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Mr CEO Don’t Wait For The Dust To Settle!
While there is no one magic bullet that’s effective across sectors & functions, leaders who adhere to the following five ‘Keys’ stand the best chance of staying on top by reinventing themselves to keep with the ‘new normal
Photo Credit : ShutterStock
In today’s Marketing arena, the reality is well summed up in this statement ‘Look to the left, look to the Right. One of you won’t be here next year’! The above is manifesting in the Corporate world as well . Companies are increasingly finding that their era of market dominance is akin to the career of a professional sportsperson than the tenure of a Government servant- a few years rather than a few decades. While there is no one magic bullet that’s effective across sectors & functions, leaders who adhere to the following five ‘Keys’ stand the best chance of staying on top by reinventing themselves to keep with the ‘new normal’.
1. Harness your digital capital: Comprising of Big data & Intangible digital assets, the former is being used to drive markets shares, creating bespoke products and services and to optimize supply chains, while the latter which includes behavioral data on consumers can spawn an entirely new range of products & services. The disruption in Taxi services is one such example where Uber uses algorithms to determine ‘surge prices’ in times of peak demand.
2. Benefit from the lower costs of Digital: Costs related to access, discovery & distribution of goods & services can be significantly reduced with Digitization. Lower barriers to entry have spurred many entrepreneurs & businesses to participate in the digital market place & also experiment with new business models. The growth of micro work & micro supply chain companies has been fueled by the lowering of geographic barriers. Look around you, whether its micro finance companies or Insurance, there are new examples of digitized businesses emerging on a daily basis.
3. Monetize consumer surplus: Consumers are today capturing quite a lot of the value created by new internet offerings in what is known as consumer surplus- lower costs, better products, and improved quality of life. Companies are gearing up to get consumers to pay for all the great new stuff; video, content etc. being made available to them. Experimentation is a must to capture more consumer surplus for your business. Ad revenue, freemium pricing strategies, big data monetization etc. have been some of the ways that companies have monetized their consumer surpluses.
4. Keep looking beyond the obvious: Todays technology will be outdated tomorrow, and a seemingly irrelevant acquisition or strategic move may wind up shaking up the industry. Google acquired Android in 2005 when the mobile Internet was just about born. The following year, when online advertising was in its infancy, it paid 1.6bn dollars for YouTube. What a masterstroke both the moves were! Establishing symbiotic relationships with vibrant tech startups can be an increasingly effective way to place future related bets. It minimizes risk & disruption to the core business, but at the same time, provides companies with the option to have access to possible winners by the way of products or services.
5. Think nothing but technology for your organization: Be it Talent, organization or investments, let Technology be the reason for any decision. Managing a complex business isn’t easy in the best of times. And in today’s VUCA world, one gets continuously reminded that what you thought you knew about the world may not be actually correct! A radically different world is forming. Don’t Wait !!!
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.