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Making 'Cents' of the Shifting Business Landscape

KEEP THE CHANGE MAKING "CENTS" OF THE SHIFTING BUSINESS LANDSCAPE Modern businesses face a constant barrage of changes – large and smallI. How businesses deal with these continuous disruptions and whether they can transform them into opportunities define competitive advantage.' THE PACE OF BUSINESS IS ON THE RISE EMAIL OUTNUMBERS SNAIL MAIL 60% 60% 49% SENT 29% '02 11 '02 '11 EMAIL In 2010, 1.9 billion people sent 107 TRILLION emails. SEARCH ENGINE Daily use by online adults? MORE ADULTS BUY PRODUCTS ONLINE THAN ACCESS TWITTER, FACEBOOK OR LINKEDIN AVERAGE CALL TIME IN THE U.S. DECREASED FROM 2.2 MINUTES IN 2000 TO 1.8 MINUTES IN 2009 in '09 00 ENTERPRISES KNOW THEY MUST KEEP UP, BUT THEY ARE NOT. 79% say it's important 68% report that they are ineffective in identifying disruptive changes earlier than competitors. to respond quickly to change. | 100% Nearly 50% say that over the past five years, the time to make critical decisions has increased. 80% 60% 32% say it takes years. 40% 20% 40% say it takes months to make a decision critical to performance. 0% 365 30 FACTORS AFFECTING THE PACE OF BUSINESS CHANGE OVER THE PAST FIVE YEARS 10 20 30 40 50 60 70 80 90 100 39% BIGGEST FACTOR: Volatile economic environment 36% T Increased competition 29% Fast-changing regulatory environment 28% Rapid change in customer preferences 26% Changing technologies 26% Rise of emerging markets 20% More complex supply chains 18% Growth of online business 12%7 Growth of social media 7% SMALLEST FACTOR: Demographic change 10 20 30 40 50 60 70 80 90 100 TYPES OF CHANGE TO WHICH ORGANIZATIONS FIND IT MOST DIFFICULT TO RESPOND 100 MOST DIFFICULT: Volatile economic environment 90 LEAST DIFFICULT: Demographic change 80 ge in 70 Increased competition y envirullud 60 l-chang u Rise of emergi chnologies 50 supply chain Changing technologies 39% 40 ucing 32% 29% 29% Growth of Cocial me 30 23% 20% 20 19% 17% 15% 10 5% BARRIERS SLOWING BUSINESS RESPONSE TO CHANGE (LARGEST TO SMALLEST) 34% S 35% 28% Lack of coordination across Lack of resources to implement change different functions needed Inaccurate or to affect change incomplete data 25% 24% 22% Bureaucratic decision- making process Reluctance among senior executives to Lack of change strategy leadership 21% 21% Lack of autonomy for managers/executives 22% Reluctance to admit that previous strategic decisions were wrong Lack of innovation capability SO WHAT DOES IT TAKE TO BE A RESPONSIVE BUSINESS? SOURCES USED TO IDENTIFY CHANGE IN THE EXTERNAL ENVIRONMENT 61% 46% 42% Customers 33% Customer or market analysis In-house research 33% Partners BI systems FACTORS THAT ENABLE EFFECTIVE CHANGE 1. Strong leadership 7. Flexible business relationships 6. A flat management structure 8. Outsourcing/flexible business models 2. Effective flow of information 5. Ability to shift resources quickly 4. Accurate and up-to-date data 3. Decentralized decision-making THEN, WHAT'S THE PROBLEM? DECISION DISRUPTIVE LEADERSHIP MAKING CHANGE PROBLEMS AGENTS - 26% say everyone's responsible for identifying key sources of change The most disruptive change agents are also the most difficult to respond to: - 20% blame executive board - Volatile economy - Increased competition - Rapid change in customer preferences - 35% lack of resources 1 34% lack of coordination across functions - 28% inaccurate/incomplete 53% say: data Ineffective in making the right decisons about how/when to respond to change WHERE'S THE OPPORTUNITY FOR RESPONSIVE BUSINESS? Technology plays a key role in helping today's businesses respond to change– and land new customers. 75% Communication Technology Emerging Markets 70% 65% Social Media Online Business 62% Demographic Changes 56% Regulation 47% Customer Behavior 45% Competitor Behavior 45% Macroeconomic Development 44% "Based on research by Progress Software/Economist Intelligence Unit Research, September 2011. "Pew Research Center, Pew Internet: PROGRESS software 'Pew Research Center, Pew Internet http://bitly/mZTMtj BUSINESS MAKING PROGRESS. "U.S. Government Census: pdf custome xajduoa ajoA Growth of online business

Making 'Cents' of the Shifting Business Landscape

shared by rmmojado on Jan 24
Last fall we collaborated with the Economist Intelligence Unit to look at how companies around the world are responding to the rapidly increasing pace of change in business. While I touched on some of...


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