Topics to explore Asia beyond? Global economy beyond? Our life beyond?
Jan 12, 2016
Topics to explore
Asia beyond?
Global economy beyond?
Our life beyond?
Outline for Food for ThoughtWhat are the new business trends?What are the new forms of
organizational structures?How about the digital economy?How would we fit in?What are the challenges?
Disclaimer
Everything you hear today will change
tomorrow.
I would like to do is to think outside the
box.
There is no way I can even begin to
cover all of the things you like to hear.
New Business Trends
The only constant is change
The advent of the digital economy
But the virtual world won’t replace the
real world
Four Areas of Change
Customers
Companies
Market structure
Global economy
Technology and Economy
Trends to watch ….
CustomersThe entitled generation: Generation Y
work hard, play hard sophisticated and demanding
Business strategies of the firm of the future
Profit = Revenues - Costs Increased competition and sophisticated
demands Strategies
Operational efficiency Continuous improvement Mass customization Expand value chain beyond traditional firm
boundaries
Economy Forecast
Faster move towards a global economy
Increased global flows of
capital, people, ideas, products and services
Market liberalization and deregulation
Business Trends Changing business environment
Specialization Management by Methodology and Franchises Object Orientation Decentralization and Small Business Temporary Workers Internationalization Service-Oriented Business Re-engineering
Need for faster responses and flexibility
Business Trends Specialization
Increased demand for technical skills Specialized MIS tools Increased communication
Methodology & Franchises Reduction of middle management Increased data sharing Increased analysis by top management Computer support for rules Re-engineering
Business Trends Decentralization & Small Business
Communication needs Lower cost of management tasks Low maintenance technology
Temporary Workers Managing through rules Finding and evaluating workers Coordination and control Personal advancement through technology Security
Business Trends Internationalization
Communication Product design System development and programming Sales and marketing
Service Orientation Management jobs are information jobs Customer service requires better information Speed
Organization Forecast Three phases: 1: “The Cowboys” -- unconnected,
decentralized decision makers 2: “The Commanders” -- centralized decision
making 3: “Cyber-Cowboys” -- Independent decision
makers acting on global information
Team-based networked organization
Hierarchical Structure
Analyze data
CEO
VPFinance
VPMarketing
VPAccounting
VPHRM
VPMIS
Layers of middle managers
Customers
CommandsCondensed reports
Collect
data
Decentralized StructureManagement Team
CEOVP VP VP VP VP
Fin Mrkt Acct HRM MIS
FinanceTeam
MarketingTeam
AccountingTeam
HRMTeam
SalesTeam
Franchise
Strategy
Methodology/Rules
Customers
CorporateDatabase
&Network
Virtual OrganizationAd-hoc, purposeful, re-configurable
task-driven organizationUnits are real and networkedOrganization structure is task driven
and dissolves itself once task is accomplished
Distributed: anything, anywhere, anytime
What Do Experts Think about Technology
Technology:
Internet will be the global infrastructure
Telecommunications speed - Gigabit Ethernet
Convergence of technologies: computer,
multimedia, telecommunications, art work, etc.
Global Markets
Accelerating global competition and increase consolidation
Alliances: … during the past 5 years
What to look for?Share know-how toward permanent
knowledge sharing and transferLeverage reward while lowering risksCapitalize on opportunities for changing
existing business cultureAllow for continual change (old
establishment and growing companies)
Lessons learnedStrategic alliances to counter light-
speed change
Focus on intangible resources with potentially far reaching consequences marketing know-how engineering talent
Looking at the Future Using ScenariosScenario is a narrative description of a
consistent set of factors which define, in a visionary sense, future business decisions (as outcome of the process)
Decisions are purposeful, novel, made under conditions of ambiguity and uncertainty that result in high impact outcomes
Importance of Scenarios in Forecast
Need to capture complex future uncertainties
Need to avoid extrapolationNeed to support mentality shiftNeed to richly define alternative futures
5 Steps for Scenario Development
Analyze the organization decision(s) Identify key decision factors that
influence outcomeAnalyze environmental forces
micro level: environment forces that influence decision factors
macro level: forces that set the context of the decision environment
5 Steps for Scenario DevelopmentBuild coherent and plausible scenarios
using iterative designUse selected scenarios for decisions
and strategies
Context Market deregulation of telcom industries
from national monopolies to global oligopolistic competition
communications will be faster and cheaper National I.T. Policies
I.T. as a priority for many countries -- developed and developing
Policies
Trends: The Global Network
Global business with E-commerce Convergence in telecom fees Towards mutual interdependencies
Flow of people, money, technology and ideas Basic skills for “players”
native language literacy English language competency Math, science, computer, business literacy Teamwork and cross-cultural competency
Characteristics Two models:
Market driven (entrepreneurship) Government support (invisible hand)
Hi-Tech is not evenly spread US-Europe-Asia
Success factors University research Entrepreneurship
IssuesSilicon Valley success … structurally
difficulty to replicateBut cooperation as part of a global
network is possibleGlobal information infrastructure
helps…but, national characteristics represents
certain barriers.
“Damned if you do. Doomed if you don’t”