TECH INDUSTRY
Compiled by Savithri Rodrigo
MORE THAN MERE BUZZWORDS
Sriyan de Silva Wijeyeratne turns to technology to face biz challenges
Q: Does Sri Lankan industry optimise technology?
A: The most valuable global entities and brands are dominated by tech companies or those that embrace technology.
Unfortunately, Sri Lankan entities haven’t fully latched on to the potential of technology as part of internally leveraging on technology for competitive advantage or as an exciting business growth prospect. There are pockets of excellence among some companies and in government; but not in a general sense whereby industry bets on technology.
Q: Why is industry not tech savvy?
A: It differs across industries. Visionary leaders in the apparel industry have used technology widely. Meanwhile, more traditional segments are making incremental changes to game plans rather than becoming game changers through technology.
Digital literacy among industry leaders is a vital factor. There’s a need for tangible steps that support transformation over huge statements of intent.
The local culture and education system don’t support entrepreneurship so the smartest youth leave the country or put their best work into existing large entities instead of betting on themselves to launch businesses.
Q: What’s hot and not in technology application?
A: AI, robotics and blockchain have been around for a while but it’s only when they’re applied that their true beauty is witnessed.
Sri Lanka may be unwilling or unable to afford the newest technology, but it is imperative to add tried and tested tech – albeit in the early stages of maturity curves. Regrettably, there’s a tendency to adopt yesterday’s technology today with the hope of solving tomorrow’s challenges, and to operate at the lower end of tech than spend more and gain a competitive edge.
Q: Which segments have applied technology to their advantage?
A: Its globally competitive nature and leadership vision have compelled the apparel industry to adopt technology where feasible both in manufacturing, and IT and systems.
Mobile tech companies that bet early on modern technology gain a competitive advantage over first movers and larger legacy players. And there are a few examples in banking, IT and government.
Q: What are Sri Lanka’s strengths vis-à-vis tech application?
A: World-class competent talent, and a flexible and trainable workforce that demonstrates adaptability – i.e. in terms of new thought processes, work and techniques.
The scale of investment is low given the smaller size of companies while policy decisions can be taken by a government with the vision to create a tech friendly nation. Sri Lanka’s links with the East and West offer access to diverse and expansive knowledge sharing prospects as well.
Q: Does state policy focus on tech infusion in industry?
A: Over the decades, major initiatives have been discussed, policies approved, and targets set. But in retrospect, most if not all have missed their targets by wide margins.
When it comes to new initiatives, policy makers must have the right expectations, conduct due diligence and set realistic targets. While technology adoption has progressed in government and the nation in general, it falls short of the aspirations and goals set three decades ago.
Q: So what are the immediate steps for more tech application in industry?
A: At a policy level, there needs to be a vision for tech infusion and incentives should be more attainable than mired in bureaucracy.
Access to subsidised capital can be mandated. Revising regulations to ensure ease of registering foreign companies, money transfers and experts from overseas being granted work permits will attract knowledge based entities.
Sri Lanka must move away from subsidising new companies to subsidising existing businesses that adopt the latest technology. R&D to create a knowledge hub is woefully inadequate and requires acceleration. There needs to be more tech and entrepreneurship programmes in education. Lending institutions must play a more venture capitalist role. Government should identify industries that are willing to offer support with targeted bilateral benefits, export subsidies, investment tax credits and research adoption benefits.
Q: Do industries face challenges when venturing into tech application?
A: The cost of failure is devastating for smaller companies and entrepreneurs. There’s a lack of a safety net while brain drain further complicates matters.
Moreover, leadership backing and appreciation of risk adoption is needed. IT and biz development don’t quantify and qualify investment risks adequately for fear of having requests rejected.
