By Dexus Research 19 October 2017

It has been said that the only constant in life is change. Every day we observe businesses around us dealing with the disruptive effects of change. So why are we paying more attention to change than ever before? 

The world in which we live has always evolved and businesses have adapted. In recent decades, we have witnessed significant changes in technology including wireless internet, digital media, smartphones, drones and cashless payments. But there's a whole new set of factors which make the situation different this time. 

One factor is the speed of change. The fact that a single smartphone today has more computing power than all of NASA had when it sent a man to the moon in 1969 illustrates the advances technology has made in a short time. 

It's not only the speed, but the nature of change that is different now. There are three trends making this moment in history different to any other. These trends are connectivity, automation and the millennial generation. 

Automation will change the size and shape of business over the next decade.

There are three trends making this moment in history different to any other

An unprecedented level of connectivity is changing how and where we work. Mobile technology and the Internet of Things are enabling people and devices to connect, anywhere at any time. Cloud technology is enhancing collaboration by providing a wireless way to store and share data. Many businesses are making the shift with the number of Australian businesses using the cloud increasing from one fifth to almost one third, in just one year. 

Intelligent automation is shaking up how businesses operate. A combination of artificial intelligence and automation enables computers and algorithms to manage processes which in turn reduce the labour needed for many service sector roles, generating cost and time efficiencies. PWC[1] estimate that 25% of tasks across every job sector will be automated by 2019, and the percentage will continue to grow. 

Businesses should expect their size and shape to change over the next decade as processes become automated. Some roles will become redundant and new roles will be created. 

The emergence of millennials in the workforce will have a profound impact on the way people work. Millennials have been brought up with digital technology and expect information to be instantly at their fingertips. According to CBRE [2], millennials are already the greatest proportion of the working population at 25% and by 2020 are expected to comprise 35%. Business technology will need to be state of the art to cater for workforce expectations. Leading workplaces of the future will need to connect individuals, create vibrant communities, offer fully cohesive services and provide lifestyle benefits. 

It is these three trends, and the speed with which they are occurring which makes us pay attention. These trends will lead to disruption, but equally create opportunities. We term this dichotomy 'disrupportunity'. 

The ongoing success of businesses will depend on their ability to understand the disruption and be agile enough to respond to the opportunities. 

 

[1] PWC People, Change and Robots 2016
[2] CBRE Asia Pacific Major Report - Millenials - Shopping The Future of Real Estate 2016

Disrupportunity: Why change is different now
Other articles about research
Research
10 Australian Real Estate Quarterly Review
Research
5 Sharemarket volatility unlikely to derail office demand
Article
3 Planets align for industrial property
Research
10 Australian Real Estate Quarterly Review
Research
5 Australian Real Estate Quarterly Review
Research
3 Conditions for office demand remain resilient
Article
3 Sydney office market still strong
Research
4 Sydney CBD office demand benefits from positive indicators
Research
10 Australian Real Estate Quarterly Review
Research
10 Australian Real Estate Quarterly Review
Research
3 Conditions for Sydney CBD office demand are the best in seven years
Research
6 What will be the role of office buildings in the future?
Video
2 Benchmarking Sydney's Performance 2017
Research
6 Unprecedented connectivity: What will it mean for office users?
Research
4 Lead indicators for office demand reach highest level in six years
Research
10 Growth cycle fuels strong unlisted property returns
Research
3 Leading indicators point to improving take up in Sydney
Research
10 Strong start to the year for office markets
Research
5 Year starts on a brighter note for office demand
Research
7 2017 Upside and downside risks finely balanced
Research
10 Corporate trends shaping take-up of office space
Research
5 Solid run in Sydney CBD office demand
Research
10 The implications of lower for longer
Research
10 Property performing well. What next?
Research
5 Tenant demand for Sydney offices remaining positive
Research
5 Share market volatility likely to be main swing factor for office demand

Subscribe to our mailing list

By providing your details you give Dexus permission to email you about this site

These links are external to the Dexus website and will open in a new window.