This is the first article of a series of essays aimed at providing guidance for entrepreneurs in Southeast Asia who are seeking to secure successful fundraising.

When I moved from Denmark to Indonesia in 2016, many of my European friends looked at me incredulously. Why would I move to an emergent market? Why would I give up on the high standard of living, excellent infrastructure, world-class education, stable governance, and healthcare support Denmark offers?

Yet, over time, the narrative has changed. People started praising my (at the time) contrarian bet. Asking for tips on how they could make similar moves. The change in perspective was fueled by the incredible growth Southeast Asia experienced in such a short period. A growth that translated into publicity, success cases, and studies that reached every corner of the planet.

Southeast Asia’s digital economy is projected to reach $1t GMV by 2030. Not too shabby, given how underdeveloped Southeast Asian countries were just a decade ago.

Every time I visit my family in Bulgaria, it blows my mind how digitally nascent most European countries are. Just one year ago, my brother was boasting about the rise of food delivery startups in Bulgaria.

Also Read: Tech firms in Southeast Asia poised to ‘leap’ forward with gender equality

A service Southeast Asia has been enjoying since 2015. In fact, e-commerce, food delivery, and digital financial services alone are expected to reach US$360 billion by 2025. The region’s success cases Go-Jek and Grab have married affordable workforce and mobile technology. Creating convenience at a price that’s rarely seen in other parts of the world.

All that while generating a significant economic opportunity for the local workforce. Going back to the examples of Go-Jek and Grab. Their drivers have received access to jobs that:

• Pay better
• Have low barriers to entry
• Are most likely better than what they used to do.

But unless you live in any Southeast Asian country, it’s hard to understand how compelling the opportunity is. So let me offer a few insights:

• A population of 589 million
• Internet penetration of 75 per cent, 440 million internet users
• 350 million digital consumers
• Digital financial services are flourishing and expected to continue growing:
  • Remittance flow – currently at US$17 billion, +18 per cent by 2025
  • Lending loan book – currently at US$39 billion, +31 per cent by 2025
  • Digital payments – currently at US$707 billion GTV, +13 per cent by 2025
  • Insurance (APE/GWP) – currently at US$3.2 billion, +30 per cent by 2025
  • Investments (AUM) – currently at US$33 billion, +29 per cent by 2025

The more I read on the topic, the more obvious it seems that Southeast Asia has built a great foundation for a thriving startup ecosystem:

• Market size – Pretty large given that nine per cent of the world population resides across Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Singapore
• Consistent growth – The digital economy is expected to grow as high as 10x during the 2020s
• Access to capital – There is a record high capital, poised to spur even more investments into the startup ecosystem

• Talent is perhaps the only area where most Southeast Asian countries have struggled to get great results:
  • That’s especially prominent with engineering jobs, but where isn’t it? Fortunately, markets like Indonesia and Vietnam are becoming emerging hubs for tech talent
  • Singapore is the only country within the region that has consistently done great work attracting talent
  • Founder talent has been improving given the return of overseas-educated Southeast Asians (known as “sea turtles”)

Also Read: SEA needs to grow together and produce more quality unicorns: Vertex Ventures’s Carmen Yuen

Growth in the digital realm has a snowball effect across other sectors as well. That has been the case in all countries where I have resided, i.e., Indonesia, Malaysia, and Singapore. Roads are getting bigger and better. New highways are popping up frequently.

The ever-improving infrastructure goes hand in hand with a thriving construction sector. In fact, I like to joke about how fast-paced construction in Asia is. How every time I visit my family in Europe, a new skyscraper gets completed in Jakarta or Singapore by the time I am back.

The frantic construction leads to frequent changes in cities’ skylines, which is incredible to witness. So naturally, that dynamic makes you feel optimistic about what’s ahead.

Final thoughts

In conclusion, Southeast Asia has made significant strides in building a foundation for a thriving startup ecosystem, and its digital economy is projected to reach $1T GMV by 2030. The region’s success cases, such as Go-Jek and Grab, have created convenience at an affordable price, generating significant economic opportunities for the local workforce.

