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At the core, business is a game of predictions and decisions. While no one can predict the future, there are some changes that organizations of the future are betting everything on.
Find out what they focus on their growth strategies, what innovation trends they follow and how you too can build an organization of the future.
How the game is changing
The fundamental rules of business have always been the same. There is, however, a major change on the horizon. In the past, businesses dealt with one defining factor: scarcity.
In fact, all business models were focused on the use of scarce resources in smart ways. Lately, as a result of the technological revolution, we have created unprecedented abundance in the world.
The new model focuses on the effective distribution of resources. There are already many successful businesses that are taking advantage of this change.
Uber is using the abundance of cars and drivers, and Airbnb is taking advantage of the abundance of living spaces. These businesses are extremely successful because of their ability to diminish marginal costs. Uber owns no vehicles, and Airbnb has zero hotels.
Consumer insights and trends
Every business, regardless of the model, has a goal to sell. The people it sells to are the North Star, always guiding the way. However, North Star doesn’t shine with the same intensity all the time and frequently changes its position on the sky.
Keeping customers satisfied is the only way to retain them, but this task is not an easy one. Especially now, when their shopping habits, interests and expectations are rapidly changing, and it is very difficult to keep up.
This is exactly why so many of the big companies are investing in computer learning and AI. Human behaviour is just way too chaotic, and with the overwhelming amounts of data comes the important task of sorting it out. In addition, there are some pretty apparent shifts in consumer interests.
As they become more connected and informed, they demand that companies become environmentally aware, and create products that bring value for the price.
Also, experts predict that the next global change will be the transition into a sharing economy. All the businesses that hope to continue their operations far in the future need to be aware of these trends.
Achieving sustainable growth
You can achieve growth only by combining an increase in demand and an increase in productivity. The demand is tied to customers, and a result of changing trends, increase in competition and the product development and advertising strategy of the company.
The latter is the only thing the company can control, and the people who bring it to life are the employees. In addition, people are also important when considering productivity. While automation will speed everything up, the need for creative, driven and dedicated employees is also on the rise.
When it comes to the future of the workforce, there are two major shifts to be aware of. The upcoming change in the global labour market and the need for MTP (Major Transformative Purpose) in an organization. The upcoming change refers to the popularisation of the flexible workforce model. With this model, the workforce expands and shrinks in accordance with demands.
Things to note is that of course, some positions cannot be filled by these types of employees, especially ones that involve strategy and product development. These are the employees which will be a challenge to attract and keep, and companies will struggle to do so unless they have a very strong MTP.
What the MTP really does – it creates the feeling that everyone is working toward something great, and wants to give it his all. An MTP is also important for brand identity. The Massive Transformative Purpose is simply: the way that the company hopes to change the future.
How you can benefit from the insight
The companies of the future will operate in a very different world and will need to adapt to the new rules of business. There is nothing certain about the future, but without anticipation and preparation, success is not a likely outcome.
The best way to ensure that your business will survive and thrive in the future is to focus on adapting to the new market conditions with your growth strategy.
If you dream of growing your organization of the future to be a global company, know that we are no longer in the pursuit of efficiency, but rather the pursuit of adaptability. Focus on the elements that are in your control and do not forget: Adapt or suffer. Disrupt, or be disrupted.