Global CEOs are worried about the impact of digital disruption on their business. They have expressed concerns about their organization’s ability to keep up with new technologies and stay on top of what’s next in their service and/or product offerings.

This was found in KPMG’s 2016 Global CEO Outlook study, which provides a vivid image of CEOs’ expectations for business growth, the challenges they face and their strategies to chart organizational success over the next 3 years. The annual study by KPMG International found that global CEOs are concerned with a number of critical issues — many of which the CEOs indicated they have not previously experienced in their careers.

One such example is the threat of disruption, where 65 percent of global CEOs are concerned that new entrants are disrupting their business models and more than half (53 percent) believe that their company is not disrupting their industry’s business models enough.

Concern was also voiced about their company’s level of data and analytical sophistication, as well as their ability to connect with customers through digital channels. Less than a third (30 percent) believe they are currently a leader in data and analytics.

It is increasingly essential for CEOs to embrace digital disruption and ensure that their company has a strategy to respond. Speaking to C-suite executives at an event in Thailand on How to turn digital disruption into opportunity, KPMG Asia Pacific Chairman, Mr Tham Sai Choy, shares his views on the need to start preparing for the digital economy.

"We are at the start of a sustained revolution that is changing the playing field for all businesses. CEOs have the ability and responsibility to transform their companies to stay on top of these changes. In future-proofing their companies, CEOs must keep a constant watch on innovation developments happening everywhere, work out who their new competitors and new allies are, and plan a strategy that taps into everyone else’s innovation so that they can stay relevant and have a viable future,” says Mr Tham.  

The good news is that digital disruption is being elevated in importance and CEOs are voicing its significance. Moving from talk to strategic action will be a next step for many CEOs who are just seeing this need and opportunity.

In Thailand, the ‘digital economy’ policy is currently one of the government’s focuses as the government expects the move could drive the country’s innovation, competitiveness and growth. With digital technology adoption, it is envisaged that Thai consumers across the nation, including those in remote areas, will be able to access a wider variety of goods and services, such as digital banking, online shopping and cyber education. In addition, Thai workers can potentially benefit by embracing the digital movement to upgrade their skills and drive productivity improvements.

Digital disruption also holds huge potential for Thai entrepreneurs and SMEs. Companies that intelligently embrace digital disruption will have a better chance of dominating the market and be ready to respond to emerging trends and industry scenarios. The adoption of digital technology will fundamentally reshape businesses’ client value propositions and operating models.

“Digital disruption represents a significant opportunity for Thai companies and for visionary leaders to redefine their company and industry. The good news is that in many cases the customer or end user will benefit from leaps that we expect will be made in products and client experience,” says Winid Silamongkol, Chief Executive Officer, KPMG in Thailand, Myanmar and Laos.