Abstract
A sound-the-alarm strategy will get an executive’s attention by alerting them to an imminent company problem and creates a sense of urgency to address it. This strategy is based on getting your executive’s attention by pointing out the ramifications of an emerging and imminent business problem: new competitors are winning over your customers and poised to take the lead. Today, companies are competing on a whole new playing field. Customer demands are changing too fast for most companies to keep up. As the world becomes more digital, traditional companies are being disrupted and are rapidly losing market share to more agile competitors. Modern companies need to rethink how they will adjust in order to survive. In today’s competitive landscape, speed matters. If companies cannot respond quickly—with more agility—they will be left behind.
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Notes
- 1.
Scott. D. Anthony, S. Patrick Viguerie, Andrew. Waldeck, “Corporate Longevity: Turbulence Ahead for Large Organizations,” Innosight Executive Briefing, Spring 2016, www.innosight.com/wp-content/uploads/2016/08/Corporate-Longevity-2016-Final.pdf.
- 2.
Tesla Motors integrates software into almost every aspect of the cars they manufacture. As a result, drivers can receive notifications when the oil needs to be changed (based on precise readings of viscosity and peak temperature) and when it is time for the annual tune-up; mechanics can be alerted when the dreaded check engine light comes on, and appointments can be proposed automatically based on cross-checks of digital calendars, easily confirmed with a click on a smartphone. What’s more, software updates can occur “over the air,” while the cars sit in their owners’ garages or driveways or in the parking lot at work, just as smartphone upgrades happen remotely. These features need not be subscription-based; they are increasingly included in the basic experience of owning the car.
Nest depends on software in their production of Internet-connected home devices such as thermostats, smoke detectors, and cameras. Google bought Nest in 2014 for $3.2 billion.
- 3.
IoT, the Internet of Things, enables everyday objects to be operated through embedded software. “Smart” heating systems and air conditioning units, garage doors, appliances, lighting, security devices, and more can be controlled through the Internet.
- 4.
The product’s price affects how it sells since customers compare it against competitive offerings. As a result, the lines of business set pricing to be at par with the competitive products with slight increases or decreases staying in line with its perceived customer value. Therefore, finance needs to make annual bets to funds the right products that will perform well in the marketplace and deliver business results. If the product has weak results in the marketplace, than pricing may have to be set lower to encourage customers to buy on price. If the product is stronger, the price may be set higher with that added value to the customer.
- 5.
Gerald C. Kane, et al., “Strategy, Not Technology, Drives Digital Transformation,” MIT Sloan Management Review, July 14, 2015, https://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/.
- 6.
Kris Timmermans and Donniel Schulmann, “Increasing Agility to Fuel Growth and Competitiveness,” Accenture, 2006, www.accenture.com/t00010101T000000Z__w__/au-en/_acnmedia/PDF-4/Accenture-Strategy-Increasing-Agility-to-Fuel-Growth-and-Competitiveness-Research-v2.pdf.
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Orvos, J. (2019). Sound the Alarm. In: Achieving Business Agility. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4842-3855-4_1
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DOI: https://doi.org/10.1007/978-1-4842-3855-4_1
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