While tech disruption threatens to displace those unprepared for ground-breaking change, innovation is allowing businesses to proactively pursue the next industry revolution. Janos Barberis, Founder of SuperCharger, a fintech accelerator, discusses how TMT corporations can become adept at wielding the double-edged sword of tech disruption and innovation.
DarkArrow.svg
Technology, Media and Telecommunications INDUSTRY INSIGHTS: THE DOUBLE-EDGED SWORD OF TECH
Back_to_top_arrow.svgimg_21.svg
To stay buoyant, both traditional TMT companies and financial institutions need to adjust their business models and embrace a digitally-enabled modality of doing business. To achieve this, they can acquire companies which offer the digital processes which can then be scaled, or create a brand new company or spin-off dedicated to the development of digital offerings and capabilities for the wider corporation. Businesses can also undertake a digital transformation campaign which completely digitizes their current processes and experiences.
TMT COMPANIES WILL NEED TO ADJUST TO THE REALITY OF DIGITAL BUSINESS VIA M&A OR DIGITAL TRANSFORMATION
1
People are a tech firm’s greatest asset. As many Asian tech companies are learning, the cost of replacing people is high and the talent pool is shallow. So what we’ve been seeing is a vicious talent war for the best minds, especially in fintech. As the cost of hiring rises, this could create a bottleneck, especially for start-ups that lack the financial resources to hire away top talent from larger firms. How do you prevent valuable talent from leaving? Among fresh graduates and even experienced professionals, many cite vision and a sense of belonging as key to keeping them onboard. For traditional corporations, rather than joining the talent war to accelerate innovation, partnerships with tech upstarts may provide a better alternative to accessing the same talent pool. Partnerships should be handled like any professional commercial relationship that stipulates concrete deliverables and rewards. Adequate remuneration ascribes tangible value to the work that start-ups are capable of producing, and can act as a motivator to start-up talent for better innovation and results.
PARTNERSHIPS WILL PROVIDE AN EDGE UP IN FIGHTING THE TALENT WAR
2
With the rise of application programming interface (API) open standard connectivity, fintech and TMT businesses need to contribute to the development of an open banking strategy that is compliant with changing regulatory requirements, particularly if they have cross-jurisdictional operations. Europe, for example, has set hard laws and standards for open banking, while API regulations are still about encouragement and soft supervision in a grey area in many Asia Pacific jurisdictions. Businesses should seek cross-border guidance and peer advice in addition to consulting with governmental fintech offices.
OPEN BANKING STANDARDS WILL BE THE NEXT FINTECH TREND TO WATCH
3
BM_logo_colour_retina_x2Open Menu Grey