By Jari Koskinen
Due to the fast development of technology and the demand for migration from traditional countries to developing countries, managers need new capabilities in this fast-changing world. I have witnessed this megatrend during my work in IT and high technology industrial companies. The journey toward learning and finding new ways of thinking has been amazing and inspirational after over 20 years’ experience in global industry, both at home and abroad.
I believe that in the next 15 years the world will change dramatically. The world will be totally different compared to the world today. One of the main drivers behind this trend is increased intent to use new technologies to reduce the costs and to increase the quality level. New technologies provide customized products with faster lead times. This trend means that companies need to have new capabilities in the future.
Firms’ new capabilities
Companies need to improve their present capabilities to become more agile and resilient in the business sector. This is due to new companies, which have totally new technologies, entering the market and changing the rules of competition. The need for new capabilities forces firms to become more agile and fit for the prevailing competition in the market.
The dynamic business model I have developed, and which is presented below, works well in a complicated business environment.
The major elements in the model put management and organizational structure to the test. In many organizations it is not possible to understand the view of how important management, strategy and organizational structures are. However, the previously listed elements go hand in hand with agility and resilience.
Managing by improving organizations to become better is a huge challenge. Innovation and learning is difficult to manage in an effective way. Innovative organizations have a strong culture based on goal-oriented actions. Many managers believe that their organizations have a high level of intellectual capital, but when you delve deeper into the organization’s structure, too many unsolved problems and challenges are found.
Fresh ideas are necessary in order to become successful in a changing business environment where firm-specific concepts together with software are generally given the most important role. This means that it is possible to increase the revenue very quickly by having no additional investment in the working capital.
Mr. Jari Koskinen, M.Sc., eMBA, Ph.D, has extensive experience in the management of high-tech companies. He is one of the founders of Vacon Plc and he worked in the executive board of the company for 18 years before becoming a member of the board. Koskinen also holds several other board positions, including ICON Real Estate Funds Ltd. and the Eye Solutions.
This column appeared on the August 2014 issue of Nordic Business Report. Read the full magazine here »