By 2020, The World will Belong Only To Digital CEOs
The CEOs today are in a do or die situation, thanks to the speedy developments taking place in the digital world. If he adapts to the new digital world order, he would survive, if not he will perish. A recent research by customer experience provider Amdocs suggests that CEOs who are yet to ride the digital wave or are doing it slowly will need to change their management styles in order to remain successful in the industry by 2020, which is only 5 years from now.
However, the current situation is still worrisome. In the survey on Asia-Pacific CEOs, the C-level executives cite several challenges they are facing in the digital world, the main issues being the inability to support or execute change, lack of clear strategy and competition and several of them also lack ideas to executive change.
However, 78 percent CEOs and C-level executives who have executed some digital strategies or changes in their organizations believe that such change was necessary as rapid innovation by traditional and new players continued to revolutionize the way we communicate and consume information and entertainment.
To address the existing gap, respondents said CEO management styles will need to change, shifting from the currently favored pacesetting and commanding management styles in which the CEO is expected to know where the company is going and lead it there by example, to coaching and mentoring, which value the contribution of teamwork to end goals.
The study emphasizes that CEO of 2020 will have to be chief innovators, with over two-thirds stating that CEOs in this region should be driven by a passion for innovation. Innovation involves risk-taking, but at present, only a few CEOs in APAC have taken risks in changing themselves as per the needs of their digital businss, says the study.
Here, the C-level role and mindset in supporting innovation is the key. The study found that many service providers were adding new C-level roles in response to changes in areas of focus and new lines of business. The most commonly added new C-level roles hold responsibility for customer experience, innovation and commercial activities.
CEOs in 2020 are more likely to invest in cloud services, customer experience and big data analytics. With respondents having expressed concerns about managing change as a barrier to future success, it is unsurprising that the survey indicates APAC executives are considering a blended approach of both outsourcing and insourcing to drive these changes by 2020. For example, more than half are expected to outsource at least some support for cloud services (67%), big data analytics (56%) and digital services (56%).
“According to executives from the largest service providers in APAC, future Telecom innovation in the region will be delivered through a team effort, rather than by individuals, and CEOs will be expected to play a critical role by assuming a collaborative leadership style and by creating organizational structures that stimulate innovation,” said Teresa Cottam, chief strategist and founder at strategy consultancy Telesperience, who led the research. “At the same time, CEOs will have to keep a careful eye on profit and loss.
Cottam believes that Asia Pacific is one of the more dynamic communications markets in the world, with a fast pace of service innovation critical to retaining the loyalty of predominantly prepaid customer bases.
Abhay Kumar, regional vice president, Asia Pacific, Amdocs believes with tools and methodologies built on proven best practices, delivered under clear service level agreements and key performance indicators, professional services vendors can help drive immediate operational improvements, with no change to existing systems or need for complex software integration.
Toward the end, the study sees outsourcing also as a good way of supporting emerging lines of business, overcoming any barriers to rapid execution of their innovation strategies.
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