A consumer’s purchasing journey has significantly evolved in the last decade, propelled by the evolution of the internet and social media. With online sales increasing year on year, investment into search engine optimisation and marketing tools such as Google ads will undoubtedly grow. Consumers are increasingly using the internet or mobile applications as their first-choice tools for purchasing goods. Consequently targeted marketing has become an imperative as companies seek to gain “face time” with their customers. We have even started to use automated marketing tools ourselves at Polestar.
E-commerce is not only becoming the largest sales avenue but it is growing at a staggering rate. As this trend continues, the high street as we see it today will no longer exist. Products will simply be stored, processed and packaged for delivery in a large warehouse along the M1. At present, a large proportion is labour intensive, but as technology becomes more sophisticated, AI and robotic adoption will rapidly consume current jobs – Amazon is a prime example (no pun intended).
The McKinsey Global Institute (MGI) estimates that automation and AI could displace between 400 million and 800 million people’s jobs worldwide by 2030. At the top end, almost 10% of the world’s population. The seismic demand for employees possessing some analytics or coding skill set has never been higher. This shift is universal and impacting every industry. How is your business prepared for this new wave?
At Polestar, we work with technology-enabled businesses and we see many firms often commanding higher valuation multiples where operational automation goes beyond the industry standard. Not only is there an immediate synergy for trade buyers these businesses typically generate better margins – an immediate value driver. The use of technology such as AI and automation have significant value implications during a transaction.
The next decade or two will likely bring about the biggest disruption to work and employment since the Industrial Revolution in the 19th century.