New markets are dramatically different than markets a few years ago. The present condition is one of accelerated change. Market conditions for mayor companies are changing every two to three years, bringing with them entirely new rules for how business is managed and how value is created. Increasingly, the value of a company is to be found in intangibles assets such as, people, ideas and strategic aggregation of information. Distance and geographical constraints have vanished, making opportunities and threats greater than ever. People are the crown jewels, only if they can deliver value to organizations. Growth is an imperative, organizations cannot shrink to greatness.
Value rises exponentially with market share and it is a function of knowledge, motivation, skills and capital (V = K x M x S x C). Intermediaries are being slowly replaced by infomediaries. Buyers are gaining new power and sellers new opportunities. Suppliers are finding that it is easier and more profitable to customize products and consumers are demanding a tailoring approach. Every product and service is available everywhere, closing the gap between desire and purchase.
In just two decades we have witness globalization, the integration and greater efficiency of capital markets, the efficiency and standardization of synchronized supply chain, the dramatic rise of work and management through technology, the integration of business and consumer networks through the internet, and the consolidation and convergence of industries. At the core of these developments is the challenge that organizations either have or can secure creative and value-adding people who can work hard to remove barriers and obstacles to ideas and innovations that are necessary for the strategic processes. The new business-to-consumers and business-to-business re-engineered processes coupled with the e business markets are creating new business economics and approaches for the venture of adding value to the organization.
The new value creation formula is the following: increase your ability to create new business options plus increase your abilities to quickly implement new business approaches. The overall psychological and organizational predicament is just do it, you canů Companies, with the help of their intellectual capital portfolio need to create and assess as many options as possible to attack the market, to change products and services, to improve processes, and to redesign or re-configure their structures.
Successful companies and their talented people are taking enormous risks and making large bets on their new strategies and models for making a difference in their respective markets. Other considerations relate to their understanding that the past or the present is not equal to the future. The past provides the foundation, the institutional memory and key sets of learning experiences, but little hint of future direction.
It is also important to acknowledge that creating and deploying innovative ideas require tremendous discipline and tenacity. Organizations, and their people, must be technology oriented, valuating innovations and stressing constructive performance measurements. Let`s not forget the needed freedom for incubation of ideas, management decisiveness and for the courage to make big bets. From the individual standpoint, this huge value-adding venture will demand passion, faith, ethical standards, energy, relationships and communication skills.
Copyright 2000 QBS, Inc.