New business models are fostered by growth, competition, technology advances and changing stakeholder demands, according to the survey carried out by Frost & Sullivan's Visionary Innovation Group. CEOs in Asia overwhelmingly rank revenue growth as their top growth objective for the next five years following intense complexity, uncertainty and transformation of the economic landscape. However, the majority indicate that they are challenged by growth strategy implementation, growth strategy and vision congruence, and annual growth rate acceleration.
The rising competitive pressures, changes in customer behavior and demands, and digital transformation are the main disruptive forces in the Asian market. As these forces collide, conventional strategies and traditional business ecosystems will collapse, creating a conducive environment for strategic innovation. Frost & Sullivan's annual CEO survey offers insights into the ways in which Asia's business leaders are tackling market volatility and future-proofing their growth.
"The rising relevance of services-based business models is upsetting traditional products-based approaches," said Frost & Sullivan Visionary Innovation Research Analyst Michal Kurowski. "Personalization and customization, and value-for-many, as opposed to value-for-money, are perceived as having the highest potential for disruption."
Although digital transformation is cited as a dominant growth and leadership catalyst over the next five years, more than one in four respondents admitted that the breakneck speed of technology change is an important challenge. Additionally:
"After revenue growth, ensuring customer satisfaction was the most important goal for organizations. Yet, more than half of them felt that their product/service innovation performance was not in line with evolving customer demands," noted Kurowski. "Almost 49 percent of CEOs stated that they would rely on strategic partnerships to drive their organization's growth in the next three years. Mega Trends like connectivity and convergence are creating a new business ecosystem, unlocking fresh growth opportunities for organizations that use smart strategies to meet stakeholder expectations."