A perfect storm is changing the ground rules

Is your industry threatened? Here are the signs you must look for

The perfect storm, or Nexus of Forces, occurs when all the powerful forces strike at the same time. The digital revolution could be compared to such a storm, and what has happened is that the five so-called “super forces”, the Super Disruptors, have struck simultaneously.

All these forces, and the interaction between them, will change the ground rules in most businesses going forward. For tradition-bound organisations running on autopilot, these forces represent a major threat. For companies with the willpower and capability to explore new and modified business models, they represent a unique opportunity for growth and development.

Dessa krafter och samspelet mellan dem kommer att förändra spelreglerna för de flesta företag framöver. För traditionstunga organisationer på autopilot är de ett stort hot. För företag som har viljan och förmågan att utforska nya, justerade affärsmodeller representerar de i stället en unik möjlighet till tillväxt och utveckling.

In practice, the digital transformation means that development will become smarter, simpler and less costly. In other words, there will be more effective connections between supply and demand.

What customers are wondering about

Surveys indicate that a large minority of companies feel they have mastered digitalisation to an extent that helps them differentiate themselves from their competitors.

Are we certain that we really understand what types of changes we are facing?
Could hyper-platforms, and the dynamics they create, be a threat to us?
Which start-ups could be a threat to us? How can we monitor them all?
Do we need to focus more on the changes we expect to occur in our industry, rather than on who will try to take our place in the value chain?
I am quite certain that we WILL be significantly challenged in the coming years. How can we challenge other players in our own value chain or the value chain of others?
Who can help us understand the connection between business, society, consumers and digitalisation, as well as see our stack and further into it?

Do you have smart, simple and inexpensive connections between supply and demand?

It is not only about establishing an e-commerce web, continuing the business online or creating an app. This type of focus generally results in much confusion, and there are far too many examples of this happening.

It is about opening new markets by reducing transaction costs and linking supply and demand more effectively.

Here are the signs you must look for

Your business model is vulnerable if these four things are true

Customers must cross-subsidise other customers.
Your customers have to buy the whole package when they actually only want a small part.
Your customers are unable to receive their goods where and when they want to.
Your customers receive a user experience that does not correspond to global best practice.
High level of asymmetric information between customers and suppliers
High search costs
Fees from communicators
Long lead times for completing transactions
Information or social media can significantly enrich your product or service.
You offer a physical product such as thermostats, say, which are not yet connected
It takes too long from when customers buy the product or service, until they receive it.
The customer has to collect the goods – for example, rental cars or groceries.

The business model can be vulnerable if these four transaction challenges arise

The business model can be vulnerable if these reinforced value proposals are offered by others

To create genuine value, you could consider the following measures

Big international consultancy firms such as McKinsey, Gartner and BCG have in many ways concluded that companies must be capable of seeing things from both a short-term and a long-term perspective. Terms like “The Double Game”, “BiModal IT” and “Focus In”. “Focus Out” flourishes.

The Internet of Things – in which everything is connected, big data and advanced analyses,

the cloud, cognitive data processing and artificial intelligence, robotics and 3-D transcripts will change virtually all industries. “Mobile First” and SoMe strategies are crucial to success in the dialogue with the consumer.

To create new business opportunities, we invite you to participate in 6 independent activities

To define a strategy that focuses on building a competitive edge in “the double game”. This provides insight into short-term “no regret” measures, as well as more transformative initiatives. These decisions prepare the ground for the next five activities.
Redefine the customer experience and investigate how you can eliminate frustrations, as well as surprise the customer with an upgraded service today combined with the opportunity to take some quantum leaps in an improved customer experience tomorrow.
Rethink offers and business models to prepare to create new products and services, often by utilising new data and powerful analysis tools.
Re-engineer business processes by utilising digital technologies to simplify processes and increase efficiency.
Expand the company’s strategic resources, perhaps by collaborating with external partners, to create new platforms, develop new ways of working, new business models and other building blocks in a digital transformation.
Increase the pace of transformation by increasing the speed of learning, expansion and change initiatives.

Have a chat with one of our experts and challenge us on how your critical business processes can be improved.