Current Global Mega Trends Affecting Business and Marketing Operations
Megatrends are changes that will affect the entire world. They will cause tremendous business opportunities and will drive technological advancement. Many of these trends will be embraced by new entrants, and some will even become unicorns – private companies valued at $1 billion or more. However, they are also disruptive forces that will erode the business models of established companies. In a way, these megatrends are like earthquakes, which can cause a company to be unprepared.
These megatrends are so complex that they can be overwhelming. It’s important to approach them in small steps and ensure that the company’s leadership is well versed in them. For example, in a recent report, the World Business Council for Sustainable Development published a list of global companies with the highest scores in external megatrends. However, the majority of these companies fail to mention megatrends in enough detail in their reports, which is seen as a red flag for inadequate risk assessments and context-related analysis.
In the long run, these megatrends will have a profound impact on the business and marketing operations of every organisation. These global megatrends can also influence the future of business and marketing. For example, the rapid urbanisation of cities will lead to more manufacturing, which will lead to more emissions, which will have a negative impact on climate change. Despite the potential of these megatrends, addressing these issues is not as difficult as it may seem.
During a supercycle, governments are increasingly aware of the impact of these megatrends. They have begun investing resources and legislating to manage them. At the COP21 conference in Paris in 2015, 196 countries pledged to limit global warming to two degrees Celsius. Collaborative industry initiatives are also working to address these issues. In 2016, the United Nations launched the Sustainable Development Goals (SDGs), which identify these megatrends. They state that everyone can play a role in meeting the goals set out by 2030.
Several megatrends are becoming major issues in business and marketing. The fourth industrial revolution will become a digital revolution. The impact of these megatrends will affect every industry. The pace of change will be so rapid that people may not need to work for their jobs anymore. The fourth industrial era will be a time of great transitions. As technology advances, the impact will continue to increase exponentially.
As these megatrends take hold, incumbents will need to strategise differently. Some of them will have more general impacts on the business, while others will affect specific industries or corporations. In order to tackle these trends, firms must consider the implications of each one on their products and services, skills, and structure, and develop the necessary competencies. They will need to understand what impact each of these megatrends will have on their customers, and how to address these challenges.
In addition to these trends, organisations must be ready to communicate the impact of these megatrends to stakeholders. Several companies received top scores in the external trends category of the 2017 Reporting Matters survey, but most of them do not discuss these megatrends in sufficient detail. Some of these megatrends are significant and will impact the entire business in different ways. Therefore, it is imperative to consider each of these megatrends before you choose your next strategic move.
In addition to understanding the impact of these megatrends on businesses, it is essential to communicate them effectively to stakeholders. The World Business Council for Sustainable Development released their 2017 reporting matter data, and found that the majority of the companies do not properly discuss megatrends. As a result, many stakeholders may view this as a red flag for companies that do not assess their risks or context in advance.
Identifying the current global megatrends can be a daunting task, but it is possible to make them manageable. It is also important to keep an eye on emerging markets and emerging technologies. In addition to identifying these trends, companies should consider the impact on their own products and services. In some cases, they will be legally required to report their impact on their stakeholders. In this way, megatrends can have a positive impact on their business.