MANAGING in the

NEW WORLD

The likes of Uber, Xiaomi and Netflix, have all scaled up their operations exponentially within only a few years. This is because they have taken advantage of the power of digitization and the platform-based economy. Leveraging their vast networks, even traditional large corporations such as Philips and Rolls-Royce have also joined in.Global growth rates are abysmally low, while protectionism is affecting international trade. That is why the economics in this new period of globalization requires a completely different approach. Some developments have led to new kinds of business models set to thrive. One is greater connectivity, while another is the rise of digital platforms. A third is the growing propensity of Artificial Intelligence (AI) combined with business analytics. Elements such as robotics, 3 D printing, digital prototyping and real-time collaboration means that we are on the verge of Industry 4.0. Consumers meanwhile are highly connected and mobile. All this cocktailed with a protectionist trade environment stifled by state-led capitalism has given this a unique flavor. In this scenario, the Boston Consulting Group has identified seven new business models. The first such is cross-border servitization. Then there is value-addition through software. Global personalization, multi-local manufacturing and global digital ecosystems add up to the list. The last two are asset-light market entry and development of multiple national identities.

Source:https://www.bcg.com/publications/2017/globalization-new-business-models-global-landscape.aspx?linkId=45913552

Uploaded Date:06 February 2018

In present business, beyond conventional investment banking, there is growing interest on a term called “impact investment”. This impact investing is a method where traditional investment is done keeping in view the ESG factors which are – environmental, social and governance. To cite an example, at the Wharton University, more students are now enrolling for the impact investment course than investment management. This has led to a Social Impact Initiative of the Wharton. Business intelligence provided by Bank of America (BoA) sites that a whopping weighty-five percent of millennials are interested in impact investment. Reports further suggest that women are more likely to go for impact investing than men, so are likely to own majority of the finds in coming times. Merrill Lynch is one of the traditional players now entering this field, but following close behind are Black Rock, TPG and Bain.

Source:http://knowledge.wharton.upenn.edu/article/social-impact-investing-interest-manpower-and-money-pour-in/

Uploaded Date:06 February 2018

A new metric called the Corporate Horizon Index has been developed by one of the big three management consulting firms- McKinsey – to compare and contrast the performance of various companies under parameters such as market capitalization, job creation, investment, revenue and earnings. This index values long term-stability over the destabilizing effects of short-termism. Several findings have already appeared such as between a thirteen-year span since 2001, long-term focused companies have witnessed a forty-seven percent rise in earnings and thirty-six percent in average growth compared to their short-term-centric rivals. Over a similar period, the former companies also created a whopping twelve-thousand more jobs than the other group.

Source:https://www.mckinsey.com/global-themes/long-term-capitalism/where-companies-with-a-long-term-view-outperform-their-peers?cid=other-eml-ttn-mgi-mgi-oth-1712

Uploaded Date:06 February 2018

The term Design Thinking has been around since 1969. But very few companies have actually embraced the concept wholeheartedly. For those who have, the prize returns are exponentially high. A look through the S&P 500 index will show us names such as Disney, Netflix, Nike, Tesla, P&G, Apple and Amazon, companies which have perfected their designs so reaping the rewards. For such firms, more than a department, design is what drives the processes. Departmental silos give way to cross-functional teams. They curate expertise not from only single fields, but make experts from different walks of life work together. People at such places are hands-on, so they prefer the proverbial garages to cubicles. They do not adopt aesthetics as component for any specific project, but is indeed a continuously evolving maxim embedded in their corporate strategy. The research they undergo is that involving the full-spectrum. Their innovations are not aimed at one type development, so the continuously prototype. They gauge business intelligence by engaging with customer groups. The changes they envisage go beyond the incremental to brave new ones.

Source:https://www.mckinsey.com/business-functions/mckinsey-design/our-insights/more-than-a-feeling-ten-design-practices-to-deliver-business-value

Uploaded Date:06 February 2018

Digitization has disrupted several industries, and one way in which that has most beenaffected is through digital platforms such as Uber, Airbnb and Amazon. In this way, producers and consumers are directly interacting with each other like never before. Disruption has not always been positive or democratic as is the commonly-held belief. Quite to the contrary a number of large music recording labels have profited from streaming platforms’ ubiquity where independents have struggled to hold down their place. Quite opposite though is the movement in the book publishing industry. The traditional big five- Harper Collins, Macmillan, Penguin Random House, Hachette and Simon & Schuster- have seen their overall market share thanks to the popularity of e-books where Amazon through its Kindle platform already holds an edge. The smaller firms here are also biting away at the big five’s chunks, taking advantage of the platform economy. A lot of independent writers too are getting their work published on the Kindle Direct Publishing platform instead of having to wait for the conventional giants’ approval as would otherwise be the case. They can also directly track their revenues rather than having to wait for months to hear about their pending royalties. Sentiment analysis conducted showed that positive reviews had a far higher result on the smaller players. With the bigger players, the market assumed the reviews were an outcome of their digital marketing savvy to get the positive ones listed on top. Twitter plays an important role in this as the place of discovery while Amazon is the final marketplace.

Source:https://knowledge.insead.edu/entrepreneurship/competition-in-the-age-of-amazon-7851

Uploaded Date:06 February 2018

Like human beings, companies also go through the process of selective memory filtration. One sees, only what one wants to. This affects the ability to spot and then execute relevant business innovations. The examples of Nokia, Garmin and Kodak are examples of such inabilities to spot trends and adherence to age-old practices that constrained innovation. Garmin was the market leader is GPS devices till 2012, but failed to detect the onslaught of digital platforms such as Google Maps or Waze which have totally disrupted their business. Bright Funds on the other hand is one firm that seized the moment. To impact organizational performances, several areas of concern need to be studied simultaneously. This includes the business model, innovation, change initiatives, key business relationships, corporate strategy planning and a performance culture. The top executives need to help in a variety of ways. To start off, they must enable a power of enquiry to be imbibed among the employees. This will foster an atmosphere of creativity and future outcome thinking. The company’s strategy must be geared towards combatting those of rivals and potential disruptors. A sense of personal awareness needs to be built in so that key change initiatives may be implemented.

Source:https://knowledge.insead.edu/blog/insead-blog/hidden-neural-patterns-could-be-limiting-your-performance-5181

Uploaded Date:19 January 2018

The historical trend of higher earning people being less busy at work in comparison to the lowest paid, has been turned on its head over the last three odd decades. Today it is common for the highest paid to put in double the hours of the low paid ones. This is especially true for those working in strategy or business consulting firms. Research firm Gallup says that about seventy percent of employees seeking psychological assistance do so for stress related matters. Employers have admittedly responded to this by adopting some proactive steps to ease the burden on employees. One way has been by simply paying professionals more. Another is by making the workplace more fun. Some have added corporate training programmes involving mindfulness or mental health to help the employees. Ultimately, nothing has worked that well, so instead employees need to respond in ways to cope themselves. One way to do so is by being strategic and focussing on the bigger picture. The overworked hours must be measurable, so clear metrics need to be defined in order to keep track. Instead of trying to change the pattern completely, a few incremental updates must be tried out as that is easier to implement for organizations. Changing small behaviours can only improve one’s productivity. Finally, one needs to find a work partner who can always remind the person about the erosion of time and effects on personal life or health. This person should not be afraid to speak out the blunt truth.

Source:https://hbr.org/2017/12/how-to-be-more-productive-without-burning-out?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:19 January 2018

SKYLINE Knowledge Centre

Phone: 9971700059,9810877385
E-mail: info@skylinecollege.com
© 2017 SKYLINE. All right Reserved.