The power of human interaction will continue to play a critical role in business over the coming decade, even as technology such as AI, robotics and quantum computing dramatically reshapes entire sectors and business models, according to a new HSBC report – Digital Horizons: How emerging tech will shape tomorrow’s business.
According to the report, which surveyed 2,900 business leaders across eight markets globally, respondents plan to invest in their workforce to maximise the opportunities new technology will bring.
Nearly nine in ten (86%) are looking at how emerging technologies can help advance employee skillsets, 83% are planning to re-train their workforce and 82% are investing in new talent in response to rapid advances in technology.
Barry O’Byrne, CEO, Global Commercial Banking at HSBC said: “The fourth industrial revolution will transform businesses as new technology and ever-increasing levels of automation are integrated into the workplace. What our Digital Horizons report makes clear is that successful businesses will not see a diminished role for human skillsets. To remain competitive, businesses will need to harness new technology to empower teams to perform better, more efficiently and more creatively. This agility will require new ways of thinking and working, and different capabilities.”
Martin Raymond, co-founder of The Future Laboratory, said: “Historically, advances in technology have reset economic and social paradigms, but it is our ability as humans to collaborate, and to understand how, why and where collaboration works best - through people driven collaborative innovation networks, for example - that allows us to spark innovation, direct growth, and harness talent.
“Technology determines the shape and velocity of change, but talent, and human collaboration, determine the direction and ethos of it. And long term, if businesses are to stay on top, and maintain their edge, they need to invest in the latter, and lease the former - not the other way around.”
A new era of cross-sector and cross-border collaboration
Collaboration has been identified by the HSBC Digital Horizons report as fundamental to business success in the coming 10 years. A large majority agree that more collaboration within their organisation (85%); and with other players in their sector (84%) will drive growth. But most business leaders also agree that collaboration outside their own sector (82%), and beyond national borders, through international partnerships and networks (83%), is key to success.
The report highlights leading strategies businesses most favour to enable this new era of collaboration. The most favoured approaches include greater focus on technology-driven, agile ways of working (favoured by 47%); while 36% believe embracing partnerships with smaller and more nimble industry entrants is important.
The research revealed four trends that will drive fundamental change and bring new opportunities for businesses through digitalisation over the next 10 years:
Borderless Business - a new era championing a global outlook and networks where successful businesses adapt to embrace global talent, supply chains and relationships
FLIT Organisations - the rise of organisations which focus on a flexible workforce, lean processes, innovative business models and tech-driven operations
Inclusive Automation - a workplace where businesses focus on the positives and gains of AI and automation, enabling and upskilling talent to embrace this mindset
Creative Edge - organisations that cultivate a culture that champions open-mindedness, independent thinking and innovation will gain the competitive edge in the market
Technology’s role in long-term success
Business leaders surveyed recognise that technology is central to growing their businesses over the next decade, highlighting their most important areas where technology will play a role as increasing revenue (27%), improving customer service and experience (26%) and reducing cost (26%). Robotics and automation, augmented or virtual reality, machine learning, and generative AI were identified as key areas for investment and growth.
While business leaders acknowledged a lack of familiarity with some of technologies driving longer-term change - only 31% of businesses globally are very familiar with robotics and automation, optical character recognition (26%) and quantum computing (26%) - the majority (86%) feel confident in their ability to keep up with technology advancements over the next decade.
Barry O’Byrne, CEO, Global Commercial Banking at HSBC concluded: “New and emerging technologies present both a challenge and an opportunity for businesses around the world. To help leaders navigate this journey, our Digital Horizons report translates the major trends into actionable insights, helping businesses to future-proof their operations and position themselves for growth.
“The report’s findings also confirm our belief that digital technology is a tool to empower individuals, not replace them. This reaffirms our commitment to meeting the evolving needs of our customers today and in the future, ensuring that we remain at the forefront of innovation.