Romanian CEOs are more and more concerned about new competitors arising from the technology and IT sector.

When asked from what industry (except their own) they anticipate a new major competitor, over a quarter (27%) of Romanian CEOs mentioned the technology sector, 22% - communication, media and entertainment, 16% - professional and business services, and 14% mentioned retail and distribution, according to a PwC survey.

The results are in line with the global figures, which show that almost a third (32%) of all CEOs see the possibility of new competition arising from the technology sector.

“Digital economy brings with it new challenges, but it also generates multiple opportunities. Regulatory and consumer behavior changes, as well as new emerging competitors, from other industrial sectors, especially from the IT and technology sector, are the main disruptive factors”, said Ionut Simion, Country Managing Partner, PwC Romania.

Three in five (60%) CEOs in Romania are now concerned about the speed of technological change, compared to 45% in the previous edition of the survey, and 18% in 2013. This trend is also visible at a global level, with the number of CEOs preoccupied by the phenomenon going up from 47% to 58%, according to PwC’s 18th annual edition of the CEO Survey, based on the answers of over 1,300 CEOs in 77 countries, including Romania.

“The leaders of successful organizations are fully aware that investments in digital technologies, especially those that improve client experience, are creating added value to the business. In order to find a better way for technology to streamline business operations and bring the companies closer to their clients, CEOs are willing to get personally involved and actively support the migration process towards digital technology”, Simion explained.

To cope with cross-sector competition, organizations are collaborating more with a wide range of partners, which not only grant access to new markets and consumer categories, but also to innovative technologies, vital for the development of their business.

Even if they are concerned with evolutions in technology, organizations in Romania haven’t yet started to look for partnerships that would help them access these technologies. Four in five Romanian CEOs say they partner with clients or suppliers. Their main goals are to access new clients (52% of respondents) and strengthen their brands (43%). Only 29% of Romanian CEOs close partnerships to gain access to new technologies, compared to 48% of the European CEOs.

“Business partnerships and strategic alliances can be instrumental in obtaining access to new technologies and fostering innovation, by pooling resources and expertise of multiple organizations. Yet such partnerships are still in their infancy in Romania, with a huge potential for growth,” concluded Ionut Simion.

Half of CEOs in Romania are very optimistic about revenue growth

editor@romania-insider.com