Enterprise of the Future
17 th National Convention of
The Institute of Management
Consultants of India (IMCI)
January 21, 2011
Dilip M. Sarwate
Professor Emeritus & Certified Management Consultant
Are you worried about the future?
Of what?
•Economy
•Technology
•Polity
•Any other?
This presentation is based on a
study of conversations with more
than 1,000 CEO's and Public
Sector Leaders worldwide.
IBM Global CEO Study
How research was conducted?
 The study was done in 40 nations around the world, 32 different
industries, 19 % companies employing more than 50,000 employees
and 22 % employing less than 1000 employees
 Research is based on surveys of 1,130 CEO s, general managers and
senior public sector and business leaders from around the world.
 IBM leaders conducted more than 95 percent of these interviews face
to face. The Economist Intelligence Unit administered the remainder
by telephone.
 The sample breakdown was Japan (121), Asia Pacific including India
(248), European Union (364), Non European Union (39), North
America (290) and South America (68).
Introducing the Enterprise of the Future
These findings — across industries, geographies
and organizations of different sizes — paint a
surprisingly similar view of the traits that we can
believe will be needed for future success.
At its core,
Enterprise of the Future is …
Session I
Hungry for Change
CEO’s foresee significant changes
ahead. But their confidence in their
ability to mange the change is not
nearly as high.
What are the major
change drivers?
Who manages change
better?
Implications
 Accept change as a state of being. It will be
the only constant
 Hire, position and reward innovators and
change leaders
 Focus on delivering business outcomes
 Operate like a venture capitalist
Session II
Innovative beyond
customer imagination
Implications
 Find ways to make offerings relevant to new
markets and increasingly prosperous
consumers
 Understand timing and network effects
 Connect everyone to the customer. They are
the best idea generators
 Use technology to anticipate shifts faster
than the competition
Session III
Globally integrated
Implications
 Integrate capabilities globally to
differentiate
 Build carefully calibrated global business
design through Mergers & Acquisitions
 Find and eliminate integration barriers
 Groom global leaders
 Recognize the importance of social
connection within and across organizations
Session IV
Disruptive by nature
Implications
 Think like an outsider
 Draw breakthrough ideas from other industries
 Empower entrepreneurs (Create Intrapreneurs)
 Experiment creativity in the market, not just in
the laboratory
 Manage today’s business while experimenting
with tomorrow’s model
Types of Business Models
 Enterprise model: Specializing and reconfiguring the
business to deliver greater value by rethinking what is
done in-house and through collaboration
 Revenue model: Changing how revenue is generated
through new value propositions and new pricing models
 Industry model: Redefining an existing industry,
moving into a new industry, or creating an entirely new
one
Session V
Genuine, not generous
Implications
 Understand Corporate Social Responsibility
(CSR) expectations
 Inform but do not overwhelm
 Start with green
 Involve NGO’s as part of the solution
 Make work part of making the world a
better place
Executive Summary
 Organizations are bombarded by change, and many are
struggling to keep up.
 CEO s view more demanding customers not as a threat, but
as an opportunity to differentiate.
 Nearly all CEO s are adapting their business models, twothirds are implementing extensive innovations.
 CEO s are moving aggressively toward global business
designs, deeply changing capabilities and partnering more
extensively.
 Financial outperformers are making bolder plays.
There is one more attribute evident
in CEO’s responses despite the
challenges and issues it faces.
The Enterprise of the Future is
fundamentally optimistic
What do we learn from this study?
 Rapid changes are observed in business, technology and




global markets
Need to reinvent the products & services to globally
integrate and change the way we work with our clients,
approach to R & D, workplace practices and way to run a
company
Boldest plays pursuing the most global collaborative and
disruptive business models innovation are outperforming
peers.
Statistical and financial analysis will provide a unique
perspective on the future of enterprise.
Proof of any leader’s decisions is in their outcomes
Is something missing?
Yes
The Competition!
The Competitive Environment
Competition will emerge from…
 Similar or substitute products/ services
 From organized as well as unorganized sectors
 From low cost economies like BRIC (Brazil,
Russia, China & India) and many other emerging
economies like South Korea, Taiwan, Malaysia,
Thailand and many others
It will necessitate investing in
Competitive Intelligence
What is Competitive Intelligence?
 Competitor Intelligence: This will call for
compiling data on who is your competitor, what are his
strengths & weaknesses, how does he react to your
strategies and so on. This is called Competitive
Reconnaissance
 Competitive Intelligence: This will include all
factors in the world and changes thereof which can affect
your competitiveness.
 Few examples include Kargil, 9/11 and 26/11.
 CI is futuristic, proactive and decision support system
(DSS)
One more thing that will be crucial.
That is developing a Global
Strategy.
Remember Strategy is King
Developing a Global Strategy
 Researching the markets
 Defining the target markets
 Evaluating the competition
 Competitive positioning
 Strategic alliances
 Brand building
 Manufacturing efficiency
 Faster innovations
 Efficient logistics
Ultimately, what will
matter is your
Competitive Advantage
A passive company will soon face
Extinction
An adaptive company will manage to
Survive
It is only a creative company which
can hope for Phenomenal Growth.
This is going to be the
Mantra for building your
Enterprise of the Future
Use, re-use and keep on refining
Success will be yours
Thank you
&
Best of Luck