McKinsey & Company today shared the business case for companies to achieve technology-enabled transformation at Decoded Philippines, a summit for over 100 C-level executives from top domestic and multinational companies at Shangri-La at the Fort. The global management consulting firm organized the event in celebration of the 20th anniversary of its Manila office. According to a McKinsey research effort that studied 2,393 of the largest global nonfinancial companies over a 10-year period, companies must now address and highlight digitization, advanced technologies, and tech-enabled disruption in business transformations. It shared that there are trillion-dollar opportunities available to companies that manage to extract the full value from technology. Currently, only one in 12 companies truly succeed at transformation. The research added that technology and digital-driven strategies are now more effective than traditional approaches in change management programs because, more than improving speed and cost-efficiency, digital also builds capacities. Lending their expertise during the event were McKinsey’s global, regional, and local leadership, including: Kevin Sneader, Global Managing Partner; Oliver Tonby, Asia Chairman; Kaushik Das, Managing Partner for Southeast Asia; Vinayak HV, Digital Leader for Southeast Asia; and Kristine Romano, Managing Partner of the Manila office. A new formula for success Sharing his views on how Filipino corporates can achieve successful transformation, Kaushik Das said, “McKinsey has supported many companies in the Philippines and Southeast Asia to successfully transform over many years. Initially, we developed a simple recipe for performance transformation results, focused on ambition, people, and execution.” “However, with the Southeast Asia region changing rapidly, we recognize that it is increasingly important for companies to also pursue ‘big moves,’ such as reinventing or innovating their revenue models, fully embracing the power of digital and analytics, and making bold portfolio choices. Going ‘all in’ by pursuing performance transformation and ‘big moves’ in parallel significantly improves a company’s chances of successfully transforming,” he added. The technology value proposition McKinsey research estimates that the arrival of the Fourth Industrial Revolution (4IR) is expected to create up to $3.7 trillion in value to global manufacturing, underlying the tremendous opportunities that successful, holistic technology-enabled transformation can bring. These opportunities were discussed at Decoded Philippines under the theme of “Technology, Transformation and Trends,” three dimensions that are essential for helping Philippine corporates lead and win in a technology-enabled world. The summit opened with a panel discussion on “Decoding Tech-Enabled Transformations,” moderated by Vinayak HV, and joined by former Chief Operating Officer of New Zealand-based diary conglomerate, Fonterra, Jacqueline Chow and Chief Executive Officer of Chinese Fintech company, Lu International, Kit Wong. “McKinsey sees great promise for Filipino corporates in the age of disruption. The Philippines has been identified as a recent accelerator in a region of outperformers. This will see global trends hitting the shores of the Philippines in the next decade, and the country must leverage these opportunities to ‘future proof’ its growth, especially with the arrival of the Fourth Industrial Revolution. With the market now facing increasing digital disruptions, businesses need to develop a strategic response to adopt and harness new digital capabilities to stay ahead of the game. A pivot towards digitally or technologically enabled transformation is no longer a question of if, but when,” Vinayak HV ended. A history of impact Decoded Philippines was held under the backdrop of the 20th anniversary of McKinsey’s Manila office, and marks over half a century that the firm has served as a trusted advisor to clients in the Philippines. “McKinsey is proud to have grown alongside the Philippines over the years. We have been privileged to support our clients in several transformative projects, including the launch of the nation’s billion-peso business process outsourcing industry, which created jobs for thousands of Filipinos, accelerating digitization of financial institutions, which helped millions of Filipinos gain access to financial services for the first time, and delivering hundreds of millions of dollars in bottom line impact over the years, helping our companies grow and compete globally. Our decision to establish a dedicated Manila office in 1999 reflects the strong confidence that we had then, and continue to have now, in the Philippines’ growth potential,” Kristine Romano shared. “More and more, we are partnering with our clients to create change that matters. We are exploring innovative ways of working together, including creating new digital businesses, sharing risks and partaking in equity arrangements,” concluded Kaushik Das.