Marty Cole
Group Chief Executive–
Communications & High Tech
Accenture
In today’s economy, innovation will separate the successful from the mere survivors. In the opening presentation, Marty Cole, Accenture’s Group Chief Executive - Communications & High Tech asserted that innovation in terms of new products, services and ways of doing business will increasingly be shaped by the unique needs of emerging markets and a new wave of consumers. “We’re entering a period where the economic strength of the developed world is challenged by the strength of the developing markets. We are increasingly likely to see new products and services come from China or India,” Cole said.
The Challenge of Innovation
According to Cole, the question before every senior leader is how can they make innovation the engine of growth. Those who get this question right will thrive. “Innovating coming out of a downturn means grabong market share while your competitors struggle to keep their heads above water,” said Cole. Yet in such times, customers flock to value, and “there are a billion new customers who are clamoring for new digital products and services. Breakthrough growth will come to those of us who think up smart new ways to meet the demands of the next billion digital customers.”
Cole continued to explain that the next billion digital customers will come from many places, led by the developing markets, which will drive much of the innovation going forward. These economies made up about 45 percent of the world’s GDP in 2008, and are enjoying growth three to four times that of developed markets.
Business approaches must be shaped by the unique needs of emerging markets, where traditional models for distribution, product development and marketing may differ radically. Developing an understanding of local needs will require new approaches, where little can be assumed, and sales innovations will come easier for companies who recognize the variables and are seen as authentic to the culture. Successful companies will be the ones who are able to weave themselves into the fabric of their local environment, said Cole.
Areas for Innovation
Although innovation can come from any business area, including a company’s strategy, operations, people or structure, Cole stressed two trends in particular as areas ripe for innovation: Mobility and Cloud Computing.
According to Cole, the extent and depth of mobile penetration is staggering, with around 4 billion handsets on the networks today. In addition, the number of networked devices is predicted to reach one trillion, increasing the amount of traffic from machine-to-machine communications. As a result of this explosion, opportunities to innovate around new brands, mobile applications, and customer support will abound, and new revenue sources will become possible.
Advances in Software as a Service and cloud computing models are also reshaping how companies buy, deploy and support their computing infrastructure, meaning new opportunities to innovate. “The attraction can be found in lower cost services and greater agility – getting exactly the software, server space and cycles needed, for only as long as required," said Cole.
Concluding his presentation, Cole emphasized the need to take advantage of these opportunities, and the need for developing innovative solutions first for the local market and embarking on the new innovation paradigm, “Think Local, Scale Fast and Take Global.” To set the ball rolling, he requested the audience think about three questions: How can you capitalize on global trends that are shaping the world? What opportunities do this present to your company? And, where do mobility and cloud computing fit in your company’s strategy?