What's on the Horizon for the Next Five Years? Fletcher/CSI Asked the Opinion of 34,000 Business People... and Here are the Results | WPN World People News

The five year survey examined potential scenarios from the perspective of changes in Society, Technology, Economics, Environment, and Politics (STEEP). For the society and technology portions, we looked at the emergence of social media on business and value propositions. As economics are a constant for all companies, we chose to look at investor demand for higher returns and how those will impact the value propositions offered by companies. Our environmental scenario looked at the impact of green technology on business and operations, while our political scenario focused on the role of changing regulations and government on business success.

Survey results suggest that the next few years will be heavily influenced by the intersection of social media and cultural identity. To succeed in this new environment, companies will need to demonstrate a consistent value proposition across all products, markets, and internal messaging. Inconsistency between what companies say and what they do are likely to be exposed and used by competitors to gain advantage.

Based on survey results, the next five years will see an acceleration of change in many areas that effect how companies operate. For the society and technology portions, we looked at the emergence of social media on business and value propositions. As economics are a constant for all companies, we chose to look at investor demand for higher returns and how those will impact the value propositions offered by companies. Our environmental scenario looked at the impact of green technology on business and operations, while our political scenario focused on the role of changing regulations and government on business success.

Social Changes

Optimism abounds among survey respondents and there is strong faith that social media will bring about major changes in how businesses operate and communicate value to their customers and employees. This faith is buffered by equally strong beliefs that social media, and cultural shifts, are leading to increased use of cultural identity in marketing and even employee selection. A key implication of this is that it will be more important for companies to craft variations of their value proposition to resonate with cultural identities of their employees as well as customers.

Technological Changes

Survey respondents believe when it comes to technological change, leadership is important. There is strong support for technological leadership, across industries and markets. This leadership extends to all types of technology, not just information technology and highlights the need for companies to look at innovation in non-traditional ways.

Economic Changes

The nature of globalization is changing. Initially, globalization was driven by the need to cut costs related to routine functions and unskilled factory work. Then there was a push to use globalization to outsource specialized and advanced routine processes that required some knowledge work, such as claims processing and call centers. Globalization further evolved, and companies used it for competency and talent, seeking employees globally to add to their knowledge base.

Now, however, the change has come full circle and many companies are poised to localize and bring many of the off-shore functions and operations closer to the consumers. Unlike the earlier movements, which were triggered by cost reduction goals, this change seems driven by quality requirements and customer preferences. Companies offering high quality products find that consumers will pay a premium for local production if the quality is higher.

Environmental Changes

Survey respondents indicated that “Green” is about more than the technology; it is about how business is done and products are marketed. While supporters of the green movement talk about how it will change many aspects of business and individual’s lives, our study suggests that the impacts will be fewer and lighter. There is an undercurrent perception that going green is more costly and that its higher costs will reduce both the speed and extent of green penetration into markets. The costly aspect suggests that tying value to green may not always resonate with customers. Where green is considered more costly than non-green, the green supplier will be at a direct disadvantage in that the buyer who, if not motivated by a desire for green, will chose the less costly option. If the green option is the same cost as the non-green option, paradoxically the buyer seems likely to perceive that the green supplier is getting a larger profit from the sale than the non-green supplier. Value propositions that include green elements need to be clear on the impact, if any, of green on the product price.

Political Changes

Politics intersect with business in multiple areas. Our respondents believed that political changes would make the business environment more restrictive in the next five years. There is also a sense that little can be done in the near term to reduce the impact of politics, and that in some cases, political actions are beneficial to businesses. Despite the tie of politics to business, companies are not expecting government to be a factor in their value proposition. In several areas, government was not considered the change leader, but a supporting actor.

Conclusions

Success in the next five years requires aligning value propositions to the changing dynamics of the marketplace. In a broader sense, this includes the supplier, employee, and customer. We believe that the changes in how people and businesses interact require that there be a congruency in messaging across all stakeholder groups. Further, changes in how information in companies is shared require that companies actively adjust their value propositions while maintaining a consistent message.