Shift of Influence: From Institutions to Consumers
Historically, entrenched corporations controlled the value being delivered in their respective industries.
Consumers are taking control and beginning to dictate the expected value and outcomes.
This shift is forcing a reconfiguration of entire value chains into dynamic, consumer-driven ecosystems – resulting in new opportunities for incumbents and new entrants.
We focus on those industries that are being transformed by the Consumerization Effect.
Patients demand better outcomes.
The Patient Protection and Affordable Care Acts are providing consumers with more choice and transparency, leading to new business models for providers and payers:
- Payment will be based on outcomes, not treatments
- Consumers will have increased choice and options for their insurance needs
- Employers must offer alternative health-related benefits focused on preventative care
- Insurers will provide more healthcare services and healthcare networks will provide more insurance-like products
Investors demand better returns.
High fees and low returns, combined with an unprecedented transfer of wealth, are putting pressure on existing business models. This younger, self-directed, digitally-savvy, mobile-first client base demands radically different solutions. The days of old people managing old money are over.
- Robo-advisors must address the life-event financial planning model beyond just self-directed investing
- Private client institutions will maintain margins through technology and a focus on the top 20% of their clients
- Lower-cost financial advisors must combine robo-advisory-like business models with existing full-service offerings
Students and Parents demand better results.
The economic and academic model of education in the US is broken. By almost every measure, our young students are behind the rest of the developed world. Our college students have taken on more than $1.2 trillion in debt. We've reached a tipping point.
- Education publishers will be required to reorganize their assets and business models to deliver dynamic, personalized content directly to the student
- Higher Education institutions must explore new business models that move beyond traditional in-classroom instruction
- Employers must work with educational institutions to improve graduate preparedness and defray the costs from students
Media & Entertainment
Audiences demand better experiences and engagement.
Media is no longer imposed by large monoliths; it's a constellation of services, devices, and interactivity dictated by consumers. We now live in a world where pictures, text, video, audio, graphics, search, and social all blend into a single, highly-personalized experience. The era of distinct channels is over.
- News and information providers will break free of the shackles imposed by their brands and embrace new methods of news gathering, storytelling, and engagement
- Entertainment will become a bi-directional relationship as audiences actively participate in its creation and dissemination
- Magazines will monetize (and grow) their brands' content, data, and editorial via disruptive new business models that do not rely on advertising