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Tuesday, August 10, 2010

The Enterprise of the Future: Disruptive by Nature

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CEO s can no longer afford to invest money and scarce management resources in activities that are not differentiating: they intend to specialize. While 38 percent of CEO s plan to keep work within their organizations, 71 percent — nearly twice as many — plan to focus on collaboration and partnerships. Pursuing more collaborative models to gain efficiencies, fend off competitive threats and avoid commoditization. Their end goal is to offer customers a differentiated value proposition according to IBM Global CEO Study titled The Enterprise of the Future.

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Business processes, as well as some products and services, are becoming more virtual. New delivery channels and electronic methods of distribution are overturning traditional industry conventions. And these advances are not just changing the way individual companies work — they’re creating entirely new industries according to the survey.
 
If the company is not ‘disruptive by nature’ it will be very difficult avoid commoditizing of its products or services. Future organizations cannot just capitalize on existing product advantage they possess. They need to continually look for ways to disrupt their own products and services. If they are not willing to do it, it’s quite likely that their competitors will be working on those products substitutes.  

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