We’re seeing new types of competitors solve problems – from technology fuelled by capital investment, to traditional players in adjacent markets. They see an opportunity to do what you do better.
This could impact a revenue or expense line in your business – which means it’s both a potential threat and an opportunity. They could become a value-add partner – or capture market share in your core income stream.
Meanwhile, private equity capital and technology know no boundaries when it comes to investing in new tech platforms. These new entrants could be perceived as a threat, or an opportunity to create a new market advantage.
Global investment in tech is exponentially growing
Put people first
These new business models put people first: anticipating and exceeding customer expectations, and empowering staff to deliver. They’re underpinned by robust platforms and capabilities. And their performamce continually improves on two fronts simultaneously: within their established business as usual, and in adjacent areas as they test and expand their ecosystems.
Understand the 'ecosystem'
As digital breaks down barriers to entry and traditional industry boundaries blur, we see the rise of the ecosystem. Partnerships between traditional and digital companies, linking industries such as insurance and real estate, or legal and financial services, lead to new platforms that add value to a much larger pool of customers.
These ecosystems challenge traditional management theories: it may now be possible to provide holistic services, fast delivery, lower costs and a great customer experience within one business. And increasingly, that is what customers expect.
Seven of the 10 largest companies worldwide are ecosystem platforms that cross industry borders – including Alibaba, Amazon and Alphabet (Google). McKinsey research shows the emerging group of digital ecosystems could account for more than $60 trillion globally by 2025 – more than 30 per cent of corporate revenues.7