Megatrends and digitalization

What makes megatrends so forward-looking?

18 Dec 2019

What is trend today will be standard tomorrow. This is evident again and again. However, not every trend automatically becomes a success. The megatrends, on the other hand, are different. They differ fundamentally from smaller changes. Megatrends affect a large part of the population and fundamentally change our everyday life or parts of it. For this reason, it is particularly important to take these into account and orient oneself to them. But what exactly is a megatrend, how can such trends be identified and to what extent are they changing our lives?

Why are megatrends important for the strategy of a company?

Every company, large or small, has a strategic orientation. Especially for small businesses this often happens subconsciously. Factors such as the target group or top sellers are often seen as a given. What distinguishes a megatrend from a temporary hype is its medium to long-term impact.

A megatrend is changing society as a whole, so that the sector concerned is being completely transformed. Sometimes this means that a product or service in demand up to that point suddenly disappears completely from the market.

With megatrends, however, this does not happen overnight. Rather, it is usually a slow but steadily progressing process that cannot be stopped. For this reason, it is important for companies to identify and evaluate such megatrends at an early stage. The following questions are particularly important:

Does the megatrend have a direct influence on daily business?

Are adjustments to the orientation necessary?

Does this megatrend offer opportunities for the company?

Are investments necessary to keep up with the times?

Megatrends - How they influence us

Changes that affect everyone socially, economically or politically are regarded as megatrends. These effects can affect the world of work, leisure, education, culture or even people's consumer behaviour.

There are and have been a multitude of megatrends that significantly influence our lives in many ways. Urbanization, for example, is one of these continuous megatrends that is not even complete. An increasingly large part of the world's population lives in cities. Urbanization will be around 70 percent by 2050, according to estimates. Another current megatrend is globalization. Fast transport networks and instantaneous communication have brought the world closer together. Megatrends sometimes influence each other. Mobility is a good example. Never before have people had so many different and individual mobility options at their disposal. This has also enabled and accelerated globalization. Further innovations will change this sector in the future. The two megatrends connectivity and knowledge culture are also closely linked. Access to knowledge and information has never been so easy. Networking is helpful here. Thanks to smartphones, WLAN and 5G, the Internet is a constant companion. Access to social networks, knowledge sites, databases and similar resources is virtually permanent and often free of charge. But the permanent flood of information also has negative sides. We have the feeling of living in an insecure world dominated by horrible news. However, the megatrend security shows that the current time is more secure and stable than any other epoch before.

The New Work megatrend is also based on innovations made possible by knowledge culture and connectivity. The Internet is creating new jobs and enabling more individuality in everyday working life. Individualization, in turn, is a megatrend in itself. Western civilisation today offers its inhabitants more personal freedom than ever before. As a result of this individual freedom of choice, another megatrend is coming to the fore, namely the gender shift. Modern society hardly knows any classic gender roles anymore. The woman as soldier or the man on parental leave are now quite normal.

Neo-ecology is another megatrend that slowly but steadily touches many areas of daily life. Many consumers are becoming more aware of the environment. For example, the proportion of organically produced food is increasing and the energy revolution is further proof of this megatrend. The health megatrend is directly connected to this. Many people are now very concerned about their health and are consciously living healthy lives. Improved possibilities in medicine are also leading to a demographic change, as people are living longer and longer. This is indeed also a megatrend that is often referred to as the silver society. This megatrend not only changes society, it also brings challenges, such as the rising costs of care for the elderly and health care.

All of these trends must be recognised in good time by decision-makers and correctly assessed. This is the only way to respond and to guarantee the competitiveness of the company.

Identifying and reacting to megatrends

In order to adjust strategy and future orientation, it is important to identify megatrends or trends in general at an early stage.

Furthermore, it is essential to assess this development correctly and to take the appropriate steps. This requires both foresight and a broad understanding of current and future developments. However, megatrends often come from areas that are not part of a company's direct knowledge base. This sometimes makes it difficult to react to such upheavals correctly and in good time. External help in the form of consulting and services is therefore one way of keeping pace with megatrends. With their expertise, such external service providers initiate the appropriate measures and design an optimal schedule.

Megatrends of the future in the focus of strategic consulting

In the near future, a number of megatrends are waiting for us again. Some of these have already begun, others are in the offing, and there will certainly be some megatrends that are not yet visible. These megatrends include the smart home and the mobility of the future. Autonomous vehicles, intelligent buildings and automatic home automation systems will change life again in the foreseeable future.

Strategic consulting is one of the services that deals with the topic of megatrends. IT service providers are particularly predestined for such consulting. For a long time, IT consulting was a relatively small business segment. It mainly concerned companies that were directly in contact with digital technology or computers. In the meantime, digitization has ensured that virtually no industry can manage without digital systems. From master bakers to dental technicians, all professions now benefit from the possibilities offered by digital systems. This serves as a practical example of how megatrends actually affect every area and every industry.

Responding correctly to megatrends

So it is often not so easy to find the right response to megatrends. What is most important for a successful integration of new megatrends is the right time. Detailed knowledge of the industry is necessary to identify megatrends, draw the right conclusions for your own corporate strategy and, in addition, to design the appropriate time schedule. Many current and future megatrends have to do with digital technologies. Mobility, globalization, connectivity, telecommunications or security - in all these areas, digital innovations are helping to change the environment. GAL Digital is active in various areas of IT. Accordingly, the digital agency has experience in the development of apps and web applications as well as online marketing. Strategic consulting with regard to technological developments in these areas is also part of GAL Digital's portfolio. The focus here is on medium and long-term strategic orientation. Business models, strategies for a successful positioning on the market as well as concepts for strengthening competitiveness are developed. Get in contact with GAL Digital now and learn through the strategic consulting how you can profit from upcoming and current megatrends.