Today’s marketplace is fraught with challenges for organisations.
Whilst many companies become more accustomed to this new environment, strategy departments will be under increased pressure to create inventive strategies that allow their companies to both side-step and embrace drivers of change.
These pressures are not independent from one another, far from it, they all work together in unison, feeding the competitve environment in which companies now operate.
The term ‘digitalisation’ has been bandied about over the past five years as the most prominent driver of change and whilst it has been central, it’s arguable that its effects have yet to touch the surface.
The IoT is set to revolutionise the way organisations work, especially in Manufacturing, Energy and Healthcare. With Morgan and Stanley predicting that 75 billion devices will be connected to the internet by 2020, companies will profit from more precise manufacturing, predictive maintenance and an ability to track inventory in real-time.
With this in mind, the IoT is a trend which companies will have no choice to pick up on if they’re to maintain their competitve edge.
Very much connected to ‘digitalisation’ and the IoT is the continual pressure that organisations have to perform on social media platforms.
With the number of channels seemingly increasing all the time, the world of social media can be a field which companies fear. Numerous stories have come to the fore which demonstrate how damaging poor social media campaigns can be to a company’s image, so it’s imperative that marketing departments understand their brand and the ideals which resonate with their consumers on specific channels.
As a driver of change, social media has meant that companies have had to shift their focus when it comes to customer interactions as well, prioritising personalisation over mass-communication efforts. It’s also meant that companies need to look at producing content as consumers become more savvy and unwilling to be force-fed ‘click-bait’ articles.
As a function of social media, globalisation also represents another challenge, as major companies are now forced to address issues that occur on an international basis.
Aside from this, globalisation affects treasury departments ability to create effective operational models and throws a wide range of new banking protocols at their feet. This has meant that organisations have had to be more vigilant over the control of their finances, as to decrease the chances of fraud and bankruptcy.
Above all else, the sheer speed at which technology is developing and the public’s continual acceptance of it, means that disruptors will forever be lurking in the shadows, ready to dethrone their larger rivals. Whether it’s the emergence of the cloud, robotics or the IoT, they all rely on innovators who want to build streamline strategies.
For strategy departments, it’s never been more important to be vigilant and ready for whatever today’s marketplace has to offer. Challenges and changes are difficult to predict, but whatever way you look at it, this is one of the most exciting and difficult times to be involved in company strategy.