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Where will our future growth come from? Unlike past economic recoveries that depended largely on singular macroeconomic trends such as industrialization, consumerism or information technology, the future economic environment offers multiple “megatrends” and catalysts for growth. These 5 Trends for Business Growth transcend industries and are open for mature companies and new entrants alike.
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FIVE
TRENDS FOR BUSINESS GROWTH
FIVE BY FIVE EBOOK SERIES
5 Trends for Business Growth
OTHER eBOOKS IN THIS FIVE BY FIVE SERIES
5 Critical Leadership Priorities for Growth5 Myths About Business Growth5 Threats to Business Growth5 Opportunities for Business Growth
lEaRN mORE BY REaDING
GrowthThinking: Building the New Growth Enterpriseby Keary L. Crawford and Wayne A. Simmons
© 2013 The Growth Strategy Co. www.growthstrategy.com
Introduction.
Where will our future growth come from? Unlike past economic recoveries that depended largely on singular macro-economic trends such as industrialization, con-sumerism or information technology, the future economic environment offers multiple “megatrends” and catalysts for growth. These 5 Trends for Business Growth tran-scend industries and are open for mature companies and new entrants alike.
3
5 Trends for Business Growth
Trend #1Turning green into green.
© 2013 The Growth Strategy Co. www.growthstrategy.com
Is green the new black?
For many years, most automakers viewed fuel-efficient vehicles as a socio-political fad. As a result, the gasoline-powered internal combustion engine, the mainstay of the auto industry, has received only incremental improvements in fuel economy. In contrast, Toyota saw this trend as a powerful and inevitable market force. Today, the Toyota Prius has evolved from a low-volume novelty vehicle to become a dominant brand that provides first-mover advantage, and an entirely new platform for future growth for the company. Specifically, in the new business environment, the energy efficiency and sustainability trend applies to virtually every industry and represents a fundamental re-tooling of systems, infrastructure and products to achieve dramatic breakthroughs in energy consumption.
Can we identify market segments that have environmentally-motivated buyers?
first-mover advantage, and
an entirely new platform for
future growth
5
5 Trends for Business Growth
Trend #2Energize growth.
© 2013 The Growth Strategy Co. www.growthstrategy.com
Powering business growth?
Rapid economic expansion combined with growing populations in developing markets has created tremendous new demand for energy. Unfortunately, the underlying technologies of the global energy infrastructure (the grid) have been in place for decades and may be ill-equipped to economically meet that new demand. Logic suggests that, at a minimum, the fast-growing energy needs of emerging economies alone will severely stress known sources of energy. While the answers to these difficult technological and economic issues are not all known, the companies that can position themselves to participate in the inevitable need for more energy and advanced energy technologies will satisfy existing demand, create new demand and unlock sources of future growth.
How can we position ourselves to take advantage of this trend?
inevitable need for more
energy and advanced energy
technologies
7
5 Trends for Business Growth
Trend #3Infrastructure modernization.
© 2013 The Growth Strategy Co. www.growthstrategy.com
a foundation for the future?
The global economy is built on aging industrial-age technologies, materials and systems. Further, these outmoded and disparate transportation systems, healthcare systems, industrial control systems, energy grids, telecommunications networks and physical infrastructure are all interconnected. Essentially, continued economic expansion creates a pressing need to upgrade and expand the capacity and reliability of the business infrastructure. The magnitude of the required changes will likely serve as a catalyst for new market entrants and breakthrough technologies that may threaten incumbents. This inevitable, multi-generational trend creates enormous areas of opportunity and growth for companies.
How can we expand our current corporate assets to capture this opportunity?
serves as a catalyst for
new market entrants and
breakthrough technologies
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5 Trends for Business Growth
Trend #4mobile and social technologies.
© 2013 The Growth Strategy Co. www.growthstrategy.com
Growth...is there an app for that?
The first generation of information technologies may be coming to an end. However, in the new business environment, trends indicate that a new generation of technology is poised to make dramatic leaps forward. The central trend within this post-PC transformation is the global democratization of mobile and social media technologies that have (and will) radically change how information is accessed, consumed and shared in virtually every part of day-to-day life. These forces are being further accelerated by population expansion and buying power in developing countries creating new markets, new customers and new growth opportunities for incumbent companies and new market entrants alike.
What products or services could we combine with a new technology to create a unique offering?
global democratization of
mobile and social media
technologies
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5 Trends for Business Growth
Trend #5advanced manufacturing.
© 2013 The Growth Strategy Co. www.growthstrategy.com
Build it and they will come?
Growth in manufacturing has traditionally been equated to workforce expansion, reliable supply chains and access to the lowest cost labor. While traditional manufacturing continues to migrate to the lowest costs, new plants are emerging that deliver world-class levels of quality and productivity with radically reduced costs structures. As an example, through its BMW Manufacturing Co., automaker BMW has reversed traditional manufacturing patterns by building new domestic and export production capabilities in North America—albeit with a fraction of the employees. With the continued trend toward the next generation of advanced manufacturing, companies can radically alter their costs structures, get closer to customers and drive transformational growth opportunities.
Can we eliminate an activity to streamline, create efficiencies or improve quality?
the next generation of
advanced manufacturing
13
Conclusion.
Once removed from the realm of hyper-political ideology and rhetoric, powerful trends exist that have the potential to drive growth across the global economy. These trends may upset the status quo, the companies that understand their implications will position themselves to be the market leaders of the future.
OTHER eBOOKS IN THIS FIVE BY FIVE SERIES
5 Critical Leadership Priorities for Growth5 Myths About Business Growth5 Threats to Business Growth5 Opportunities for Business Growth
lEaRN mORE BY REaDING
GrowthThinking: Building the New Growth Enterpriseby Keary L. Crawford and Wayne A. Simmons
The information contained in this publication has been obtained from sources believed to be reliable. The Growth Strategy Co. disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This pub-lication consists of the research and experiential opinions of The Growth Strategy Co. and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice.
