In an era of digital transformation, corporations can survive amid disruptive technologies by collaborating with potential startups as a shortcut to innovation, according to the head of SCG's venture capital unit.
To speedily transform their businesses, big corporations need to partner with startups to get a leg-up in the "new industrial revolution", said Joshua Pas, managing director of AddVentures By SCG, the corporate venture capital arm of SCG Group.
Speaking at the recent Techsauce Global Summit 2017, he said the music industry as well as photography and video rentals have been disrupted by technology since 1995, followed by print media, TV and travel in 2010.
Since 2015, more industries have suffered a similar fate, including retail, banking, telecom, healthcare, food, automotive, insurance and fast-moving consumer goods.
"That's why big corporations need to transform along with the industries," Mr Pas said, pointing out that disruptive technologies include augmented and virtual reality, 3D printing, drones, autonomous vehicles, intelligent machines and blockchain.
Some companies have embraced these technologies and new business models, such as Augury Inc, which provides a software platform that enables regular maintenance staff to perform recording and diagnostics on building machinery.
DeepMind Technologies, later snapped up by Google, has produced an artificial intelligence system capable of understanding human commands. This has reportedly helped Google slash its data centre utility bill by up to 40%.
Mr Pas said SCG has also developed a carburisation inspection robot (CiBot), a tank inspection robot, which can measure the density of petrochemical tanks, and an aerial visual inspection robot, which can be flown to inspect machinery and flare stacks.
The process started with SCG finding jobs that needed to be done within strategically opportune areas, he said. The company then makes blueprints, or business models, to seize on the identified opportunities. After that, it tests and refines the model before moving to commercialise it.
Citing Accenture, the global professional services provider, Mr Pas said unicorns -- startups with a valuation of at least US$1 billion (33.3 billion baht) -- may be rare but they develop much faster than other companies. A unicorn takes 4.4 years on average from launch to hitting that milestone, whereas a typical Fortune 500 company requires 20 years to ascend.
"The current speed of startups helps accelerate innovation at big corporations," Mr Pas said.
According to Polapat Arkkrapridi, managing director of Digital Venture, the corporate venture arm of SCB, the history of corporate venture capital (CVC) in Thailand can be broken down into three waves.
Telecom operators were the first wave, which saw floods of innovation focus on mobile platforms. The banking sector represents the second wave, marked by the arrival of fintech startups in 2016-17. This has driven local banks to launch more CVC activities. The third wave is the movement of various industries.
Mr Pas pointed out that companies like SCG, PTT, Ananda and Sansiri start accelerator programmes and create funds after going through their respective innovation phases.
According to Techsauce Media Co, six companies launched their venture capital arms in the first four months of this year.
The total value of venture capital in Thailand soared from $3.1 million in 2012 to $86.02 million in 2016.