deloitte forum 2017: global and thailand economic …2017-11-28 · the scope of the survey will...

28 November 2017

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

How Disruptive Innovations Affect Your Competitive Landscape Deloitte Forum, 28 November 2017

2@ 2017 Deloitte Touche Tohmatsu Jaiyos Co., Ltd.

Speakers

Dr.Tim LeelahaphanThailand EconomistStandard Chartered Bank (Thai) Public Company Limited

+66 2724 8878 [email protected]

Dr.Sahanon TungbenchasirikulClients and Markets DirectorDeloitte Touche Tohmatsu Jaiyos Co., Ltd.

+66 2034 0000 Ext. 15034 [email protected]



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

Survey Results Disruptive Technology: Opportunity or Threat



Contents

This section delineates the research objectives aiming to understand on how companies from various industries in Thailand are aware of disruptive technologies which affecttheir businesses.

The scope of the survey will include topics of interest related to companies’ awareness towards disruptive technologies.

Objectives

Findings

Summary

Q&A

A detailed analysis conducted by Deloitte (Thailand)’s specialists will be provided in this section.

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.

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.



Objectives

How?

10-minute qualitative questionnaire conducted online

Who?

DTTJ’s clients in Thailand

Top & senior executive levels targeted

Why?

To understand the awareness which clients have towards disruptive technologies which affect their businesses

Disruptive Technology

“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 ChristensenHBS Professor & Disruptive Innovation Expert



Findings

122 Respondents

33

26

53

10

Top Management

Senior Executives

Senior Manager/Manager

Other roles

ServiceManufacturing Agriculture

44%53% 3%

65

128 7 7

1

CIP FSI ER TMT LSHC PS

Top industry: Automotive and parts (18%)Industrial goods (11%)Consumer products (10%)

67%are large-sized companies

33%are small and medium-sized companies (SMEs)



Findings

ThailandHQ:37

UKHQ:4

JapanHQ:29

USAHQ:14

Multinational Corporation (MNC)

Conglomerate Company

Local Company

57%

13%30%

54% of respondents have their HQ in Thailand and Japan

ChinaHQ:4



Top Five Disruptive Technologies

Impact of Disruptive Technology

Awareness of Disruptive Technology

Findings

76% Have been aware of

the disruptive technology 69%

Spell out that Disruptive Technology is currently

affecting their businesses

Mobile Internet

Cloud Technology

Internet of Things

Big Data/Data Mining

Advanced Robotics

73% Forecast that Disruptive Technology will impact their businesses within

next 3 to 5 years



Opportunity and Threat

Challenges on

Business/Operation/Workforce

Agility to adapt

Findings

Say that their businesses are agile enough to embrace

new/disruptive technologies71%

83%Disclose that new/disruptive technologies will challenge their business models

81%Think that new/disruptive technology will affect their operating models

81%Expect that new/disruptive technologies will impact their workforce management (talent models)82%

Reveal that new/disruptive technology will create opportunities to their businesses in the future

77% Think that new/disruptive technology will present threats to their businessesin the future



Findings

Benefits which new/disruptive technologies could bring to businesses

40% strongly agree that

new/disruptive technology will

help in increasing productivity

3.0

3.8

3.9

3.9

3.9

4.0

4.0

4.0

4.0

4.1

4.1

4.3

Other

Information protection

Better business collaboration

Encourage employees' innovation and creativity

Better profitability

Improve communication

Better business controls and transparency

New emerging market segments

Efficient cost management

Reliable data storage

Save resources in executing routine tasks

Increase productivity



Findings

Not only benefits which new/disruptive technologies will bring, but also will create threats to businesses

83% anticipate that

new/disruptive technology will

lead to fierce competition in

the markets.

3.0

3.1

3.3

3.4

3.5

3.7

3.8

3.8

3.9

3.9

4.0

Other

Harm employees' innovation and creativity

Dampen employees' enthusiasm

Higher operating costs

Lower profitability

Over dependence on technology

Higher information security risk

Product/Service obsolence

Supply chain restructuring

New unknown competitors

Intense competition



Findings

Service-related company is more aware of new/disruptive technology than manufacturing-related company

Awareness Impact Challenges

85%77%80%

73% 64%

Agility

78% 69%

73%

80%

73%

83%

80%

Manufacturing

Service



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?

3.5

3.7

3.9

4.1

4.3

4.5

Score

level

Benefits

Manufacturing Service



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.

0

10

20

30

40

50

60

Num

ber

of

respondents

Type of Disruptive Technology

Manufacturing Service

Internet and database are

seen to be critical for

service-related businesses

Manufacturing-related

businesses emphasize more

on advanced materials and

robotics

12 34 5

1

2 3 4



Findings

All types of company are equally aware of new/disruptive technologies and believe it will create both opportunities and threats.