Southeast Asia’s consistent growth, access to capital, and large market size make it an attractive destination for startups. Although talent remains an area for improvement, emerging tech hubs like Indonesia and Vietnam are attracting overseas-educated Southeast Asians.

The snowball effect of growth in the digital realm is also extending to other sectors, such as construction and infrastructure, making Southeast Asia an exciting region to watch for in the years ahead. As someone who moved to Southeast Asia from Europe, I can attest to the incredible progress the region has made and the opportunities it offers.

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Indonesia, the largest economy in Southeast Asia, has seen the value of its digital industry grow from US$41 billion in 2019 to US$77 billion in 2022. The value of the country’s digital industry is poised to grow even further to US$130 billion by 2025, driven primarily by e-commerce followed by financial services, online travel, online media, and transport and food.

Indonesia’s economy experienced tremendous digital transformation in the past few years, accelerated largely by the recent pandemic. As with the rest of Southeast Asia, Indonesia saw its digital economy growing rapidly according to a report by Google, Temasek, and Bain & Company (2022), with the region’s overall digital economy growing by 67% from 2020 to 2022.

Also read: These 15 startups might just be part of this year’s TOP100

The country’s digital economy experienced rapid growth due to digitally-savvy consumers and increased online consumption, among other contributing factors. High mobile penetration has enabled frequent use of social media and e-commerce platforms, while digital payments have facilitated easier access to brands with just a few clicks. Moreover, the government’s active support for the country’s digital infrastructures has paved the way for new digital trends.

To cater to changing consumer behaviour, companies need to equip themselves with the tools and insights necessary to build strong customer relationships in the digital age.  The last leg of CleverTap’s Roadshow in Jakarta titled “Indonesia Retention Pinnacle: Identifying Meaningful Customer Journeys with AI Technology” will offer unique insights on how to keep customers engaged by harnessing the power of AI.

Using AI to bolster customer engagement strategies

CleverTap predicts that the economic slowdown caused by the pandemic, competition, and shifting consumer preferences, will impact digital consumer brands in different ways depending on the nature and severity of the slowdown and their unique characteristics. But with challenges come opportunities, to rethink brand strategy and adapt to the changing times.  With the power of AI, companies can now come up with creative ways to bolster and embolden their strategies.

,  Five strategies you can combine with AI to help your company reach  new heights:

1. Hyperpersonalise your experiences – One of the most effective strategies used by marketing leaders, this requires an extensive amount of detailed information about how your customers interact with the brand and using tools like AI to harness that information for future customer engagement. 
2. Watch your ROI – Digital consumer brands should adopt a more strategic approach to marketing and advertising decisions. One effective way to do this is omnichannel marketing, leveraging AI to understand customer motivators, and creating a consistent and positive experience at every touchpoint throughout the customer lifecycle. 
3. Diversify your products – To reach new customer segments, diversification with scalability in mind is key. Carousell, a Singaporean online marketplace, exemplifies this strategy by identifying “affinity categories” that share psychographic traits with their existing customers, successfully achieving cross-category acquisition and expanding their reach.
   
4. Create loyalty programs – Loyalty programs have been widely successful as it is an effective way to reward consumer behaviour and drive further demand from long-term users. AI tools can help companies create a seamless rewards experience.
5. Amplify social responsibility – As customers become increasingly aware of their impact, they seek out companies that prioritise sustainability and social responsibility. To meet these expectations, companies must integrate these values into their products, services, and decision-making processes, augmenting their approach to sustainability with the help of AI-powered data analytics.

In summary, businesses must adopt a multi-channel approach to retail and utilise innovative methods and technologies such as AI to yield better customer experiences.

There is a ready-made event specifically to share practical insights with industry experts

Whether you are a small business owner or a marketing professional, Indonesia Retention Pinnacle: Identifying Meaningful Customer Journeys with AI Technology will prove to be an inspiring resource for building valuable, long-term relationships with your customers in today’s competitive market.

The event will provide actionable strategies for building strong customer relationships, reducing churn, and maximising customer lifetime value. This playbook covers a wide array of key elements needed for customer retention, customer engagement, and monetisation, as well as case studies of successful digital marketing campaigns.

