Innovation, cyber security and disruption are the leading complexities confronting ITC businesses, according to the latest Asia Pacific Business Complexities Survey conducted by global law firm Baker McKenzie in cooperation with media company Acuris.
Kherk Ying Chew, Technology, Media and Telecommunications (TMT) partner at Wong & Partners, a member of Baker McKenzie International, says that the research shows 62% of companies in Asia Pacific feel that doing business in the TMT sector will become more challenging.
Technology, through either external disruption or the need for internal innovation, is the leading complexity facing all Asian businesses. This was backed up by the TMT sector’s response, in which the vast majority of respondents (89%) expect that sectors will see major technological disruption in the next two years.
78% of technology executives surveyed expect that innovative transformative technology will be the leading complexity for their businesses, while 72% said that technology will be highly disruptive to their companies.
Growing competition from domestic and international companies, especially the increasing number of start-ups, are posing significant cost pressures on TMT companies.
In fact, 69% of the respondents expect greater pressure on costs in TMT in the next two years. Yet, the “cost of doing nothing” can have far reaching impact on businesses, and respondents pointed out that investments in innovation, if managed properly, can actually help reduce other costs across the organisation.
Corporate leaders believe that cloud computing (31%), artificial intelligence (24%) and big data (24%) are among the top innovations that will matter most in the years ahead, as companies look to use technology to help boost growth and efficiency. Interestingly, these match with the areas which TMT organizations are investing most in.
For TMT businesses operating in Asia Pacific, the three actionable approaches for technology companies are: finding individuals who can drive innovation, engaging with regulators and laying down the fundamentals of Tech M&A by having clarity on the outcomes.
Several other key trends were drawn out of the research, including a strong prediction of increased M&A activity in the TMT sectors, where 100% of respondents saw a rise. Meanwhile, only 3% see the number of cases of dispute resolution or litigation involving companies from TMT to decrease over the next two years.
This is why it is essential to “innovate, protect and grow” in an environment where change happens at light speed.