Deloitte Forum 2017: Global and Thailand Economic Outlook and How Disruptive Innovations Affect Your Competitive Landscape

Transcription

1 Deloitte Forum 2017: Global and Thailand Economic Outlook and How Disruptive Innovations Affect Your Competitive Landscape 28 November 2017

2 Speakers Dr.Tim Leelahaphan Thailand Economist Standard Chartered Bank (Thai) Public Company Limited Dr.Sahanon Tungbenchasirikul Clients and Markets Director Deloitte Touche Tohmatsu Jaiyos Co., Ltd Ext

3 Agenda Times Activities 13:00 14:00 Registration 14:00 14:10 Opening Speech 14:10 15:00 Macroeconomic Update by Dr.Tim Leelahaphan 15:00 15:15 Coffee break 15:15 16:00 Disruptive Innovations and Impacts on Companies Competitive Landscape by Dr.Sahanon Tungbenchasirikul 16:00 16:30 Q&A 3

4 Survey Results Disruptive Technology: Opportunity or Threat

5 Contents This section delineates the research objectives aiming to understand on how companies from various industries in Thailand are aware of disruptive technologies which affect their businesses. Objectives The scope of the survey will include topics of interest related to companies awareness towards disruptive technologies. A detailed analysis conducted by Deloitte (Thailand) s specialists will be provided in this section. Findings Summary More than 120 respondents, the majority are Senior Managers and Managers. We are able to achieve the significant results and draw a firm conclusion accordingly. Survey outcomes will be discussed in this section. An in-depth summary will provide companies with further focus and refine their strategies according to disruptive technologies which may emerge in the future. With extensive experience in conducting research and business survey in Thailand and across the region, we are confident of our ability to provide the high quality summary of the survey. Specific topics and Knowledge sharing for further information and understanding will be served in Q&A section. Q&A Feedback and comments on the survey results will help us towards the all-important goal of continuous improvement to ensure that we continue to achieve high standards of services. 5

6 Objectives Who? Disruptive Technology DTTJ s clients in Thailand Top & senior executive levels targeted How? 10-minute qualitative questionnaire conducted online Why? To understand the awareness which clients have towards disruptive technologies which affect their businesses The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption. Clayton Christensen HBS Professor & Disruptive Innovation Expert 6

7 Findings % are small and medium-sized companies (SMEs) 53 Top Management Senior Executives Senior Manager/Manager Other roles 122 Respondents 26 67% are large-sized companies 65 Top industry: Automotive and parts (18%) Industrial goods (11%) Consumer products (10%) Manufacturing Service Agriculture 53% 44% 3% CIP FSI ER TMT LSHC PS 1 7

8 Findings 54% of respondents have their HQ in Thailand and Japan UK HQ:4 Japan HQ:29 USA HQ:14 30% 13% 57% China HQ:4 Local Company Conglomerate Multinational Company Corporation (MNC) Thailand HQ:37 8

9 Findings 76% Have been aware of the disruptive technology 69% Spell out that Disruptive Technology is currently affecting their businesses Impact of Disruptive Technology Awareness of Disruptive Technology Mobile Internet Cloud Technology Internet of Things Big Data/Data Mining 73% Forecast that Disruptive Technology will impact their businesses within next 3 to 5 years Top Five Disruptive Technologies Advanced Robotics 9

10 Findings Say that their businesses are agile enough to embrace 71% new/disruptive technologies Agility to adapt 83% Disclose that new/disruptive technologies will challenge their business models Challenges on Business/Operation/Workforce 81% Think that new/disruptive technology will affect their operating models 82% Reveal that new/disruptive technology will create opportunities to their businesses in the future 81% Expect that new/disruptive technologies will impact their workforce management (talent models) 77% Think that new/disruptive technology will present threats to their businesses in the future Opportunity and Threat 10

11 Findings Benefits which new/disruptive technologies could bring to businesses 40% strongly agree that new/disruptive technology will help in increasing productivity Increase productivity Save resources in executing routine tasks Reliable data storage Efficient cost management New emerging market segments Better business controls and transparency Improve communication Better profitability Encourage employees' innovation and creativity Better business collaboration Information protection Other

