Globig’s Top 12 Global Business Predictions For 2016

2016 looks to be an exciting year for companies, especially startups coming off of a very high intensity and successful 2015. Based on trends monitored, data analyzed, reports compiled from experts in many fields throughout the world, we’ve prepare what are hopefully some helpful predictions and recommendations for 2016 to jumpstart your year. See the Slideshare for the full Top 12 Global Business Predictions For 2016 From Globig presentation on LinkedIn.

DATA BREACHES

Globig Prediction: Data breaches will continue to make headlines in 2016 and bring closer scrutiny to how companies handle data security and how governments respond.

More data breaches should be expected

Companies are seeking more information from consumers and hackers have access to more data

Government regulations are quickly changing across the globe

Governments are setting timeframes for breach disclosure and fining companies for non-disclosure

Fines and customer make-goods will be more costly to companies in 2016

Globig Recommendation: Review your data security measures for best practices and compliance; be prepared and plan for an eventual breach.

CONFLICT BETWEEN DATA PRIVACY & GOVERNMENT SURVEILLANCE

Globig Prediction: The conflict between individual data privacy and governments’ needs for ensuring safety of citizens through surveillance will grow in 2016.

Many countries are concerned about data privacy and safe data transfers between countries

At the same time, governments are increasing their surveillance of individuals in social media, email, and phone calls

Encryption debates will continue, proponents may lose to government pressures

The EU plans on replacing Safe Harbor framework in early 2016

Data Protection Authorities seeking stronger regulations, fines for non-compliance

More US and EU companies setting up servers in EU countries to be compliant

Globig Recommendation: Ensure that your data privacy policies and practices are in compliance immediately, be prepared to update practices in early 2016

FEAR AND UNREST

Globig Prediction: Even traditionally safe cities are being threatened by extremism and fear and unrest will continue to grow through 2016.

Safety and the perception of safety has become more important to citizens around the world

Sensitivity when doing business across borders and awareness of fear and how it impacts different cultures becoming more important in global interactions

Comfort brands, brands that make people feel safe and familiar, shared ideology messaging will resonate

Companies setting emergency plans for their business travelers and internal communication strategies in place

Globig Recommendation: Understand the perceived level of threat in your global markets and how those cultures respond. Prepare your own company’s emergency response and communications strategies

FUNDING



Globig Prediction: In 2016, there will still be a lot of money available to startups, especially for early stage and growth stage companies. Funding will slow down if economies sputter.

More scrutiny will be placed on valuations

Experts believe 2016 will be the biggest year of exits, funding and unicorn valuations yet

Many unicorns will turn into donkeys based on their Lifetime Value of Customer/ Cost of Acquiring Customer = >3

There will be more competition for funds across borders

Increased interest in international startups

Greater awareness exists for global funding activity and the companies being funded

There is easy access to data evaluating global startups and their traction (Mattermark, CB Insights, The Funded, Angel List)

Globig Recommendation: Expand your competitive set to include global companies, seek funding early in 2016 beyond your borders and expect valuations to be lower

GLOBAL STARTUP TRANSPARENCY

Globig Prediction: Globalization of startup ideology and develop processes continue to expand in 2016, as companies use the same startup ‘language’, platform tools, and approaches in startup communities all over the world.

More top tier accelerators such as 500 Startups, Y Combinator, Techstars, and Founder Institute are going international with their templated approaches to growing companies

We see a trend where startups are attending multiple accelerators to get additional mentoring, media, and investor attention to stand out

More companies are applying and joining global accelerators outside of their home area

Globig Recommendation: Realize that you are competing on a global platform, not just within your local market. Conduct your business as a global competitor instead of a local one.

GLOBAL COMPETITION

Globig Prediction: The global tech scene, startup infrastructure, and competition for great ideas continues to rapidly grow in cities throughout the world in 2016.

There is an increased awareness of stand-out ideas

Standout ideas are being copied in other global markets, market share is being grabbed before original company enters global markets

It’s not uncommon to see multiple companies competing in the same space within one accelerator or investor portfolio to battle out who will win the space

Globig Recommendation: Be aware that your great idea may be taken and copied in other countries, hindering your chances to enter those markets later. Consider taking your products global sooner rather than later to own global markets, not just the home market

ESCALATION OF INTERNATIONALIZATION



Globig Prediction: There will be increasing pressure (and opportunities) to quickly expand into global markets in 2016.

