEOs must develop sophisticated systems for gathering and analysing customer data to anticipate shifts in behavior and preferences. This might include implementing advanced analytics tools, conducting regular customer surveys, or creating customer advisory boards to maintain a direct line of communication with key stakeholders.
Build agile and resilient business models
According to EY-Parthenon, CEOs must design organisational structures and processes that can quickly adapt to changing market conditions. This could involve diversifying supply chains, creating flexible work arrangements, or developing scenario-based strategic planning processes to prepare for various geopolitical and economic outcomes.
Moreover, CEOs recognising and prioritising the leverage of new technologies to gain an innovation edge and transform work practices allow companies to disrupt markets and redefine customer experiences, potentially boosting market share and revenue, it said.
Developing strong business cases and return on investment projections for disruptive technology investments is also crucial, as this practice mitigates overinvestment risks and aligns initiatives with strategic goals.
