strategy

5 Imperatives for competing in a marketplace without-boundaries

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The foundation of strategy hasn’t changed; there are still only two ways to compete. Wherever we decide we will play, we have two choices of how to win: “Cost-Leadership” or “Differentiation”.

The problem is that competitive advantage is transient, short-lived. Because change is accelerating, the rate of innovation is ever increasing, and competition is intensifying and blurring boundaries. All this is supported by dynamic global capital and talent markets and a better access to information.

John Chambers’ recent HBR article Cisco’s CEO on Staying Ahead of Technology Shifts, starts with “Our success at Cisco has been defined by how we anticipate, capture, and lead through market transitions.” We learn that listening to customers provides key indicators when to make the jump. Cisco maintained the start-up mentality by moving out groups of employees to develop innovative products and “spin-in” them back into the company. And putting customer outcomes at the center of everything they do help companies stay ahead of the innovation wave.

So for businesses to enjoy a prolonged success in the marketplace, they need to focus on:

1 – Identifying shifts in markets and industries by listening to customers and developing a strong and diverse network of relationships.

2 – Making innovation a core activity, to create a pipeline of new advantages, through both launching internal start-ups and partnering with or acquiring promising disruptive enterprises.

3 – Making fast and roughly right decisions, moving fast to experiment, and then refine strategy and offerings. The Lean Startup methodology can provide the necessary tools for companies to quickly learn if their innovations are on path to a sustainable commercial success. For example, GE has been working with Ries to develop FastWorks, a program designed to deliver better outcomes for customers faster.

4- Bold management of the portfolio of advantages that can be built quickly and abandoned just as rapidly, in a way that focuses capital and people on the most value-creating activities.

5- Leading with a light footprint strategy while preparing for major long-term shifts. Look beyond existing models and current ways of thinking. Work with visionary experts from all works of life to develop few plausible scenarios of the economy and the society of the future. Constantly monitor and interpret the environment. Use leading indicators to shift focus and resources based on which particular scenario is unfolding.

In business, as in any other area of life, there is always risk of not wining every single bet. But nothing of value can be achieved without taking risk, as Mark Zukenberg’s said in one of his quotes: “The biggest risk is not taking any risk…in a world that is changing really quickly, the only strategy that is guaranteed to fail, is not taking risk.”

The stakes can be greater for those who pursue bold strategies to change the world. But it is possible to increase significantly the odds of success and reduce the cost of failures on the ways to accomplishing the vision, by: 1) seeking a diversity of opinions, 2) having the right people on the bus, 3) having the right financial bakers and mentors, and 4) joining efforts with the right partners in your ecosystems.

Adapt to major shifts to find growth in a marketplace without boundaries

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Adapting to Global Mega Trends to Survive and Thrive

As highlighted in PwC’s Annual Global CEO survey, one of the most comprehensive sources of data about the pulse of business and global mega trends, CEO’s believe that technological advances, demographic changes and global economic shifts will have a huge impact on their businesses in the next 5 years.Tope-mega-trends-vicendi-consulting_350x213

1. The global business environment that is undergoing unprecedented technological advances, significant demographic shifts, and a shift in global economic power to the developing countries, means that companies will need to innovate their business models and adapt to new customers behaviours and new more dynamic competitive environments.

2. The shift in global economic power from west to east, and from north to south creates new growth opportunities for companies who will be willing to take a long-term view regarding investing in emerging market and create adequate local structures and ecosystems .

3. The rapid technological advances combined with major changes in both customer behaviour and the international regulatory environment will create new markets. Some industry boundaries are blurring and entry barriers can be disrupted with innovation.

Organisations that can adapt quickly to this major shifts and can learn new ways of connecting with customers, mastering disruptive innovation, operating and collaborating efficiently within a rich ecosystem of suppliers, customers and academia will thrive, while less agile businesses will become irrelevant.

 

How to win a large share the new growth and sustainable-profitability opportunities?

CEOs can no more rely on traditional ways of making strategy and running the business. They need to Agile-Business-innovation-350x159develop Agile Leadership teams, transform their organisations to create value in new ways, and develop tomorrow’s workforce. To win a large share of the huge value creation and growth opportunities offered by the unfolding new global economic and social context, companies need to outperform their current and potential competitors in 5 main areas:

A high purpose that motivates across all stakeholder groups: having a clear meaningful purpose to play in the long-term and create value to make a positive net impact in the world, not only financially and economically, but also socially and environmentally.

A bold vision and a light footprint strategy: creating a clear, ambitious and compelling vision, and developing a practical strategy to change the world for the better an materialise the company’s vision.

Agile leadership to cope with uncertainty and drive change: developing “Agile Leadership” qualities throughout the organisation which enables fast and sound decision-making, effective strategy execution, and fostering a culture of innovation, in a fast-paced, uncertain world.

Rich ecosystems that create and deliver market-based innovations: playing a central role within efficient ecosystems of start-ups, suppliers, customers and academia, that bring together innovation, financial power, operational excellence, efficient large-scale logistics and distribution networks, and the communication power of brands that are socially connected with customers.

Learning organisations that innovate and adapt quickly: Build an agile learning organisation that is capable using the power of big data and analytics to identify major changes in the market and in our society and leverage internal and external talents and resources to innovate its business model and create new-market and growth.

Global reach with native talent to satisfy customers: develop an intimate knowledge of local markets to win by adapting innovations to local needs, tastes and consumption habits, local business and regulatory environment, and invest in developing strong brand love and advocacy in every market.