A friend of mine gave me the recent report published by IBM on THE ENTERPRISE OF THE FUTURE. The report is based on the survey done by IBM with more than 1000 CEO's & public Sector leaders worldwide. The survey was conducted by IBM teams, having face to face & telephonic conversations on how they think the enterprise of future will be. Here's a brief summary of the report
The report highlights five major points that are traits of tomorrow’s enterprises:
1. Hungry for change
2. Innovative beyond customer's imagination
3. Globally Integrated
4. Disruptive by Nature
5. Genuine, not just Generous
1. Hungry for change: the report highlights that the enterprises will be changing rapidly. Ability to change as well as change management will be the two ideal traits of organizations. Market Factors, people skills & technology will be the key factors forcing organizations to change. Inorder to change, the companies need to accept change as a state of being, hire & reward innovators who will be change agents, transform change programs for key business outcomes & have to operate like a Venture Capitalist.
Example of ABB is given as a case study
2. Innovative beyond customer's Imagination: The ever increasing knowledgeable consumers can be seen as Threat and opportunity as well. Many CEO's consider it as an opportunity to serve these informed & collaborative customers. Outperforming Companies are investing more to serve these sophisticated consumers inorder to delight them. Companies are Innovating by making their offering more relevant to new markets, connecting their resources to customer & having deep relationship with them & using technology to anticipate change faster than competition.(eg: Virtual World to gain insight & faster feedback)
Example of Nintendo is given as a case study.
3. Globally Integrated: The enterprises in the Future will be Globally Integrated with each other. Companies are also changing their business designs to facilitate faster & more extensive collaboration. The report highlights that Global integration will also be through mergers & acquisitions.
Example of Li & Fung Limited is given as a case study.
4. Disruptive by Nature: Report mentions that most CEO's are embarking on extensive business model innovation. The Outperforming companies are going one step ahead and pursuing Disruptive business model innovations. The report mentions that CEO's are largely focussing on business/enterprise model innovation with next focus on revenue model innovation followed by multiple types & industry model innovation. The enterprise of future will think like an outsider and will challenge every assumption about its business model, It will draw breakthrough Ideas from other industries, empower entrepreneurs, experiment creatively in market & not just in lab and will manage today's business while experimenting with tomorrow’s model.
Example: The case study of Eli Lilly and Company is given
5. Genuine, not just Generous: Report mentions that CSR activities are taking considerable amount of CEO's time as they affect companies image at the same time impact today's eco friendly consumer's purchase decision. Report also highlights that companies are viewing CSR initiatives as an opportunity to differentiate their company from others. Companies are increasing their investments in CSR initiatives and will gradually involve NGO's & other groups. So instead of being forced to do CSR activities, companies will genuinely be interested in taking these projects which will make world a better place at the same time make business sense.
Example of Marks & Spencer is given as a case study.
The IBM report throws interesting points about describing how the enterprises of Future will be. As pointed out Innovation, User & Environment focused will be the key focus areas of Enterprises of Future.
Think About it
Image Source: IBM.com