THE CHALLENGE OF TECH-LED GOVERNANCE : BALANCING RISK & OPPORTUNITY

1.   Why is digitalisation considered fundamental for future success to Professionals and SMEs?

Digitalisation is no longer optional; it is crucial for future success!

The World Economic Forum forecasts that 70% of new economic value will come from digitally-enabled platforms in the next decade. Moreover, automation is set to significantly impact the workforce, with over 20% of jobs in advanced economies and 10% in emerging countries expected to be displaced by 2030. Despite economic uncertainties, 72% of U.S. CEOs are prioritising investment in generative AI, highlighting its importance.

Digitalisation drives the highest corporate governance in professional practices, ensuring enhanced speed of performance and quality of work.

From a SME business perspective, digitalisation enables businesses to target their audience more effectively while reducing operating costs. The speed of service delivery to customers is faster, and data accuracy is improved. Furthermore, digitalisation enhances efficiency and productivity by streamlining operations and automating tasks. It aids in better decision-making through data analytics and improves customer experiences via personalized services. Digitalisation fosters innovation by offering new business models and revenue streams, boosts competitiveness by enabling quicker adaptation to market changes, and ensures better connectivity and collaboration. This reduces costs and improves scalability, driving growth and resilience in an increasingly digital world.

2. What challenges do businesses face in adopting digitalisation and AI?

Businesses face several challenges in adopting digitalisation and AI, including defining a clear digital strategy and vision, understanding the operational impact, and hiring skilled tech talent. Resources and funding are primary concerns; even with a solid digital strategy, insufficient funds can hinder progress. Sustaining digitalisation and AI initiatives can be expensive, and digital solutions may lack the nuanced problem-solving abilities of humans, potentially leading to mistakes and legal risks. Resistance to change from individuals and teams further complicates adoption, as adapting to AI-driven changes is often uncomfortable. Business owners and professionals must be persistent, instill a digital culture during the transition period, and manage key personnel effectively to drive the digitalisation process, ultimately transforming the entire business.

Speech delivered by Mr. Yee, CEO of Wezmart Group, at the CSIA Annual Dinner 2024

3. How does integrating digitalisation and AI benefit professionals?

Integrating digitalisation and AI to digitize corporate governance for best practices offers tremendous benefits to professionals. It simplifies tasks, increases productivity, enhances efficiency, improves transparency, and builds trust with partners, customers, and regulators. This synergistic approach fosters innovation and positions businesses for sustained growth, preparing them for future success.

As a result, the role of professionals is increasingly shifting toward advisory functions. The financial and non-financial data derived from compliance and industry information form the basis for robust advisory services. This shift creates a new dynamic between professionals and customers, fostering stronger bonds through solution-driven advisory, ultimately enabling long-term, sustained relationships.

4. What are the key elements of a good digital strategy in corporate governance?

A good digital strategy in corporate governance incorporates the elements of Process, People, and Performance into a cohesive framework. This strategy enhances the quality of governance, ensuring practices align with legal and ethical standards. Optimising performance involves reviewing and refining processes for the Board, members, committees, and meetings. Empowering company boards with the necessary tools to make informed and strategic decisions is at the core of digitised corporate governance.

To empower the growth of professionals, the bpoSA360 Digital Workspace as-a-Service ("DWaaS") is built on a distinct Advisory in Regulatory Technology ("A-RegTech") platform. Automation assists them in handling manual administrative tasks, enabling a transition of professionals towards spending more time on advisory services for SMEs. 

The platform is data-driven, focusing on risk and compliance solutions on digitized corporate governance. Currently, it aids in compliance a specific focus on Small & Medium-Sized Practitioners ("SMPs") for corporate services.

5. How can businesses balance the adoption of digital tools with maintaining a strong customer experience?

Businesses can balance digital adoption with a strong customer experience by combining digital convenience with the empathy and personalisation of human interaction. A seamless digital experience should complement rather than exclude the human touch, significantly enhancing customer satisfaction and loyalty. Thus, aligning digital tools with human-centered customer service can create a holistic and superior customer experience.

Many people are unaware of how digitalization is bringing humans closer together than ever before, surpassing the limited notions of just speed and efficiency, especially in the context of digitized corporate governance practices, improved regulatory efficiency, and a better overall experience for everyone.

This interview, conducted by the Corporate Secretaries International Association (CSIA), was published in the Global Governance Voice e-magazine (November 2024 edition), page 20-22 https://csiaorg.com/thought-leadership/global-governance-voice/