In a recent Deloitte study, an article was published that detailed Deloitte’s outlook for 2017, and beyond. The outlook was clear, echoing what we at CFPro Ventures already see, that “Increasingly companies are adopting inorganic growth strategies to create ‘businesses of tomorrow’ through M&A and corporate venturing.”
We take a closer look at exactly why companies are ramping up their growth strategies through developed and developing innovation strategies.
Shifts in Technology
Whether it’s AI, Machine Learning, cybercurrency or cognitive computing, the advances in technology are providing major breakthroughs across industry. Overnight, the development of buzzwords driven by technology have infiltrated our economy, leaving us with huge developments in the worlds of fintech, medtech, healthtech, proptech, greentech, cleantech and fashiontech, to name just a few. Almost overnight, businesses have had to re-evaluate their long-term growth strategies and almost re-define what their organisation may look like in just over 5 years’ time.
Deloitte credits this shift in technology being down to, “the potent combination of the sustained drop in computing and storage costs and significant improvement in computing power and data bandwidth that is paving the way for the widespread adoption and mass functionality of new technologies.”
Shifts in consumer behaviour
Partly due to a change in technology that drives the way we work, and partly due to a more agile, flexible, on demand way of living – consumer habits have also shifted – and so have their expectations. Organisations are being put under pressure to supply and comply at the touch of a button. Paperless and remote is quickly replacing the Paper-train and face-to-face. Deloitte describes it as follows: “The digital consumer revolution allows not just for scale, but also diversity and a multiplicity of viewpoints. This in turn is inspiring new crowd-based business models.” In fact, they have identified 3 new consumer types that are driving organisational strategies of the now, and of tomorrow. These include:
- Consumers preferring peers over corporates e.g. peer-to-peer rating sites such as TripAdvisor
- Consumers preferring access over ownership e.g. ride-hailing apps such as Uber; and
- Businesses preferring “collaboration over competition” e.g. Wikipedia.
Convergence across sectors
Not only is this digital disruption changing the way we buy and sell things, it’s made it easier for us to enter the market in the first place. “Advances in disruptive technologies, along with
the increasing digitisation of business models, are lowering barriers to entry and allowing non-traditional competitors to enter the market”, says Deloitte. And furthermore, what’s happening is that the lines between product and market offerings across sectors, are being substantially blurred, meaning businesses now have new opportunity to innovate and collaborate across markets, across industry, across customer bases – hence the birth of things like healthtech, biotech, cleantech and more.
If you are ready to innovate, but you need the business support and financial backing to get started, then we’d like to talk to you. Get in touch with us today.