10 trends for startups to watch in 2022 and beyond (Trend 2)

Connectivity continues its inexorable advance, with the race on to connect the unconnected, whatever it takes: Balloons, satellites, drones and more. At the same time connectivity is going ever deeper into our lives as the internet of things and billions of sensors are deployed across every facet of our work and lives – and increasingly bodies through wearables, and in the not too distant future, implants.

In January 2021, 4.66 billion people worldwide were active internet users, almost 60% of the global population. Of these, almost 93% accessed the internet via mobile devices. (Source: Statista) Still, over 40% of the world’s population has no internet access. And humans are by far outpaced by connected devices – Internet of Things (IoT) devices (e.g. smart home devices, cars) already exceed “human-driven” devices (e.g. computers, mobiles) by several billion and their growth in the next 5 years will be exponential, partly driven by extensive 5G rollout.

Consumers are taking advantage of advancing technology to demand hyper-local and personalized products, services and experiences, instantly, seamlessly, frictionlessly and through new channels such as virtual and augmented reality (yes, we will talk about the metaverse in a later post!).

But there is a cost: Data overload and misuse could fuel a techlash with tech companies the new ‘baddies’ of the business world. Increasing cyber-attacks highlight individuals’ and organizations’ vulnerabilities, even as regulatory frameworks for a connected world continue to lag behind. More devices than ever are tracking, monitoring and recording us. The internet of things and big data might benefit the world but are increasingly preying on our privacy and opening up our data to attack and misuse. Technology has clearly made life more comfortable but are we ready to deal with the risks?

What does this mean for startups?

• You’ve gotta be “on”!: The world is increasingly hyper-connected, with movements to recognise access to the internet as a basic human right. What this means for startups is that, today, every company is a digital company. Even if you are producing physical products and services, you need a digital and mobile footprint – and maybe more in future. This has to be both external – websites, mobile apps, social media profiles, digital ads, etc. – and internal, as you will have to liaise with partners/suppliers, manage employees and finances (including regulatory-mandated reporting), communicate internally and manage your product/services through a sometimes mind-boggling range of software systems.

• The other takeaway from the previous point: Make sure you have someone on your team who is digitally savvy! There are so many systems, pieces of software, apps and more that it is easy to get lost in the noise and for costs to add up, which you don’t need as a startup with limited resources. Get advice from people who know and have used the systems, so you know what is essential and what is nice to have. Also look out for deals – many software providers offer these and they are worth using!

• Map your customer’s journey: Marketing and selling a product today – getting the traction you need to excite investors – often requires a multi-channel marketing/sales strategy. Customers may browse your product online, take a physical look in store, ask communities they are part of for recommendations, use a price comparison service to compare options and then buy via whichever channel is most convenient. Even making a simple map of this journey – by talking directly with existing/potential customers – will allow you to identify pain points in the journey that you can address to add value and increase your odds of sales, plus ensure your marketing/sales strategy is well targeted.

• The techlash: As connectivity increases and sensors hook up everything from home security systems to appliances to cars and health devices the resultant exploding volume of data is being eyed by hackers near and far. Keeping data safe is a growing headache. Privacy and ethical concerns are rising, although many organizations only pay lip service to addressing issues including: Is selling data to a third party ethically correct? Who owns the data? Who should control it – the consumer or the organization? It is critical for any startup to both ensure the data that they collect is safe and to communicate privacy policies proactively along with any issues that arise. Err on the side of being more transparent than less. Your customers and partners will thank you!