Also read: Bolstering Malaysia’s vibrant business landscape with the retention playbook

There will also be interactive workshops and exercises that will enable you to put learned strategies into practice, while Q&A sessions and engagement with speakers will help you address company-specific cases. Participants also get to join fun and engaging team-building activities and learning opportunities with peers and fellow enthusiasts. Join us at “Navigating the Indonesian Digital Landscape: Becoming Digital Marketing Leaders of 2023” in Jakarta on March 16th and don’t miss this opportunity to learn from industry experts.

Register for The Big Leap Roadshow Jakarta here.

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As any entrepreneur can attest, the road to success for a startup is often fraught with challenges. From securing funding to gaining traction in the market, the odds are often stacked against early-stage companies. But in recent years, a new challenger has emerged in the venture-building ecosystem: the government.

Traditionally, the role of government has been to regulate and oversee various industries, ensuring that businesses comply with regulations and protect consumers from harm. They also act as growth engines through the provision of grants and building infrastructure and ecosystems.

However, in recent years, the Singapore government and its linked entities have begun to take a more active role in the startup ecosystem by creating their own startups to compete with private ventures. Furthermore, the government has been actively recruiting top talent to work for their startups, creating a new set of challenges for private entrepreneurs.

Bring forth the Titans

Some of the biggest movers behind government-linked ventures are Temasek, GovTech Singapore and FairPrice Group. The recently formed minden.ai, a venture backed by Temasek, is a good example.

Minden.ai is the team behind the yuu app, which is a loyalty and rewards platform that counts 7-eleven, Cold Storage, Guardian, Breadtalk, Food Junction and Food Republic as some of their merchants. This is a large segment that covers major heavyweights in the convenience, supermarket and food sectors.

Positioning yuu as a replacement of disparate rewards systems builds significant economies of scale and allows for cross-selling and an expansion of your customer base – a scenario smaller startups can only dream about.

Achieving this kind of critical mass is not easy if you are a private startup – without the funds and reputation, you will burn cash faster than you can say, “build me a unicorn”.

Just ask Perx Technologies. They started in this space way back in the early 2010s, providing a similar solution. After realising the challenge of building a rewards programme without sufficient backing from major retail players, they made a major pivot in 2017 to relaunch as a B2B2C marketing and rewards campaign platform.

Also Read: How Asian governments are leading digital health promotion

It is without a doubt the yuu app will be successful – DFI Retail Group and Breadtalk Group are also corporate investors in it. Positioning yuu as a replacement for disparate rewards systems builds significant economies of scale and allows for cross-selling and an expansion of your customer base – a scenario smaller startups can only dream about.

Bigger ambitions

Even at its scale, yuu app is dwarfed by NTUC Fairprice group’s ambitions. The group has made serious headways in building its own super app. As of the end Feb 2023, the Fairprice app was ranked 1st on data.ai (formerly App Annie), ahead of Lazada and Shopee.

Late off the starting line, the Fairprice app gained ground during COVID-19. Between September 2019 to August 2020, NTUC FairPrice managed to achieve an annual sales growth of 68 per cent and grew its customer base by 44 per cent, while its online unit also saw annual sales growth of 44 per cent.

With more than 700,000 app users, their target is to grow to 1.8 million in the next few years. Currently, online sales make up about 10 per cent to 15 per cent of total FairPrice sales  – on par with global players with lots of room to grow.

This is no easy feat, especially for a behemoth like Fairprice. Their ability to move fast and manage change is admirable. This was “made possible through the infusion of new tech talent with hands-on e-commerce experience, combined with training existing staff on cutting edge topics in digital marketing, product development and machine learning”.

They are also embarking on an extensive change of leadership and talent. Their current group CEO, Mr Vipul Chawla, joined in Apr 2022. Before that, Mr Vipul was president of Pizza Hut International, a brand under the American fast-food company Yum! Brands and had previously worked at consumer goods company Unilever. Overall, Fairprice grew its headcount (based on LinkedIn numbers) by 16 per cent over the past two years and 23 per cent growth over the last year on engineering talent alone. More on this later.

