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Questions: 1. Essentially for Amazon to move to the B quadrant, he had to start off at the S quadrant right? Open navigation menu. Close suggestions Search Search. User Settings. Skip carousel. Carousel Previous. Carousel Next. What is Scribd? Business of The 21st Century. Uploaded by Justin. Document Information click to expand document information Description: Business of the 21st Century.
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Jump to Page. Search inside document. Related Interests Wealth Economies Business. Documents Similar To Business of the 21st Century. Ariees Smart. JBS RI. Valdemar Miguel Silva. Cacai Monteron Peralta. Budi Yuda Prawira. Richelle Manocay. Anonymous TQkW. Jha Jha CaLvez. They mark the start of a long In summary, the whole story transition in how society thinks can be wrapped into three about itself.
The businesses that win will have redesigned themselves. What to do Do you understand The whole The whole What leading- How wider context in life cycle edge brands trends are which your of your and customers shaping the customers products and are doing in expectations are using your services?
On the supply side, the but there is increasing briefly here:4 number of hectares per head evidence that the extreme available for food production weather events across the is falling, and the proportion globe are being intensified 1 Population: The world of agricultural land that is by climate change.
On the seven billion and is demand side, as per capita expected to reach eight billion incomes increase in emerging by Most of those new markets and more meat and people will be born in Asia and dairy produce are included in we expect to see the rapid diets, demand becomes growth of mid-size cities on more intensive. Energy: Demand for energy is falling in richer countries because of 2 Water: A whole swathe efficiency and social change , of countries and regions while it is rising in emerging on both sides of the economies that are far less equator are showing energy-efficient.
Supply, increasing signs of water meanwhile, is static or falling. One of 8 insurance and changes to the most significant changes in Digital technology: supply chains.
From an on many fronts. Researchers have the ability to automate new demonstrated a weak areas of work. Second, these five macro- connection between economic forces speak to the idea of growth and wellbeing.
He argued inequality. This tends to be resource flows by increasing The Limits to Growth in through a risk management flows of data and knowledge. The real wellbeing needs rather to be a fairly accurate guide left-hand side of the journey is than creating wants, thus to outcomes in the characterized by a defensive retuning the business to new 40 years since. Over the past two decades, The internal configuration of since John Elkington On the right-hand side of the the business is an essential published his influential journey, we see disruptive platform for its external-facing Triple Bottom Line approach, innovation that reconfigures business.
Taken together, the progressive businesses have current business models two right-hand spaces on wrestled with how best to see Exhibit 1. In terms the matrix represent the 21st respond to sustainability and of the internal business century business. In the rest resource issues. We left by looking internally, at or those selling goods and will explore six pillars that build the elements of the business lean systems for services the business of the future.
The businesses. Outcome Risk assessment Outcome Optimizing models The company is Expert consensus embedded in society and Cost-benefit analysis has moved beyond to net Aggregated beliefs positive resource use. Outcome Supply chain redesign, Outcome 1 3 changes in procurement. The end of waste, resource neutrality. It has moved from and uses information and resource efficiency to resource communications to link the 4. From volume to value neutrality.
It understands system together. From closed to open age of mass production. Increasingly, the 21st century It is more outward-facing, The conventional business will be about reducing mass, in seeing a changing external model is about ownership, both senses of the word, and environment as a source of especially of patents and wrapping products in a tailored potential rather than risk.
It is about It is designed for resilience, that are regarded as sources doing more with less. In of competitive advantage. From risk to opportunity for a different world. If this in a more porous way, letting seems like a familiar list, what the outside world in and Instead of treating its external does it look like in practice?
From fixed to fluid the regulatory landscape, characteristics. Briefly put: as a set of signs about the Businesses are dominated boundaries that society 1. From disconnected by fixed processes set by places on markets. Regulation to networked management models of becomes a platform for monitoring, control and innovation and change.
Whatever the business direction. It makes them rhetoric about seamless unresponsive and inward- integration, businesses are looking. The fluid business often internally disconnected instead takes its rhythm silos separated by function. From consumers to citizens Exhibit 2: The six pillars of the 21st century business Customers are more than consumers at moments of purchase or moments of truth. What they consume and why is increasingly embedded in the context of their lives.
To bring these six principles to life inside the business, we also have developed three guiding principles. See page From disconnected to networked Technology, then, can help create the networked business, but only when it is applied with the right mental models. So what does a business look like when thought of as a system? It moves from value chains to value networks. Resource But businesses are still too their failings.
