According to the Deloitte Business Trends 2014 report, titled "The next wave of globalisation", organisations and businesses who want to meet the requirements of the next wave of globalisation need to adapt as powerful new players disrupt the global landscape.
As the distinction between the "developed" and "underdeveloped" world becomes more blurred, previously held safe assumptions about the global business environment no longer apply.
The trends fall into three categories - new consumers, new collaborations and new leadership:
New consumers:
There has been a rapid expansion of the global consumer class - in the emerging markets of Asia, Africa and Latin America. It is estimated that by 2020 the number of people in the global middle class will amount to 3.2 billion. These new consumer citizens are also increasingly urban: by 2030 urban populations will reach almost 5 billion, with growth concentrated in the cities of Asia and Africa. Organisations will have to find different ways to reach the citizens of this "city planet".
New collaborations:
Leaders from emerging market organisations are responding to new disruptive forces such as social business technologies - not only to address social, environmental and business issues - but also to foster innovation and collaborative partnerships.
"Thanks to spreading economic growth, shifting national priorities and new open technologies, innovation comes from everywhere... wealth and privilege are no longer a pre-requisite to success," says Thomas Jankovich, Chief Innovation Officer at Deloitte.
One of the key trends highlighted in the report is the democratisation of innovation, and the shift away from reliance on closed, protected R&D hubs within organisations, to open spaces that encourage collaborative knowledge flows. "Capabilities that were once exclusive to large businesses are now available on efficient open markets."
"For businesses and organisations to take advantage of these new trends, they need to make open innovation key to their overall strategy," says Jankovich.
The report notes that organisations in emerging economies are navigating the new global business environment with a greater confidence than leaders in developed markets.
They are more likely to lead in the use of social business technologies. They are also more likely to collaborate with other businesses beyond their borders than their developed market counterparts -"providing the opportunity to engage with rich networks for regionally and globally relevant innovation and learning."
New Leadership:
As global giants now compete aggressively with developed economy corporations in almost every sector, individual leadership roles are evolving fast. Entire executive teams might have to transcend functional boundaries to secure coherence as they transform their far-flung enterprises - without defaulting back to the command and control arrangements of a bygone era.
The report concludes that as the contribution to global innovation from emerging economies is continually rebalanced, organisations and businesses have to relook and adapt their business models and supply chain configurations if they wish to remain competitive.
Download the full report here: http://dupress.com/periodical/trends/business-trends-2014/
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Business Trends 2014
Business Trends is an annual report from Deloitte's Strategy & Operations practice. The report is supported by a survey to assess the views of business executives around the world on issues related to the globalisation of business. The online survey was completed by 423 executives from November 10 - 28, 2013. The companies participating in the survey represented a broad range of industries and revenue sizes and spanned four continents: North America, Europe, Asia and South America.
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