From groceries to banking

Not only does Fairprice has its own super app, but it also has another even bigger giant waiting on the sidelines – its joint venture with Standard Chartered in Trust Bank. In the short four months since launch, the digital bank has gained 400,000 users who have performed over 6 million transactions.

Their acquisition strategy was simple – convert Fairprice’s Plus! Rewards’ existing 2.3 million users with a low-cost hook that came with a bit of a whip – the loss of your points if you didn’t apply for a new credit or debit card from Trust registers for a Link Rewards card or download the FairPrice app.

While this was great for Fairprice, this move also resulted in the termination of the long-term partnership with OCBC – which is now turned into a rival with Fairprice’s foray into banking.

The ability to see how your customer earns, saves and spends is the holy grail goal of any fintech company, and Fairprice is on the way to achieving this.

Trust Bank’s growth is a lot faster than its peers like GxS or Maribank, the two digital banking licensees awarded by MAS in 2020. Both don’t have a large enough user base with a sufficiently strong pain/gain impetus to create an account with the new banks. Incentives will be needed to entice this, an option both are hesitant to take in the current environment.

On the other hand, there are still almost 2 million Fairprice points owners who haven’t made the switch to Trust Bank. Furthermore, restrictions apply to the Digital Full Bank licensees that do not encumber Trust Bank, which has a Full Bank License through Standard Chartered. Trust Bank is only just getting started.

With the Fairprice app, Trust bank and other technology developments like Scan N Go, NTUC Fairprice’s strategy is an impressive combo of venture building and digital transformation. But more crucially, it is more about building an entire ecosystem powered by technology and revolving around spending and saving money. The ability to see how your customer earns, saves and spends is the holy grail goal of any fintech company, and Fairprice is on the way to achieving this.

Hiring with gusto

With bigger ambitions comes an increased appetite for talent. A review of LinkedIn employee numbers shows that Fairprice undertook a whopping 23 per cent YoY engineering talent binge. Engineering still only forms five per cent of its total headcount, compared to Operations, which forms 14 per cent. Even then, Operations also grew by 13 per cent YoY.

NCS, another large government-linked business with a strong focus on engineering and IT consultancy, clocked a 21 per cent YoY growth in Engineering and 11 per cent for IT. Fairprice, NCS and GovTech saw YoY overall hiring at the pace of between 10 per cent to 16 per cent, far ahead of general employment growth numbers of seven per cent.

GovTech is the folks behind SingPass, TraceTogether and about 80 different publicly-accessible APIs available through their platform. They play a critical role in enabling government-related functions through the use of technology. Not only are they hiring aggressively, but they also rank well on Glassdoor, an employer review platform powered by anonymous employee posts.

Also Read: Changing with the climate: How environmental risk is influencing government and corporate investments

With a 4.0 rating and more than 700 reviews, it holds its own against more well-established tech firms like Grab (4.3), Lazada (3.6) and Shopee (3.7). As an employer of choice, GovTech definitely ranks amongst the top choices. GovTech also pays well – a comparison of salaries on Glassdoor showed competitive compensation.

Supporter or competitor?

Overall, the move by government entities into venture building is to be celebrated. After all, competition is supposed to be good for consumers and the economy as a whole. But when the government becomes a player in the startup game, it creates a new set of challenges for private entrepreneurs.

One of the biggest challenges is the threat of government-linked ventures acting as direct competitors to private ventures. With a larger pool of resources at their disposal, government-linked startups can quickly dominate a market and drive out private competition. This is especially true in industries where startups rely heavily on government contracts or subsidies, such as defence or renewable energy.

Funding becomes more challenging, too – should these startups raise private equity, they will often be seen as a safer investment than private startups. This denies funding for other private ventures.

Moreover, government-linked startups often have an unfair advantage when it comes to recruiting talent. Since they have the backing of the government, they are often seen as a safer employer than private startups. This is particularly true in today’s environment, where tech firms are going through rounds of layoffs. This can make it difficult for private ventures to attract and retain top talent, which can in turn, hinder their ability to compete.

