|
This year, with economic issues driving the global business landscape, the Deloitte Technology Fast 500 Asia Pacific CEO survey examined how fast-growing companies were faring in the downturn. This survey was undertaken in the fourth quarter of 2009 by 230 CEOs from across the Asia Pacific region.
What we found was unwavering confidence. The Asia Pacific CEOs participating in this year’s survey are stirred, not shaken, by the financial downturn and are keeping growth targets static and in sight, with 30 percent setting even more aggressive growth targets.
Not only are they positive about their status quo, with their ongoing commitment to innovation and talent strategies, they are adapting where necessary. About 56 percent are placing an even greater emphasis on organic growth strategies to weather the economic turbulence, while tolerance for riskier R&D initiatives has decreased.
The Technology Fast 500 of 2009 have met the year head-on with adaptability and a balance-and-moderation approach to their business strategies.
Key statistic/findings this year (in light of the global economic downturn) were:
- Growth is still on the cards: Nearly half (49 percent) are maintaining their status quo for growth rates with targets unchanged, while 30 percent have set even more aggressive targets.
- Greater emphasis is being placed on organic growth, with 56 percent citing this as their choice for company growth, in light of the economic environment.
- Incremental innovation versus breakthrough innovation: The biggest returns for this year’s fast growing companies are being generated by incremental innovation releases in both existing markets (31 percent of respondents) and new markets (17 percent of respondents); whereas breakthrough innovation in existing markets are cited by 25 percent of respondents.
- Reduction in staff turnover: The greatest upside to the economic downturn, according to this year’s survey, has been a reduction in staff turnover for 22 percent of companies, which has been a singular operational concern in previous years.
- Little change in competition: For 45 percent of companies in this year’s survey, the number of competitors hasn’t changed greatly, while 30 percent note reduction. (Except for China where nearly 50 percent of its respondents indicated an increase in competitors due to the economic environment).
- Falling prices: Over half (55 percent) indicated that they have experienced falling prices for their products/services as a result of the economic downturn.
- Price trumps green: 39 percent indicated that customers only care about price (with green aspects not being a factor); with 32 percent indicating that customers are focusing more in green issues.
- Accessing capital: The majority (66 percent) have not experienced difficulties in raising capital in the last six months.
- Workforce growth/Accelerated hiring: In this year’s survey, 95 percent report workforce growth. In fact, 39 percent have even accelerated hiring.
- R&D: More than half (54 percent) had no change in their R&D programmes resultant from the economic environment, with only 14 percent citing a decrease in R&D activities. Saying that, 55 percent will be eliminating riskier R&D projects, which have a less certain chance of providing a return on investment
- Lengthened sales cycles: Nearly half (48 percent) are experiencing longer cycles to close deals with customers and prospects.
A full analysis and related commentary of the CEO Survey can be found in the Winners Report.
|
