Explore breakthrough markets beyond boundaries
What does it mean actually ? As I mentioned in my writings before, world is changing. This is not new stuff. It was changing and will change in future. The point for Next Generation CEO is how you adapt yourself and your organization with this change. Today, this change is named as digitalization. It was named millenium before. Experts are good and creative enough to find fancy names. To keep your business ongoing and grow, to create new business models is essential. It basically means to find new ways to promote your products and solutions as well as to create new bundling methods for digital solutions.
Today's change is more revolution than evolution. So it has bigger impact area. we see "game" totally changing instead of "rules" change. You have no choice anymore but adapt. Otherwise you will die as company as we see lots of examples nowadays. Utilizing strategic mindset means to give better and different and especially disruptive value proposition to customer. This is basically creating new business models in parallel to digitalization. Before focusing on new markets, we should think about three important points that should be considered.
First one is value proposition. The main idea is not to go every new market. Yes there is new trends like big data or cybersecurity or sofware digital twin platforms or others, however you should understand your company's solutions well before you move and decide which value proposition that you can create for the customers. It needs to be strategic move. If you cannot tell these differentiation factors easily, it means that trend or market is not suitable for you. The best product does not mean best seller always. The product that has better differentiation factor with better marketing sells most.
Secondly, resources are critical. I observe lots of companies focus on new markets and promote themselves like they are innovative. When we goo deeper and deeper, we see there is lack of resources behind these models. Sometimes, human resources, sometimes investments. You have a full fletch resource readiness to create new business model. People all focus on digitalization. New market does not necessarily mean digitalization all the time. Maybe in your current market, you can still create new market or business model. Urgent thing is more like how you focus on that with which resources. Enough attention, passion and good team work with a bit of creativeness, you can brainstorm on new models. We have lots of examples on that in our strategy workshops. Having an understanding on time limits for Next Generation CEO, to be speedy in the market helps you out on trying different business models.
Third one is the mindset. Why so ? Let me ask you a quick question. There are two teams. One has lack of competencies in some areas but fully motivated. Other one has full competency however no motivation at all. Which one do you prefer to go with ? These types of questions need to be addressed before we think how to move forward on finding "new". Today it is market or business model, tomorrow maybe new innovation methods. Most of the companies have lack of mindset so they all turn themselves to startups to have cultural mentality to create new markets. That example more like buying a fish instead of learning how to catch. If you do not focus to change company culture and mindset on creating new market and why/how it is important for your company as Next Generation CEO, you always deal with same problem. You go ahead and cooperate with startups one time, you go ahead and acquire a company one or two times, but these solutions are not sustainable. you have to have mindset to find the new markets with the different eye on your portfolio. We need people to see company's portfolio in different way, creative combinations, digital connections, partnering up mentality and so on. To invest and advance these employees make more sense before looking around.
After you have a strategy to create new models to boost growth, you have to have a communication plan internally at first. You should make sure, each member of your company understood where you are heading, why you do that, how you plan to do this plan, need for resources and other details. Then people will start to think what is in it for them to create new models, what happens if we do not do this. They have to feel business will die if you constantly do the same models in same markets. Since it will change, competitors will change anyway. Who could guess lots of famous IT companies today focus on mobility sector ? with the different models, cybersecurity will become new type of World War. What about the companies dealing with cyber security? Can you guarantee today's food company will not be tomorrow's IT company ? That is the main reason, we should constantly think about what can be the next new market in our organizations.
To sum in couple of sentences, Next Generation CEO will probably say the following in years to come: "I am serial intreprenuer for my company and we do not sell our products in one specific area. I know to be expert in a sector is important but I do not see any business not integrated one to other. So business is one. We look forward to new ways how to create our market to sell"