Volatile, Uncertain, Complex and Ambiguous
Today’s business environment can be described as Volatile, Uncertain, Complex and Ambiguous (VUCA). This has placed immense pressure on every business to continue to re-invent itself and constantly diversify its services. With this said, 50% of today’s Top 100 businesses, will not exist in their current form within the next 5 years. This uncertainty stems from what businesses should be focusing on. Which leads us to the question, what exactly should they be placing their emphasis on?
Dynamic, Exciting, Limitless and Instant
At Dentsu Aegis Network, we think that the focus should be driven around a world that is Dynamic, Exciting, Limitless and Instant (DELI). If one starts to view your business through the lens of a startup, what would change? What level of innovation would you deliver? What would you focus on fiercely? What would you do with the fastest momentum? At Dentsu Aegis Network, we do not like to think as the VUCA world, but rather as a DELI environment.
Global Media Partners Driving Culture
We have observed the rapid adoption of social media, both size and scale of the “media populations” that have been created. As audiences converge on these platforms they will also be able to be segmented into a segment of one. This will require agile segmentation, as well as insights and tools. As brands, you will be expected to get your message 100% correct for the consumer. The segment of one; consumers will become unforgiving of a brand’s inability to recognize their needs across a global platform. It is therefore vital to get this right, to avoid an instant global disaster.
From Campaign to Innovation
Brands have started to shift from campaigns to product innovation. The key areas of focus going forward will be product design and innovation. Campaigns will just become words in the wind but useful products and services, will drive consumer adoption in the future.
Whilst we are trying to guess what the future looks like, we forget that we are in the business of creating that future for brands and shareholders. We have looked at some innovation that will drive change in the short term.
The game changers in innovation are; Machine and Deep Learning, Artificial Intelligence, Blockchain Technology, Sensor Technologies, Internet of Everything, Robotics, Augmented Reality and Virtual Reality.
Let’s touch on a few of these innovations:
- Machine and Deep Learning
Many companies are already using this to drive solutions for customers and sales. Amazon and Google are already doing this. Google is however combining a few pieces of technology already, which makes what they offer to consumers seamless and compelling.
Amazon’s Recommendation Engine for example, uses math & statistics to generate a model of how a system works based on a defined feature or outcome.
Google Driverless Cars to Google Urban Planning, is another great example. It creates relationships between disparate models, understands their relationships and creates improvements to themselves based on this understanding.
- Blockchain technology
Another innovation is the combination of blockchain with a GM fleet of self-driving cars. VCs have invested roughly $1 billion into 120 blockchain related start-ups. 50% of that investment was made in 2015.
- Internet of Everything
The Internet of everything brings people, processes, data and things together.
- Robotics – Forecast to be a US$80 billion industry by 2020
Pepper – Dentsu’s robot with human emotions.
Dentsu and SoftBank Robotics created the world’s first robot that has its own emotions. The goal with Pepper is to see how talking, human-like robots might help people in a society where more and more people, including the elderly, live alone. This is especially relevant in Japan where more than 22 per cent of the population is already over the age of 65 and fertility rates are declining.
- Augmented Reality
Augmented Reality glasses made a HUGE leap in quality this past year. They’re still not ready for consumers, but it is time to start using these in your business.
Virtual Reality is here and it is not going away. If you’re in the media business, it is time to put big money into building content. There are a ton of new 360-degree cameras to enable just that.
IoT and Bluetooth connectivity keeps spreading to everything, which enables not just new products but new business models as well.
ANNUAL PROJECTED FORECAST IN $ BIL
At Dentsu Aegis Network, we are excited about innovation and leaders within the Innovation sector. Our Isobar NowLab, is a global initiative intended to catalyze innovation across the company, including both our employees and our clients. From programs such as hackathons and collaborative workshops to permanent maker-spaces, NowLab provides a means for different markets to work together to share information and ideas, develop digital experiences outside of client briefs and provide a welcoming place where our employees can push the boundaries of what is possible. WE ARE READY TO CREATE WITH YOU.