The larger implication… is that startups competing head-on with government-linked ventures will have a harder time succeeding.

Another challenge is the disruption caused by government-linked startups. When a government creates a startup, it often has a specific agenda in mind, whether it’s promoting a particular technology or advancing a social cause. This may lead to the government undercutting private startups that are pursuing similar goals, disrupting the market and making it difficult for private ventures to succeed.

Govtech’s Parking app is a good example of competing with private innovation. The app, launched in 2017, solved a ton of problems with the old traditional paper coupon system – anxiety over expiring coupons, littering of coupon buds and a general waste of paper.

However, a similar app was already developed as early as 2013, and the team that built the app even won second place in a competition. It was deemed as unviable by relevant agencies, only to have Govtech launch the Parking app several years later.

While it can be argued that such an app should be developed and managed by a government agency, such an experience can leave a bad taste in a startup’s mouth. A more conciliatory approach would have been to engage the team as consultants or offer to acquire the app or business. It would have costed very little but do very much to preserve the private-public cooperative trust and spur further collaborations.

The larger implication of this development is that startups competing for head-on with government-linked ventures will have a harder time succeeding. The value of a large number of startups building from the ground up is that diversity and creativity are allowed to bloom and develop. “May the best idea win” no longer holds true when a large enough venture stifles out the others before they have a chance to prove themselves.

Lastly, as a grant provider and builder of infrastructure, the government adds tremendous value to the ecosystem. Everyone benefits from a strong and reliable environment that is unbiased and objective. In this sense, the government needs to be clear on its role and impartial in its execution of it.

A large government-linked venture may have the better ability, knowledge and support in applying for grants or figuring its way around the bureaucracy and hence have a better chance at benefiting from the perks. The administrators of the bureaucracy need to preserve the neutrality of the system but yet acknowledge that private ventures may be less well-equipped to handle the processes.

Strategies for competing with government-linked ventures

So what can private startups do in the face of government competition? One strategy is to double down on innovation and differentiation.

Private startups may not be able to compete on price or resources, but they can differentiate themselves by offering unique solutions or technologies that the government has not yet considered. This is where having a thriving ecosystem which breeds diversity and creativity can be crucial to creating differentiation.

Also Read: Thai startup GoWabi aims to be the go-to platform for all health and wellness services in SEA

Another strategy is to build relationships with the government. While it may seem counterintuitive to form partnerships with the competition, as per the earlier Parking app example, working with the government can actually be beneficial for private startups. By demonstrating the value of their products or services to the government, startups can secure contracts or subsidies that can help them compete.

Of course, the necessary guardrails should be put in place to protect such sharing to ensure the startups’ IPs and rights are protected. Frameworks like sandboxes and government-sponsored hackathons can be an arena to build cooperation and trust.

Startups should also double down on understanding the customers and their wants and needs and work to out-serve. Government-linked ventures will often have a national agenda to serve and may not be as concerned or nimble with attending to customer needs.

Lastly, private startups should focus on sectors or industries that are overlooked or deemed less critical or under-represented by government involvement. Establishing a beachhead in these industries before moving up to fight with the titans may be a viable Go-to-Market strategy in view of the presence of government-linked ventures.

Conclusion

Venture building is no longer solely the domain of private startups. Ultimately, the rise of government-linked startups and their recruitment of top talent is going to be the new norm for private entrepreneurs.

But with the right strategies and a focus on innovation, nimbleness and strategic planning, startups can still succeed in a market that includes government disruptors. As the startup ecosystem continues to evolve, it’s up to entrepreneurs to adapt and thrive in the face of new competition.

After all, adapting and pivoting have always been the name of the game.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

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The post An unfair advantage – How government-linked ventures are giving startups a run for their money appeared first on e27.

As the dreary funding winter continues to soar, at e27, we are kickstarting a new article series Line of Hire to understand an organisation’s culture and hiring philosophies to empower tech workers with the right growth tools to enable business owners to attract talent.

