Indian CXOs are convinced that it is time to break departmental silos and collaborate to successfully navigate and address the challenges of today’s ever-changing and volatile world. This resounding sentiment emerged as a key takeaway from Coalesce 2023, Deloitte Touche Tohmatsu India LLP’s (DTTILLP) annual flagship initiative, where CXOs from 187 organisations across business functions joined to deliberate and visualise the “Art of the Possible” through engaging design-thinking workshops alongside industry leaders, top-level decision-makers, and alliance partners. This inclusive approach empowered businesses to use global opportunities, enhancing success and competitiveness.

Romal Shetty, Chief Executive Officer, Deloitte South Asia, said “Coalesce stands as an industry-first initiative, uniting industry leaders, ecosystem providers, and alliance partners under one platform to envision and design-think the future. Coalesce introduced a subtle yet significant shift by inviting over 230 CXOs, committing to focus on business growth by transcending conventional boundaries and embracing innovative business models.”

Leaders at Coalesce anticipate significant business growth in the next 3-5 years, with the Environmental, Social, and Governance (ESG) framework playing a key role. About 24 percent highlight the importance of ESG in ensuring investor transparency, while 65 percent see it as a growth driver. Executives globally are adopting sustainability-focused tech, such as blockchain and AI, to meet net-zero goals, as noted by 40 percent of CXOs. Gen AI is also emerging as another growth catalyst, with 27 percent of CXOs exploring new business models and 41 percent using it to enhance workforce skills and competitiveness. CXOs are prioritising trustworthy AI frameworks, foreseeing AI’s competitive edge, and driving the expected demand for AI specialists in about 75 percent of large organisations by 2024.

In the face of rapidly changing consumer preferences and technological innovations, Debashish Mishra, Partner and Chief Growth Officer at Deloitte South Asia, said, “No single organisation can effectively tackle all challenges alone. In recognising the role of India’s service sector in our economy, I see firsthand how issues such as labour intensity and skills mismatch impede productivity. Yet, when we come together in a vibrant environment, synergy ignites innovative ideas, enabling us to collectively address these challenges. I’ve witnessed numerous stories that exemplify the transformative power of collaboration, making a significant difference for everyone involved. This belief resonated strongly at Coalesce, paving the way for remarkable outcomes through collaboration, innovation, and the power of collective action.”

Top C-suite leaders also emphasize the significant impact of Mergers and Acquisitions (M&A) on business outcomes, noting a high failure rate of about 70 percent. This failure often stems from insufficient economic intuition, trust and transparency issues, and inherent risks. Traditionally, M&A efforts were mainly overseen by CEOs and CFOs, but fragmented involvement from other CXOs has frequently led to value breakdown. Recognising this challenge, there is an increasing trend towards involving additional executives, such as CISOs, CTOs, CMOs, COOs, CHROs, and other business leads from the strategy phase. This shift aims to foster smoother transitions and drive enhanced value creation throughout the M&A process.

Echoing this sentiment of Indian CXOs, Vinay Prabhakar, Partner and Leader, National Sales and Alliance Leader, Deloitte India, said, “Coalesce was more than just an event; it was a glimpse into the future of possibilities. Covering crucial domains, such as AI, business services, ESG, and global captive centres, we aimed to foster innovation and cultivate business opportunities. Our recent alliance with Yotta in India further exemplifies this vision. Together, we’re unlocking the boundless potential of digital transformation and AI to reshape the future of business. It is evident that, alongside product innovation, collaboration plays a pivotal role in surmounting complex business challenges.”

As organisations navigate the complex global environment, trust becomes crucial for long-term success. Recognising this, 27 percent of CXOs support the creation of Chief Trust Officer roles, underscoring the importance of trust in leadership. With businesses moving toward AI-driven operations, the significance of trust in AI systems is recognised as equally important as algorithm robustness. A recent Deloitte survey also underscores trust as a key AI integrator. However, while 94 percent of boards recognise the importance of trust, only 14 percent have established measurement methods, urging an immediate need for trust-building strategies.