MANAGING in the

NEW WORLD

It has often been lamented on how trust has been getting eroded from business. There is now a dire need to work on this. For this a proper framework needs to be fitted for each key stakeholder group. There are economic, legal and ethical promises for each. The first major stakeholders are the customers. They need to be provided with life- enhancing services and products. Industry regulations and customer protection laws need to be abided by. Risks need to be disclosed, while mistakes to them must be remedied. The next group is the employees. The right talent management practices need to be followed so that labour anti- discriminatory practices are followed, safety concerns are addressed and everyone gets treated fairly. Due provisions must be made for employees’ management training needs. Investors come next. Their risks need to be managed, while also ensuring the provision of the due returns. Material information needs proper disclosure and fiduciary duties followed. Insider trading must be a complete no. Employees too need to be trained on how to connect with investors. The last major group is the broader society. Employment and economic opportunities must be on top of the pile. Local and federal level laws have to be followed. The business must also show its care for the environment and public health. One could start off by setting the industry standards.

Source:https://hbr.org/cover-story/2019/07/the-trust-crisis

Uploaded Date:26 August 2019

GE is no longer as big a company as it used to be, but might as well revive just as IBM did in the 1990s. But for sure, the GE Model is no more. Several reasons exist for the eventual demise of this model. A top contended for this is the Chinese strategy followed not just by China, but also by several other countries, such as Japan, South Korea, India and Brazil. The rise of Silicon Valley is another reason, as it signalled the prominence of software over pure manufacturing which GE represented. At the company’s peak, GE’s practices were widely adopted by business schools for training the MBA students. This led to much replication of the same techniques across the board. Private equity and the new capital markets did not help. These ended up challenging the traditional hegemony of the conglomerates such as GE, demanding greater transparency. Conglomerates still thrive in the developing countries though. The final killer the Great Recession of the previous decade. The spread of professional management, the tech revolution increased competition worldwide and investor power were all fallouts of this recession.

Source:https://hbr.org/2018/07/who-killed-the-ge-model

Uploaded Date:26 August 2019

There has to be a general understanding that the world’s most successful brands have a mission beyond mere profits. They must help solve everyday problems, as well as major ones. This should ideally be included as part of the company’s vision statement. Alliances need be built between brands, culture creators and non- profit firms. A consortium has thus been curated, titled as the Conspiracy of Love. Besides other services, it will also provide business consulting help to all kinds of companies, big and small. It will also act as an idea accelerator, so that culture and technology may be used to generate new innovations.

Source:https://conspiracyoflove.co/

Uploaded Date:16 August 2019

 

The term unicorn is now well- known, meaning start-ups with a valuation in excess of a billion dollars. China now has about two- hundred such unicorns. Nearly a third of these have either already set up shop abroad, or are on the verge of doing so. These unicorns are spread over thirteen industrial sectors. The four largest of those industries have been shaped by substantial inputs of technology. These have been transportation, media, fintech and enterprise service. The geography has also been an interesting finding. More than a third of these companies are form the capital, Beijing. Shanghai of course has the next highest lot with a fourth of the total. Shenzhen and Hangzhou are the next two important cities, while surprisingly a mere two percent originate from Hong Kong. The size of the Chinese market has been a major reason for the rise of these unicorns. The entrepreneurial spirit of the people to tap in to such business innovations needs to be acknowledged. The rest of the world now knows that it has to live with the existence of these powerful Chinese unicorns and somehow battle them to preserve their own turfs.

Source:https://www.strategy-business.com/article/Chinas-herd-of-unicorns?gko=5a81d

Uploaded Date:16 August 2019

With so many companies now worldwide attempting their digital transformation, it is time, that a proper playbook emerged on how it ought to be led. A few steps have been identified to effect this change. The first step is the moment to Aspire. Here, a compelling, long- term corporate strategy is designed. One needs to guard against any inherent biases at this stage. The next is the stage to Assess, where a thorough analysis is conducted to forecast the skill demand. One also needs to now understand the dynamics between the skills and their supply dynamics. The level of Architect is now reached at the third stage. Here, a portfolio of initiatives is defined, while the existing resources are reallocated. The fourth stage is where one gets to Act. A strong governance structure has then to be established. Social contracts are leveraged. For digital marketing purposes, influencers are mobilized. This ensures two- way communication between the brand and its audience. The last stage is to Advance. Now, knowledge sharing is institutionalized. The existing talent is now matched with the roles in demand.

Source:https://www.mckinsey.com/business-functions/organization/our-insights/a-better-way-to-lead-large-scale-change

Uploaded Date:16 August 2019

There are some major forces that are impacting the ongoing rise of the platform economy. One of them is talk of increased regulation. This is happening because, the digital giants have monopolized the entire ecosystem. A vast majority of global spending on digital marketing, except in China, is in control of Google and Facebook alone. Amazon meanwhile has a similar grip on e- commerce purchases. New taxes, market restrictions, compensation to users whose data has been used and data- sharing agreements have been proposed. Newer modes of technology are also impacting. There is passive potential of a further upgrade once the 5- G networks become more widespread. Even greater forms of disruption plus inversion can be seen already. A substantial proportion of the revenue is now being generated from the data being captured by the giant tech firms. Precise business intelligence is now being generated, with Twitter, Uber and Airbnb being the top beneficiaries of this. Some industries that have historically valued physical products have remained resistant to such new age domination. The list of industries includes aviation, health care, perishables and construction.

Source:https://mitsloan.mit.edu/ideas-made-to-matter/3-forces-pushing-platform-economy

Uploaded Date:14 August 2019

The MIT Sloan Management Review has been among the top opinion makers among during the ongoing digital age. This publication has now curated an online database in collaboration with the talent recruitment firm Glassdoor on five- hundred large companies. This is to measure culture in leading companies. Another challenge is to build digital- ready culture for legacy organizations. Customer- centricity is essential in this digital age. Digital platforms have also become double- edged swords. On the one hand they enable scores of brands to advertise through digital marketing. On the other, they have also become all too powerful, thus dictating terms to individual brands, even the industry leaders. A new profile that has now emerged is that of an AI ethicist. They help with all relevant digital policies.

Source:https://mitsloan.mit.edu/ideas-made-to-matter/6-ideas-reframing-digital-age-mit-sloan-management-review

Uploaded Date:30 July 2019

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