Cheryl Liew is the Head of Talent at Monk’s Hill Ventures, a VC firm investing in early-stage tech companies, primarily Series A, in Southeast Asia. She is based in Singapore, works with portfolio companies on recruiting and scaling, and builds relationships to support existing and future entrepreneurs around the region.

Liew has over 20 years of talent acquisition, talent management and people operations experience across a variety of organisations and cultures, spanning financial services, technology and media.

She has a degree in Economics from Cambridge University and a Masters in East Asian Studies from Harvard University.

Liew discusses her company’s culture and hiring philosophies in this candid interview.

What personality traits/qualities do you look for in potential employees?

We look for people with the right motivations for wanting to join us — a genuine and deep interest in venture capital, enthusiasm for the surrounding ecosystem, and the desire to support founders and startups.

Cultural fit and an alignment with our company values are crucial: people who are authentic, curious, humble, self-aware and driven by the belief that technology can be a force for good.

How do they fit into your company culture? Tell us a little more about your Monk’s Hill Ventures’s culture.

We list our company values on our website. The key tenets are:

• Founders-first: Founders uplift the world. This is why we exist, to serve founders. We regard them with respect and humility at all times.
• ‍Curious: Driven by first principles, we always seek to learn and understand. We are unafraid to challenge the status quo and be bold.
• All-in: Our founders are all-in, and so are we. We strive to be the best versions of ourselves and bring out the same in others. We may vigorously agree or disagree, but we are committed once a decision is made.
• Responsible: We are responsible to ourselves, each other, and the world. We understand what we do impacts real lives at scale.
• Authentic: We are transparent and intellectually honest. We find the courage to speak our minds, always with positive intent and always with respect.

Also Read: We are all about keeping things simple, useful, fun: Cory Brown of Simplesat

How do you foster transparency and encourage achievement in the workplace?

Honest, open, direct conversations and communications are key to how we want to communicate within Monk’s Hill Ventures. A few ways we foster this:

• Managers have regular one-on-ones with their direct reports to discuss day-to-day work, career development, and goals. This is complemented by semi-annual performance reviews.
• Partners are readily available to meet with and mentor employees, regardless of whether they are on their direct team.
• We run semi-annual engagement surveys, where folks can weigh in honestly on how they feel about working at Monk’s Hill Ventures.
• Regular ‘Ask Me Anything’ sessions, where partners answer folks’ questions.
• We celebrate wins for everyone: this could be taking the time to do a quick shout-out to someone over Slack or WhatsApp, dropping individuals notes of appreciation, and highlighting accomplishments and promotions during our offsite.

Do you have a mental health policy? What does that look like?

We recognise that everyone has a life, family, relationships and responsibilities outside of work, and we aim to get to know each team member at a personal level. Coupled with the emphasis on open and honest communication, we ask employees to let their managers or the People team know if they are facing any personal challenges.

WFH or WFO, or hybrid?

Coming out of the pandemic, we put a lot of thought into what the optimal structure would be for us. We landed on a hybrid model and asked employees to work out of the office three days a week. We believe in the value of having our team interact and engage with each other face-to-face to build a sense of camaraderie, collaboration, and belonging.

Also Read: Keep learning and building relationships during funding winter: Richard Yan of Airwallex

At the same time, we recognise that people value flexibility, and we trust our employees to be self-motivated, responsible folks who can manage their time effectively.

How should a tech worker prepare for the funding winter?

Focus on your core skill sets and where you can add value to an organisation and articulate that succinctly and confidently.

Be flexible and open in thinking about growing and expanding your skill sets, understand your strengths and gaps, and always have a growth mindset in your career decisions.

How do you measure the performance of your employees at Monk’s Hill Ventures?

Monk’s Hill Ventures measures employee performance based on job competency and alignment with company values. A 360 review approach is implemented for every employee (regardless of seniority) where upward, downward and peer reviews are carried out to enable managers and reviewers to get well-rounded and useful feedback.

Will you consider a moderately skilled person with great honesty or a highly skilled person with less honesty when hiring?

No question that integrity is non-negotiable for us. If someone has the right fundamental skillsets coupled with the drive and desire to learn, we can coach and develop them.

