Innovative Complacency or the Wisdom of the Deceived?

 

This is where I see a real problem for developed Asia: a complacency and disinterest in the role of technology and innovation. Or is it the clarity of vision from too much innovation?

Screenshot 2016 08 26 05 09 48
Source: Avaya, THE PROMISE OF DIGITAL TRANSFORMATION (DX) IN ASIA PACIFIC’S LEADING INSTITUTIONS

In a survey conducted by IDC on behalf of Avaya (no link available, you need to sign up to get a copy), key IT decision makers from developed Asian countries (leaving aside Australia for now) were much more likely to downplay the role of innovation in driving business. Singapore came lowest with 14% of respondents believing the statement “innovation is extremely important to drive business.” Compare that to around 40% in India, Thailand and the Philippines.

(Avaya, in case you’re wondering, “is a leading provider of solutions that enable customer and team engagement across multiple channels and devices for better customer experience, increased productivity and enhanced financial performance.” That could probably be simplified.)

In short (excluding Taiwan for which there is no World Bank data, and Australia, for now) the Asian economies with the highest GDP per capita — Singapore, Japan, Hong Kong – are those that value innovation the least. South Korea is only slightly behind there in terms of valuing innovation.

The same holds true when measured by Internet penetration: the more internet there is, the less valued is innovation.

Screenshot 2016 08 27 14 29 10
Source: Avaya survey (col 1), World Bank (cols 2-3)

 

At the other end, it’s also generally true. The lower the GDP, the more likely a country is to value innovation.

The sad truism is that once you reach a certain level of development — and you don’t experience serious recession or other economic upheaval — you tend to see innovation as an unwelcome disruption. In other words, you identify with the established industries, the established way of doing things, probably because that’s where you work and get your living from.

Looking at it the other way, the less developed a country is, the more people — and we’re talking ‘key IT decision makers’ here, not the rank and file folk — see innovation as a way of improving things.

Of course, there’s another possibility too: that those ‘key IT decision makers’ have seen innovation and they realise it isn’t as great as everyone makes it out to be. Indeed, I have some sympathy with that view. The more ‘disruptive’ a technology is, the more disruption it causes — meaning not just that big slow behemoths are put to the sword, but the people who work for them, the companies that supply to them, or make a little here and there in the supply chain.

A truly disruptive business/technology will not only chop off the head of an industry, it will cut off the entrails and lay to waste the body. That can be painful, and not necessarily good for consumers, or anyone standing in the way.

The other question raised in the survey was whether traditional traditional companies in the Asia Pacific would be able to take control against ‘Uber-like’ competitors. Nearly half said it was difficult to compete against such disruptors, and only 3% said they planned to be disruptors themselves. And while 43% felt they were on a par with their peers in terms of being able to fight back, only 6% felt they were “best in class”. Asian modesty, or a serious crisis of confidence?

Australia and China are worth a separate look here. Australia scored highest on the innovation/importance question, with more than 46% of respondents reckoning it was important. That’s good, but it’s probably part cultural. Why would you not at least pay lip service to the Innovation God?

And China skewed the other way. You would kind of expect China to be up there given what is going on in technology. But it’s low — 21/5% — less than South Korea, suggesting that either they were asking the wrong folk, or, maybe the disruption in China is already giving ‘key IT decision makers’ pause. China is by far the furthest down the track in terms of disruption in Asia, so maybe there is some truth in the alternative explanation of this (admittedly scant) data: As economies become more disrupted, so the key ‘IT decision makers’ in them become more pessimistic about how useful innovation is to the economy.

Disclaimer

All opinions are my own, and not necessarily those of Thomson Reuters.

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