Seven Realities that Jeopardize Business Survival: Part I
In Information Revolution, Jim Davis, Gloria J. Miller, and Allan Russell discuss the “Seven Realities that Jeopardize Business Survival.”[i] Each reality illuminates the need for new business models as well as styles of leadership.
Business Reality 1: Business Cycles Are Shrinking
In today’s Web-enabled economy, speed within all parts of the business model is the great differentiator. To accommodate changing markets and consumer preferences, product development and testing that used to take years has been shrunk to months or even weeks. Today, the first to market often enjoys the competitive edge.
This shortened cycle challenges managers to make decisions with less time for consideration or analysis. As a result, they must depend on a combination of accurate, actionable information and intuition. And their decision must be in alignment with the overall strategy of the company.
Business Reality 2: You Can Only Squeeze So Much Juice Out of an Orange
The goal of improving operational efficiency drove a majority of the investment in the last decade. Initially the returns were high and provided a competitive advantage. However, now that enterprise resource planning (ERP) software is available, the field has been leveled. The next step is greater innovation and agility.
Business Reality 3: The Rules Have Changed; There Is No More “Business as Usual”
The days of following a typical path to business success are over. The same factors apply: profitability, customer satisfaction, stakeholder value, and competition. However, the path to success is very different and is fraught with new challenges:
Mergers and acquisitions have hindered agility and cohesiveness.
Productivity advancements have increased expectations from both customers and management.
Advancements in IT have overwhelmed the abilities of some companies to manage and leverage the knowledge.
The technologies that were introduced as the key to success often failed because the human issues were overlooked.
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[i] Jim Davis, Gloria J. Miller, Allan Russell, Information Revolution (Hoboken, NJ: John Wiley & Sons, 2006), xv.