In the McKinsey report, “What Happens Next? Five Crucibles of Innovation That Will Shape The Coming Decade” it is clear that shifts in population, demographics, and global economic dynamics will result in the new power of emerging markets as key players in the global economy. Due to powerful shifts in birthrates and the composition of labor forces in markets such as India and China, the ways both established corporations and already established economies in the Western World will be forced to adjust in a changing economic landscape. Emerging economies are at the center of this shift, and, in some ways, will act as the stages upon which the next decades of innovation will occur.
The result of this significant change is the need for established organizations to make key adjustments to their business models, from top to bottom. As stated in the article, “Today’s unit share leaders will be tomorrow’s revenue winners–ignore them at your peril.” The ability of organizations to recognize the need to make appropriate shifts, as well as to effectively implement them, stands as a reminder to those of us studying strategy on a larger level to take note of the manner in which pieces of new information and the ability of organizations to effectively understand and identify emerging patterns within overall industry dynamics. Specifically, it is clear from this week’s readings that the understanding of the position of an organization within the current industry makeup can be considered in a way that leverages patterns that indicate emerging changes is a key requirement for organizations to remain competitive in markets that are often subject to near constant change.