In the fiercely competitive global digital landscape, APAC is recognised as a cradle of technology, with new innovations being adopted every day. Following the technological innovation explosion in 2023, this trend shows no sign of slowing down; instead, it has paved the way for the next stage of technological advancements.

While the pursuit of innovation is essential, there’s growing concern about the risks of aimless innovation. Nguyen Thai Son, CEO of SmartOSC, warns against the pitfalls of “unchecked innovation,” where technology is applied with a lack of an overarching strategy, leading to long-term scalability issues and security risks. “Every business leader wants innovation as it is, after all, crucial to building a moat around your organisation,” he says. “But the savvy leader also sees the dangers posed by unchecked innovation”.

APAC’s business leaders in various domains are taking proactive measures to avoid this trap.

Embrace a comprehensive and balanced approach

In a highly regulated industry like banking, AI and the latest technological innovations are seen as both disruptors and enablers.

Regulatory compliance, data dependency, security risks, and technology understanding are some of the primary challenges related to AI implementation. To navigate these, Dennis Trawnitschek, Chief Officer Technology at SCBX — the mothership of the financial technology business group pursued a comprehensive strategy backed by a robust compliance framework and literacy, helping SCBX become a pioneer in transformation within the industry.

A balanced approach that integrates both top-down and bottom-up strategies is considered a go-to strategy for C-level executives when adopting AI. While high-level teams oversee AI tool integration, bottom-up involvement fosters a culture of experimentation and innovation. As Trawnitschek puts it, “AI is a team sport. While leaders need to walk the talk, everyone should embrace the change and be encouraged to start experimenting.”

To achieve this, increasing AI literacy across the organisation is a key goal, promoting a culture where employees are encouraged to understand and experiment with AI applications. This comprehensive approach to AI education is essential for embedding AI into the company’s strategic initiatives. 

Another critical area for leaders to focus on is data infrastructure and regulatory compliance, particularly in tightly regulated industries like banking and financial services. SCBX addresses this through a subsidiary dedicated to managing data and AI initiatives. By ensuring that AI technologies are both effective and compliant, organisations could navigate the complexities of regulatory requirements, which is vital for sustaining long-term growth and innovation.

Adopt the scalable tech and flexible mindset

Amid the global hype surrounding technological advancements, adopting a scalability mindset when evaluating new technologies can help leaders stay focused and optimise their tech stack. Andy Chang (Nay Lin Zaw), Head of Marketing Technology, Engagement Solutions at Electrolux Group, advocates for this approach, believing that selecting scalable technology plays a crucial role in avoiding the costly mistake of starting from scratch.

Also Read: 8 ways to utilise customer data to retain loyalty during economic challenges

It is recommended that technology needs be evaluated holistically from the outset. Leaders should consider not only immediate requirements but also the long-term objectives of the organisation. The company favours a modular approach to technology adoption, selecting fit-for-purpose solutions that can be easily replaced or upgraded as the organisation grows.

It’s also important to remember that expensive technology doesn’t guarantee success. Many companies choose the most costly options but still fail—and in those cases, it’s not a technology problem.

By avoiding monolithic systems that attempt to do everything but often fall short, the enterprise could ensure flexibility in its tech stack, enabling it to adapt efficiently to changing demands.

Have a customer-centric gene in digital transformation 

Digital transformation was once viewed as a strategic move for businesses to gain a competitive edge. However, as it has become widespread, digital transformation alone no longer guarantees differentiation. To truly stand out in the sea of sameness, enterprises must go beyond mere digitisation and embrace a customer-centric approach that drives innovation and delivers unique value.

It’s important to avoid the common pitfall of overextending resources by chasing multiple innovations simultaneously without a clear customer focus. Instead, efforts should concentrate on areas that directly impact customer experience and hold high commercialisation potential, such as AI, customer behaviour analytics, and IoT.

One effective strategy is illustrated by a recent example from the retail sector, where a leading APAC retailer replaced its outdated system with a new, supplier-focused platform for updating and managing data. Designed with a customer-centric approach, the platform enhances business analytics and reporting for suppliers, while improving security and streamlining user management. By providing real-time data on sales and inventory, it enables brands to make more informed, customer-driven decisions.

“Building a thriving innovation ecosystem requires more than just technological advancements,” Son adds. “A customer-centric approach, combined with a skilled workforce, robust infrastructure, and a supportive research environment, is crucial. Investing in these areas will ensure that brands can fully harness the potential of their innovation efforts and create long-lasting value for customers.”

—

The post Sidestep the technological hype: How leading Asia corporates avoid the aimless innovation trap appeared first on e27.