Wake-Up CEOs– ‘Age of Disruption’– Business Landscape is Shifting: Time for New Vision, Rebalance Priorties…

It’s a whole new business landscape — dawning ‘age of disruption’– and the global economy is in greater state of flux than ever before, and instability is the new norm…

Developed markets are becoming stagnant and developing markets are becoming submerged. Along side this, new technologies are transforming industries in a matter of months, populations are shrinking in some markets while booming in others, and environmental trends make managing global business more complex than ever before.

Above all leaders in this ‘age of disruption’ must be more creative than ever, demonstrating extraordinary resilience– capacity to cope with complexity and retain a sense of calm confidence amid chaos… Leaders must think differently with new vision and enterprise business models that can facilitate giant leaps forward, quickly…

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Companies must change strategies by changing their roles; it’s not simply about a new value proposition; it’s about changing the very basis of competition… Companies must break free of the hidden assumptions of conventional strategy, where they are competing on a slow-changing field, or the concept of a neatly ordered industry with distinct buyers and suppliers by recognizing that they can be competitors, buyers, and suppliers, all at the same time…

Companies must focus less on dynamics of value appropriation and more on how they are embedded in a collaborative web of value creation… they must focus less on what happens within sectors and more on how markets are changing… and how players in one part of a value chain try to change fortunes by destroying other players… According to Carl von Clausewitz; it’s an era characterized by disruptive change… by revision of roles in public and private sectors… by reinvention of structure and role of corporations.

In the article Urban World: The Shifting Global Business Landscape by Richard Dobbs, Jaana Remes, Sven Smit, James Manyika, Jonathan Woetzel, and Yaw Agyenim-Boateng write: By 2025, almost half of the world’s biggest companies will probably be based in developing markets, profoundly altering global competitive dynamics… Developing markets are changing where and how the world does business. For the last three decades, they have been a source of low-cost but increasingly skilled labor…

Their fast-growing cities have millions of new and increasingly prosperous consumers, who provide new growth markets for global corporations at a time when much of the developed world faces slower growth… But the number of large companies from the developing world will rise, and this powerful wave of new companies could profoundly alter long-established competitive dynamics around the world…

Projections based on the ‘McKinsey Global Institute Company Scope’ database of large companies that tracks public and private companies, including state-owned enterprises, with annual revenues of $1 billion or more; shows that the developing economies’ share of Fortune Global 500 Companies will probably jump to more than 45% by 2025, up from just 5% in 2000… That’s because while three-quarters of the world’s 8,000 companies with annual revenue of $1 billion or more are today based in developed economies, it’s forecasted that an additional 7,000 could reach that size in little more than a decade– and 70% of them will most likely come from developing markets…

To put this dramatic shift in the balance of global corporate power in perspective; remember many of world’s largest companies have maintained their current status for generations: More than 40% of almost 150 Western European companies in last year’s Fortune Global 500 were founded before 1900… In 2025, almost 230 Fortune Global 500 Companies will be based in the developing world’s cities, up from 24 in 2000…

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According to Michael G. Jacobides; there is growing evidence that current strategy tools are outdated; most tools wrongly assume that incumbents are more important than new entrants; that corporations can easily identify their rivals, suppliers, customers… and that companies can compete only by changing what they do…

However, up-and-coming companies can disrupt entire industries by designing superior products at lower cost, by bringing them to market faster, and by streamlining business processes… Corporate leaders can’t afford to be complacent about change, while many new players are setting their sights on expanding into global markets. Business leaders must monitor trends constantly to spot new markets, competitors… and they must embrace new rules:

  • Optimize sales networks: Companies must assess how to organize themselves so they can sell to a much more diverse and dispersed customer base, they must rethink (and perhaps redeploy) their sales networks…
  • Understand how customers and competitors are evolving: New industry hotspots will be sources of both competition and demand, so companies must track up-and-coming location hubs in developing regions, many of which may not be household names but they are evolving as hubs for multiple billion-dollar companies…
  • Reconsider headquarters configuration and location of other core activities: Many businesses are finding that traditional single-headquarters model no longer meets their needs. Companies are splitting corporate centers into two or more locations that share decision-making and key members of their senior-leadership team…

In the article Shifting Global Business Landscape by Deloitte writes: As the distinction between the ‘developed’ and ‘developing’ world becomes blurred, previously held safe assumptions about the global business environment no longer apply… The new trends suggests; rapid expansion of a global consumer class in developing markets, such as; Asia, Africa, Latin America– it’s estimated that by 2020 the number of people in the global middle class will amount to 3.2 billion.

