Cos tap automation, tech for margins: EY
Premium- EY said that almost half of the respondents expected to improve their business’ profit margins through digital and technological interventions
NEW DELHI : Amid increase in input costs, many businesses are seeking to protect profit margins by deploying digital and technological measures and upskilling employees to higher value activities, EY said on Tuesday quoting a global survey of more than 2,000 chief executives in 53 countries and across 14 sectors.
EY said in a statement that almost half of the respondents expected to improve their business’ profit margins through digital and technological interventions.
“As companies see a significant increase in input prices, automation and technology offer tremendous potential for chief executive officers looking to drive transformation in their organization and to pivot employees to higher-value activities. In parallel, the severe push towards digitisation has led organizations to upskill their existing workforce," EY said in the statement.
It also said that 43% of the respondents are using data effectively to develop new products and services and for service delivery and customer interaction.
The EY CEO survey 2022 also showed that the ongoing geopolitical tensions are also making Indian CEOs to readjust their supply chains to manage geopolitical risks or reduce logistic costs and uncertainty.
The survey also showed the growing importance of environment, sustainability and governance in the agenda of chief executives with 78% of the respondents identifying these factors as extremely important or important, when it comes to strategic decision making.
“There is no doubt that Indian CEOs are leading from the front to combat the challenges emanating from the pandemic and geopolitical tensions…They are increasingly looking at mergers and acquisitions as a lever for accelerating business transformation and long-term value creation," the statement said quoting Rajiv Memani, Chairman, EY India.
MINT PREMIUM See All
22% of Indian chief executives will undertake mergers and acquisitions for accessing technology, talent, new production capabilities or innovative start-ups, significantly higher than their global counterparts (14%), the statement said. 11% of the respondent CEOs plan to use their mergers and acquisition strategy to improve their sustainable footprint because of changing customer behaviour, the statement said.