With the rise of technology as one of the drivers of global change, markets are being disrupted in ways we have not encountered before. One important game changer for businesses will be a radical change in customer behavior. Used to a high level of personalized service, high speed and low costs, they expect nothing less from the businesses they deal with. Due to the radical transparency and traceability of digital services, combined with the possibility to easily switch to another business, customers are also able to make demands; they want to deal with companies that have a positive impact on the world, that have fair policies, are environmentally friendly and share their value.
Instead of focusing on efficiency and sharing profit, future-proof organizations will have to concentrate on value creation. Therefore, in the next decennia the competitive advantage will be the combination of fast innovation combined with the power to execute. What does this mean? Why is fast innovation combined with execution the way forward?
Fast innovation: Creative ideas
First of all, innovation is key in order to deliver new products and services, together with an effective business model. Whereas in the 20th century, a company could allow itself to successfully use a business model for at least five years before it was caught up by competitors, this lifecycle has already been reduced to two years. This means that you cannot relax and sit back to enjoy the success of your business. There has to be a continuously creative process in order to maintain your innovation power.
Another significant use of creativity is the importance of gaining and keeping the attention of your audience. We live in an era of information; people are bombarded by media that all try to seduce them to do business. In order to stand out you need new, innovative ways of connecting with your customers. Their time is scarce and valuable. In order to get some, you need to offer something back: inspiration.
Also for internal processes, creativity is needed as the basis for innovation. In order to meet the demands of new markets, it is crucial to develop innovative solutions in order to be able to execute the service to customers. Creativity is key in designing processes and infrastructure that fit the fast and complex desires and expectations of the future.
Creativity and execution power
There is no doubt that creativity is crucial to remaining successful in the near future. However, creativity has no value when you do not have the power to put in into practice. It has to be put into practice with extreme discipline and it needs rigorous execution. To be truly innovative an idea has to be transformed into a functional business model.
By combining creative ideas and execution power, we clearly see the profile of true entrepreneurship emerge – generating ideas, seeing possibilities where others do not and boldly and rigorously executing them in order to create value. The rise of technology will lead to an exponential need for entrepreneurial people – people who are able to create value in the ever moving world around us.