A company’s global business is becoming more important to overall market share and directly impacts its long-term viability

More and more companies are ‘born global’, especially in the EU and Asia

US companies have been slower to expand their global footprint due to the larger home market and lack of international experience

Investors are expecting quicker global expansion to hold off international competition

Time before expanding into international markets is contracting for companies

Globig Recommendation: Note that if you have a good idea at home, it may become someone else’s good idea abroad. Prepare from the start to go global; make it part of your strategy

GLOBAL WORKFORCE

Globig Prediction: Talent is being searched for across borders, creating a highly competitive job market in 2016.

Developers and scientists will continue to lead as desirable recruits

Governments are creating special startup visas to make importing talent easier

Even governments themselves are investing into companies from other countries, especially China

Companies are expanding their international talent development strategies and seeking HR professionals with international experience

Outsourcing to international tech hubs such as India, Pakistan, Russia, Bangladesh and others for affordable development and skilled global contract labor pools continues to grow

Costs of outsourcing is increasing rapidly and savings from outsourcing are starting to diminish

Globig Recommendation: Be creative and flexible in where you look for skilled workers and take advantage of government programs designed to support the startup community. Be aware that your team will be recruited globally.

OPEN DATA

Globig Prediction: There is a significant movement from governments to provide open access to their data to foster trade and development, more desirable data will become available in 2016.

Over 159 nations have pledged to support open data initiatives; more will follow in 2016

Government, census, trade, and transportation data initiatives are developing between nations

Higher quality open data becoming available for free and in APIs

More developers using open data to make interesting and helpful applications

Globig Recommendation: Take advantage of open data resources for application development and to use for evaluating and conducting global business.

INTERNATIONAL MARKETING TRENDS

Globig Prediction: Marketing is changing. Having a global perspective, being digitally savvy, and honing skills in reaching global customers will be more important than ever in 2016

There is a growing need for international sites, international SEO, language localization and international content

Mobile is growing rapidly and data plans are becoming more affordable. It’s the primary way to access the internet today for many Asian countries.

Digital search assistants for smartphones grow; usage will require new mobile search marketing strategies- Siri, Google Now, Cortana, Facebook M

Growth in instant stories, the use of social media for short story telling along with blogs using Twitter Moments, SnapChat Stories, Facebook Instant Articles

Globig Recommendation: Make sure your marketing skills, strategies, and tactics are optimized for global, mobile, and new social capabilities

EMERGING MARKETS

Globig Prediction: Though volatile, emerging markets will become more attractive to many companies in 2016.

Emerging markets are rapidly expanding their startup and technology infrastructure

EU investment into emerging markets may temporarily slow in 2016 in order to invest into immigrant integration

Global investors are paying attention and cautiously interested in the high stakes and returns from investing into emerging markets

Regulations will continue to change in 2016, so doing business in emerging markets remains difficult and risky, but highly rewarding

Globig Recommendation: Take a look at emerging markets and determine if they are right for your business, either as a place to take your startup efforts or as additional markets for your product or service. 2016 might be the perfect opportunity to expand.

AGING AND IMMIGRATION OPPORTUNITIES

Globig Prediction: Aging populations and immigration will put increasing pressure on governments responsible for providing resources and support in 2016

Aging populations pose significant costs for governments in developed nations such as those in the EU and Singapore, especially for elderly health care services

Mass refugee migration, such as currently being seen in the EU, will put pressure on infrastructure and require significant investment

Citizens of countries with aging populations show mounting concern for how the country collectively and people individually will manage caring for elderly and prepare for their own needs in aging

Globig Recommendation: Companies servicing governments for managing data, infrastructure, training, housing, health, security, and other businesses related to the integration of immigrant populations and the management of elderly populations will see attractive opportunities in 2016.

ABOUT GLOBIG

Globig accelerates international expansion via on-demand knowledge, a global expert marketplace, tools, influencer connections, research and more. Our team of international lawyers, researchers, product developers and marketers study global trends, regulations, and best-practices so you always know what’s important to your business. Join the Resource Hub

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