While the detail of individual plans may differ, enterprise transformation objectives are often not unique. Having taken an in-depth look at hundreds of companies – researching annual reports, vision statements and one-to-one conversations – just ten pressing development concerns for the enterprise came to the fore.
How does your business stack up? What is your biggest transformation need? And are you focusing on the right primary objective for your business? Read on to get the insight you need when it comes to transforming the enterprise.
1. Cost cutting
Driving efficiency is nothing new. What is new is the method by which large savings can be made. While some look to reduce or refocus their manufacturing efforts (see General Motors), others are finding that digital marketing opportunities have opened the door to new cost-cutting exercises (see Procter & Gamble Co.)
2. Simplifying the enterprise
While globalization created a wealth of opportunity for many, it also added exponentially to the complexity of organizations. In response, the world’s biggest companies are looking to simplify in various ways. HSBC and ANZ, for example, are both refocusing their efforts geographically, doubling down on locales where they have found success in the past.
3. Subscription models
Specifically in the German market, the trend is moving towards more people renting cars, rather than buying them. IT and cloud storage have also shifted significantly towards subscription and rental models, rather than creating your own on-premises solution. Nowhere is this trend for subscriptions more prevalent than in the heady world of razors. Newcomers such as Harry’s are just one of the litany of direct-to-consumer companies that show impressive growth and continue to carve out their share of the market.
4. Green (or carbon neutral) is good
Speaking of razors, Gillette recently made headlines with the announcement that you can send them your old razors to be recycled. Whether because consumers are becoming increasingly concerned with waste and global warming, or because the companies themselves see an economic benefit to becoming more sustainable, the result is the same. From Maersk trialing biofuel to WeWork banning employees from expensing meat products, more and more of the enterprise are jumping on the bandwagon.
5. Brand loyalty is a thing of the past
Ninety out of the top one hundred brands are seeing a decline in market share. Why isn’t crystal clear. What is clear though is that big companies aren’t losing out to each other; rather small players are creating niche products and growing fast.
6. New mindsets to contend with
Millennials. The world is full of them. They now represent the largest consumer generation on the planet, and their outlook is somewhat different to their forebears. The majority are digital natives with no experience of life before the internet. Having grown of age through one of the largest financial crashes in history, just 14% of millennials today trust traditional banks. And when it comes to work, this generation are proving both driven and fickle. Nearly half plan to leave their job within two years. As they will make up 75% of the workforce by 2030, gone are the days of the employee for life.
7. The hybrid workforce
The makeup of the enterprise workforce is increasingly divided between full-time employees and freelancers or contractors. By 2022, as much as 60% of people in the USA will be self-employed. This means the enterprise will have to work harder than ever to attract the best talent.
8. Everything is mobile
As modern lifestyles become ever more mobile – around 70% of consumers are active mobile banking users for example – there are some unexpected tangential results. Kellogg’s market share for example is declining, largely because traditional eating habits have changed.
9. The digital economy
Products are giving way to experiences. Service providers are producing content to drive data consumption (see AT&T buying Time Warner or Three offering streaming services that don’t use up your data plan, but only if you pay for their most expensive data plans). Retailers are using the data of their local loyalty customers to control what they stock in their stores (see Nike on Melrose). Digital can and will impact every aspect of the enterprise.
10. AI, ML, RPA and other futuristic acronyms
Artificial intelligence, machine learning and robotic process automation are seeing increasing interest from the enterprise, and that looks set to continue. While chatbots are already seeing extensive use today, in the future, banking employees will be a mix of human and AI advisors. Meanwhile, Proctor & Gamble are increasing their use of robots, driven largely because of technological advances in machine vision and gripping.
Do you agree with these trends? Which do you see as the most important? Did we miss a trend that you are seeing within your enterprise? Be sure to leave your comments. Be part of the conversation.