Contents - Connect-World

Business Development
Asian tigers in a global marketTechnology implications
for smaller organisations
by Derek Williams, Executive Vice President, Oracle Corporation, Asia Pacific Division
Most large enterprises and governments across Asia Pacific have embraced Internetbased
business processes and application. Today, as the first wave of e-business, large
organisations are starting to reap the benefits. Behind these large organisations, though,
is a network of small and mid-size enterprises, SMEs, which dominates the Asia Pacific
business landscape and is the backbone of the value chain for global commerce. Now,
Asia Pacifics smaller organisations can become competitive in the global value chain
through strategic adoption of IT.
Derek Williams is Executive Vice-President of Oracle Corporation, Asia Pacific and Japan. He is a member
of Oracle’s Executive Management Committee and a director for Oracle Japan. Mr Williams formerly
was Senior Vice President of Oracle Asia Pacific Division and served as regional director for
strategic accounts before moving to head the newly created Asia Pacific Division.
In recognition of his contribution to the development of the Chinese software industry, Mr Williams was
awarded an Honorary Professorship from Shanghai Textile University in 1995.
The global marketplace we operate in
today is becoming smaller as a result
of greater visibility and real-time connectivity
via the Internet and
advanced mobile communications.
This new, more transparent world has
increased competitive pressure on
organisations and it is the small and
mid-sized businesses, which often feel
the greatest brunt.
Supported by improved logistics, the
connected marketplace makes smaller
enterprises more vulnerable to
replacement in their value chain.
Increasing global competition in the
worlds economy means companies
are searching for ways to both differentiate
themselves through new products
and exemplary customer service
whilst, at the same time, improving
margins through cost cutting to meet
investor commitments.
Furthermore, as customers and suppliers
adopt more advanced technologies,
they force these standards on
their smaller business partners.
Unfortunately, the ability of smaller
enterprises to address these challenges
is constrained by the fact that
they generally are not masters of their
own destinies. They play the role of
cog within value chains defined by the
larger organisations. It is the larger
enterprises that traditionally set the
rules for business practices, performance
standards and communication.
For example, trading partners are
beginning to demand that more business
processes be conducted electronically.
This trend affects smaller
enterprises more so than larger companies,
because their survival and success
may depend on establishing links
to partners, customers and suppliers.
Smaller enterprises, therefore, must
keep up or face replacement by a more
capable player.
Asia Pacifics smaller companies also
face many other challenges. The
amount of information exchanged
with other players across the supply
chain is increasing dramatically.
Collaboration between companies will
also increase as they outsource both
functions and work to multiple companies
across extended supply chains
to optimise operations.
Data broadcasting is also on the rise.
New technologies like RFID (Radio
Frequency Identification) — miniature
devices that can be implanted into any
product to broadcast information anytime,
anywhere—will double or triple
the data circulating in the worldwide
economy.
This data must be managed, synthesised
and ultimately converted into
useful, actionable information by
companies of all sizes. Companies
information systems must be able to
handle such data volumes.
Smaller organisations also face many
of the same challenges that large
enterprises deal with. A key area is
Corporate Governance.
Across the globe, new regulations
demand more transparency and
process certification, as well as greater
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