HOW BUSINESSES RESPOND TO CHANGE OFTEN DETERMINES LONG-TERM SUCCESS

I recently reminisced with an old university friend about how much our lives – and life in general ? had changed since the good old days. It seems like another lifetime when we happily carried on without ride-sharing apps, mobile food delivery, and watching the latest cinematic hits from the comfort of our homes. Yet, all seem like necessary functions now. Considering my professional lens, my former classmate asked whether enterprises proactively respond to the changing technology landscape. Do they address pre-existing market gaps and create new targets?

My answer – “sometimes.”

Today, business schools study how Kodak’s na?veté about the long-term impact of digital photography led to its downfall , even though one of its engineers invented the digital camera in 1975.[1] Digital cameras didn’t require film (Kodak’s bread and butter), and fearing cannibalization, executives did not move ahead with the technology. Instead, disruptive competitors seized the opportunity, as Kodak’s digital camera patent expired in 2007. It wasn’t long before the former giant filed for bankruptcy (2012). Fast forward to 2022, and increasingly powerful smartphones have unleashed computational photography and processing technology that defies the limits of lenses and image sensors.

Technological evolution evokes scenarios found in nature. For example, the most flexible trees survive during a lashing storm while rigid, unyielding forest dwellers often topple.

Lesson learned ? it is wise to adjust to circumstances and respond to environmental challenges and expectations. Change is inevitable, and embracing it is the path to survival and long-term relevance.

So instead of resistance and na?veté, enterprises should make room for possibility. An agile and strategic response to transformational influencers – external, internal, and customer-driven – enables businesses to retain and boost momentum.

Which situations require a strategic business response?

External: We live in times of economic risk, geopolitical volatility, emerging technology, and global climate and health events that disrupt market balance. COVID-19 forced companies to respond and adapt or close. While some factors are beyond organizational control, their potential impact on business demands action.

For example, adaptable and secure remote work software was in critical demand at the height of the pandemic. Swiftly responding, Zoom, Microsoft, Google , and other firms offered various productivity features for free. Like forest survivors, they flexibly bent to meet market needs and accommodate demand.

• Zoom lifted video-call time limits for free versions in China and for schools in Italy, Japan, and the United States. Microsoft offered six months of its premium version of Teams for free and lifted restrictions on the number of participants for free versions. And Google offered some enterprise videoconferencing features at no charge.[2]

Internal: As organizations grow, internal mechanisms are bound to change. Factors such as restructuring, post-merger transition, new leadership, or switching to a different business model influence the company and require a focused response.

For instance, pervasive digital transformation and the adoption of emerging technologies within everyday work processes compel companies to seek employees prepared to meet new-age challenges. Therefore, organizations invest in modern recruitment solutions to attract best-fit talent. Moreover, process flexibility and cultural adjustment are critical when firms come together through mergers or acquisitions.

Hackathons are gaining momentum among enterprises seeking new talent and innovative products. The method gamifies aspects of recruitment, making it interactive and rewarding for candidates and illustrative for hiring firms. Additionally, hackathons often unleash novel ideas via an exciting competitive experience.

• HackZurich is among the most prestigious hackathons in Europe. Each year, up to 55,000 international applicants vie to become one of 600 participants. In 2021, the winner of the 40-hour event was a software product featuring an image-processing algorithm and artificial intelligence that enables musicians to conduct live remote jam sessions. Users can even create instruments through simple hand gestures.[3]

Customer-driven: With changing global dynamics and widespread consumer adoption of digital tools, customer expectations are broadening to include convenience and personalization. Therefore market offerings in all sectors must respond.

• For example, American streaming giant Netflix forayed into the Indian market in January 2016 as part of its global rollout. However, it overlooked a sizeable potential customer base. Many Indian consumers found Netflix subscription fees to be hefty, and they didn’t own a laptop/smart-TV or were rarely at home. So, Netflix responded flexibly by offering a price-sensitive, on-the-move mobile subscription in 2019, exclusively for this impactful market segment.[4]

Netflix strategically catered to customer-driven needs, and by FY 2020, its India-based revenue doubled. Now, the subscription streaming service and production company is launching programs in developing nations, including Nigeria and Malaysia, with similar customer demographics.[5]

The pandemic triggered various challenges ? many focusing on access to high-speed broadband connectivity. For example, students everywhere could not access quality education because of restrictions to physical movement. In response, EdTech companies seized opportunities to provide student tools that made a seamless learning experience possible.

• Udemy, Coursera, and other platforms provided free content to encourage learning while in-person class time was impossible – and the move is paying off in terms of business growth.[6]

?Responsiveness is vital to organizational success. It requires businesses to understand and adapt to changes sparked by external and internal circumstances while also proactively catering to customer expectations.

More often than not, I have seen nimble and adaptive organizations survive the test of time, while those that remain inflexible soon became irrelevant. Success in an ever-changing world is contingent upon staying true to corporate purpose while supporting an agile and open culture and customer-centric processes. Frontrunners are those that respond the most efficiently and precisely.

PS: If you want to look for articles from the author search for #AmitChoudhary

?[1] ???Forbes , “How Kodak Failed;” January 18, 2012.

[2] ???Vox , “Microsoft, Google, and Zoom are trying to keep up with demand for their now free work-from-home software;” Mar 11, 2020.

[3] ?????The Code Bytes , “Top 7 Most Famous Hackathons In The World,” Oct 12, 2021.

[4] ?????BusinessToday.In , “Netflix India's FY20 revenue doubles on cheaper mobile plans, local content;” Dec 10, 2020.

[5] ?????Ibid.

[6] ?????Money Control , “Future of work and learning are converging with pandemic-induced changes: Coursera CEO;” Sep 13, 2021.