2016-01-08



Organizations In Search Of Growth Must Consider Macro Forces

Burgeoning money supplies in both the US and China have fueled an indefensible growth post Global Financial Crisis.   Since 2000, the money supply has tripled from $6000 USD billion to 12288.10 USD billion in November of 2015 (see Figure 1).   Since 2005, china’s money supply has grown 7X from 20000 CNY Billion to 137400 CNY Billion in November of 2015 (see Figure 2).  While this level of money supply growth would normally cause inflation, income inequality has played a key role in keeping inflation in check because the richest 1% of people in the world now own more than 50% of global wealth (see Figure 3)

20160107 News Analysis: In Search Of Growth Amidst Digital Disruption from Constellation Research on Vimeo.

Figure 1. Massive Growth In US Money Supply M2 Shows Tripling since 2000



Figure 2. Chinese Money Supply (M2) Has Increased Seven Fold Since 2005



Figure 3. By 2016, The Top 1% Will  Have More Than 50% Share Of Global Wealth

Lesson 1 – Transform Business Models And Engagement

Lesson 2 – Keep The Brand Promise

Lesson 3 – Sell The Smallest Unit You Can

Lesson 4 – Know That Data Is The Foundation Of Digital Business

Lesson 5 – Build For Insight Streams

Lesson 6 – Win With Network Economies

Lesson 7 – Humanize Digital With Digital Artisans

Lesson 8 – Democratize Distribution With P2P Networks

Lesson 9 – Deliver Intention Driven, Mass Personalization At Scale

Lesson 10 – Segment by Digital Proficiency Not Age

Digital Disruption, Technology Startups, And Mergers Drive Growth

Investors tasked to achieve growth have mostly approached the challenge by:

Pushing for mergers and acquisitions

Investing in technology startups

Investing in startups with disruptive business models

The result has been an average age of company on the S&P 500 down from 60 years to 15 years and 52% of the Fortune 500 merged, acquired, gone bankrupt, or fallen off the list since 2000.   Even worse, the proliferation of bets in these three categories is exacerbating the number of organizations in the market and reducing the number of growth options

The Bottom Line: Digital Darwinism Is Unkind To Those Who Wait

Organizations focused on jump starting growth must begin their transformation to a digital business.  With fewer and fewer companies surviving as margin based businesses, those organizations building new digital business models will be rewarded with growth valuations.  As the winner takes all market continues, digital transformation is a key lever in the ability to grow profits, expand markets, and dominate a market.

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Please let us know if you need help with your Digital Business transformation efforts. Here’s how we can assist:

Developing your digital business strategy

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Sharing best practices

Vendor selection

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Resources

Event Report: Inside The Apple #SpringForward Event

News Analysis: Rumors On Apple’s Foray Into Cars “Project Titan”

News Analysis: Inside the First Industry-Specific Mobile Apps by the IBM MobileFirst for Apple iOS Partnership

News Analysis: Going Deeper Into The Apple And IBM New Business Model Alliance

Quips: Digital Transformation – Defining The Fundamental Elements For Digital CXOs

Personal Log: Coming soon! Disrupting Digital Business – The Book

News Analysis: Adobe EchoSign’s Electronic Signatures Goes 100% Mobile

Monday’s Musings: Who Gets To Be A Chief Digital Officer?

Monday’s Musings: The Seven Rules For Digital Business And Digital Transformation

Tuesday’s Tip: Five Steps To Starting Your Digital Transformation Initiative

Monday’s Musings: What Organizations Want From Mobile

Research Summary: Economic Trends Exacerbate Digital Business Disruption And Digital Transformation (The Futurist Framework Part 3)

Research Summary: Five Societal Shifts Showcase The Digital Divide Ahead (The Futurist Framework Part 2)

Research Summary: Sneak Peaks From Constellation’s Futurist Framework And 2014 Outlook On Digital Disruption

Research Report: Digital ARTISANs – The Seven Building Blocks Behind Building A Digital Business DNA

Research Summary: Five Societal Shifts Showcase The Digital Divide Ahead (The Futurist Framework Part 2)

Research Summary: Next Generation CIOs Aspire To Focus More On Innovation And The Chief Digital Officer Role

Trends: [VIDEO] The Digital Business Disruption Ahead Preview – NASSCOM India Leadership Forum (#NASSCOM_ILF)

News Analysis: New #IBMWatson Business Group Heralds The Commercialization Of Cognitive Computing. Ready For Augmented Humanity?

Harvard Business Review: What a Big Data Business Model Looks Like

Monday’s Musings: How The Five Consumer Tech Macro Pillars Influence Enterprise Software Innovation

Tuesday’s Tip: Understand The Five Generation Of Digital Workers And Customers

Monday’s Musings: The Chief Digital Officer In The Age Of Digital Business

Slide Share: The CMO vs CIO – Pathways To Collaboration

Event Report: CRM Evolution 2013 – Seven Trends In The Return To Digital Business And Customer Centricity

News Analysis: Sitecore Acquires Commerce Server In Quest Towards Customer Experience Management

News Analysis: Salesforce 1 Signals Support For Digital Business at #DF13

Research Summary And Speaker Notes: The Identity Manifesto – Why Identity Is At The Heart of Digital Business

Reprints

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Disclosure

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* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

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