Yesterday’s tools, tomorrow’s battles.

Jul 6th, 2012 | By | Category: Management

Many corporate leaders armed with yesterday’s business experience are so engrossed in solving today’s issues are failing to see the new emerging challenges. Just 5 years ago, who would have seen the end of the “colour film roll” that defined photography? Technology is rapidly changing the market dynamics of the new generation. However, many products and services developed in the last decade are not ready to meet these challenges.
Mobile technology is entering the world of retail banking. Developments in IT has empowered the masses to change governments. Strategic planning based on yesterdays models will not be sufficient to meet tomorrow’s challenges.
Most organizations will have an impact from one or more of the following where new tools, new systems and new thinking as means of TENDER for future survival and growth will be needed.

Economics and Politics
Natural Resources
Demographics and Lifestyles
Education and Values

In a fast changing world, strategies and policies of national governments will have a significant impact on the future business success of each organization. Yet, organizations will need to consider future challengers in a changing environment through strategic planning. Top management needs to review current systems, policies and strategies and Engagement of external expertise in developing policies and strategies will become a vital element in the planning process as well as maintaining dynamic systems to meet ongoing challenges to ensure future growth.

• Technology – Changes in IT enables organizations to outsource many services such as accounting, legal and transaction. Manufacturing can be relocated to new countries offering better services and ease of doing business. Localization of marketing and distribution will depend more on better local transportation infrastructure and facilities. JIT manufacturing will need more flexibility in employment practices.

• Economics and Politics – Globalization, Regional Economic communities, trade barriers, Regional Political shifts, National debt, and currency values, armed conflicts, arms trade will define competitiveness of large corporations where economies of scale needs to be balanced against flexibility to change.

• Natural Resources- Energy, water, environment protection, Global warming, various disasters, natural and manmade will necessitate organizations flexibility to relocate operations and outsource services.

• Demographics and Lifestyles – Products and services need to be targeted with market differentiation IT savvy new generation as well as growing underclass population. A growing aging population needs attention through better health care and accommodation. While entertainment and leisure markets may grow, competition will demand better service, bigger investment and smaller margins. Lifestyle changes will see increases in virtual travel, communicable and non diseases and pandemics affecting larger populations.

• Education and Values – Demand for knowledge based skills and management expertise will need better and extended education facilities and vocational services. Humanitarian values may define skill sets for human resources. Religious fundamentalism and intolerance may make regions non competitive with restricted access to markets. Drug abuse, trafficking and breakdown of law and order will have major impacts on market segments.

• Resources, Skills and Needs – Competition for resources while increasing demand for food, clothing, shelter, employment, dignity, relationships will need new strategies for marketing. Intellectual property rights as well as abuses, transfer of management skills, and labour mobility needs careful consideration.

Therefore while organizations as well as small business entrepreneurs consider past experience in management, need to consider tomorrow’s challenges and new tools while ensuring today’s growth for tomorrow’s investment. National government need to consider country competitiveness ten years hence and provide policies, infrastructure and resources for future competitiveness of a nation.


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