Computerworld Philippines Staff
January 29, 2010

Emerging markets that have weathered the financial storm of 2009 are posing a threat on the economies of developed countries, changing the rules by which the globalization game is played, a survey by BPO firm Accenture found recently.

Because of a robust domestic market, competitive cost structures and low price points for services, emerging markets fared way better than mature economies in the wake of the global financial crisis, the survey added.

This is posing new challenges to companies from developed markets, who are now pressed to adapt to the more efficient, agile, and competitive business environment.

The survey of 400 global business leaders revealed that top executives are not taking this lightly, with 88% of the respondents admitting to lack of strategic planning in preparation for the new business environment, and 41% saying the stellar growth of emerging markets will impact their businesses in the next five years.

“Together, these forces are accelerating the need for companies to master five competitive and interdependent dimensions of business: new consumers, talent, innovation, capital, and resources,” said Mark Foster, Accenture’s group chief executive, Global Markets and Management Consulting. “Our research shows that high performers in both developed and emerging markets are looking to leverage information technology with a certainty and pace that will give them the flexibility to adapt their business models and stay ahead of the competition as new economic circumstances arise.”

The swift economic power shifts among firms, consumers, and national economies brings in more stakeholders in the ecosystem that in turn drives competition, the survey explained. “The effective use of new technologies and strategies can help companies address the new dynamics of globalization,” it added.

“Responding to the newly complex and competitive ecosystem will require businesses to re-evaluate the roles they have played and the sources of value that they have followed traditionally,” Foster said.  “However, organizations also have a great opportunity to harness these new market forces to their advantage to optimize, extend and transform their business models.” — John Mark V. Tuazon

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