Business
CEOs are concerned about the viability of their companies
By means of Justine Irish D. Table, News reporter
More than half of Philippines-based CEOs are concerned about the viability of their companies in the next decade without reinvention, according to a report by PwC Philippines.
PwC’s Philippine Report 27e The Global CEO Survey shows that 54% of CEOs believe their companies “will not be economically viable in the next decade if they continue on their current path.” This is lower than the Asia-Paci regionFaverage 63%.
When asked about the long-term viability of their companies, 46% of Philippines-based CEOs expressed concern, much higher than the Asia Pacific average of 34%.Fic region.
The survey was conducted from October to November 2023 and covered 1,774 CEOs in the Asia Pacific region, including 35 CEOs in the Philippines.
More than half (57%) of Philippines-based CEOs are optimistic that the global economy will improve over the next 12 months, more than in Asia Pacific.Faverage 40%.
About 77% of Philippines-based CEOs said the United States is most important to their growth prospects, while 40% cited China.
“The Philippines has made efforts to improve the investment climate and attract foreign direct investment. This continued growth and positive investment environment could have boosted optimism among CEOs about both the local and global economies,” PwC Philippines Deals and Corporate Finance Managing Partner Mary Jade Roxas-Divinagracia said in a statement.
In the next twelve months, 40% of Philippines-based CEOs will identify themselvesFgeopolitical conFlicence as a major threat, while 37% mentioned thisFlat. At least 29% of CEOs said macroeconomic volatility and cyber risks are also top threats.
Chairman and senior partner of PwC Philippines Roderick M. Danao said there is a growing push among Filipino business leaders to reinvent.
“Many of our country’s business leaders are now working to accelerate the transformation of their business models, invest in technology and their workforce, and manage the risks and opportunities associated with climate change,” Mr. Danao said in a statement.
“In this era of constant reinvention, CEOs have tremendous opportunity to reimagine their organizations and themselves, thrive on disruption and turn aspirations into reality,” he added.
According to the report, 97% of Philippine respondents said they have already taken steps to change the way they create, deliver and capture value in the past. Ffive years.”
Meanwhile, 86% said they took at least one action that had a major impact on their company’s business models.
However, 71% of Filipino CEOs cite the lack of workforce skills as a barrier to reinventing their companies’ business models.
The other top challenges cited by business leaders are the lack of technology capabilities (69%) and competing operational priorities (65%).
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said companies will have to digitalize and adopt the best technologies globally to boost growth.
“These will help grow their business by leaps and bounds, further increasing productivity and output and reducing costs,” Mr Ricafort said in a Viber message.
Besides making their businesses viable, he says digitalization and adoption of the latest technologies will also help improve the competitiveness of companies.
Ruben Carlo O. Asuncion, chief economist of Union Bank of the Philippines, Inc., sought comment. Organizations that want to remain viable must reinvent themselves by improving and adapting to the current environment.
“Being relevant can guarantee its existence and hopefully proFitability and resilience,” he added.
AI IMPACT
According to PwC, CEOs see generative artificial intelligence (GenAI) as a catalyst for reinvention “that will drive efficiency, innovation and transformational change.”
At least 60% of CEOs in the Philippines expect GenAI to impact the workforce in the next three years, while 57% believe GenAI will have a positive impact on revenue and productivity.Fiterability.
Mr Danao said they have seen an “increased interest” in GenAI from business leaders.
“Their enthusiasm about the opportunities for growth and innovation that GenAI brings demonstrates their understanding of the need for a fundamental reinvention of their businesses,” he added.
However, 80% of CEOs said that to realize the “transformative benefits” of GenAI, it is necessary to upskill the workforce.
Meanwhile, 69% of them are concerned about cybersecurity risks, while 57% are concerned about disinformation.
