Amasia, a venture capital firm that specialises in helping technology companies go global, has recently released a report titled “In Danger of Disruption”. The report brings to light the sentiments of Asia’s family offices in dealing with exponential change and disruptive technology.
Amasia invests largely in US-based tech company. In the process of helping their portfolio companies expand to Asia, Amasia has had the opportunities to work closely with family businesses and state-owned enterprises (SOEs). According to the report, Amasia has experienced, over the years, a growing concern from the family businesses and SOEs on “how to innovate as signs of disruption loom ever larger on the horizon.”
In that regard, Amasia surveyed over 100 family business principals and the heads of family offices, and they founded that 73% felt they believed their business was at risk of disruption, 84% felt that they could do more about impending disruption and 77% said that they felt a generational gap existed in the attitude to disruption.
“We are pleased to be able to present this report to the public,” said John Kim, Managing Partner of Amasia who is based in Singapore. “This report has provided us with much insight into how family businesses think and the challenges that they foresee for their current and future generations to continue the legacy of their business.”
Apart from the survey, the “In Danger of Disruption” report also serves as a guide for family offices to navigate the innovation economy. It answers some of the key questions often posted by family offices on how to prepare for disruption.
While the report focuses on Asia’s family offices, Amasia believes that the lessons presented will prove relevant to a broader community of businesspeople and government officials. Particularly, Amasia sees many Asian state-owned enterprises sharing certain characteristics with family businesses.
“They have a longer time horizon and more strategic considerations than merely posting quarterly profits. Political power often is more concentrated and has more longevity in many Asian countries than in the West, and the dynamics of decision making for some SOEs mirrors more of a family business dynamic than a western counterpart controlled by the public.”
Besides, the report would also be useful for family businesses from other parts of the world, especially those in other emerging markets facing similar dynamics, where the relationship-driven model and regulatory protection can no longer guaranty success.
In the report, Amasia shares best practices on innovation. It explores topics, such as exponential change, changing competitive advantage and its implications, speed, and increasing dispersion in outcomes. The report outlines key trends and provides steps, which family offices may take on in preparing for potential disruption in their core businesses.
Read the report here: Amasia “In Danger of Disruption” Report
Photo Caption: John Kim, Managing Partner at Amasia