Conglomerate Company

75% 70%

Multinational Corporation (MNC)

Local Company


86%

84%74%75%

75% 65%

Agility

80% 72%

71%

58%

80%

76%

85%

80%

75%

74%



Findings

SMEs are more aware of new/disruptive technologies than large-sized companies


80%68%75%

75% 71%

Agility

84% 72%

68%

82%

80%

81%

75%

SMEs

Large-sized companies



Findings

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

3.4

3.5

3.6

3.7

3.8

3.9

4.0

4.1

4.2

4.3

4.4

Score

level

Benefits

SMEs Large-sized companies



Findings - CIP

Consumer and Industrial products sector (CIP), the majority respondents in this survey, has a similar indication comparing to overall results

Consumer and Industrial products

65%

Reveal that disruptive technology is impacting

their businesses

70%

Believe that they are agileenough to embrace

disruptive technology

Top five technologies

Cloud Technology Internet of Things Mobile Internet Big Data/Data Mining Advanced Robotics



Findings - CIP

Automotive and parts is one of industries which is being disrupted by new and emerging technologies

72%


their businesses

73%




Cloud TechnologyInternet of Things Mobile InternetAdvanced Robotics

Automotive and Parts

Autonomous Vehicles



Findings - CIP

Consumer Products is also aware and ready to embrace new/disruptive technologies

78%


their businesses

75%




Cloud TechnologyInternet of Things Mobile InternetAdvanced Robotics

Consumer Products

Advanced Materials



Findings - CIP

Food and Beverage is also aware among, although, it is considered as commodities which still has no direct substitutes

69%


their businesses

65%




Advanced RoboticsMobile Internet Big Data/Data MiningInternet of Things

Food and Beverage

Cloud Technology



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%


their businesses

70%




Advanced MaterialsAdvanced Robotics Cloud TechnologyInternet of Things

Industrial Products

Big Data/Data Mining



Findings - CIP

Wholesale and Retail Distributions focuses on how to deploy internet and database into its operations

60%


their businesses

65%




Cloud Technology Big Data/Data Mining

Wholesale and Retail Distributions

Internet of ThingsMobile Internet

N/A



Findings - FSI

Financial Service Industry tends to emphasize on new/disruptive technologies related to database and internet which facilitates the baking processes.

70%


their businesses

75%



Financial Service Industry


Cloud Technology Big Data/Data Mining Internet of ThingsMobile Internet Advanced Robotics



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%


their businesses

65%



Energy and Resources


Cloud TechnologyBig Data/Data Mining Advanced Materials Internet of Things Mobile Internet



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%


their businesses

75%



Telecommunication, Media, and Technology


Cloud TechnologyInternet of Things Big Data/Data MiningMobile Internet Virtual Reality



Findings - LSHC

Life science and Healthcare is also perceived to be vulnerable to new/disruptive technologies.

70%


their businesses

67%



Life Science and Healthcare


Machine Learning and Artificial Intelligence

Cloud Technology Advanced Robotics Big Data/Data Mining Internet of Things



Findings – Top 5 most disruptive

1st 2nd 3rd 4th 5th

Consumer and Industrial Products

Financial Service Industry

Energy and Resources

Telecommunication, Media, and Technology

Life Science and Healthcare

Cloud Technology Internet of Things Mobile Internet Big Data/Data Mining Advanced Robotics

Cloud Technology Big Data/Data Mining Internet of ThingsMobile Internet Advanced Robotics

Cloud TechnologyBig Data/Data Mining Advanced Materials Internet of Things Mobile Internet

Cloud TechnologyInternet of Things Big Data/Data MiningMobile Internet Virtual Reality

Machine Learning and Artificial Intelligence

Cloud Technology Advanced Robotics Big Data/Data Mining Internet of Things



Findings – Top 5 most disruptivein Sub CIP

1st 2nd 3rd 4th 5th

Automotive and Parts

Consumer Products

Food and Beverage

Industrial Products

Wholesale and Retail Distributions

Internet of Things Cloud Technology Autonomous Vehicles Advanced Robotics Mobile Internet

Advanced Materials Advanced Robotics Cloud TechnologyInternet of Things Mobile Internet

Cloud TechnologyMobile Internet Internet of Things Advanced Robotics Big Data/Data Mining

Big Data/Data MiningAdvanced Robotics Advanced MaterialsInternet of Things Cloud Technology

Internet of ThingsMobile Internet Cloud Technology Big Data/Data Mining

N/A



Disruptive Technology: Opportunity or ThreatOverall Summary

General Information• 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 large-sized company which are related to manufacturing and service.

1Perception & 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.

2 3



Disruptive Technology: Opportunity or ThreatPause for thought

“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 ChristensenHBS 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 PollardAmerican Physicist

“Innovation distinguishes between a leader and a follower”

Steve JobsFormer CEO of Apple Inc.



Q&A

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deloitte forum 2017: global and thailand economic …2017-11-28 · the scope of the survey will...

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