Left: The human capabilities of the social humanoid robot Sophia were overhyped but it helped
normalise robotics and accelerated development
Right: Sir Richard Branson is one family business entrepreneur wise enough to get ahead of technological disruption
to go into altogether new areas of interest. He says they should combine interest in impact investment in environmental, social, and governance areas to learn about and adapt their core businesses. Stevenson says holders of patient
crisis, and everybody hates you. If wealthy families do not get it, we are in trouble.” Robotics, the Internet of Things, and
artificial intelligence are incredibly powerful technology platforms that can actually help with the scalability of the family business, says Dr Ilian Iliev the managing director of EcoMachines Ventures, a London-based venture capital firm which makes early-stage and growth investments in industrial high-tech companies. “There is a risk of the
‘Amazonisation’ of more business sectors, which may lead to declining profitability for many traditional businesses,“ says Iliev. “Mid-cap family-owned businesses
(with capitalisations of $2-10 billion) that have been relatively localised will need to grow, innovate, or be acquired by bigger players,” he says. “Where that is the case, family
owners need to decide early on what to do. They can cash out, for example, in 10 years, or choose to dedicate [themselves] to the growth and investment resources required to become number one, not only in their local market, but also nationally and internationally.”
ADAPT OR DIE ? Asked if family businesses thinking about their business’s place in the world of 2050 must ‘adapt or die’, Arbib says there will be time over the next decade or two for leaders to explore more options, like merge, acquire, split, or sell. “Keep your eyes open, do not come
with too many preconceptions and it doesn’t have to be doom and gloom. Businesses do have choices, it just means seeing the opportunities and taking them.” Stevenson says the question family
businesses should ask themselves is: What do we want the world of 2050 to look like? Iliev says family businesses
“absolutely” need to prepare for technological disruptions and there are several investment strategies they can pursue. “Invest in new businesses that are
in higher-value areas, in the industry sectors they already understand. Use the knowledge, technology, and networks they have in the traditional areas to build on and invest in businesses that are in other sectors, but are using similar capabilities.” Iliev says second and third-generation family owners may use family wealth
PHOTOGRAPHY: PRESS ASSOCIATION, VIRGIN GROUP
capital should think systemically and be future-literate or they have no chance of designing their business and assets in a sensible fashion. “If you are not giving yourself an
understanding of artificial intelligence, blockchain, climate change, the state of our soils, the failures of democracy, what is wrong with our education system, then anything you do is probably going to be a shot in the dark,” he says. “Also understand that investment that
does not take the environment seriously is not an investment in any meaningful sense, it is a cost on the future.” Stevenson points to Unilever chief
executive Paul Polman as a good example of investing in social capital. He took over the Anglo-Dutch consumer goods giant in 2009 and said he was not going to deal with the shareholders he had, but instead find the shareholders he wanted. He amassed enough patient capital investors who shared his values of sustainable businesses to rebuff the takeover from Kraft in 2017. “You want to be hanging out with
the Paul Polmans, John Elkingtons and Richard Bransons of this world who are looking to work with investors who understand the challenges the world faces. We need to destroy the opportunities for short-term aggressive money to put quick gains above the survival of the species.” Which way will Ferrari turn?
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