By 2017, large disruptive digital companies will be launched, designed by a computer algorithm. In a more short-term scenario, companies that combine technology markets with logistics to challenge legacy and purely physical business ecosystems will be of greater value.
The global economy has grown ripe for digital disruption, and this is clear in global market players such as Uber and Airbnb, which are flooring transport and hotels respectively. As such companies exhibit the effects of networks (that is, their value increases with each new entrant), they tend to form natural monopolies, but are challenged by all regulatory and market complexities, making them less receptive to computer analysts .
In the meantime, the positive creation of success in such models – valuing tens of billions of businesses under five years of age – represents an irresistible attraction for capital investment.
Ascent of mobile digital assistants
By the end of 2016, more than $ 2 billion online purchases will be made exclusively by mobile digital assistants per year. Initially, they will handle trivial tactical processes such as noting names, addresses, and credit card information. Some fixed events, such as market repositioning, will be commonplace and will give these types of assistants the confidence to evolve.
The trend is that they then take on more complex decisions, such as evening programming: choosing a well-rated movie and then having dinner. Digital assistants will be on multiple platforms, but mobile devices will be the most accessible and preferred devices.
Experience in focus
By 2017, 50% of investment in consumer products will be redirected to innovations in consumer experience. And this year, the forecast indicates that more than half of traditional consumer products will have native digital extensions. In many industries, hyper-competition has eroded the advantages of traditional offerings, making customer experience the new battleground.
Companies seek to regain the loyalty of their customers, now empowered by easy access to price and product information via search and social channels. The reality is that innovation focused on new products – and even new business models – is subject to periods of wreckage of competitive advantages. Competitors and alternatives are plentiful, and product innovation is bound to accelerate commoditization. Innovation in customer experience remains the key to lasting brand loyalty.
Reduction of costs
Another forecast for Gartner is that by 2018 the total cost of digital business operations will be reduced by 50 percent through smart machines and industrialized services. Even without such technological equipment being able to replace human labor, they will displace complacency and inefficiency and add tremendous speed to business operations.
Pursuing consumers’ preference for using the Internet and mobile services to drive business efficiencies and optimize time management, industries are striving to improve customer experience through simplification and automation. By making the point-to-point processes smarter, they minimize manual interventions and allow consumers to serve themselves – self-service.
Customers’ needs for faster, cheaper, and better products and services, available anytime, anywhere, and on any channel, are fueling the digital enterprise revolution.