History has recorded several megatrends that have influenced the world of business. These megatrends impacted positively on modern businesses by hosting innovations such as computers, the internet and so on. Smart companies and executives had to re-position themselves strategically to benefit from those eras.
Initially, the business sphere went through an awakening of quality being a strategy for competitiveness. The Quality Movement subsequently gave way to that of Information Technology and predictably, business enterprises had to readjust in order to survive.
At the inception of the Quality Movement, some executives thought that high quality and affordability could never be at par. Until it become a core requirement; companies then needed to merge quality and yet present value at affordable prices whilst reducing their cost of production. For a long time, some companies rode on the waves of quality and grew in leaps and bounds. Soon after, a new demand arose; the need for technological advancement.
Then, another race began with companies needing to upgrade their business methods to mark-up a high demand and productivity. The use of trendy technological innovations like computers became a necessity for improving business efficiency. The introduction of IT into the business sphere brought about a revolution that spurn huge returns on investment for companies and executives who leveraged on it and adapted according. Some totally embraced it and went ahead to transform their entire business models. This gave birth to the recent online business platforms and companies going digital. By the time the skeptics could catch up, smarter companies had gone far ahead in growth and profitability.
Now with the sustainability megatrend, it has also become expedient for companies to further realign themselves appropriately to survive, retain relevance and remain competitive. Even whilst creating products or making key decisions, issues affecting sustainability must be put into consideration.
Sustainability issues revolve around the environment, climate changes, decreasing natural resources, industrial pollution, and so on. These have become concerns to both investors and the government and should also be acknowledged by company executives.
Moreover, to incorporate sustainability, companies need to pass through four stages of value creation which are: Doing Old Things in New Ways, Doing New Things in New Ways, Diversifying Core Business and Integrating Brand and Culture. These are after they must have reduced their risks and cost of production, developed strategies for enhancing value creation and imbibed the new methods and business lines into the company’s brand and culture.
Image Source: The Sustainable Business Edit
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