Grasping the GPS of Change: Future Strategies Every Company Must Reinvent
Economic uncertainty, the speed of technological innovation, and shifts in industry structure... these all signify a "turning point" for every company. At the Bloomberg event "The Future Investor: Finding the Opportunities," the argument that "companies must not only survive but reinvent themselves" was reiterated (from the keynote speech).
In this article, focusing on the themes addressed in the lecture, I will organize the challenges and possibilities that "all companies" face in common. Rather than focusing on individual companies, I would like to present insights useful to readers (corporate executives, business unit leaders, business professionals, etc.) from a cross-industry perspective.
1. Change is becoming the "norm," not the "exception"
1-1. The meaning behind the GPS analogy
At the beginning of the lecture, speaker Lisa Mateo said, "Just as a GPS recalculates the route if you take a wrong turn while driving, companies also need to find new paths." This is a strong metaphor illustrating the importance of "readaptability" in responding to discontinuous change.
Whether change is sudden or gradual, a mechanism to "correct the direction of travel" is essential for companies. To use an analogy, management decision-making and innovation processes must always be prepared for "dynamic routing."
1-2. The phase of restructuring and value unlocking
In the lecture, technology adoption, efficiency improvements, and the construction of new revenue structures were cited as means for "companies to unlock value."
For example, automobile companies were once limited to a so-called "product sales" business model. However, today, many automakers are adding software and subscription-based services to their business portfolios. Such changes are not happening only in the automotive industry. Manufacturing, distribution, services, healthcare, finance... every industry is being forced to shift from "product sales to value provision."
2. AI and data are changing the core of companies
2-1. Investment management and AI: Support or replacement?
In Manulife's investment division, AI is positioned not as a complete decision-making device, but as a decision-support tool. In the past, a case was introduced where a system was built to cross-search vocabulary such as "tariffs" contained in management statements across data from 6,000 companies using AI to assist analysts' insights.
In this way, AI essentially plays the role of "data organization/suggestion presentation" and "cross-functional integration of information." Within companies, AI adoption is progressing in multiple departments such as sales, supply chain, manufacturing, marketing, and human resources, but the perspective that its true value is demonstrated through the collaboration of "human + AI" was shown in common.
2-2. AI utilization in product and platform companies
B2B/technology companies such as Workday and Qualcomm are also actively promoting AI utilization. At Workday, the role of "AI as a 'sous-chef' that optimally combines ingredients" was emphasized in customer-facing functions such as professional services, support, and education.
Meanwhile, Qualcomm is developing NPU (Neural Processing Unit) technology that enables power-efficient and large-scale model operation in smartphones, PCs, and wearable devices. For example, AI processing in new-generation devices such as smart glasses is also looking at completing tasks within the device without relying on the cloud.
These examples show that AI is no longer just a trendy technology, but is positioned as an infrastructure that determines the foundation of business superiority.
3. Trust and governance: Building a foundation that cannot be sustained by technology alone
3-1. Customer trust and technical trust
Sheri Rhodes, Chief Customer Officer at Workday, states, "No matter how advanced the technology is, it will not be a sustainable business without trust."
As components of trust, three aspects were mentioned in the lecture:
Dialogue and platform openness: Providing a place where customers can exchange information with each other and between customers and companies
Understanding Problems and Adopting a Proactive Stance: Always consider whether the technology provided solves the customer's true challenges.
Co-innovation: Design together with customers and cultivate technology that meets on-site needs.
This approach is the key to building a partnership-based relationship that goes beyond mere technology sales.
3-2. Risk Management and Guardrail Design for AI Implementation
AI implementation also comes with issues regarding bias, erroneous output, black-box nature, and compliance. At Manulife, emphasis is placed on early AI prototype verification, model selection, and the construction of internal governance systems.
Furthermore, it was emphasized that to avoid using incorrect output, human oversight should be placed in the initial stages, and a structure should be established to add guardrails (constraints and check mechanisms) if problems arise. This is a design challenge that every company must face when advancing AI utilization.
4. Changes in Business Models and Capital Structure
4-1. New Business Axes to "Unlock Value"
Companies are exploring not only efficiency in existing areas but also the creation of new value. Examples include paths such as existing hardware companies adding software or subscription services, incorporating platform businesses, or advancing the modularization and mobility of assets.
Such changes encompass complex aspects including hardware, software, services, data operations, platforms, and ecosystem building. In other words, it can be said that "all companies"—including manufacturing, service, software, and telecommunications companies—share this challenge across industry boundaries.
4-2. Capital Policy and Expansion Strategy
In the latter half of the lecture, the focus of the discussion was on how to structure total investment assets, as well as the relationship between private and public markets, and strategies for IPOs and capital procurement.
Of particular note is the phenomenon where private companies tend to remain unlisted, delaying their entry into public markets, and the emergence of utilizing schemes that use structured capital (hybrid capital) to mitigate risks at the time of an IPO.
In this way, the "ability to design funding and growth strategies" has also become an essential skill for all companies.
5. The Era of Co-creation Between Investors and Companies
5-1. What Kind of Company Do Investors Seek?
The lecture emphasized that what is important for investors is not only "what to invest in" but also "what kind of company to invest in." In other words,
Adaptability to change
Synergy with technology utilization and AI
Philosophy and operations that can guarantee customer trust
Sustainable revenue structure and capital design
These all lead to the trust that "that company seems likely to continue creating value in the future as well."
5-2. From 'Investment Target' to 'Co-creator'
Traditionally, the relationship between companies and investors has often been depicted as one of 'capital provider and capital manager.' However, companies looking toward the future are evolving into a 'co-creator' relationship, where they redefine value and explore new domains alongside their investors.
In fact, during the lecture, both participants (the corporate side) and the investor side emphasized dialogue, demonstrating an approach where companies understand the perspectives and expectations of investors while aligning them with their own growth strategies.
Conclusion: The 'Reset Design Capability' Required of All Companies
The greatest message to take away from the lecture is this: companies can design themselves. What determines their limits is their internal perspective, strategy, and ability to adapt to change.
Technology, data, capital, market environments, and customer needs—these are all fluid elements, and companies are not in a position to wait for them passively. Rather, it is the companies that hone their 'reconstruction design capability' and lead change that will create the future.