Business understands the mobile economy. There is a high level of adoption and companies are embracing change. All is good in the world of mobile.
Or is it? What we see now as the mobile economy is only the tip of the iceberg. In 2017, the mobile economy (defined as transactions that took place on a smartphone or tablet) accounted for three trillion dollars, which might sound a lot, but is in fact only 4.2% of global GDP.1 There is still massive potential for growth, change and innovation in the mobile economy.
We’re at the very heart of the mobile economy, and we see first-hand that there is still way further to go until the mobile economy reaches its full potential. We also see many businesses who think that, in terms of the mobile economy, ‘keeping up’, simply doing what everyone else is doing, is the key to success.
The reality is that merely keeping up is failure. A business that is not disrupting the status quo, by leading with innovation, is exposed to being disrupted. And as we know, being disrupted in business can be fatal.2 That will include companies who believe they have embraced the mobile economy.
It is as basic as disrupt or die.
To succeed in the world of the mobile economy, businesses need to be looking ahead, not just at keeping up with now, but looking at what is coming in the future.
We call that future the Next Mobile Economy – a term coined by Samsung.
Read on, and we’ll explain to you what the Next Mobile Economy looks like and what businesses really need to do to win in the new world order.
What does the Next Mobile Economy look like?
In the Next Mobile Economy, all great ideas are born mobile. The businesses that survive and thrive will be those who recognise that a ‘mobile first’ philosophy is a powerful revenue driver and who harness the power of mobile to generate transformational change.
In the Next Mobile Economy, it won’t be just smartphones and tablets that connect to the internet. The Internet of Things (IoT) will see a massive range of devices connected – from home appliances to security cameras, from door locks to cars, from wearables to industrial machinery components – all communicating to drive new business value. Gartner predicts that by 2020 there will be 20.8 billion devices connected to the Internet – up from 6.4 billion connected devices in 2016, a massive 300% increase in just four years. Analysts Frost and Sullivan forecast that by the same year, every digital citizen will have access to 10 connected devices.
New technologies such as Virtual Reality, Augmented Reality and Artificial Intelligence and Unmanned Aerial Vehicles are being adopted by the business world – in the Next Mobile Economy, with the power of 5G, those technologies will be connected, to drive transformational change.
In the Next Mobile Economy, the organisations who succeed will be those who have the vision to see and seize the opportunity that it offers. That’s not just our view; a recent survey by The Future Laboratory showed that 8 out of 10 business leaders believe mobile will create future opportunities for their company to lead in their sector.
To hear supporting views first hand, listen to DJ Koh, Samsung’s President of IT and Mobile Communication and SJ Hahn, EVP Head of Global Mobile B2B as they deliver a powerful keynote speech on the Next Mobile Economy and what it means for business success.
The Next Mobile Economy and the 4th Industrial Revolution
Klaus Schwab, the founder and executive chairman of the World Economic Forum puts forward the notion that we have had four industrial revolutions throughout history. The first (the one taught in school as The Industrial Revolution), being the advent of steam power to mechanise production; the second being the age of science and electrical power for mass production; the third being the digital revolution, using electronics and IT to automate production. He asserts that the era of technological change we are now entering is so dramatic that it is in fact a fourth industrial revolution – one which sees “new technologies and novel ways of perceiving the world [that] trigger a profound change in economic and social structures”.
In the fourth industrial revolution, technology is moving from being an enabler of business and society, to being embedded within it (and even embedded within the human body). It doesn’t just automate, or make processes more efficient, it is an intrinsic part of completely new paradigms including genome editing, breakthrough materials and cryptographic governance models such as the blockchain.
We see the fourth industrial revolution as being an era of interconnectedness – powered by mobile technology. It’s a belief shared by 42% of the world’s leading business innovators, who are prioritising mobile as the core of their growth strategy (From ‘The Most Innovative Companies 2018: Innovators Go All In on Digital’, by BSG).
Open to innovation
There is no shortage of opportunity in the Next Mobile Economy, but there is also risk and disruption. What do businesses need to do to ensure they grasp the opportunity, that they become disruptors rather than being felled by change or crippled by risk?
In short, they need to be Open to Innovation.
‘Open to Innovation’ means that to be a winner the Next Mobile Economy organisations must be open to new opportunity, new thinking and new ways of delivering value.
