NexGen Business Models: The Future of Corporate Strategy

NexGen Business Models: The Future of Corporate Strategy

NexGen Business Models: The Future of Corporate Strategy

Different industries have been experiencing and adapting to constant change in various aspects that require attention from business entities. Five trends are revolutionizing next generation business models which are defining corporate strategy for the future: DX, Sustainability regulations, The shift to the platform economy, New Workforce and the Future of Integrated Value Chains. In the absence of such changes, a company exposes itself to disruption or decline of its strategies. But those firms that capitalize on these trends have great opportunities of establishing new forms of value and hence differentiation.

Digital Driving Forces of Change Redefining Strategy

The digital transformation process has not abated and companies have to adopt more advanced technologies as a rule including applied artificial intelligence, Internet of Things, cloud solutions and more adequately reacting to digital changes, becoming more digital-driven. This unprecedented process is causing shifts in the business models, functioning, and management goals and tasks in almost all fields. As stated by IDC, by the same year 2023 more than 50% of larger companies are going to be digitally defined, meaning digital offers have the most significant impact on revenue generation.

Within the framework of strategic digitalization, organizations aim to step up the use of digital tools to build up relations with the clientele. They are also incorporating automation, PEGA technologies, analytics and various additional intelligent technologies to increase performance, flexibility and creativity. Very important here and elsewhere is the process of developing organizational adaptability. There are requirements for recruiting digital talent, transforming untalented workers, and for shaping an adaptive and experimental organization.

Sustainable Development, the New Source of Value Proposition

This paper: Corporate sustainability has become more critical in business nowadays. Consumers, investors and younger talent similarly it contains take into consideration socio-economic sustainability impacts. Some of the most apparent examples of sustainable branding developed through organizational culture include companies such as Patagonia, Tesla, and IKEA. EU Green Deal and other such policies are also indicative of the growing awareness globally and the role expected of business in the overall fight against climate change.

Consequently, companies seek responsible environmental, social, and governance measures founded on renewable power, recycling, sustainable sourcing, diverse hiring practices, stakeholder relations and clear disclosures. Aliser, purpose-led companies have been found to grow even faster, have higher profitability scores, and are marked highly for customer satisfaction by McKinsey. In addition to risk avoidance, the sustainable measures on the environmental management, on the use of renewable energy and social responsibility may help reduce costs, lead to profitable new business opportunities and establish a competitive edge.

Transforming Competitive Environments

Since the advent of today’s generation platform business models have shifted to new levels of business heights and hold more significant proportions of the economy such as Apple, Amazon, Microsoft Uber Airbnb etc.. Valuable as they support network effects and facilitate direct trades between sets of producers and consumers, platforms are. Their blueprint for competitive success involves a sequence of proactive M&A, increased vertical integration, self-preference on marketplaces, and on prime services to steady competitive barriers. They are still struggling to determine proper measures to prevent risks.

In many industries, the strategic issue of ‘build or buy’ – develop own platform or leverage existing one – concerns incumbents. Today, OEMs such as GM and Volkswagen are constructing connected vehicle structures to be the sole provider of information and relationship to the consumer. B2C product companies are relying on selling products through Amazon but are also trying to build their own D2C channels. The nature of party platform dynamics and its penetration into more areas of the economy will to warrant right formulation of platform strategies will need to take into consideration issues like value migration, partnering, building of capabilities and rules and regulations.

Fluidity of Workforce Forces is Altering Talent Management Approaches

Analyzing these rapid changes in establishment’s working environments and changing demography is important for a new set of strategies for sourcing and managing talents. Current employees ever more particularly the millennials and Gen Ys have high standards in flexibility, meaning, development and advanced technology experiences. Moreover, approximately 40-50% of workforce activity is at high risk of automation for which it is necessary to redesign jobs and train employees.

Modern organizations are establishing less hierarchical, risk-taking innovative organizational cultures to attract the entrepreneurial human capital at different ages. They are also focusing on attributes during the recruiting processes, these include critical thinking, creativity, technology readiness. These form part of the fundamental capabilities businesses require to unlock the true commercial value of talented workers, characterised as; Reskilling programmes, learning by design, freelance marketplaces, and collaborative applications. There will be added demand for contract and hybrid workers along with traditional employees backed by integrated human capital management solutions.

Transferring to this type of environment means changing measurements from productivity, through engagement, capability development and goal attainment at scale. Top organizations will report not just the rate of hiring and rates of turnover, but the ability of the workforce for continuous change.

The aim of Business Integrated Value Chains is to help build value chains that integrate into business.
Lastly, due to factors such as escalating geopolitical risks, and, consumer’s expectations to products’ sustainability, and resilience there is pressure to develop end-to-end integrated value chains. Gartner stated that by 2025, a majority of organizations will demonstrate full transparency across their value chains. A lot of organizations found that out during COVID-S19 pandemic that they lack foresight for shocks that the PESTEL analysis provides.

Remediation approaches, such as nearshoring the production, enhancing inventory stocks, and diversifying suppliers’ base, targets for managing cost, flexibility, and dependability simultaneously. This is allowing new kinds of vertical integration – for example, Amazon internalizing fulfillment and logistics, while at the same time selling supply chain services to the outside world. To support this process here, digital platforms, and control towers offer a view on end-to-end processes and allow for dynamic supply and demand matching. Instead of arm’s length contractual arrangements with vendors, which many traditionally maintain, companies are pursuing direct and digital interaction with suppliers, intermediaries and transportation companies.

Thus, slow-moving consumption patterns, new entrants, technologies, and other shifts are putting pressure on business orthodoxy. The future will pay for the outside-in, adaptive perspective which will unlock the next generation of great business models based on digital, sustainable, platform economies, new Workforce and integrated value chains. But this needs more than point solutions – intelligence capabilities, ecosystem firms, implementation know-how, and organizational flexibility. The consequences are enormous, so is the potential, for good and ill, to influence the world that emerges.