These new consumers are increasingly urban, and by 2030 urban populations will reach about 5 billion with growth concentrated in the cities of; Asia, Africa, Latin America… Organizations must reach out and embrace these new emerging consumers and ‘business as usual’ will not work…

According to Thomas Jankovich; thanks to spreading economic growth, shifting national priorities and new open technologies, innovation comes from everywhere… wealth and privilege are no longer a pre-requisite to success… Capabilities that were once exclusive to large corporations are now available on efficient open markets… For businesses and organizations to take advantage of these new trends, they must make open innovation key to their overall strategy… They are more likely to lead in the use of social business technologies. They are also more likely to collaborate with other businesses beyond their borders than their developed market counterparts…

This suggests that entire executive teams may have to transcend functional boundaries to secure coherence as they transform their far-flung enterprises– without defaulting back to command and control arrangements of a bygone era… global economies are continually rebalancing, hence organizations and businesses must continually rethink, rebalance, and adapt business models and supply chain configurations to remain competitive…

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In the article Growth in Shifting Business Landscape by Michele Molitor writes: Today’s business landscape is a bit unsteady to say the least and it’s a challenge– no matter if you are a CEO, manager, or one-man-band business owner… The disruptive nature of the business landscape means that business must be– agile, bold, and open to new ways of doing business, globally… Here are a few keys to consider:

  • For The Sake Of What: What’s the vision? Where do you want the company or department to grow to and for the sake of what? What outcomes do you wish to achieve and what impact do you want to leave customers and the community with? The clearer the vision, the easier it is to create tangible goals to achieve…
  • Make New Friends: Refine or reconfigure the target audience… Once you’ve clarified the audience, then it’s time to make some new friends… People do business with who they know and trust, so aim at developing the relationship first to create a win-win outcome…
  • Think Outside the Box: Take a hard look at the current business activities… Today’s economy requires businesses to think differently and come up with new creative strategies to out smart the competition if you want to remain a player in the game…
  • Listen Carefully: Talk with customers and listen carefully to what they have to say… The company that succeeds in today’s economy is the one that has ears to ground and is constantly innovating to meet the current market needs.
  • Start With The End In Mind: Start the day by envisioning how you’d like it to go. What intentions do you have for the day? What would you like to accomplish? What impact do you want to leave others with? By focusing on positive intentions, you’re paving the way for it to unfold with grace, ease, desired outcome…

The world has entered what some regard as era of ‘digital Darwinism’ where technology is evolving too fast for many individuals and organizations to adapt to the changes… According to Ifuoma Okey-Ezealah; as the rate of technology change accelerates, people, business, entire countries… struggle to stay aware of the latest technological developments, let alone understand them well enough to exploit them– and this rapid rate of technology change is unlikely to slow down…

According to Lowell Bryan; companies need leaders who are tolerant of ambiguity and who can make others feel comfortable about it… They have to instill confidence in their teams that they are making the ‘right’ decisions, even though it’s not clear how the future will evolve…

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Amid this talk of ‘age of disruptive’ it’s important to remember that not all business landscape are remade violently, overnight. Obsolescence creeps as often as it lunges. While CEOs obsess over getting big-banged out of existence, odds are good that they will suffer a more pedestrian fate; they will simply cease to matter– the brand goes stale, core strengths languish, changing customer needs pass them by… The world moves on; they don’t…

According to Debra Kaye; companies are afraid to ask the ‘relevance question’: Is what I am making or selling still relevant, and will it be five or ten years from now? But they need to ask it every year, because when a company loses relevance, it dies…

According to Andrea Coville; long-established ways of looking at a business– breeds inertia, even as successive generations of leadership lose touch with the roots of company’s success, business are vulnerable when they rest on laurels but also when they are constantly reinventing themselves… Relevance means being relentless about innovating on core competences, assets…