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Disruptive World: When the world changes quickly Businesses must change faster!
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The reality of a disruptive world where technology has wiped out the business that once existed. Understanding the technology of the digital world that is happening. and will occur soon It will help entrepreneurs to know the direction to change their business to survive the change. Khun Orapong Thien-ngern, Chief Executive Officer of Digital Ventures Co., Ltd., shares executives' views on business in the digital world.
Digital Venture, the first step in a changing world
Digital Venture (DV) is a subsidiary of SCB X, established in 2016 with the initial purpose to study technologies that will be used to leverage financial businesses such as Blockchain and IOT. a lot What has been done will be disrupted. Couldn't continue and since 2020 DV spun off as a startup.
What DV does is 3 things: 1) Venture Capital (VC) invests in technology companies in foreign countries 2) R&D brings technology to trial for customer service. It gives a picture of how financial services will change. 3) Incubator takes the knowledge gained from investing in different countries. Let's help develop startups in Thailand.
From the Bank's Digital Transformation, Khun Orapong sees the transformation of today's business world that is much more difficult than before. because of the continuous undulating changes Since the day Alexander Graham Bells invented the telephone. until the Internet era Social Media Content Streaming like Netflix. by the adoption scale of new technology and the scale of the change happened much faster than before. If there is something new to change the behavior of consumers and business can't change no matter how big it used to be It can die and die. Such is the case with Telegraph, Fax, Blockbuster, Kodak ToyrUS, etc. And this cycle is faster and stronger.
Before & After in the digital world
The world's major technologies have a growth rate that will affect the world at the same time, for example, when there is 5G, there will be IOT, Smart Machines followed and causing a lot of data if operators do not know how to use data with AI. The data cannot be used to benefit. Technology that has already emerged is only a minority. In the next 1-2 years if these technologies become more mature. Business will change more than it is today.
What used to be |
Current world |
Changes |
1) Technology as a business support agency |
Technology is a business, not a support agency. |
Change the way of administration from where the bank hires a vendor, but the bank in the future is a Technology Company |
2) Compete with competitors in the industry |
The real competitors are emerging companies (Digital Born). | Competitors born in the digital world Come to compete in the same space as us. advantage in doing business Because there is no need to bear the cost structure, Physical Space uses fewer people and mostly uses technology. Sometimes a company that has been established for a long time Can't compete with emerging technology companies In addition to Digital Born companies, there is also a Digital Nation such as China, which has a strong digital platform Digital Born Company. And has been very successful such as Alibaba, Taobao, Tencent, etc., especially in the retail business. China is fast moving forward. has a very large production scale When the digital world really comes Countries that are digitally weak cannot survive. In the future, competitors will no longer be small startups, but may be giants like Alibaba. |
3) Customer relationship with business |
Customer relationship with the platform |
From the present that customers know us, customers love us, when entering the digital world. The more customers will not know us. Business will be the result of product search, customer information to the platform. Become a customer-facing platform It's not a business that knows customers. |
4) Digital is in the Digital Physical part is in the Physical part |
Digital replaces physical |
The Covid situation has changed this drastically. Physical, shops, restaurants are all gone, replaced by physical platforms and profits gone to platforms |
Khun Oraphong sees that change, change, and then change. The one who can't catch up is to fall out of the procession. Originally thought of a stable company Being a Traditional Company, it's time to change and survive. But it turns out that the traditional company will die if it doesn't change in time, so everyone must invest to cope with the change. will come and wait for the change to happen and then come to think of what to do by then it was too late. because the world is changing faster and stronger than before
Where should the business go?
In the view of Khun Orapong the current situation has many negative factors. like the Ukrainian war Energy shortages, inflation, China lockdown, COVID-19 interest rate rise dollar strength Extracting liquidity from the system Controversy over Taiwan These factors put the business at very high risk. Having to decide between investing in technology because it's the direction to go or should hold cash first Ready to accept the uncertainty that arises. If it's 6 months ago, Khun Orapong would suggest jumping into the wave of change to learn. bring new technology used in the company but to this day, the uncertainty is very high. So, I don't know what the right decision was. Is it best to hold cash?
Success Case Digital Business
The big company that has survived the most disruptive wave of disruption is Microsoft. Every company must see themselves as a technology company. Look at how to do business in the world of technology. Not just buying solutions, making systems, but looking at technology as part of a business. For example, Mobile Banking has become a part of people's lives in a few years. Paying via QR, Blockchain allows us to make high-security transactions as easy as paying. send email which soon Technology will make it easy for businesses. And the business model will change a lot.
New business models arising from digital technologies such as Cashless Society, 24X7 Real Time, Bank as a Platform, Tokenization & Securitization continue from Blockchain, Peer to Peer Lending, CBDC (Central Bank Digital Currency), Metaverse, etc. will become business norms. If the service provider can't change in time, it's difficult to stay.
As for SCB and Digital Venture, digital technology has been applied to develop a platform to provide financial services for customers' companies to be more flexible, faster, more accurate and to solve pain points for each group of customers as follows:
· Blockchain for Procure to Pay (P2P): A platform that brings blockchain technology. Manage trade documents such as purchase orders, invoices, etc. as an automated system for quick and efficient inspections. No paper documents are required. The information was all digital from the beginning. Help reduce workload and manpower. Suitable for large organizations with many partners in the supply chain.
· PayZave: A platform for small supplier businesses. that need liquidity and capital without having to borrow outside the system to increase business costs by giving companies and partners a trade discount on the PayZave platform, the system will improve all back-office paperwork. Make the system work more convenient and faster
· Me Tung: A platform that helps companies solve their employees' informal debt problems. for employees to withdraw wages according to the date of work (but not yet a month) through the platform to have liquidity during the month and do not have to borrow money outside the system
For businesses in every industry Top management should have answers to how our business will change in the tech world. Because this is an inevitable problem. And if you can't answer quickly when the world changes Business will stand on the path of risk
Source: Seminar "Mission X" The Boot Camp pf Advanced Corporate Transformation Class 4: CEO Talk Khun Orapong Thien-ngern, Chief Executive Officer, Digital Ventures Company Limited, July 5, 2022
