MANAGING in the

NEW WORLD

In spite of the massive advantages digital goods bring to people in contrast to physical ones, customers tend to value the latter more. While digital goods can be stored very easily and reduce the material weight on people, they are perceived to be less controllable. In an experiment conducted, it was realized that people are ready to spend more on physical goods than on digital ones. This is true for books, DVDs, music etc. In fact, when books got compressed to their digital editions, the value of the original book itself fell in the eyes of the customers. It was also found out that people especially view the physical goods in higher esteem when they associate with the item. A Star Wars fan for example will value its original copy more, while there is little difference to a non-fan. The ownership pride can increase through a business innovation by adding touch interfaces and customization options, so that people feel in greater control. This overall trend may also not portend well for self-driving cars and other automated tools for the same reason of lacking control.

Source:https://hbr.org/2017/12/customers-wont-pay-as-much-for-digital-goods-and-research-explains-why?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:19 January 2018

PwC which is one of the market leaders in the world of management consulting, has drawn a list of four alternative scenarios which is how the world may work by the year 2030. These four scenarios have been demarcated using a color code. In the first scenario of the Red World, innovation rules, so organizations battle it out to provide customers with what they want. Here, niche skill holders and specialists flourish. In the Green World, social responsibility and clean tech rule the roost as sustainability becomes the buzzword. In a Blue World as envisaged, it is large corporates who dominate and big company capitalism flourishes. In the fourth scenario, termed the Yellow World, people concerns are given greatest priority. Worker Guilds get set up, and people-centric brands come to prominence.

Source:https://www.strategy-business.com/article/What-Will-Work-Look-Like-in-2030?gko=e1d49

Uploaded Date:19 January 2018

Open Source communities have often been looked towards with extreme views. While some of the established proprietary concerns view them as business disruptors, others see them as great democratizers. The truth however, is somewhere in between. Within the tech sector for instance, Linux started out as a competitor for Microsoft’s more bureaucratic controls, but was eventually seen as ideal for long term business innovation, so got added protection from another giant in IBM. Other open source communities such as Word-press or even Android, are tightly influenced if not regulated by their original creators, Automattic and Google, respectively. Yet others like Apache, Cloud Foundry and Spark provide another model. Collaboration is possible even outside this open sphere as done through industry bodies such as National Association of Manufacturers or the American Petroleum Institute. Consortiums such as Joint Center for Energy Storage Research provide another way. But proprietary concerns such as Apple’s iOS which is completely company owned, need to understand that once a service or platform has been designated as open source, there is very little control it can keep. Instead, it is the market and its users who then decide the course.

Source:http://innovationexcellence.com/blog/2017/12/22/how-every-industry-can-learn-from-the-open-source-movement/

Uploaded Date:19 January 2018

A lot of people work in high-paying positions in comfy offices, yet complain about their jobs. This is usually because of a lack of defined purpose. In comparison, many people working in anonymous positions, get more comfort due to the pride they take in. Some tactics have been identified which will help professionals connect their work with a larger purpose. This can begin with linking work to the ultimate service every profession requires. Professionals could also try job crafting. This is the condition where team members take turns at excellence at aspects of the work they most believe in. A business research assignment taken up by a professor from Yale found this phenomenon most useful when she encountered this among hospital staff. To flourish in the long run, one needs to forge positive relationships at work. At the end of the day, one must remain true to the final mission of the work.

Source:https://hbr.org/2017/12/to-find-meaning-in-your-work-change-how-you-think-about-it?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:18 January 2018

Increasingly, professionals are adopting the path of remote working. This could be either through freelancing mode,doing a certain part of the work remotely or even setting up one’s own startup venture. A study conducted by marketing research leader Gallup shows that the number of such gig workers has gone up to 43% in the US compared to the figure of 39% back in 2012. Even the average hours dedicated to such modes by such independents has also gone up. While in most quarters it has led to a spurt in productivity, it has also led to the accumulation of some lifestyle related ailments. As the former Surgeon General of the US says, that “loneliness epidemic” is today a bigger problem than obesity. That is why co-working spaces are now thriving. A study conducted by Emergent Research shows that more than eighty percent of respondents claim that working at such spaces ahs increased their social interaction, expanded social networks, they feel less lonely and are even happier. It is expected that by 2020, nearly four million people will be engaged at co-working spaces, with each on average costing a rent of about US$ 350 a month. Companies could also consider placing their employees at such co-working spaces as most users have been highly satisfied and found the prices fair.

Source:https://hbr.org/2017/12/coworking-is-not-about-workspace-its-about-feeling-less-lonely?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:09 January 2018

A lot of business literature has been dedicated to visionary founders such as Bill Gates, Jeff Bezos or Richard Branson who have run their companies with great success. However, they represent a tiny fraction. A study collated by the universities Harvard, Duke and Vanderbilt have produced a startling result that most companies that continue to be run by their founders, fare much worse than those not. Business research finalized by the World Management Survey shows that founder-led companies perform 9.4% worse in terms of productivity. A professor at the USC Marshall School of Business, studied more than two-hundred start-ups from the last two decades to conclude that only half of those were still run their founders just three years on. The number reduced to a fourth by the time of their IPO. The reasons are quite straightforward. External investors do not want to fund companies still dependent on a single person, so insist on independent CEOs. Also, the skills necessary to start a new venture are not the same as running a larger firm. Many entrepreneurs chose the life in the first place to escape the complications of working at large firms, so are loath to follow conventional management principles. There is a “rich versus king” test, where the founders need to choose between making more money by following professional guidelines, or to retain control to the chagrin of profit-making. The first leadership transition in many ways makes or breaks a new firm. Source:https://work.qz.com/1125919/we-finally-have-proof-that-visionary-founders-make-the-worst-ceos/?utm_source=Quartzaw&kwp_0=602358&kwp_4=2125075&kwp_1=887702

Uploaded Date:13 December 2017

We are at the cusp of a new industrial revolution driven by the internet. The opportunities here are immense for the market leaders at various categories. Certain principles have been identified by PwC, which can help companies navigate through this period and leverage their existing capabilities. First of all, the business model needs to be reimagined according to emerging trends. The corporate strategy used to be a by-product of merging various touch points at the value chain. Now it can be done merely by leveraging digital platforms. Design thinking has emerged in a major way, so it must be done keeping the customer expectations at the centre. Innovations must be identified and scaled rapidly. The existing data needs to be captured in a way to provide useful insights on how best to improve work. The financing models similarly need to be geared towards present patterns. Technological acumen needs to be given a push either through in-house training or fresh talent recruitment. The industrial-era focus on products need to give way towards an incline on the side of purpose. The data captured needs to be used ethically so as to avoid trust issues. In spite of the emergence of machines, humanity needs to be put at the centre of all decision making.

Source:https://www.strategy-business.com/article/10-Principles-for-Leading-the-Next-Industrial-Revolution?gko=f73d3

Uploaded Date:13 December 2017

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