Deloitte: Start-ups incubate new products

During the second day of the Summer Davos Forum in Tianjin, Deloitte Global Industry and Senior Client Advisor Gary Coleman was interviewed by China Daily and Xinhua News Agency on advanced manufacturing transformation and the Fourth Industrial Revolution, which is often referred to as “Industry 4.0”. Gary believes that the Forth Industrial Revolution will bring about changes to technology and business models, which will have a widespread impact on the business community. Commenting on the rise of start-up companies, he said these companies can facilitate the creation of new products and services and can help entrepreneurs accumulate experience and develop their job skills and creative thinking.

During the CCTV interview which took place during the first day of the Forum, Gary also mentioned that start-up companies can utilize “big data” for market research in order to understand market needs. Start-up companies can achieve sustainable growth through viable business ideas, effective data analysis and mature management approach.

On the same day, John Hagel, co-chairman of Deloitte LLP’s Center for the Edge, was interviewed by Ms. Yang Yanqing, deputy editor-in-chief of China Business News. John stated that today’s businesses are facing a parallel trend of fragmentation and concentration. Along with a better understanding of customers and technological advancement, mass production will be gradually replaced by small scale production that can cater to specific needs of individual consumers. At the same time, concentrated players will leverage scale and scope economics to provide the infrastructure and resource platforms to fragmented players. Companies should combine their short term (6-12 months) business plan with their long term (10-20 years) objectives in order to stand out from the competition.