Grasp The Trend Of Technology And Change The Management Strategy

Rapid technological changes have made similar situations happen in all walks of life: the target customers are hard to predict and the industry pattern is turning upside down. Today's comparative advantage is no longer a guarantee for future success. Although there are many factors that affect the strategic change of enterprises, changes in globalization and policy turn are often difficult to grasp because of the long cycle.

Adapt to the industry, or let the industry adapt itself?

Or change the enterprise itself to adapt to the industry, or change the whole industry, let it follow itself.

Enterprise formulation development strategy It must be clear about the stage of development of the industry and try to synchronize it with itself. From the perspective of the evolution of the industrial structure, each industry will go through three stages. It can be used to refer to the S curve in biology. The first stage is the rapid growth stage of decentralization and many competitors. The second stage is the stage of industry integration, and some of the stronger enterprises set up the industry standard; the third stage is the continuous growth stage of decentralization.

The enterprises in the first stage should pay attention to product differentiation. What is most needed is innovation, including product innovation, process innovation, value-added service innovation and management innovation. Enterprises with insufficient creativity will have to close down at this stage. If the first stage is compared with the characteristics and differences, then the survival of the second stage is the scale. In the third stage of industry development, we need the agility of strategy most rapidly, that is to adjust the business mode rapidly according to the market changes.

But in fact, the capability of the enterprise is not necessarily consistent with the development stage of the industry. In 1992, the personal computer industry was changing from the second stage to the third stage, when Apple's capability was still in the first stage, laying stress on product development and innovation, pursuing the design sense, taking the high-end line and adhering to the closed system; IBM was the second stage representative, it established the industry standard of a personal computer; the capability displayed by DELL indicates the development trend of the third stage, aiming at the constantly emerging new trend of PC's online purchase, and constantly making quick response, not only reducing the price of products, but also introducing 24 hours all-weather quick service and other new measures.

Companies that match their capabilities with the stage of the industry are the most profitable. What do we do when we do not match? There are only two ways: to change the enterprise itself to adapt to the industry, or to change the whole industry and let it follow itself. The former is typical of IBM, and its sales accounted for 2/3 of the personal computer market in 1987~1988, but it lost $5 billion in 5 years. In 2002, the new CEO Gerstner was acutely aware that the whole industry was turning to the third stage of emphasizing services. Therefore, we began to change the company culture and create the IBM consulting department. Finally, the successful transformation of the personal computer business was the aftermath of the transformation. Apple chose second roads. Apple in 1992 was a joke in the industry. At that time, IBM and Intel jointly built an open environment and system. Apple still insisted on its own route. The apple culture created by Jobs is deep-rooted. Only by changing the industry structure can there be a way out. Apple has been trying to pull the industry back to the first stage, and it has done it.

Accelerating core competitiveness

The rapid development of technology enables enterprises Core competitiveness The life cycle is greatly shortened.

There are two mainstream viewpoints in the field of strategic science. The first is Michael Porter's "five force analysis model", which emphasizes the influence of external industrial structure. However, there are two kinds of situations that make it ineffective. First, the industry is developing too fast. For large multinational enterprises that only need to analyze five factors in a comprehensive way, the strategy can not be changed obviously. Two, the boundaries between industries become blurred, and positioning and analysis become more difficult. Two. The second point is to pay more attention to the internal resources of enterprises and emphasize their core competitive advantages. But it takes at least 10 years for an enterprise to become a world-class enterprise, and the core competitiveness is far more than the imagination.

With the rapid development of technology, the life cycle of the core competitiveness of enterprises has been greatly shortened, and the traditional strategic thinking must be changed. The core competitiveness of an enterprise is often related to two vital resources: one is professional knowledge or skill (expertise), the other is information (information).{page_break}.

The development of IT technology speeds up the devaluation of professional skills and information, and inevitably leads to changes in enterprises. In the lower left quadrant industry, the half-life of professional skills and information is very long, the depreciation rate is slow, mostly for the "dinosaur" industry or protected industries, such as agriculture, mining, cement industry, etc. But their traditional profit models are no longer viable. They must be innovated with technology. For example, Cemex, a famous cement company in Mexico, is the most profitable company in the industry. Its core strategic innovation is to provide a large number of technology providers. Value added service 。 Although the product is no different from its peers, it can accurately know which site needs cement in half an hour and avoid stopping work due to insufficient raw materials.

Not to mention other industries. The skills needed in the financial services industry, fashion industry and media industry in the lower right corner of the chart are not very fast, but they need to respond quickly to information. Take the fashion industry as an example. Today's technology enables top designers to create a wedding dress style for the British Princess overnight, and the fashion cycle is shortened to one day. This does not mean the demise of the fashion industry, but the existing business models must be changed. For example, Zara has made use of this innovation to make fast fashion into ordinary people's homes. Prada is also trying to use the new technology to solve the key problem of forecasting fashion trend. In each label of the four flagship stores in Tokyo, Milan, Losangeles and New York, the RFID Technology (RFID), which is recognizable within a circle of 20 meters, is used. Every garment that customers take into the fitting room can be induced. As the next generation technology of traditional bar code, radio frequency identification technology offers many possibilities: for example, finding out products with high frequency but low sales, analyzing problems and improving them, and collecting relevant information collected by the flagship stores of the world's four fashion capital, and forecasting the fashion trend of next season.

Identifying the "bottleneck" of the industry value chain

Profits will flow to the bottleneck of the industry and flow to the decision points of the lifeline.

The development of technology has changed the business mode of enterprises to a great extent. So how can we break the old pattern earlier than others? Analyzing the industry value chain helps to find out the answer.

The industry value chain includes three main modes. Each mode is from the left to the right. It is the manufacturer, the middleman and the customer. The different widths reflect the relative number of competitors in each link. The common rule of the three modes is that the narrowest part is the most profitable part. If the industry is regarded as a beer barrel with a faucet, the speed of the wine will depend on the tightness of the tap, which is the most profitable way to restrict the speed of the industry.

The first type of value chain represents industries that rely on scarce resources, such as oil, diamonds, and gold, because resources are so limited that producers can gain more benefits than processors and consumers. The second type of value chain is the service oriented industry, and the middlemen who rely on brand services are the most profitable, such as banks and other financial institutions. Customers in the third type of value chain are most critical, such as national defense and military industry. Government customers often control the lifeline and pattern of the industry. This is also one of the reasons why people are concerned about the corruption of government staff responsible for related affairs.

The value chain model of the industry will change, and there is a decisive factor behind it, that is, technology. Technology can create a lifeline or a lifeblood. WAL-MART integrates barcode technology and complex IT system to integrate channel information, so that the value chain model of retail industry has changed from first to second. In the traditional music industry, 98% of the songs are losing money, and the middle link responsible for picking and pushing is the lifeblood. But the Internet and other technologies provide direct channels for contemporary music creators to publish their works. They can even make their own records, and the music industry has changed. The creators have become the most profitable people in the industry.