Managing in a Changing Business Environment
- K. Murugesan
The term VUCA originated with the United States Army War College to describe conditions resulting from the Cold War. VUCA stands for Volatile, Uncertain, Complex and Ambiguous in the domains of Business, Politics and Defense etc. The last decade witnessed a great saga of VUCA in the business environment. The complex geo political developments across the globe, volatile financial markets in developed and emerging economies which has the ripple effects across the world, ambiguous protectionist policies adopted by nations and uncertain technology innovations are the factors which drive the VUCA environment in the Business landscape.
To manage the VUCA effect, organized Information is a new commodity which is most sought after. Businesses must have organised information as a “Knowledge Commodity” asset and disseminate it across to survive.
The VUCA in business environment has engendered a paradigm shift a few of which is described in the table below.
Rapid advances in Information and Communication Technology like Internet of Things (IOT), Cloud computing and Augmented Reality (AR), ICT in short is radically changing the way the businesses are run and managed by challenging the existing business models and processes.
It's a VUCA World
The rules are being rewritten. Most of these Innovations are based on leveraging the power of ICT. We now have out of the box solutions
Disruptions in the Business landscapeto conventional problems and software applications have replaced the traditional brick and mortar model businesses.
Social Media as a game changer
Today, the businesses and social media are intertwined inextricably to such an extent that managing the social media has become part of a company's overall strategy. It has emerged as a powerful tool for promotion of businesses and in reaching to the masses. Presence in social media has now become an imperative for the businesses to survive and thrive in the market place.
Social Media has huge potential, especially for 'startup' ventures to understand the markets and to promote products/services in an inexpensive and effective way. This new platform is helping in brand building. The quick feedback provided by the customers has become a vital 'voice' for strategizing campaigns.
Social Media is the New age Marketer
The inexplicable Gen-Z
Increasing presence of new generation employees, the Gen-Z is another phenomenon which is rapidly witnessed in the organizations. Gen-Z generation are highly tech savvy, aspire better work-life balance, seek more autonomy, entrepreneurial and more demanding in nature. The skill sets needed to manage the Gen Z crowd is very different from the conventional model. Organizations must respond in a disruptive way to retain and motivate Gen-Z employees. Innovation in Human Resource practices will become a key in tapping the potential of this fast-growing tribe.
The macro business environment is volatile and dynamic in nature that offers both challenges and opportunities. It is for the organizations to embrace this change and emerge as leaders. This necessitates a paradigm shift in thinking and approach. The 'disruptors', Social media and Gen Z are driving the change. A culture of change management will guide organizations to successfully make the transition. Knowledge Management (KM) as a change management tool must become an integral part of the organization's core strategy to effectively survive in this new world of business.