_Futurization
Author: Dr. Bernhard Braunmüller, Partner at WAVESTONE
Enterprises are currently witnessing industry disruption on a fundamental level. Innovation cycles are becoming shorter and shorter while business models and entire industries must meet ever more complex customer demands at an increasing pace. This causes a conflict of objectives because it is impossible to implement everything with the same intensity. There is however, a solution.
Observe players such as Tesla and Airbnb and their successes. These companies have made waves in their respective industries, disrupting the traditional powers. The reasons for such disruption can be found within digital innovations that involve big data, something that is considered a megatrend. With this trend, there are drastic shifts in customer requirements that are increasingly difficult to satisfy whilst customers continue their constant willingness to change. Simultaneously, sustainability, environmental awareness, and social responsibilities are increasingly important in determining corporate actions. The crux of the matter is not how everything can be implemented with the same ferocity, but also to consider that which is diametrically opposed. This can lead to conflicting goals, forcing companies to strategically prioritise.
How do we manage this? One thing is clear, we must become bolder and not only invest time in optimising the present, but also extensively focus on the future. Now, more than ever, the future is becoming more important, yet we are not aware of the consequences it could have on our daily lives. It is in the best interest of companies to evaluate the viability of their operations in the future and define the required priorities to achieve their corporate goals.
Five Key Strategies to Ensure Future Viability
In order to provide companies with the required tools to ensure their future viability, we have identified five key strategies. Companies that adopt these strategies will be equipped to manage any, and all, changes the future holds. Our experience demonstrates that successful companies are already addressing these core strategies.
“Our new imperative. Think about the future every day and decide what you have to do next!”
Dr. Bernhard Braunmüller
Nevertheless, it quickly becomes apparent that not all five strategies can be implemented with the same level of intensity. The strategies that are adopted and the level of intensity chosen are dependent on an individual companiy’s goals, values and business model.
The future demands a whole new dimension of customer-centricity. Companies should be aware of their customer needs and more consistently align themselves with these needs. Only companies that fully understand and anticipate their customers’ “Individualistic Mindset” will be able to respond in a timely manner, which could ultimately prevent the customer from switching to another competitor. Additionally, pressure from an increasingly competitive economy is forcing companies to operate as efficiently as possible. These two objectives can lead to a conflict of goals.
The traditional luxury hotel is an example. At the hotel, customer orientation is a fundamental objective. This adheres to the expectations of their demanding customers however it comes at the expense of efficiency. A highly efficient handling of guests at reception would be unimaginable here, whereas a budget hotel chain can use this as an asset. Large online retailers like Amazon are often strong in the area of individual customer centricity, specifically in the area of product recommendation. This is the result of their strong data capabilities.
For more sustainability: Deutsche Bahn moves passenger and freight traffic from road to rail.
For more sustainability: Deutsche Bahn moves passenger and freight traffic from road to rail.
Conversely, Amazon experiences significantly more pressure from environmental organisations in the area of sustainability. This is an area where Deutsche Bahn, Germany’s national railway company, excels. Deutsche Bahn’s “Strong Rail” strategy is committed to shift as much passenger and freight traffic as possible to its’ environmentally friendly rail. Deutsche Bahn is also utilising data to improve other efficiencies such as comfort check-in for passengers and intelligent capacity planning of the rail network.
The remaining strategy is adaptability. To maintain the ability to adapt, companies should use self-monitoring to assess themselves and their ability to quickly adapt processes to bring about meaningful change. Traditionally, this is an area where large “physical” corporations struggle, specifically in comparison with “digitised” corporations.
“This is important as there is no universal approach to integrating the five strategies. It is and remains highly individualised and this is precisely where the opportunity lies for everyone.”
What is your potential for the future?
Using the five strategies effectively is a good method to develop policies for the future and applying them directly to specific measures. This can potentially be a transition from past ideals that have been integral to past and present success, however, the path to future viability can be an intense and radical process. Do you already know where your future potential lies? Let us embrace it together and fill your future with life!
Dr. Bernhard Braunmüller
Partner at WAVESTONE
Dr. Bernhard Braunmüller studied computer science at Ludwig-Maximilians-Universität in Munich and later completed his Master of Business Administration at Warwick University (UK). Before joining WAVESTONE, Bernhard worked for many years in the areas of strategy, organization, process consulting and IT systems integration at various consulting firms. He was also Chief Strategy Officer and Global COO at an international high-tech company. Beyond consulting, Bernhard is interested in topics such as applied psychology and behavioral economics.
