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  • Sahil Shaikh

Competitive pressure and Accelerating Social change in Organizations

‍The world of business is evolving at a rapid pace. The emergence of digital technology has forever changed the way organizations operate and compete. In this era where change is constant, organizations need to be more agile and adaptive to stay ahead of the curve. Understandably, many managers are struggling to keep up with these changes and remain challenged on how they can leverage new opportunities while mitigating potential threats in the long term. In this blog post you will learn about two key topics that will help you understand the changing business environment, the implications it has on your organization, and the actions you should take as a result.

What is causing this change?

When exploring what is causing this change, we need to look back in time and identify the global trends that have triggered this seismic change.

- Shifting from a physical to a digital economy - The share of the global gross domestic product (GDP) generated from information and communication technologies (ICT) increased from 11% in 1990 to about 27% in 2017, and is projected to rise to about 40% by 2030. This shift from a physical economy to a digital one has transformed the nature of work, adding to the complexity of organizations and increasing pressure on managers to respond to new challenges.

- Social change - has had a significant impact on business patterns, impacting supply chains and resources. In the near future, this will likely accelerate resource scarcity and lead to higher prioritization of employee’s mental health, causing increased competition amongst resources.

- Rising competition from emerging markets - Emerging markets’ economies have grown significantly since the 2000s, increasing the global competition for commodities, labor, and markets. As these economies grow and become more advanced, the resulting pressures will increase the pressures for companies to innovate and drive change.

Understanding the current business environment

As organizations start navigating the current business climate, it becomes crucial to understand the environment in which they operate. To do so effectively, you need to consider the following aspects:

- The value chain - The value chain maps the activities that your organization performs to deliver value to customers. It helps managers to identify the organization’s key drivers of value creation, identifying the activities that bring added value (and those that do not).

- The industry and competitive environment - To assess the industry environment, managers can use an environmental analysis to assess the broader macroeconomic environment, analyze trends and recent developments, identify key risk factors, and identify the potential impact on their own organization.

- Internal capabilities - Capabilities refer to the resources, competencies, and functions that an organization needs to perform the activities that create value for customers. - External factors - In the current business environment, organizations need to minimize internal risk and focus resources on areas that deliver added value and competitive advantage. To do so, managers need to evaluate the impact of external factors, such as political and regulatory changes, demographic trends, and technological advances.

Implications of a changing business environment

Organizations have had to adapt to a changing business environment in the past, but the rate of change has accelerated in the last decade. The change could be driven by the emergence of new technologies or the adoption of new business models. The rise of digital technology has created a perpetual state of change, with the rate of change accelerating every year. Understanding this environment and its implications is crucial to help you prepare for these changes.

- A more uncertain environment - When change is constant, organizations will likely experience more uncertainty. This is because they are likely to face more situations that they have no experience of, making it difficult to predict outcomes effectively. This can have a significant impact on the speed at which organizations make decisions and manage their resources.

- More pressure on existing capabilities - Constant change will likely put more pressure on existing capabilities, leading to a greater risk of organizations becoming less efficient. As a result, organizations will need to find ways of managing the pressure on their internal systems and resources to ensure they remain effective.

- New capabilities needed to stay ahead of the curve - In order to stay ahead of the curve, organizations need to develop new capabilities to drive change and remain agile. These capabilities will enable organizations to respond to change and remain agile.

Identifying opportunities to stay ahead of the curve

To help organizations navigate a changing business environment, it is important to identify the key trends and issues that will affect your organization. To do so effectively, you need to consider the following:

- Assess the industry environment - Using key data analysis, assess the industry environment to identify new trends, risks, and potential impacts on your organization. This will help you identify opportunities and challenges ahead, enabling you to prepare and react to change.

- Assess the value chain - Assess the value chain to identify the activities that drive added value, as well as those that do not add value. This will help you to identify the potential areas where you could improve the way you operate, enabling you to focus on added value activities.

- Assess internal capabilities and factors - Using capabilities mapping, you can assess your internal capabilities to identify the potential areas for improvement. Similarly, using trend analysis, you can identify the key trends and external factors that will have an impact on your organization. This will enable you to identify potential opportunities that could enable you to gain a competitive advantage.


Change is inevitable, and organizations have always had to adapt to new ways of doing business. But, the rate of change has accelerated in recent years, driven by a range of factors, including the accelerating rate of technological progress. To thrive in this ever-changing environment, organizations need to be agile and adaptive. They need to be able to respond quickly to new challenges and take advantage of new opportunities as they arise.

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