With change and disruption on shorter timescales becoming commonplace in business, strategic planning may be on its way out in the form it currently takes — planning for long periods of time. Here are seven reasons the marketplace is forcing business strategy to change, adapted from an article from Forbes.
1. Disruption, rather than incrementalism, is the new name of the game. Consider Uber's effect on the taxi industry.
2. Modern innovation is occurs more frequently and changes markets more drastically than ever before. Once an innovator appears in a market, competitors can become completely irrelevant in very little time.
3. The past is no longer a good predictor of future success. Highly successful companies of several decades ago may have strategy maladaptive for today's world.
4. Siloed sectors are a thing of the past, which means competition could come from any front at any time.
5. Information is everywhere. The new challenge is not finding information: It is using abundant information well.
6. Forecasting option values becomes a guessing game when products are conceptual, an increasing business trend.
7. Executing strategy over time is a luxury of the past. Today's successful companies tend to be more reactive.
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1. Disruption, rather than incrementalism, is the new name of the game. Consider Uber's effect on the taxi industry.
2. Modern innovation is occurs more frequently and changes markets more drastically than ever before. Once an innovator appears in a market, competitors can become completely irrelevant in very little time.
3. The past is no longer a good predictor of future success. Highly successful companies of several decades ago may have strategy maladaptive for today's world.
4. Siloed sectors are a thing of the past, which means competition could come from any front at any time.
5. Information is everywhere. The new challenge is not finding information: It is using abundant information well.
6. Forecasting option values becomes a guessing game when products are conceptual, an increasing business trend.
7. Executing strategy over time is a luxury of the past. Today's successful companies tend to be more reactive.
More articles on turnarounds:
10 things to know about ophthalmology
4 steps to building a corporate culture
8 critical healthcare law issues for ASCs