Future business threats and opportunities

The pace of change in business continues to hot up. Read about what’s going on around you and check out your organization’s ability to respond at the right time to just some of the many drivers of change coming to you in the next few years

What is changing?

Transport and travel

  • Public transportation companies will need to reconsider theirinfrastructureinvestments as shared AVs blur the frontier between public and individual transportation.
  • The application of AVs to taxi and car-sharing business models will have far-reaching consequences for mobility players.
  • The array of transport choices is likely to be very wide, and newbusiness models will drive innovation.
  • Car manufacturers across the world will need to do business not as usual and attract significant additional investments to finance connectivity, autonomous driving, sharing and electrified power trains.
  • The theme of sustainability will be central to the global tourism industry in years to come primarily due to the wide-arching threat of climate change.

Payments

  • There are potentially operational risks concerning data portability, money flows, payment processes, customer and businesstransparency that are not clearly understood in the digital era.
  • An investment will be needed if banks are to build the digital end-to-end execution of transactions that is at the heart of digital banking.

Customers

  • Customers will rely on AI to help them find and engage a business.
  • Customer data integration will be the next big growth area for business intelligence.

Growth

  • Innovating and exploring ways to leverage technology to drive growth will continue to be a topic of interest over the coming years.
  • Rising populations and increasingly scarce resources will provide a challenging business environment in which sustainability will need to be embedded within all facets of the industry.
  • Brands embracing collaboration will experience deeper engagement on the issues that matter as well as richer collaboration on innovation opportunities and business benefits including tapping new markets.
  • Co-working business models involving established logistics enterprises and start-ups in creative factories will speed up innovation and shorten development and implementation lifecycles.
  • Services with constantly growing complexity and high development costs (such as risk management and security, customs clearance, and compliance) will be developed by only a few specialists.
  • The future of business intelligence will feature a move away from specialized applications, dedicated analysts and fixed reports and towards ubiquitous analytics everywhere world.
Implications

Workers

  • Companies could start shouldering the costs of treating their armies of workers as legal employees.
  • By 2022, the radical change in business models will mean that companies will be facing further issues such as: The need to create ever more sophisticated people measurement techniques to monitor and control performance and productivity.
  • Co-working business models involving established logistics enterprises and start-ups in creative factories will speed up innovation and shorten development and implementation lifecycles.
  • Services with constantly growing complexity and high development costs (such as risk management and security, customs clearance, and compliance) will be developed by only a few specialists.
  • There will be growth in entrepreneurship, small business ownership and self-employment.
  • Mobile access to key performance indicators will play a critical role in how individuals use and benefit from business intelligence data.

Trade

  • Treaties that encourage FDIs and structural policies that remove barriers to FDI and enhance product market competition would reduce the risk of a banking crisis.
  • Businesses will make available their rich APIs and plug in to a massive network of millions of users and all sorts of devices.
  • Market networks will have a massive positive impact on how millions of people work and live, and how hundreds of millions of people buy better services.
  • Business leaders expect major multinational global corporations to emerge from Asia.
  • Disaffection with the global trading system could give rise to protectionist and anti-globalization sentiment.

Climate change

  • Rising populations and increasingly scarce resources will provide a challenging business environment in which sustainability will need to be embedded within all facets of the industry.
  • More than 75 percent of global business leaders see bottom line risks from the direct impact of climate change and yet most businesses don’t appear to have a clear vision on how to effectively manage the transition to an environmentally sustainable future.

Business models

  • Capturing the full potential of IoT applications will require innovation in technologies and business models.
  • Business processes, customer engagement and security will create a more agile mobile enterprise.
  • Organizations will continue to evolve toward shared services and struggle to build integrated business plans that incorporate learning across the organization.
  • Organizations are less likely to rely on innovation but rather will focus on the core competencies of the business and efficiency considerations.

Surprises

  • Further global financial integration could amplify shocks through international spill-overs and hence pose a threat to economic stability.
  • IT executives will obtain a new level of visibility into their IT infrastructure.

Learn more
Find the sources and more resources on Shaping Tomorrow about The Future of Business some of which were used in this Trend Alert. Also,click here to find out how Shaping Tomorrow can help your organization rapidly assess and respond to these and other key issues affecting your business.

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