Our human condition suffers from the fact we cannot deal with predictions. Last year, I proposed that one of the challenges on logistics could be maximizing cargo transport and intelligent price setup. In the last weekend, Amazon, came up the idea that in the near future (5 years) deliveries would be assured by drones. Hence we are back to a reality check. Paradigm change as one the approaches that drives huge leaps in performance and competitive advantage. It’s also possible to argue that cost cutting and continues improvement or product / service redesigning also delivers value, but the huge difference between paradigm change and continuous improvement is, the former, everyone envies.
Here is my short list for 2014:
- Paradigm change – The latest Amazon’s Drone delivery driven business is the perfect example that the huge leap is reached trough a combination of paradigm change (beyond re-engineering) and innovation. Companies that pursue paradigm change are the ones that are going to make competitive advance occur. Still, capital and innovation driven focus is key to that outcome. This kind of radical transformation is a commitment, a statement how to rethink an organization should operate in the future or make future happen (we miss you, Steve Jobs*).
- Information web – Not long time ago, organizations were based on “focus groups”, on customer questionnaires in transactional data registered in the databases that companies held about what customers bought and how they bought. These were the only sources of information. Today information is external. This implies that to understand what customers want is increasingly difficult because valuable information is now based on systems “out” of the organization.This years Black Friday, started on Thursday and ended on Saturday. Retail companies went into an information war, on a quest like 24’s television series, monitoring on real time what competition was doing, on an end-to-en with suppliers and logistics partners. Everyone played the role of Jack Bauer. Nothing that the financial industries or energy and water distribution companies are not used to. Executing processes on real time. Despite this does not apply to all industry sectors, I sense a trend towards this shift.
- Merge with Design Thinking to innovate business processes – It’s not anymore about the control flow, it’ about how companies create, design and innovate the customer experience. This is the last frontier that BPM must embrace, to keep evolving.
* The difference between a visionary and a person with vision is the former makes future happens and the other just surf on the existing reality.