12 Findings Not only benefits which new/disruptive technologies will bring, but also will create threats to businesses Intense competition New unknown competitors Supply chain restructuring Product/Service obsolence Higher information security risk Over dependence on technology Lower profitability Higher operating costs Dampen employees' enthusiasm Harm employees' innovation and creativity Other % anticipate that new/disruptive technology will lead to fierce competition in the markets. 12

13 Findings Service-related company is more aware of new/disruptive technology than manufacturing-related company Awareness Impact Challenges Agility 73% 64% 80% 73% 78% 69% Manufacturing 80% 77% 83% 80% 85% 73% Service 13

14 Score level Findings Manufacturing-related businesses tend to see more benefits arising from new/disruptive technology than Service-related businesses do. However, they are less aware Why? Benefits Manufacturing Service 14

15 Number of respondents Findings Manufacturing and service-related businesses have different focus areas of disruptive technology, but both of them see the benefits of utilizing internet and database Manufacturing-related businesses emphasize more on advanced materials and robotics Internet and database are seen to be critical for service-related businesses 10 0 Type of Disruptive Technology Manufacturing Service 15

16 Findings All types of company are equally aware of new/disruptive technologies and believe it will create both opportunities and threats. Awareness Impact Challenges Agility Multinational Corporation (MNC) 75% 65% 80% 76% 80% 72% Local Company 75% 74% 85% 80% 84% 71% Conglomerate Company 75% 70% 75% 74% 86% 58% 16

17 Findings SMEs are more aware of new/disruptive technologies than large-sized companies Awareness Impact Challenges Agility SMEs 75% 71% 82% 80% 84% 72% Large-sized companies 75% 68% 81% 75% 80% 68% 17

18 Score level Findings Large-sized companies reveal that deploying new/disruptive technologies will bring considerable benefits to them than SMEs do Benefits SMEs Large-sized companies 18

19 Findings - CIP Consumer and Industrial products sector (CIP), the majority respondents in this survey, has a similar indication comparing to overall results 65% 70% Consumer and Industrial products Top five technologies Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Cloud Technology Internet of Things Mobile Internet Big Data/Data Mining Advanced Robotics 19

20 Findings - CIP Automotive and parts is one of industries which is being disrupted by new and emerging technologies 72% 73% Automotive and Parts Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Internet of Things Cloud Technology Autonomous Vehicles Advanced Robotics Mobile Internet 20

21 Findings - CIP Consumer Products is also aware and ready to embrace new/disruptive technologies 78% 75% Consumer Products Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Internet of Things Advanced Materials Advanced Robotics Cloud Technology Mobile Internet 21

22 Findings - CIP Food and Beverage is also aware among, although, it is considered as commodities which still has no direct substitutes 69% 65% Food and Beverage Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Mobile Internet Cloud Technology Internet of Things Advanced Robotics Big Data/Data Mining 22

23 Findings - CIP Industrial Products is the least aware among Consumer and Industrial sector, but it is believed to be agile enough to embrace new technologies 56% 70% Industrial Products Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Advanced Robotics Big Data/Data Mining Internet of Things Advanced Materials Cloud Technology 23

24 Findings - CIP Wholesale and Retail Distributions focuses on how to deploy internet and database into its operations 60% 65% Wholesale and Retail Distributions Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies N/A Mobile Internet Internet of Things Cloud Technology Big Data/Data Mining 24

25 Findings - FSI Financial Service Industry tends to emphasize on new/disruptive technologies related to database and internet which facilitates the baking processes. 70% 75% Financial Service Industry Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Mobile Internet Cloud Technology Big Data/Data Mining Internet of Things Advanced Robotics 25

26 Findings - ER Energy and resources industry is considered as the least agile to embrace new/disruptive technologies than the other sectors, although the industry is being disrupted. 80% 65% Energy and Resources Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Big Data/Data Mining Cloud Technology Advanced Materials Internet of Things Mobile Internet 26

