Asia’s conglomerates are at an inflection point. From South Korea’s chaebols and Japan’s keiretsu to India’s business houses and Southeast Asia’s family-owned multinationals, these large groups have exceptional track records of success. However, they now find themselves competing for customers, capital, and talent in a very different and globalised environment.
Despite most Asian conglomerates working hard to improve operational efficiency and the quality of their products and services, new challengers – including agile online retailers such as Alibaba and Amazon, and global digital-powered entities like Google and Tesla – are fast disrupting markets, with new ways of selling and making decisions. Conglomerates face a stark choice: disrupt or be disrupted.
At the same time, rapid technical and social innovation is highlighting the need for continuous innovation. As technology plays a bigger role in their day-to-day lives, consumers want to shop for products and services that are personalised, transparent, convenient, and available on demand. Customer expectations, in other words, have never been higher.
Global market trends are also inescapable. With prices for commodities such as oil and minerals fluctuating, many Asian conglomerates are under pressure to reimagine their business models to open new revenue and profit sources as old ones close.
Some conglomerates have already adapted, successfully deploying digital technology to engage in new ways with customers, streamline operations, and optimise business outcomes. However, many are still yet to transform their operations for the digital age. To maintain and grow their competitive edge, Asian conglomerates should consider transforming key aspects of the business value chain by:
- Evolving customer engagement and commerce to drive growth
- Enhancing workforce engagement across employees and contractors to drive profit
- Enabling superior business and supplier collaboration to drive down spend across direct materials, indirect spend, and travel
- Optimizing the extended supply chain by harnessing the Internet of Things (IoT) to better connect assets, products, and equipment – increasing cost savings and enhance the customer experience
- Providing real-time intelligent insights by bringing together business transactions and insights to drive more informed decision-making
Download our white paper “Rise of the Digital Conglomerate In Asia” to learn more. If you are interested, we are happy to demonstrate how SAP is uniquely positioned to help you with a powerful end-to-end enterprise platform, capable of digitising every business process across 25 industries.