the future is uncertain October 12, 2012Posted by nicholas gill in Economy, Knowledge Peers, Morgan cars, social business, social media.
Last week I attended the Knowledge Peers Exchange 2012. Some of you may remember I presented to a select group of members a while back (just over a year ago having checked – yikes!) on social business so this was my chance to sit back and learn some things. Here’s some stuff and things I found interesting:
Challenges for business heading into 2020
We’re working against a backdrop of constant change, where knowledge/information workers make up over 80% of the salaried workforce.
Where IT/enterprise driven choices have created silos that are damaging business agility.
Where Europe is an ageing population and the emerging BRIC economies are flush with youth.
Where the US and European debt situations will take greater than 10 years to resolve.
Where the continued demand for energy will result in a supply gap.
Where greater consumerisation and socially savvy employees place business at a junction. Do they enable these new employees or do they hinder them with their current working practices?
The business of 2020 will need to:
- Adapt to a changing world.
- Understand the market evolution and composition (particularly emerging economies and SE Asia)
- Exploit and harness the collective knowledge of the information wrorkers
- Understand and balance the confidentiality, integrity and availability of data.
- Deliver value-add.
- Invent and innovate.
Bring Your Own Device (BOYD) is un-managed
57.1% of FTE’s globally use their own devices to access work data. This is not skewed to any geography (although Asia/BRIC is higher) or vertical.
Only 11.9% have a managed BYOD policy or guidelines leading to an opportunity where over 70% of BYOD are unmanaged. While clearly this is a consultancy opportunity, it also shows just how mobile has infiltrated our every day lives so seamlessly that we think nothing of accessing data on on our SmartPhones. Clearly the younger, agile businesses that are not held back by swathes of servers and IT rules will be ahead of the game here. While the panel talked about the security elements, a lot must come down to common sense too. As well as who owns, maintains and replaces the device if it is “personal” but being routinely used – and therefore an essential too – for business use. All this was wrapped under a banner of “Enterprise Mobility Management” which sounds very consultancy and clearly an opportunity to make money. Where’s my CV?
You can never repeat the past but you can be inspired by it
The quote is from the Cartier Chairman but one which Charles Morgan has adopted to explain his car company. Considering I work with one of world’s leading automotive groups in Fiat, I found Charles’ discussion incredibly interesting. How does a small player compete against global giants? The answer is not easily. Not when a typical safety testing programme sets you back £10 million. It would essentially be impossible if it weren’t for alliances. Morgan partner with BMW for engines, for example, and would not consider building their own engines because, as TVR experienced, it’s the way to ruin. But why would BMW be interested in a small, British car brand? Because German’s love British car brands. Remember they bought Rover. Charles said they do it because 1) they love it and 2) they learn something by placing their engines in smaller, lighter and more agile automobiles. Their leading engineer even screamed in delight on a race track that ”I can hear my engine!!!”. Which given the excellent sound proofing and refinement in a BMW is something they’ve clearly missed. Morgan lets the engineers be petrol heads again.
Another key part of the Morgan business model is exporting. They make 1,500 cars a year and over 70% are exported. Nice that a British marque is appreciated abroad but sad too that we buy so much homogenous automotive design now that we don’t appreciate our own iconic marques as much. I loved Charles’ observation that modern cars are pretty much an extension of your living room; a car should excite you and put a smile on your face.
Which is why they’re investing in social media. Not only does it cut across the stuffy old Morgan image that some may have but allows them to express that desire of driving excitement.
This is a nice video of Morgan.
The key theme here was that there’s still a lot of fear about moving to a more social business and adopting the cloud. What if? Why? Some examples included swapping email for social collaboration tools and just getting more noise back. The answer is (scroll back through previous posts on this) about context. Email is bad when used poorly. The same goes with any social platform. But they have the advantage of control, filtering and collaboration.
The link between social, mobile and the cloud is still unclear but companies like Salesforce.com are stealing a march with their offerings here.
The UK economy outlook
Barry Nesbitt, the Chief Economist of Santander UK, gave us an overview of the current and future state of the economy. There is no magic wand. The recession started in 2008 and the conditions are still challenging. It’s the longest recession we’ve faced where by this stage we haven’t got back to the levels of GDP output pre-recession.
2013 is predicted to show some growth but before you get excited, it’s small.
But they key theme was one of uncertainty. As the chart below shows, the economists have a huge range of expectations for the coming years for both GDP and inflation. It could be OK (although the growth is still small) or it could not be. Trouble is, the uncertainty causes subdued expectations. And with inflation still higher than our earnings, none of us are spending any money because we’re uncertain. There is a subdued outlook in the services industry and construction and manufacturing which traditionally drives GDP output.
So, heads down.