Digital disruption is tipping the scales in favor of the individual, giving them a greater voice, changing the way we live and how companies communicate and do business. Game changers across many industries are provoking companies to transform the way they do business to such an extent that, in order to remain competitive, they must re-prioritise their communications around their digital channels.
Megatrends transform business
It has never been more important for companies to be vtransparent with their stakeholders as it is right now. As companies become increasingly digital, developing their corporate websites and their social media pages, they open themselves up to increased dialogue with stakeholders who are now capable of expressing their expectations of the companies.
Megatrends like automation, e-commerce, and new business models have transformed the way that business is conducted, so in order for them to keep pace with the competition, they need to take these trends into consideration and will have to communicate how they plan to adapt their business model in response. Although these trends are sure to impact all companies, only 39% of companies (up from 30% last year) actually offer any sort of explanation of how megatrends will influence the direction taken by the company.
As companies begin to invest and develop their digital presence through corporate websites and social media, they open themselves to unhindered dialogue with their stakeholders. Their presence on social media platforms allows for more open and free flowing dialogue between the two, meaning that stakeholders are more open to interact directly with the company, and companies have a heightened awareness of their stakeholders’ expectations. The better able they are to perceive and act on these expectations, the more competitive they are.
Companies go digital to keep up with the competition
Communicating clearly on its strategy in relation to the megatrends that will impact the company, providing comprehensive information on what the company does, its market and financial outlook are a means for companies to showcase the distinctions that set them apart from other companies operating in the same field.
By publishing this information online, they are able to better respond to the needs of their stakeholders and attract investors. Nearly all European companies (81%) provide a comprehensive information on company business areas, but only 12% of companies provide their market outlook, and 15% provide their financial outlook.
Providing a clear idea of what the company does, its strategy, and how it plans to move forward in relation to relevant megatrends ensures that companies are able to attract investors. Of the companies evaluated, nearly three fourths (73%) of companies provide an overview of their corporate strategy, but only 19% offer clear connections between megatrends and the company’s strategy.
Spotlight on Kesko
The Finnish retailer Kesko provides investors a clear explanation of the megatrends they predict will impact the business, linking to graphs and tables for further information. It serves as a strong example of a company that uses its corporate website to communicate how it is adapting to the trends that will affect the company.