AI (Machine Learning) impact
Updated: Dec 27, 2018
For the first time in civilian economy (e.g. excluding the armed conflicts) the METHOD of delivery of product/service to the market trumps the product itself.
It is also the first time that inventors of the newest methods are largely locked into their companies and definitely not sharing, although this particular advantage is diminishing.
This forms an additional but hugely impactful cause of the most substantial exodus of consumers to the more tech savvy product sources. Leading high street operators that are in trouble (House of Fraser, Debenhams, etc.) have decent online operations, which are just no longer fit for current purpose.
Too many analysts still bleat: "high street affected by online sales". If they were right WHY are such erstwhile giants like ASOS and BOOHOO either in doldrums or wobbling? Their platform functionality tells you a tale of consequences being left behind with operating technology.
The high street woe of mixed-format retailers is true of course - burden of super high rents is most telling for one thing, but the final nail in EVERYBODY'S particular coffin is that online game has made a seminal shift and they are left behind whether they trade on high street or just online.
If we add the fickleness of the millennials and generation Z then massive bankruptcies, chapters 11, 99% profit drops, profit warnings etc., become perfectly understandable.
To be really confrontational: Our experience, ably corroborated by the findings of research by the world class agencies shows that most companies have neither tools, nor personnel to get to grips with the challenge. "IT Directors" abound. To make waves in this new marketplace the entire business leadership must espouse the new CULTURE of operating - not just rely on one fossilised 'exec' and all-powerful HIPPO (highest paid person's opinion).