The likes of Uber, Xiaomi and Netflix, have all scaled up their operations exponentially within only a few years. This is because they have taken advantage of the power of digitization and the platform-based economy. Leveraging their vast networks, even traditional large corporations such as Philips and Rolls-Royce have also joined in.Global growth rates are abysmally low, while protectionism is affecting international trade. That is why the economics in this new period of globalization requires a completely different approach. Some developments have led to new kinds of business models set to thrive. One is greater connectivity, while another is the rise of digital platforms. A third is the growing propensity of Artificial Intelligence (AI) combined with business analytics. Elements such as robotics, 3 D printing, digital prototyping and real-time collaboration means that we are on the verge of Industry 4.0. Consumers meanwhile are highly connected and mobile. All this cocktailed with a protectionist trade environment stifled by state-led capitalism has given this a unique flavor. In this scenario, the Boston Consulting Group has identified seven new business models. The first such is cross-border servitization. Then there is value-addition through software. Global personalization, multi-local manufacturing and global digital ecosystems add up to the list. The last two are asset-light market entry and development of multiple national identities.

Source:https://www.bcg.com/publications/2017/globalization-new-business-models-global-landscape.aspx?linkId=45913552

Uploaded Date:06 February 2018