Recently, I read the McKinsey Five Forces Shaping the Global Economy Report and my, what an interesting read. It is a useful mirror to reflect on our level of global and innovative thinking. One of the sharp moments of reflection that this report should give any business person in a developed market is the realisation that maybe we just think we are innovative. Some snippets: Chinese and Indian companies are developing business models at faster rate [than companies in developed markets].Starting with new business models. Yes, as there is increasing corporatisation in developing countries it is natural that they are more focused on evolving business models. However, this a timely reminder that just because our model has worked well for a while - have we thought about whether it will work in the future? Have you? (for some great thinking and debate, check out Alex Osterwalker)
US companies are least likely to amend practices to take advantage of opportunities in developing markets.
[on the list of how companies plan to act to harness opportunities in a more global market] the lowest is developing a local brand (17%).
The biggest perceived benefit of increased information flow globally is innovation (40%).
Why is developing a local brand the lowest preferable option? This too should have an accompanying sharp stab of recognition of how self-centric companies in-market can be. Firstly, if brand is about creating meaningful connections with customers - why aren't we considering local brands? (not delving deeper into the global:local brand debate here). Who says the next big global brand won't grow from a small town in South Africa?
Ironically, despite the scepticism of the true value of creating a globalised organisation (as opposed to a more consumers = more dollars view), 40% of companies expect to improve innovation through increased global information flow. Does that mean that we are happy to continue to treat global markets as yet another data point? What would happen if you walked around an Indian supermarket with your local team? What ideas and expertise would you find?
I think this report presents a great opportunity to re-look, really-look at how global we are, and how global we can become. In terms of revenue, innovation of product and business models and of meaningful activities in the world.
Are you really global?
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