Strategic Drivers of New Business Models
‘As the Fourth Industrial Revolution unfolds, companies are seeking to harness new and emerging technologies to reach higher levels of efficiency of production and consumption, expand into new markets, and compete on new products for a global consumer base composed increasingly of digital natives. More and more, employers are, therefore, also seeking workers with new skills from further afield to retain a competitive edge for their enterprises and expand their workforce productivity.’ Not my words but the words from the World Economic Forum.
How are companies gaining their competitive advantage? They are becoming early adopters of the technological advances that have been made over that last 5 years and will explode in the next 5 years. These are the top 10 trends that will impact businesses, whole industries and countries by the year 2022.
Top Trends Set To Impact Business Growth to 2022
Increasing adoption of new technology
Increasing availability of big data
Advances in mobile internet
Advances in artificial intelligence
Advances in cloud technology
Shifts in national economic growth
Expansion of affluence in developing economies
Expansion of education
Advances in new energy supplies and technologies
Expansion of the middle classes
I would argue that none of the above trends would be possible without cloud technology. Big data would not exist without the cloud to collect it and analyze it. Machine learning and AI would not be possible without big data. The rapid growth of developing countries and economies are multiplied by the availability, capacity and capability of the cloud to enable consumption, make supply chains more efficient and open new markets.
New business models leveraging technological innovations are leapfrogging over established companies and have a trajectory for unprecedented growth in the next 5 years. Example: Tesla less than 10 years old has a market cap of about $85B while General Motors over 100 years old has a market cap of about $49B. Older established market leaders will fail VERY quickly in the next few years if they do not start moving to the cloud and take advantage of developments in big data and AI. They have the potential to regain some of their lost momentum with the wealth of data that they already have that the new companies have to build from scratch.
Watch next week for my post on trends in a few of my favorite industries.