Here’s what we see as the crucial steps for those businesses who want to ensure they come out on top in the Next Mobile Economy.
In the Next Mobile Economy, no business is an island; no single organisation, or single group within an organisation, can build an entire solution. The future of business is collaboration: collaboration between departments in an enterprise; collaboration between enterprises; collaboration between enterprises and start-ups or SMEs.
Collaboration increases the essential business insights that underpin innovation and disruption and is one of the foundations for success in the Next Mobile Economy.
Collaboration by definition means sharing, and sharing can only happen in an environment that is open. So collaboration needs to be enabled by tools that allow and encourage openness, many of which are mobile. It’s a widely understood and accepted view – according to research by McKinsey&Company3, a massive 87% of today’s business leaders believe collaborative mobile tools will unlock flexibility and productivity.
Collaboration, speed and agility are the currency of success in the Next Mobile Economy – and they drive the need for customisation. In this new way of working, one size doesn’t fit all.
The demands of the Next Mobile Economy cannot be met with off the shelf systems – every element needs to be customisable. Businesses who excel in the Next Mobile Economy will do so by working with software and mobility partners who can offer an open, customisable solution. Business leaders recognise this; The Future Laboratory recently carried out research that showed that 67% of them believe that businesses using open software and systems will be leaders in their sectors.
A case in point is wearables – as an emerging technology, confined mainly to the gaming world, they were largely uncustomised. As business sees the value of wearables for commercial applications – such as training, enhanced product experiences, personalised selling, and individual healthcare – they are rapidly being customised to deliver targeted customer use models.
Many organisations have their valuable data locked away in monolithic ERP systems – data which, if made available, can drive customisation. Data about clients, behaviour patterns, requirements can be used to build truly customised solutions – but only if it can be extracted and brought out into open ecosystems where it can be accessed to enhance value and customer experience.
Open AND secure
Open doesn’t mean open to anyone. Business cannot work as a ‘free for all’. So organisations need to find the balance between the level of openness that allows collaboration and customisation, and the security that is needed in a highly interconnected world.
Customised, open apps need data and the Next Mobile Economy and IoT will create exponentially more data than ever before, but with a concomitantly increased potential for security exposure. Compliance regulations place responsibility for data on the handling organisation, along with an obligation to report breaches. Security represents a significant financial, reputational and compliance risk for businesses that capture, store and handle data.
The Next Mobile Economy is all about flexibility – workers want to work from anywhere, often on a single work and social device. New security measures – including recognition of iris, face, voice and usage patterns – are helping businesses remain open to innovation, whilst simultaneously protecting sensitive data.
As we’ve seen, collaboration and sharing data between organisations is vital to the open world of the Next Mobile Economy. It is essential though, to share only what needs to be shared, protect what needs to be protected and distinguish between the two. The winners in this new world have to find that delicate balance between not hampering collaboration, and not exposing the organisation.
Find out more
The Next Mobile Economy offers businesses the most significant opportunity we have seen in decades. For those that understand it, and position themselves to take advantage of it, there are innovations to be driven, customers to be won and revenue to be earned.
But it really is a case of disrupt or die. Those who don’t move to take advantage of the new era of mobile are at very real risk of not surviving.
The good news is that there are steps that businesses can take to take full advantage of the Next Mobile Economy. Read ‘Next Mobile Economy – a report by The Future Laboratory’ to find out more. Or you can contact Samsung for a one on one consultation about how your business can move into the Next Mobile Economy.
But there’s no time to wait. We see 2018 as the first year of the fourth industrial revolution. It’s here now, so get ready to embrace it, reap the rewards and make sure that when it comes to the Next Mobile Economy, your business is a disruptor, not a casualty.
1 Jacob Morgan, Futurist and Author of ‘The Future of Work and The Collaborative Organization’
2 ‘Creative destruction whips through Corporate America’, by Innosight, page 2: https://www.innosight.com/wp-content/uploads/2016/08/creative-destruction-whips-through-corporate-america_final2015.pdf
3 ‘How B2B digital leaders drive five times more revenue growth than their peers’, by McKinsey&Company: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-b2b-digital-leaders-drive-five-times-more-revenue-growth-than-their-peers