For the past five years, the acceleration of business driven by disruptive technology has been unprecedented. All industries from the most progressive to the most traditional ones had to adapt and increase their pace of innovation. New consumer behaviors are shaping the market and resetting the foundations on which a lot of organizations have built themselves.
I would like to suggest here three trends businesses have to follow to ensure they stay the most relevant to their customers in the next five years.
1 – Cloud
Following the same trend as we see happening on the consumers’ side, companies need to move from an ownership to a subscription model. And this goes beyond IT only. The subscription model offered by the cloud is a transformative one that companies should consider in all parts of their businesses: workforce, business processes, procurement, marketing etc…
Among other advantages, renting allows organizations to increase their predictability, lower their upfront investments in favor of smaller recurring ones. Businesses can become more flexible, reduce their amount of processes and free up their workforce, money and mindset to better understand and serve their customers.
More than ever, companies need to focus all their efforts on their core functions and constantly innovate so they are not disrupted by competition and newcomers.
2 – Content
Consumers around the world are spending an increasing amount of dollars on digital content. According to a Global Digital Content report, consumer spend on digital content has reached $57 billion in 2013. This includes: apps, online movie, digital music and digital games.
In essence, content is eating up the physical world and becomes the ultimate destination consumers are looking to get to when buying a new product or service.
This trend will only increase now that all the items we are using on a daily basis are becoming connected devices. Your shoes, your bottle of water or your new car will all become your conduits to access a new world of content.
To be successful in the years ahead, companies need to transform themselves to become content providers.
3 – Customer Experience
Ultimately, companies that will thrive will be those delivering the best customer experience. Cloud and content are only means for organizations to provide the best service possible.
For retailers, provide an omni-channel model with a seamless experience from the digital to the physical world.
For Airline companies, ensure that customers experience minimum friction and best service, from the moment they look for a flight on their app to the moment they are opening their luggage at the hotel.
For Telecom operators ensure that each customer gets the best price based on its individual consumption.
Do you have examples of companies that are transforming themselves to get ready for this new world? I would love to hear your thoughts on these trends (and others).