There are five success factors for businesses in Asia Pacific, said PwC recently when launching a report titled“Asia Pacific’s Time: Responding to the new reality”.
The report highlights that the lingering effects of the COVID-19 pandemic, heightened geopolitical tensions, rampant inflation, supply chain fragility and new workforce challenges, with the accelerating pressure for action on ESG issues, have created a state of disequilibrium in Asia Pacific, the firm noted.
There is also a permanent shift in consumer and business behaviours that has dramatically changed the trajectory of economies and societies, PwC pointed out.
If Asia Pacific business leaders are to continue driving growth, competitiveness and resilience in these difficult times, they must embrace the challenges and opportunities of ESG and the new flexible world of work, said Bob Moritz, PwC Global Chairman.
“The key to advancing these agendas in the new reality is a revamped approach to collaboration across the region based on building trust and delivering sustained outcomes. One that must begin now,” he advised.
While the region can no longer hope growth and gradual change will be sufficient to steer it through these turbulent times, stakeholders must adjust their posture to become more proactive and self-determined, PwC said.
They must adopt new and more nuanced strategies which position them for success in a more dynamic and interconnected Asia Pacific, the firm added.
The interconnected success factors for businesses in Asia Pacific
Based on its discussions with business leaders and experts in the region, PwC said the five success factors for businesses in Asia Pacific are interconnected and interdependent,
Each of the success factors are mutually reinforcing to drive differentiation and competitiveness for business and governments to prosper while the actions in one have an impact on the others.
These success factors for businesses in Asia Pacific are:
Supply chain. Disruption has prompted businesses to reevaluate their sourcing strategies.
Leaders in Asia Pacific must shift their focus from cost and efficiency to resilience and trust when transforming their regional supply chain.
Regional enterprise growth. Opportunities for value creation are abundant in Asia Pacific.
To scale in the region, dealmakers must take a strategic ‘capabilities-driven’ approach that combines processes, tools, technologies, skills and purpose.
Digital economy. Digitalisation is increasingly crucial to respond to the new reality.
Businesses must embrace digitalisation to drive insights, reduce cybersecurity and data privacy risk and stay relevant in an increasingly complex environment.
Workforce. Employees in Asia Pacific value meaning and authenticity and 90% of the workforce prefer to work remotely or hybrid.
To build trust and respond to the changing dynamics of their workforce, business leaders must rethink upskilling, embrace flexibility and deliver on purpose-driven work.
ESG. It’s no longer a ‘nice-to-have’ for businesses in Asia Pacific. According to PwC research, momentum is not declining - with 88% of Asia Pacific CEOs remaining committed to their net-zero or carbon neutral targets.
Businesses must move from good intention to value creation - accelerating progression of ESG priorities to differentiate in the market for capital and talent.