Every company reaches a point where they have an existential crisis. This happens when the management team attempts to change with the changing dynamics of their marketplace while still trying to hold on to the past. The typical result is that they do neither well, and as a result, usually fail.
This is especially true today as technology is transforming business models in every industry. Mobile marketing is permeating more and more industries, and in the process is creating havoc with traditional business models. For example, the role of the salesman is being displaced with electronic product presentations and “how to” step-by-step videos. In combination with online comparison shopping there is no longer a need to talk to a salesman. Orders can be placed with a “click”.
Even if you still want to go a physical store electronic demonstrations and product presentations can be accomplished with a hand-held pad device by wandering product sales experts that can be supplemented with live product displays. Purchasing the product is accomplished on the same device that also produces a receipt by a convenient printer that is close by.
Large industrial firms have created sophisticated electronic interfaces with all of their suppliers so that in combination with their manufacturing control systems the entire purchasing function is automated. This has resulted in tremendous cost savings as these systems now generate orders electronically to insure “just-in-time” deliveries eliminating keeping large inventories.
As Big Data continues to feed predictive analysis software models that generate more accurate trends on consumer behavior, every company has to adapt to the reality of a changing marketplace. Unfortunately, for many, rapid change is hard to accept, but a natural part of the accelerated product life cycles that we have today. Technology is moving so fast that some products are obsolete within 3 to 6 months after their introduction.
Whether it’s your car, smart phone, or TV, the next generation is just around the corner. Where is your company in this complicated technology driven marketplace?