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Mastering global forces with business analytics
Delaney Turner 270002T14M email@example.com | | Tags:  spss cognos business_analytics baforum ceo_study
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Given the fluid and unpredictable nature of our business climate, it’s difficult to know where it will go and what will be the major impacts down the road.
But one thing is certain: complexity is growing and will continue to do so.
McKinsey puts it this way: “running a 21st-century company is exponentially more complex than running a 20th-century company. Companies must pay attention to more stakeholders, more regulations, and more risks – and watch to see what their customers are tweeting about them.”
A recent study by McKinsey takes a look at five global forces that will shape the world economy in the coming years. Here’s a summary of the key trends:
These “crucibles,” according to the authors, should be framing the strategic direction of every organization as it looks ahead.1
Internet of everything
Of note is the growing influence of the global grid. It’s not just communications and the internet that are changing the game. There is also an expanding network of sensors and microchips embedded in the objects and machines that are all around us every day. It all contributes to an increasingly interconnected web of people, systems and data surrounding the globe. As McKinsey says, the grid will create opportunity and new ways of thinking but it is also highly volatile.
CEOs see more complexity
The IBM Global CEO Study, based on a survey of more than 1,500 CEOs worldwide, points to this global network as having the greatest impact on business.
“The biggest challenge facing enterprises from here on will be the accelerating complexity and velocity of a world that is operating as a massively interconnected system,” says Frank Kern, senior vice president, IBM Global Business Services.
Other findings include:
At the same time, executives identified creativity as the top leadership style or competency of the successful future enterprise. More specifically, companies have to experiment and create new business models, invite disruptive innovation, be comfortable with ambiguity, alter the status quo and reinvent customer relationships.
Creativity the norm
The ability to assess, reinvent and readjust in response to change or opportunity is a condition of business, especially in a fast interconnecting world. It’s the kind of agility that is enabled by business analytics software. Business analytics taps into your networks of data, helping you better understand your customers, your business and what’s happening now.
An information-rich, collaborative environment can put CEOs and companies on the right track. Benefits are there for those who have the means to enable people, systems and content to work together, make smarter decisions, and anticipate a new, near future.