Accelerating digital ecosystem development through strategic alliance
In our recently published study “Digital era for ASEAN conglomerates - Hype or reality?” we established that the digital economy provides significant opportunities for ASEAN organisations. Today, the digital revolution is reshaping the business world and bringing greater uncertainty to market dynamics. Organisations find themselves facing greater risks of displacement by new entrants using new technologies and approaches.
In the fear of being left behind, business leaders are pushing their organisation towards more digitization, yet the response is often without a clear winning strategy, and those who have opted for a selective investment driven model for their digital initiatives, have failed to generate much success.
Hence, there is a greater need to embrace an open collaborative model that allows organisations to effectively target new digital ‘arenas’. We believe that opting for a strategic alliances model is the most optimal way for traditional businesses to enter and thrive in the digital economy. A recent analysis of more than 125 recently formed alliances suggests three interesting new trends --- (a)~50% of recent alliances formed were to accelerate new product design/development; (b) TMT sector dominating the alliance landscape, contributing to almost ~50% of all alliances being formed and (c) cross industry collaboration becoming the new norm, specially between TMT – FSI and TMT – Consumer and Industrial product verticals. However, these alliances are easier to form, and extremely hard to sustain.
Our new publication “Accelerating Digital Ecosystem Development through Strategic Alliance” seeks to demonstrate how businesses can rethink their capability development strategy for their digital play, and how the risks of such business alliances should be identified and mitigated through a planned approach.