MBC: From Fragmented to Connected
By Patrick Dayao
On Thursday, March 18, 2021, I attended via Zoom the C-Suite Leaders series hosted by the Makati Business Club (MBC). This executive series is designed by MBC to share insights on how disrupted businesses must act with urgency, and prepare with agility and efficiency as they strive to thrive in this challenging economy. This was the first of four sessions of the C-Suite Leaders series. The Managing Director of SAP Philippines, Mr. Edler Panlilio, was the guest speaker. He shared with us some valuable insights on how to be successful in this new economy by transitioning from a fragmented to a connected organization.
Taking care of people and management of supply chain are the two things that stood out during the pandemic, according to Mr. Panlilio. In today’s digital economy, connecting people, customers, insights and processes will lead to thriving in any business situation, whether during the pandemic or post-pandemic. Some businesses got disrupted and closed operations during this COVID-19 crisis. Others have diversified into other lines of business. The rest have adopted strategies that would help them minimize the impact of the crisis.
Based on the data he got, about 53% of the business leaders in the country are seeing changes in customer behavior and motivation since the start of the pandemic last year, while 51% have taken steps to pivot their business strategies and offerings due to the recent changes in market conditions.
The speaker also shared the survey conducted by Oxford recently on how Philippine companies have responded to the pandemic. Based on the results of their study, about 89% of the respondents prioritized the adjustment of remote work arrangements for their employees. We can relate to this because this was also what John Clements did immediately when the pandemic started. Most organizations are finding ways to collaborate despite remote access. About 78% of Filipino companies have invested in IT and collaboration solutions. 61% have tightened finance and accounting practices similar to what John Clements did when the pandemic broke out. It also optimized its cash flows and reduced expenses because cash is king during this crisis. The survey showed that only 39% of the respondents explored new ways to meet supply chain demands.
Mr. Panlilio highlighted that we are now at an inflection point (a point on a smooth plane curve at which the curvature changes sign). So how do we keep up with all these changes? We know that nothing is ever constant, except change. We are now in the current pandemic situation. But as history tells us, all pandemics end. How then do we proceed forward with what lies ahead?
According to the speaker, the impact of COVID-19 brought us in a stage wherein we have to move from a fragmented organization to immediately respond with technology to a more consolidated approach. He added that he finds it very interesting when he reviewed companies’ performance both on revenue and profit growth over the last four major downturns, wherein he noticed that 14% of businesses actually managed their growth both top-line and bottom-line positions. For him, these are the ones that focused on flexibility and innovation. However, for companies that are complacent and on a “wait and see” attitude, they will be left behind and become irrelevant especially when we begin our recovery.
Mr. Panlilio said that the most successful organizations are those that value collaboration, cross-business insights, data-driven decision making and agility — both in terms of processes and employees. He also added that high performers have a clear view of their businesses. They became interconnected businesses in four areas: customers, employees, insights and processes.
1. Engaged customers. Improving customer experiences is the top priority of businesses over the next three years.
2. Empowered employees. In good times and bad, businesses need a workforce that is agile and adaptable. Employees that feel safe, engaged and productive. Filipino companies have seen these as the most important need especially during this challenging season.
3. Usable insight. Insights are the lifeblood of every business, large and small. They enable you to meet and predict customer needs, satisfy your employees, and anticipate disruption.
4. Smooth processes. Standardizing processes across every function — from supply chain and expenses, to marketing and billing — can enhance communication, efficiency and innovation. Ideally, we should be able to reduce time spent on administration and free up employees for meaningful tasks.
In closing, the speaker reiterated that companies which can connect these four pillars of business — employees, customers, insights and process — accompanied by using best practices and powerful technologies, are better poised for agility, people centricity and data-driven decision making. And they will continue to thrive in the midst of the challenging disruptions. For him, this is the holistic approach of having an interconnected business, and is the best approach to succeed in the new economy.
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About the author:
Patrick has been with John Clements for over 14 years now. He holds a Bachelor of Science in Accountancy degree. He spent his first 8 years with John Clements under the Accounting team before transitioning to the Sales team in 2015. He has passion for backyard gardening and cooking for family and friends. He loves to play basketball, bowling and badminton.
