The pace of change in business and technology is constantly increasing and is the highest we have ever seen. In order to keep up with these changes, and continue winning in the future, organisations need to ensure they are future ready and be constantly innovating.
At the current churn rate, about half of S&P 500 companies will be replaced over the next 10 years. Companies need to constantly be aware of the market, their customer, and their own innovation practices to keep ahead of the game and be future ready.
The average lifespan of a S&P 500 company has decreased from 33 years in 1964, to 24 in 2016, and is expected to further reduce to 12 years in 2027. – innosight, 2018 study on turnover in S&P 500 companies
There are four key attributes which allow future ready organisations to operate in increasingly volatile, uncertain, complex and ambiguous environments.
Startups are increasingly disrupting industries by challenging traditional business models and offering customers new, innovative products. In order to retain market share, organisation need to be adaptable to changes in customer demand, new technologies and the competitive landscape.
In order to provide sustained vale to the market, organisations need to have the ability to quickly adapt to customer and stakeholder feedback.
"If you're good at course correcting, being wrong may be less costly than you think, whereas being slow is going to be expensive for sure" ~ Amazon CEO Jeff Bezos 2017
In 2013, Walker released a report that found that by 2020 customer experience rather than price and quality would be the main factor to winning the market. Organisations must put both internal and external customers at the centre of their strategy to be ready for this new future.
Future ready, innovative organisations are constantly asking themselves 'how to create value', and have an organisation framework which allows them to execute strategies and win these opportunities quickly.
Whilst organisations have been able to achieve some of the attributes of a future-ready orgnaisation, very few have successfully achieved all of them. To do this, organisations need to refocus on building out a set of capabilities that enable them to become truly future-ready.
We have identified six key capabilities of the future-ready organisation which provide an organisational framework for sustained success into the future. Organisations should build out these capabilities in order to be adaptable, agile, customer-centric & innovative.
Organisations need to refocus on building out a set of capabilities that enable them to become truly future-ready.
The ability to engage with customers ‘where they are’, utilise digital as a competitive advantage, have awareness of technological trends that may impact the business and both proficiency and pervasiveness of digital tools to enable future ways of working.
The ability to communicate, understand and empathize with customers, turning customer insights into action and putting the customer at the center of the design of new products, services and experiences.
3. Agile ways of working
The ability to work as small, high-performing, cross-functional, self-organising/managing teams focused on delivering value to customers rapidly and frequently.
4. Lean innovation & intrapreneurship
The ability to ‘innovate at the speed of a startup’, taking a scientific approach to validate risky assumptions to accelerate through concept development, product development and market development activities (applying rapid experimentation methods).
5. Business model design & innovation
The ability to innovate on existing business models, and design new business models. This combines traditional strategic management frameworks with lean innovation methods to search and learn in the unknown.
6. Evidence based decision making
The ability to extract data and insights that enable fast, effective, evidence-based decision making, whilst using data to better engage with and demonstrate value to customers, staff and stakeholders.
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