Do you encourage ‘intrapreneurship’ in Monk’s Hill Ventures?

One of our company values is being curious. Each employee is given ownership and autonomy to find the best way to navigate through their work and contribute to the organisation’s success. We also encourage employees to learn about other functions and other departments.

How do you support upskilling for your employees?

We encourage employees to have a clear voice in how they would like to structure their career development and then expect managers to provide the necessary inputs and support to guide them along the journey. We also have a training budget set aside to support this initiative.

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With the never-ending changes in the tech world, the latest modern, intelligent technologies continue to grow, further pushing the importance of digital transformation.

According to Klaus Schwab, the “Fourth Industrial Revolution” is said to be upon us. The concept refers to how innovations like Artificial Intelligence (AI) and the internet became increasingly involved in human life, blurring the lines between the two.

The abundance of digital solutions available could be seen to be spoiling decision-makers with choice, but having too many options often causes decision paralysis. How do you know what software or plug-ins suit you and your business?

There are many factors to consider, including likeability, flexibility and the investment required when choosing the right digital solution. In this article, we discuss the concept of decision paralysis and how to overcome it.

What is decision or choice paralysis?

Psychologist and author Barry Schwartz is well-known for his work on the paradox of choice – deducing to having an abundance of alternatives to the point one feels trapped and even more paralysed instead of freer. Having way too many options can cause confusion, anxiety and regret. ‍

All business decisions require effort, but decisions that involve heavier investments or cause grander changes weigh more; hence decision paralysis takes effect. Just the thought of a simple digital transformation can be daunting – especially with more prominent companies that are so accustomed to a particular way of operating that switching to a fully remote or digital workflow may scare off bosses and employees too.

Nevertheless, the digital age is upon us, and many companies will start to lose out if they’re not, at the very least, looking in the direction of a digital revamp.‍

Ways to overcome decision or choice paralysis

Prioritise your decisions

More often than not, managers are faced with multiple important decisions simultaneously, which can magnify the impact of decision paralysis on individuals. Start by listing everything that needs to be decided on, then reorganise the list according to priority.

Also Read: The digital decade in SEA: How the UK plans to embrace it with the local startup ecosystem

While it (usually) may seem necessary, you can’t solve everything at once, and prioritising tasks will make it easier to know where to start. It may also help to input specific criteria with each decision; you’ll see more about what it takes to make that decision. Include a timeline, standards, and other essential factors to consider when making this decision.

Simplify the process

Once you’ve weeded out your top decisions to be made, you can now simplify the process by breaking it down into smaller, more digestible steps. It is easy to procrastinate or get scared when looking at a big chunk of incomplete tasks and breaking the decision-making process into smaller steps.

Almost like a maths equation, start by taking important factors like criteria and timelines, and lay them out in front of you. Slowly work from there by breaking down each step you can take to develop a resolution. For example, if you’re picking between software, list the pros and cons of each and how they can benefit or burden your company.

If you’re deciding on whether something is right for your business, list what your company needs and compare that with a list of what the software provides to determine if it suits your business needs.

Get qualified help and support‍

Of course, as much decision-making work can be accomplished on our own, sometimes getting help from a third party is helpful. Being involved in a company may make it harder to see the bigger picture, and getting qualified help can provide new and different perspectives on your decision-making process, making the process smoother.

Some of these practitioners are so used to making decisions daily that they can immediately see everything laid out and swiftly point out the best decisions. Suppose you find yourself in a position where you could use a little extra help determining the next steps for your business.

In conclusion

Incorporating digital changes or tech advancements into a business should be at the top of your to-do list, although we understand it’s never easy.

Such tech advancements aid in many areas, such as productivity, organisation, workflow and so on, and overlooking this may bring about more issues in the long run. Every leader should seek to simplify their employees’ tasks and jobs to give them more room to breathe and learn.

Employees should not be treated like cogs in a well-oiled machine, and today’s employees should be given more attention and care. Switching to automated digital platforms can boost workflows tremendously, and there’s no better time to start than now.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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