27 Findings - TMT Telecommunication, Media, and Technology is perceived to be a fast moving industry which is being disrupted the most by new/disruptive technologies. 84% 75% Telecommunication, Media, and Technology Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Internet of Things Cloud Technology Mobile Internet Big Data/Data Mining Virtual Reality 27

28 Findings - LSHC Life science and Healthcare is also perceived to be vulnerable to new/disruptive technologies. 70% 67% Life Science and Healthcare Reveal that disruptive technology is impacting their businesses Believe that they are agile enough to embrace disruptive technology Top five technologies Cloud Technology Machine Learning and Advanced Robotics Big Data/Data Mining Internet of Things Artificial Intelligence 28

29 Findings Top 5 most disruptive 1 st 2 nd 3 rd 4 th 5 th Consumer and Industrial Products Cloud Technology Internet of Things Mobile Internet Big Data/Data Mining Advanced Robotics Financial Service Industry Mobile Internet Cloud Technology Big Data/Data Mining Internet of Things Advanced Robotics Energy and Resources Big Data/Data Mining Cloud Technology Advanced Materials Internet of Things Mobile Internet Telecommunication, Media, and Technology Internet of Things Cloud Technology Mobile Internet Big Data/Data Mining Virtual Reality Life Science and Healthcare Cloud Technology Machine Learning and Advanced Robotics Big Data/Data Mining Internet of Things Artificial Intelligence 29

30 Findings Top 5 most disruptive in Sub CIP 1 st 2 nd 3 rd 4 th 5 th Automotive and Parts Internet of Things Cloud Technology Autonomous Vehicles Advanced Robotics Mobile Internet Consumer Products Internet of Things Advanced Materials Advanced Robotics Cloud Technology Mobile Internet Food and Beverage Mobile Internet Cloud Technology Internet of Things Advanced Robotics Big Data/Data Mining Industrial Products Advanced Robotics Big Data/Data Mining Internet of Things Advanced Materials Cloud Technology Wholesale and Retail Distributions Mobile Internet Internet of Things Cloud Technology Big Data/Data Mining N/A 30

31 Overall Summary Disruptive Technology: Opportunity or Threat 1 General Information Perception Most of respondents are Senior managers and managers. More than half of respondent are classified in Consumer & Industrial Product (CIP). 54% of respondents have HQ in Japan and Thailand The majority are largesized company which are related to manufacturing and service. 2 3 & Awareness 76% are aware of disruptive technology and 69% say that disruptive technology have and will have an impact on their businesses. 82% reveal that disruptive technology will create opportunities, while 77% anticipate it to bring threats to their businesses Top five most impactful disruptive technologies are Mobile internet, Big data, Internet of things, Cloud technology, and Artificial intelligence. The majority expects that disruptive technologies will challenge their business models, operating models, and workforce management (talent models). Key Highlights In respondents view, businesses should be prepared to adopt disruptive technologies to remain competitiveness. Disruptive technologies will bring both benefits and downside risks to businesses depending on adaptive capability. Telecommunication is more sensitive than the other industries according to the results of this survey. Conglomerate company is more difficult to adapt and embrace new/disruptive technologies. Most industries see the benefits of utilizing big data in order to facilitate their business decisions making. 31

32 Pause for thought Disruptive Technology: Opportunity or Threat A disruptive innovation is a technologically simple innovation in the form of a product, service, or business model that takes root in a tier of the market that is unattractive to the established leaders in an industry. Clayton Christensen HBS Professor & Disruptive Innovation Expert Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. William Pollard American Physicist Innovation distinguishes between a leader and a follower Steve Jobs Former CEO of Apple Inc. 32

33 Q&A 33

34 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and highquality service to address clients most complex business challenges. To learn more about how Deloitte s approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter. About Deloitte Southeast Asia Deloitte Southeast Asia Ltd a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises. Comprising 290 partners and over 7,400 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region. All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities. About Deloitte Thailand In Thailand, services are provided by Deloitte Touche Tohmatsu Jaiyos Co., Ltd. and its subsidiaries and affiliates. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte network ) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication Deloitte Touche Tohmatsu Jaiyos Co., Ltd.