HP Innovation Journal Issue 12: Summer 2019 | Page 35
Accelerating Growth In Asia
A letter from Tian-Chong Ng, President, Asia Pacific & Japan
Companies across the Asia-Pacific region face an enor-
mous challenge: staying ahead of the continuous change
that is happening around us. In the decades to come, our
economies will grow, our technologies will become more
advanced, and the pace of innovation will be staggering.
Deciding where to invest, how to think about the future,
and ways to grow will become increasingly difficult.
Managing this change requires that we understand the
forces that will shape our business decisions long into the
future: megatrends. They are the socioeconomic, demo-
graphic and technological shifts that will dictate the ways
in which we live, work, and play.
Businesses should not only understand these trends; they
should use them as the foundation of their long-term
strategies. These trends help shed light on the demands of
future consumers and employees, identify potential areas
of future growth, and—if used correctly—can help propel
businesses across Asia into a new era of productivity,
innovation and economic opportunity.
THE (CONTINUED) RISE OF ASIA
The potential for growth in Asia is one trend that is
impossible to ignore. Our gross domestic product (GDP)
is already on track to account for more than half of global
GDP by 2050. Our per capita income is expected to
increase 600% in terms of purchasing power parity. 7 And
by 2030, two-thirds of all middle-class spending power
will be concentrated in Asia. 8
To be more specific, much of this spending power will be
concentrated in cities across the region. Megacities (those
with a population of at least 10 million) are expected to
see the greatest rise in income and GDP growth, with
some even becoming markets in and of themselves.
Jakarta, for example, is projected to have a population of
36.6 million and a GDP of $0.46 trillion by 2030.
These urban centers will be home to Asian workers who
have seen their average household disposable income
more than triple between 2001 and 2015. They will have
different expectations—whether it be for more flexible
work life or more localized services and products—and
businesses will need to deliver. Go-Jek is a great exam-
ple of a company that has paved the way for disruptive
business models. While it started as a ride-hailing service
in Indonesia, Go-Jek rapidly evolved to offer a full suite
of services, and expand internationally. Leveraging
technology, consumer insights, and an understanding of
megatrends empowers companies like Go-Jek and other
contenders to create new customer experiences and tap
into new markets.
SUSTAINING OUR GROWTH
Asia’s rise will be driven by population and economic
growth. But sustaining it will require an enhanced focus
on productivity. Automation is already helping on this
front. Smart machines are coming online, AI and machine
learning are evolving, and 5G will soon expand the oppor-
tunities of what we can do—and how quickly we can do it.
3D printing is similarly changing the ways in which busi-
nesses conceive, design, produce and distribute products.
It allows for virtual inventories to be used, cuts the need
for physical spaces and shortens the supply chain. The
on-demand production model also better balances supply
and demand— so much so that the emerging technology
could create a $22.7 billion market by 2022. 9
But automation on its own is not enough. Reengineering
business processes requires reskilling, employee educa-
tion, potentially higher-wage jobs, and even new types of
jobs. Businesses must upgrade their workforce alongside
their technologies to realize full productivity gains. It will
not just be about the technical skills; the accelerated pace
of change will require agility, the ability to adapt, and a
preparedness for lifelong learning.
THE IMPACT OF DISRUPTIVE TECHNOLOGIES
The accelerated pace of innovation also poses a challenge
to businesses across the region, as new products and
technologies will be needed to deliver more value. One
potential solution is for closer collaboration—between
businesses, governments and consumers. By working
together, industry’s strong research and technological
capabilities can be used to advance societal and economic
transformation agendas.
HP, for example, partners with the public and private sec-
tors to support various training and research programs.
In India, HP signed a Memorandum of Understanding
(MoU) with Andhra Pradesh Innovation Society (APIS)
and Andhra Pradesh Economic Development Board
33