Engines of growth

I was at Ernst&Young’s Executive Management Development Programme for Omani Nationals recently. The results of a study done by E&Y on the global trends that are changing the world of business were presented at the session. As we enter 2012, it may be a good time to look at some of these factors impacting the business landscape.

The rise of emerging markets: They will become equal competitors with mature markets and command more economic and political power. Each of these markets have their specific needs and mature-market companies will need to customise their products and services to cater to customers in emerging economies.

An increasing focus on resource efficiency and climate change: World over, the pace of legislation and policy initiatives focused on green issues is picking up and organisational responses to resource efficiency and sustainability efforts are becoming a deciding factor in business performance.

The financial landscape is undergoing fundamental transformation: The financial sector’s recovery will be marked by heightened regulation and restructuring of the industry. With governments owning stakes in many financial services firms, its role and influence in the sector is bound to grow.

Increased role of government in the private sector: Following the global financial crisis, the governments’ involvement with private industry will be closer. They will also be faced with the onerous choice of balancing between the needs of global competition and supporting domestic economies.

The evolution of technology: Sophisticated analytical tools will give businesses an unprecedented competitive edge. New digital platforms will reshape entire industries and, by leapfrogging technologies, emerging markets will be able to access productivity-enhancing technologies at lower cost.

The common thematic thread running through these trends can be summed up in one word – change. The world is going through unprecedented change and the winners of tomorrow will be those who can negotiate and harness this process.

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