Businesses today are highly interconnected through globalization, technology and relationships. What this means is that the impact of decisions and events of companies from one part of the world can have a downstream effect on a company from another. It also suggests that this impact in one sector or industry can impact another company in another sector or industry. We only need to look at how the Internet (Technology Sector, Information Technology Industry) has impacted retail companies (Services Sector, Retail Industry) around the world.
The nature of today’s business is very much the result of globalization, technology development and adoption, and
the changing demography. Individually, these three factors have had a tremendous impact on businesses and the way
Globalization has made it necessary for companies to be global-ready whether they want to or not. Globalization has
accelerated the commoditization of goods and services to the point where we can buy and sell from anywhere and to
anyone anywhere. The physical boundaries that used to dictate how business is conducted has become blurred. Rules
and regulations, that used to define how business is conducted, are being stretched and redefined. Business as usual
is not business as before. The rapid development, adoption and deployment of technology has had an impact on the way
we conduct our business, organize operations and reach out to current and potential customers.
Growth in consumerism and spending, in part due to the low savings and deposit rates, have fueled global economic growth
and given rise to new B2C (Business to Consumer) and B2B(Business to Business) channels. From the ubiquitous smartphones
and wearable technologies to cloud-based solutions and social media, businesses have been impacted in ways never thought of before.
Even the very basic definitions of land, labour and capital have been redefined. Take the example of exhibitions and conventions.
In the past, event organizers had to book hundreds of thousands (even millions) of square feet of space to hold exhibitions and conventions.
Today, some of these event organizers have completely changed their business model and taken advantage of the Internet and the Cloud, and
moved their physical exhibitions and conventions into the virtual world. Technology has not just changed the way businesses operate but
connected them on a global basis.
The changing demographics has been happening slowly but now rapidly changing the way businesses view and engage the customer. They are a
result of several factors, namely economic and population growth, the rise of the millennial generation and the mobility of persons.
The millennium generation is growing up and living in a world where technology and wealth are in abundance. They are a generation that has
grown up in a globalized world where the economic and political boundaries are blurred. Their views of work, life, business and recreation
are different. Today’s businesses — still run by many in their fifties and sixties — need to adjust and adapt to this new generation.”
(Extract from “Picking Winners – Making Data-driven Investment Decisions”)
The following charts were developed as a tool to help answer the question of where can we expect the next growth area or region to be? By looking at a country’s competitiveness and its ability to create value, we are in a better position to identify areas of potential opportunity.
It is important to note that at every level of development, a country will provide opportunities for businesses
and growth. The key is to understand the obvious and underlying risks of doing business there.