Business planning and strategy are what businesses need to survive the current global uncertainty and digitization.
During the 2022 MAP (Management Association of the Philippines) International CEO Conference titled “Winning Change: Prospering in a World of Betweens” on Tuesday, OpenSpace Ventures Plus consultant Stephen Koenjing stressed that business planning is key to the company’s survival, even more than ever, In this era of digitization and out of the epidemic.
“Companies that thrived in the pandemic already had sound strategies in place, and then adjusted, adjusted or accelerated them to protect and enhance their standing,” said Koenjing, who is also a columnist for the Manila Times.
He explained that companies need to be proactive in their business strategies and not be reactive in order to adapt to sudden changes, such as the pandemic, which has caused business priorities to change and new trends to emerge.
CuUnjieng reiterated that “Microsoft is one of the companies that has prepared well and has bet on the right technology because cloud-based software is in demand. In addition to its subscription model, it is now one of the companies, like Amazon, that is reaping the benefits.”
Present two strategies that emphasize sound strategies. One can either become an innovator (a pioneer in fashion) or a fast-follower (one who instantly copies the designer), but not both or in between.
“This can be applied to other situations as well, like niche markets and big markets, and it all starts with the right strategy. You can modify it and move it around, but you can’t ignore it halfway and switch elsewhere,” Koenjing noted.
He concluded that planning is indeed important in spite of the many unknown factors that can disrupt the business as they help mitigate its potential negative effects.
Planning vs. VUCA
To their reactions, MAP Governor and Brain Trust Chairman Dr Silito Habito agreed with CuUnjieng’s statement and stressed the need for additional planning for both businesses and government, especially to deal with global headwinds such as the pandemic, geopolitical tensions, inflation and the effects of climate change.
“Because VUCA (Volatile, Uncertain, Complex, Ambiguous, and Adversarial) is so pervasive, business plans must be flexible. One-way planning is no longer the way to go, but scenario planning instead,” Habito explained.
For his part, Jesus Carlos “Charlie” Villasinor, CEO of the Asia Procurement and Supply Institute, said strategies and planning are important for commercial supply chains as well. He added that if one section fails, the entire structure will suffer.
“In terms of logistics and supply chain, government and businesses should do more to plan for this as well,” Villasinor said. He added, “The supply chain is not just logistics, it is the exact opposite because logistics is actually part of the supply chain as a whole and it is very important for companies to function.”