The micromanager use and consumption become often a set of functions divided with a Blackberry can increasingly important to by a common ownership micromanage even more the design of the business structure.
Or worse: business intensively; the cc and bcc process, along with reusing planning processes, with functions on email can, in the waste. It understands how their emphasis on functions, wrong culture, elevate turf wars to manage demand that is departments, headcount and to new heights.
Most large organizations are Such a business will, It is easy to assume that still built on a Newtonian mental increasingly, move towards pervasive technology will fix model of levers and pulleys, but having the circular economy at this problem, creating flows the rest of the world has moved its heart. For example, Philips, of information and better on to newer networked models the electronics and appliances monitoring of business based on systems, complexity company, has made the performance.
But this gets and emergent behavior, as circular economy part of its things the wrong way around. Eric Beinhocker observes in strategic thinking and mission.
When technology is applied The Origin of Wealth. The as a by-product is either used U. Digital technology has created new horizontal relationships between employees, citizens and consumers, and blurred the roles between them. Any business that understands the lifetime flows First, the networked business of its products, services and doesn't create external customers, and can track costs for society as a whole, them, is creating data about in the form of pollution, usage, and can wrap this carbon emissions and so on.
So, businesses have already problems in water-stressed for example, an appliances moved on the idea of the parts of the globe. Restorative concluded that the key to than afterwards. From closed to open becomes a source of competitive advantage. In the 21st relevant IP and other century we also will be defined resources. So far 50 new by how we share and what we partnerships have been give away. The part. You need to open up your business, build partnerships and shift your mindset to develop an outside in way of working.
Letting Image source: CodePlex the outside in to One of the large transitions In this world, the successful shape not just your here, compared with the organization becomes a thinking but your business strategy models beacon for ideas, plugging of the 20th century, is a itself into relevant networks actions too. Market as an active agent for change Moving away competition is no longer a and innovation. Sometimes decisively from the zero-sum game, in which, if I this is thought of as a venture lose, then you must win.
As well as capital and even reached the edges of and business expertise, it Mike Barry, mainstream economics. From fixed to fluid The structures he developed— centralized administration and decentralized operations, in which the center measures, monitors and directs—still shape the modern business world.
They still define to a significant extent the content of most MBA courses. But they are losing their relevance. Over the course of 15 years, later by Alfred Chandler in starting in the s, Alfred his influential management At the heart of this Sloan wrote the manual on book Strategy and Structure, organizational model is the how to run the 20th century and also by Peter Drucker. It works reasonably of the most successful and make it more predictable, and well in stable or expanding admired companies in the how to ensure managers at all markets, but not so well in world for around 40 years.
In reshaping the business, to manage their part of When markets are less Sloan was trying to impose the business. The digital rolling quarterly budgets, unpredictable demands of its revolution has extended devolved responsibility and customers on building sites. Instead, them. Smarter companies And goals are set against it loads its cement trucks in have used this as a way to external benchmarks rather the morning and dispatches move from input-driven work than internally agreed them without any customer models to structures which targets.
Others have abandoned conventional used it as a way to create budgeting in , has more one-sided relationships consistently outperformed with employees, through the sector since. Statoil, the introduction of zero- meanwhile, has moved hours contracts and similar beyond calendar-based Image source: CEMEX Panama, Flickr arrangements.
Ethics matter. The many customers as rapidly allow more fluid responses to Mexican cement company as possible, stay as far away customer problems without Cemex, despite its recent from other cement trucks compromising the culture of financial problems caused by as you can, and ensure that the business.
These were formulated as Theory into the past. In this it aligns with many of the Juergen Daum. From volume to value Some of the most striking innovations have been in the business-to-business B2B sector.
Rolls-Royce, for example, no longer sells aero engines: instead it sells flying time as measured by a certain number of engine-hours. Ever since function of arithmetic. But it is a trend that has ago, ownership is becoming It manages city lighting acquired a new urgency in less important than access. On the smaller environmental footprint.
Blablacar and carpooling. Meanwhile, Avis has strategies available to compete with rail and entered the sharing economy increase value relative to bus services.
These are outlined in technologies, and these will Dupont and Interface rent Exhibit 3. In many cases, these become more sophisticated floor-covering facilities, will be combined, as in the over time.
The repair strategy, rather than selling carpets; Rolls-Royce example above: for example, will increasingly Schindler leases transport the product is now rented to be supported in the consumer units inside of buildings rather users rather than sold, and world by Internet-enabled than selling lifts; SafetyClean one of the consequences is sensors embedded in products.
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