Strategies are being shaped by modern technology
Impact of modern technologies on strategies
Blockchain, Internet of Things (IoT), Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), Automation (Robotics, Automotive, etc..), Big Data, Sensors, 3D Printing, Cryptocurrency as well as other modern technologies are forcing businesses to shape their international sales and strategies in order to get benefit of the digital transformation age and technology capabilities.
For instance, Blockchain technology is already in use, and even if it will take years to transform businesses and process, however, when widely adopted, it could dramatically reduce the cost of transactions, optimize supply chain and reshape the economy.
Contracts, transactions, and the records of them are among the defining structures in our economic, legal, and political systems, are all aspects which would be majorly impacted by Blockchain and other modern technologies [1].
Following, modern technologies will protect assets and set organizational boundaries. Also, they establish and verify identities and chronicle events, and last but not least, modern technologies will govern interactions among nations, organizations, communities and individuals[1].
On the other hand, companies need to identify the right opportunities and to align their sales and strategies. Blockchain technology is moving into each industry including the FinTech mainstream. IBM and seven European banks including Deutsche Bank, HSBC are testing blockchain-powered bank transfers to be the first cross-border, commercial transactions have been conducted on we.trade blockchain platform[2].
Investments in digital transformation
The major American investment bank JPMorgan Chase has displayed massive interest in FinTech with a total investment of $9.5 billion in tech in 2016, with a huge $600 million spent on FinTech alone [3].
Likewise, IBM and Maersk applied Blockchain to manage the supply chain for container shipping[4].
Additionally, Thomson Reuters announced the launch of innovation ecosystems around the globe “The Incubator”. It will host early-stage entrepreneurs building next-generation products in big data, advanced analytics, distributed ledgers, artificial intelligence, machine learning and other transformational technologies[5]. Therefore, bold strategic initiatives are highly important for small, medium and large enterprises to survive.
Along with that, and according to McKinney’s, 90% of companies indicated that they are engaged in some form of digitization, while only 16% said their companies have responded with a bold strategy[6].
Likewise, Wal-Mart, for example, is the world’s largest retailer, has made it clear that e-commerce is one of the company’s strategic pillars. It pumped billions in capital investment to introduce Grocery Online[7].
European Commission (EC) digital investments
Artificial intelligence is another shift in technologies. Economists are expecting an economic growth impact in the coming years. The European Commission (EC) presented in April 2018 a series of measures to increase public and private investment in artificial intelligence in order to build up and reinforce the use of artificial intelligence by businesses and public administrations. EC’s Investments in digital will be much higher than before. EC’s overall budget accounts for €9.2 billion to shape and support the digital transformation of Europe’s societies and economies[8].
Firms need to rethink their sales and marketing strategies
Accordingly, changes in consumer behaviour, technology and market conditions require firms to rethink their sales and marketing strategies[9].
Therefore, companies that adopt bold offensive strategies in the face of industry digitization will be the winners[10] and they need to stop over-reacting, rather than taking course corrections on the road to the future innovation and technology.
Sources:
[1]Marco Iansiti, Karim R Lakhani, and Hassan Mohamed, “It Will Take Years To Transform Business, But the Journey Begins Now,” no. February (2017), https://enterprisersproject.com/sites/default/files/the_truth_about_blockchain.pdf.
[2]CNBC, “IBM Building Blockchain for European Banks,” accessed July 21, 2018, https://www.cnbc.com/2017/06/26/ibm-building-blockchain-for-seven-major-banks-trade-finance.html.
[3]Tom Ball, “Top 10 Biggest Blockchain Players – Computer Business Review,” 2017, https://www.cbronline.com/uncategorised/top-10-biggest-blockchain-players/.
[4]Tom Groenfeldt, “IBM And Maersk Apply Blockchain To Container Shipping,” 2017, https://www.forbes.com/sites/tomgroenfeldt/2017/03/05/ibm-and-maersk-apply-blockchain-to-container-shipping/#8f0b7943f05e.
[5]Noelle Campbell, “Thomson Reuters Launches Startup Incubator | Thomson Reuters,” 2017, https://www.thomsonreuters.com/en/press-releases/2017/july/thomson-reuters-launches-startup-incubator.html.
[6]Jacques Bughin and Nicolas Van Zeebroeck, “The Best Response to Digital Disruption The Best Response to Digital Disruption,” MIT Sloan Management Review 58, no. 4 (2017): 80–86.
[7]Deloitte, “Global Powers of Retailing 2018 Transformative Change, Reinvigorated Commerce,” Deloitte, 2018, 1–24.
[8]Investing In and T H E Future, “EU BUDGET INVESTING IN THE FUTURE DIGITAL TRANSFORMATION 2021-2027,” no. June (2018).
[9]Maria Teresa Pinheiro Melo Borges Tiago and José Manuel Cristóvão Veríssimo, “Digital Marketing and Social Media: Why Bother?,” Business Horizons 57, no. 6 (November 1, 2014): 703–8, https://doi.org/10.1016/J.BUSHOR.2014.07.002.
[10]Bughin and Zeebroeck, “The Best Response to Digital Disruption The Best Response to Digital Disruption.”
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