RSA Group Reflections – January 2024
Dear friends
Are we a local company? Or a global business? Or somewhere between the two?
I have heard a lot of people talking in these terms recently, but, in my view, the ‘either / or’ perspective risks misunderstanding important aspects of 21 st century commerce.
We know we live and work in a fundamentally interconnected world. From Covid-19 to the Russian invasion of Ukraine, there is no doubt that what happens ‘out there’ really matters ‘over here’. However, it’s also vital to recognise that the essential structure of global society and business is evolving quickly, and that any meaningful business discussion must now include the so-called metaverse – that increasingly interactive digital sphere where people in different geographic locations interact in real-time, on the same platform.
Today, the metaverse is still at the fringes of global popular culture, and is often perceived to be a Mark Zuckerberg pet project. But step back from the Facebook perspective and it is clear that ‘extended reality’ digital interaction platforms are an inevitable evolutionary step. As consulting firm McKinsey said in a 2022 report : “With its potential to generate up to $5 trillion in value by 2030, the metaverse is too big for companies to ignore.”
The same report goes on to say that more than 15% of corporate revenue is expected to come from the metaverse in the next 5 years, according to 25% of senior executives surveyed.
So, should RSA Group think of itself as a South African business, or a global business? Or a digital business?
I think we are absolutely an international business with roots in South Africa, and with strong and growing digital capability. I believe it’s crucial for us to ensure we are equipped to do the same quality of business locally, globally, and in new digital spaces. In fact, I see our capability in these different areas as being strongly linked.
For example: we face a lot of challenges in South Africa, including loadshedding and the state’s failure to provide essential support services. But our ability to innovate in response to these challenges has positive spin-offs. Our private sector added 4,530 MW of renewable energy projects to the South African national energy system in 2023 alone. This is obviously good for immediate business – and it also places our private sector at the leading edge of sustainability and alternative energy use. Not in theory, mind you, but in practical daily reality.
At RSA Group, we are particularly fortunate to sell a high quality product that is in demand across the world. There are many opportunities for us to improve our business performance locally, and to replicate the success of the commission model in other regions, including much of the African continent. There are also a lot of opportunities to sell more product internationally. We need to be aware of the unique strength of our position, and take full advantage of it.
That said, we can never rest on our laurels. In addition to operating successfully in the here and now, locally and globally, we also have to make sure that we are structured to thrive in fast-evolving digital societies, communities and platforms.
The future waits for no man!
Best wishes,
Jaco Oosthuizen