According to an interview with Nobel laureate Joseph Stiglitz by Suttichai Yoon of National Multimedia, Asia itself has a huge domestic potential by having a large population base with savings and a wide demand for investment.
This is extremely true especially when your business is a service base and revenues are generated from services. Services business more or less focuses more on domestic economy compared to international trade like US or Europe.
In an article “THE CFO’S ROLE IN THE DOWNTURN”written by Colin Walter from PWC. He mentioned
Cash is king: Companies that came out of the last recession on top had an average net debt-to-equity ratio before the downturn of half that of the companies that were not successful. They also had more cash on hand.
and Taking out the wrong costs can be worse than taking out no costs at all.
I’ve meet business owners that focuses on cutting cost no matter what, the question is “where in the company should we start focusing?” Confidence on these questions comes from a reliable management information as cited by Colin that;
Reliable Management Information: The more volatile the market, the more you need to be able to trust your information.
Curiously, most companies stick with their same old reporting templates and key performance indicators (KPIs) because "this is how we’ve always done it". Forecasting and scenario modeling are critical in volatile markets.
Service companies are now likely starting to invest in building their data warehouse and investing in Business Intelligent to support their business needs in volatile markets.
Those already served or underway will benefit especially now as the economy is showing signs of up turn.. Those who don’t begin to address this and get this capability will surely have difficulty to sustain