The world is in a state of transition, moving from a globalized approach to a localized one, which is being referred to as “Glocalisation.” This change is a result of the increasing influence of technology and the rise of the digital economy.
The rise of globalization can be traced back to post-World War II, where multinational companies emerged, operating across multiple countries and regions. This movement had a significant impact on local economies, providing jobs and boosting buying power. The strategy behind this was to take advantage of economies of scale and scope, creating a universal brand and marketing communication plan that could be easily recognized worldwide, with English as the universal language.
With the advent of the Internet era, global companies were able to reach further and expand their influence. The rise of China as a world power and the term “world factory” were a testament to this. However, a purely global approach to business would not be sustainable in the long run, as cultural differences and language barriers would make it difficult to succeed. Brands often adapted to local cultures, such as Western brands creating Chinese versions of their logos to appeal to the local market.
The world is now moving towards the fourth industrial revolution (Industry 4.0), where artificial intelligence (AI) and robots are replacing human labor in the workforce. This shift towards a smarter and more efficient workforce is challenging the traditional business model and leading to a project-based economy. Jack Ma Yun, the founder of Alibaba, has stated that the future of business lies in the utilization of digital transformation and emerging technologies. Companies that embrace this change and focus on projects that create value will outperform those that cling to outdated models.
The recent introduction of ChatGPT, a generative AI system, has already had an impact on the tech sector, with companies downsizing their workforce as tasks previously performed by teams can now be done by a single command prompt. The potential impact of ChatGPT and other emerging technologies is immense and companies that fail to embrace these changes will be left behind by smaller and more creative firms that can utilize these tools to their advantage.
The trend of technological advancements has already disrupted traditional industries such as banking and telecommunications, with physical branches being replaced by fintech and dealers taking over the role of business centers. The rise of super apps, which offer a one-stop solution for various needs, has also changed the market. The future is moving towards a metaverse, beyond what currently exists in the gaming industry, and it is important for individuals and companies to be prepared for this shift towards a smaller, more localized approach to business.
Entrepreneurship and innovation continue to be the key competitive advantages for those who embrace them. Those who simply rely on past successes and continue to “milk” their success, will never be able to see the world as envisioned by Jack Ma. Companies that are publicly listed and rely on borrowing from the market to acquire other companies in order to grow, often lose sight of their market direction and purpose. As a result, they are frequently outperformed by market challengers. This pattern has been repeating throughout history.
We are witnessing some companies embrace a completely remote work model, while others have adopted a hybrid workspace approach, yet both have achieved similar levels of success. We have also observed companies adopt a flexible “anywhere” workspace, allowing employees to perform their duties from any location, whether they are traveling, in the office, at a customer site, or anywhere in the world. With the help of modern and advanced technologies, it empowers individuals who are willing to embrace it to achieve unprecedented levels of productivity. For those companies still forcing their employees to return to a traditional work environment, they should start considering the future. Again, a significant transformation that brings tremendous opportunities is available, and whether you choose to learn and take advantage of it or not.
E-SPIN is dedicated to building a value-added ecosystem for its customers, suppliers, and business partners, with the belief that everyone can benefit from working together (Together Everyone Achieve More = TEAM). If you are a potential new supplier or business partner with value-adding solutions, or a new customer looking for trustworthy solutions, feel free to reach out. E-SPIN is always eager to explore ways to create synergistic outcomes for all parties involved. This is the underlying philosophy of their business.
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