The relentless pace of change in technology, customer demands, and geopolitics are adding new challenges to an already complex business landscape.
This is particularly evident in Asia, with a recent PwC study reporting that 63% of Asia Pacific CEOs think their companies will stop being economically viable within a decade if they continue on their current path. To navigate this turbulent environment and secure long-term success, Asian business leaders must take charge and embrace the concept of dual transformation.
Exploration vs Exploitation
Dual transformation is a strategic approach that tackles disruption head-on and involves simultaneous efforts to optimize existing business models while building new engines of growth.
In Asia, this approach is particularly relevant, and it requires strong, visionary leadership to succeed. Leaders must guide their organizations through the rapid technological advancements, shifting consumer preferences, intense competition, and evolving regulatory landscapes that characterize Asian markets.
Effective leaders recognize that traditional business models are no longer enough to ensure long-term success in Asia. They must champion a strategy that tackles disruption head-on, enabling their companies to adapt to the changing environment while also securing future growth. This is where dual transformation comes in, and where leadership becomes critical.
Examples of successful Dual Transformation in Asia
The success stories of Alibaba, Globe Telcom, and Grab highlight the crucial role of leadership in driving dual transformation. In each case, visionary leaders spearheaded the transformation efforts.
- Alibaba (China): This e-commerce giant has continuously refined its ecommerce platform and logistics network, solidifying its dominance in online retail across China. At the same time, Alibaba constantly explored new growth opportunities, venturing into cloud computing, digital payments, and smart logistics. This diversification ensures the organization’s continued success in the dynamic Chinese tech landscape.
- Globe Telcom (Philippines): Globe transformed from a mobile phone company in the traditional mobile and SMS/text industry into one of the two largest mobile operators and digital payments businesses in the Philippines by aggressively overhauling not only its IT and network capabilities, but also other aspects of the business including marketing strategy, retail transformation, and organizational mindset.
- Grab (Southeast Asia): This ride-hailing giant didn’t just stick to transporting passengers. Leveraging their existing platform to seamlessly integrate food delivery and mobile payments into their ecosystem, they created a “super app” strategy catering to various customer needs, solidifying Grab’s position as a dominant force in Southeast Asia’s digital economy.
Bridging the gap: from vision to action
The urgency is clear. The breakneck pace of change in Asia demands that leaders take a proactive approach to business strategy. While the dual transformation concept provides a powerful framework for navigating this complexity, it is up to leaders to translate this vision into reality through a well-defined roadmap.
This ensures a smooth transition from strategic planning to tangible results, bridging the gap between aspiration and execution.
Successful implementation of dual transformation first takes a thorough assessment of a company’s current position, in relation to upcoming trends. This involves analyzing market position, core competencies, and the evolving industry landscape. Utilizing tools like scenario planning can help to anticipate future disruptions, allowing businesses to time their transformation efforts effectively.
With a clear understanding of the landscape, organizations can then define clear objectives for both core business optimization and new growth initiatives. These goals should align with the overall corporate vision and be communicated clearly throughout the company.
This sets the stage for strategic resource allocation, which may require difficult decisions to balance investments between exploiting current advantages and exploring new opportunities.
Leadership is crucial in fostering an ambidextrous organization that can support both stability in the core business and agility in new ventures. This will involve championing the development of new capabilities as well as driving efforts to reskill existing employees, attract new talent, or form strategic partnerships.
To accelerate innovation and improve responsiveness to market changes, implementing agile methodologies and establishing clear metrics and feedback loops is essential. Companies like DBS Bank in Singapore have successfully adopted these practices across their organization, driving improvements in both core business and new growth areas.
Developing key performance indicators for both objectives and implementing regular review processes allows] companies to pivot strategies based on market feedback and performance data, especially in volatile environments.
Throughout the transformation journey, a leader’s role in maintaining open and transparent communication with all stakeholders is paramount. In Asia especially, leaders must go the extra mile to encourage open dialogue and feedback. This open approach helps to align the entire organization behind the dual transformation strategy, ensuring that everyone from employees to customers and investors understands and supports the company’s direction.
Successful dual transformation requires leaders who can operate comfortably with ambiguity and paradox. However, it is important to recognize that there is no one-size-fits-all approach.
Each organization must tailor its dual transformation journey to its unique context, capabilities, and aspirations. However, there is no one-size-fit-all approach. Click below to discover how our award-winning client interventions have helped organizations in their dual transformation journey.