Rapidly Changing Business Environment
Today’s business world is evolving faster than ever before. Amplified by technology that is enabling the world to become smaller by means of the internet. Nowadays businesses are forced to adapt, be more efficient, receptive, and innovative.
Technological changes are more frequent than 20 years ago. An example is how iPad is revolutionizing the way the world communicates and conduct business. Areas affected by such changes are shifting more power to consumers, macro-economic changes, global competitiveness, industry consolidation, and new regulatory requirements.
Consumers have power of choice and control over the reputation of a firm in today’s market. A consumer’s tool and weapon of choice is the social network. There is where information both positive and negative can be exchanged. This make possible of such communications to reach more than a million people in less than 5 minutes.
New development of technology is contributing by creating entirely new industries that did not exist 20 years ago. Therefore by creating new needs gives birth to new demands. therefore an eco-cycle is ongoing from newly developed technology arriving to market.
Technological transformation changes the rules of the game where companies are no longer safe in their home/base markets. For example: The London based company sells a book at the price of $20 dollars both at its retail outlets and online store. While Hong Kong sells that very same book on-line at a price of $9 dollars, including free shipping. This is a clear example of how a company from Hong Kong, China could be a threat to a firm that is based in its home market of London, England.
Some industries are going supernova while others quietly dissipate deep into the blackhole. Simultaneously, new industries are blooming and some are even merging. This is exemplified by numerous acquisitions and mergers in recent years during the global financial crisis.
Due to rapid technological market delivery and acceptances that regulations are not able to keep up with changes, therefore regulations are not aligned to allow beneficiaries to take full advantage of new mounting opportunities.
In conclusion, the current business environment is transformational at light speed. This great new era presents new opportunities of greater competitive advantages. The benefit advantages are cost benefits, business benefits, and strategic benefits as demonstrated in the figure below entitled benefit advantages.
Cost benefits are to reduce cost complexities that often add hidden costs that become prevalent during ongoing operations. In addition, cost overruns decreases ROI. Through by enhancing earned value tracking can encourage an increase in added value.
Organisational growth can be enhanced by leadership capable of prioritising goals and possess a clear vision through robust sustainable processes by means of amplified collaborations to achieve maximum success.
A question often asked is how do we get there? Strategic innovation extends from agility, reduced risks, enhance quality through value realisation creates strategic benefits.