When change is a constant, organizational transformation is a constant imperative. And we are living in an era of unprecedented change and business complexity. The best of yesterday’s strategies seems barely adequate to the challenges you as a business leader wake up to, today. With organizations large and small needing to constantly adapt and innovate, organizational transformation is no longer about one massive project you hope to undertake when the time is just right. It is no longer about waiting well into the future to realize those tangible downstream benefits.
New products and services are being introduced at a dizzy pace making existing ones, some of which are even good - redundant. Consumer trends and consumption patterns are fast changing, and new markets are opening all the time. The availability of a global, virtualized and digital infrastructure has enabled knowledge workers across the globe to successfully compete for work with local players. Service organizations have access to large pools of high quality, low-cost knowledge workers from across the globe.
The following changes impacting the business environments are highly visible.
- The rate of speed of change has significantly increased
- Economies are becoming more and more globalized.
- Technologies are becoming disruptive.
- Big data provides valuable information about accessibility to various market segments.
- Emerging economies have created many new consumers across South East Asia and Africa.
- Robotics, Machine learning, Deep Learning and Artificial Intelligence are taking automation to the next level and have the disruptive potential both in both the short and long terms.
- The 21st century is also experiencing large human migrations. People are leaving their earlier ancestral homes for work either to other countries or within the country.
- Consumption patterns are fast changing. Humans are consuming large amount of goods and services. Modern devices are proliferating everywhere.
- Information spreads very fast.
- Compliances issues have gained complexity in many ways and will continue to pose challenges.
‘Transform’ or ‘Perish’ is the norm in modern business environments All these changes are putting enormous pressure on organizations to transform all the time. Disruption and volatility are the norms since the beginning of the century and the business environment since then is a lot more dynamic than the previous two decades. New and nimble players with better technologies and smarter business models have displaced well-entrenched players in the market who could not cope with the pace of change or innovate in time. Only 64 out of 500 businesses ( S&P listed companies) have vanished in last 50 years. Two examples that come to the mind from recent times are Nokia and Kodak, and the lessons from their demise have not been fully assimilated.