Monday, June 19, 2017

Predicting the future driven by technology

Innovation in technology and understanding the market demand has proven to be an important factor in the growth of an organization, whether be it networking giant CISCO, e-retail king AMAZON or Alibaba. These organizations are driven by the zeal to understand the customers demand. Keeping customers at the center they have built their business empires around it.
Some of the major factors which played a crucial role in the sustained growth of the organizations are:

1)Predicting the Future: Anticipating the market trend and reacting accordingly has proven to be fundamental for a successful business. The prime example is Alibaba’s founder Jack Ma. He saw the opportunity presented by the internet to be able to reach out to millions of people and he planned on providing them with the products of their interest from the comfort of their home. This was a revolutionary idea of foreseeing the usage of the internet before anybody else. It not only gave him the competitive advantage of a head start but also established Alibaba as the market leader in China. [1]

2)Embracing Technology: Embracing technology to build an infrastructure which can continually improve, enables these companies to be able to keep up with the ever-growing expectations of the customers. According to Jack Ma “Throughout history, technological disruptions have followed similar trajectories: 20 years of technological disruption followed by 30 years of further rapid change as new technologies are applied throughout society” (Cxotoday.com, 2017). [2] Having this ideology in mind Alibaba has built up its own cloud infrastructure called Alibaba Cloud, which is generating huge revenues by hosting about one-third of the china’s websites. Further diversifying its business to the Alibaba Cloud Internet of Things (IoT) offering services such as ability to build application capable of gathering, processing and analyzing the data coming from the IOT devices such as BLE etc. [3]

3)Understanding Market Transitions: Sustained growth requires companies to understand the market transition, failure to do so can lead to the downfall of the company. The transition can happen owing to changes in technologies or trends in customers’ demands. It requires bold steps to see the transition as an opportunity, being the market leader the companies are expected to repel the change because of the fear of failure. For instance, the Music industry has seen a huge transition with the digitization of the music. With the increase in the number of digital devices such as iPod, smartphones, and tablets, digital music consumption has increased. The companies such as BMG, which were huge in the music industry failed to understand the transition from the sheet music to the digital music, thereby failed to sustain their growth eventually their market share plummeted resulting in its acquisition by SONY. [4]

Thus, it is important to make proactive efforts towards understanding the market and developing technologies. This enables the organization to make bold changes in the process by adopting the new technology. “Complacency makes an organization stagnant, it’s the zeal and enthusiasm of a start-up that invokes the spirit of experimentation, eventually leading to sustainable growth.” [5]


References:

[1]http://www.businessinsider.com/inspiring-life-story-of-alibaba-founder-jack-ma-2017-2/?r=AU&IR=T/#he-received-more-than-a-dozen-rejections-including-from-kfc-before-being-hired-as-an-english-teacher-ma-was-a-natural-with-his-students-and-loved-his-job-though-he-only-made-12-a-month-at-a-local-university-5
[2] Cxotoday.com. (2017). Leadership Lessons From Alibaba CEO Jack Ma [Infographic] - CXOtoday.com. [online] Available at: http://www.cxotoday.com/story/leadership-lessons-from-alibaba-ceo-jack-ma-infographic/ [Accessed 17 Jun. 2017].
[3]  https://intl.aliyun.com/solutions/IoT
[4]https://www.slideshare.net/abhishekjhaeecs/group-1case-presentationbmg-entbus-consulting

[5] https://hbr.org/2015/05/ciscos-ceo-on-staying-ahead-of-technology-shifts

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