It is a common fact, that business trends have changed tremendously over the last decades, especially when we are facing the initiation of a totally new era focused on robotics, big data, machine learning, Internet of Things and blockchain technologies.
All these trends, tend to disrupt not just the business functions or the strategies to be developed, but the whole global economy, since they affect directly consumers behavior, demand and preferences, business supply and lead to a redefinition of a the fundamental economic values, under a new perspective that is more accurate, precise and targeted to the right audience at the appropriate time.
In this context, one could imagine, that the potential decisions of the CEOs, just because of the automation in the processes and flows in the production phase, would be easier, regarding profits and distribution, but in fact, the asymmetry of information and the multidiversity of the new technology evolution, is making decision process, much more difficult to accomplish efficiency and prosperity in the long run.
We have concluded actually in three basic rules that the CEOs should take into account and incorporate into their decision process, no matter if it is their own personal decision or coming from an executive board committee.
- Societal impact
The era of the pure profitability without any specific criteria and conditions has actually passed away long time ago, since investors, funds, governments and institutions, are now interested in watching certain social factors having been assessed in the balance sheets and the profit and loss statements and of course in the corporate summary note at the end of the financial year.
They need to see specific actions that have taken place, under KPIs that have been measured regarding the environment, the human rights, the discrimination, the elimination of human inequalities and many other social factors, that lead to a better and sustainable society for the majority of people. This rationale leads to more trust on behalf of the stakeholders and increase gradually the positive impact of the company in the society.
2. Corporate Activism
This term may sound a little strange for those that are not keen on understanding the new social strategy of the big firms and multinational companies worldwide.
A modern and smart CEO, should also have personal involvement in some big projects of the company that have or expected to have an impact on the society and on the consumer’s behavior.
Products and services should be treated and designed as possible solutions to a major problem for consumers, other firms and the society itself.
A firm that wants to have a worldwide presence or has an aggressive development plan for the future, by opening offices or branches in new markets and in other countries, should be well informed about the new markets, the individual characteristics of the people living there and respect their needs and culture in order to adjust the right products under the correct life cycle.
If the targeted consumers, understand the goodwill of the company as a solution to their problems by design and not as a side effect of a marketing campaign, then the most possible scenario, is for them to be attached to the brand of the company and be the most loyal customers increasing also their references to other possible consumers.
All the above, certainly lead to greater profits, but under a differentiated strategy of incorporating social and personal values in the product mix.
3. Human Capital
Last but not least, we should concentrate on human capital. Despite the automation process that is underway because of robotics and machine learning, through new developed algorithms that immitate and improve human behavior and techniques, a CEO should respect and give new opportunities in his staff.
Human capital, has a new and more substantial role in the production, since the monitoring of analytics, the big data enhancement and the incorporation of new features into the machines will come from new trained and well educated staff.
As a result, CEOs should see the new qualifications that are arising, because of the new technological era, hire new people or give greater updated roles and challenges to the existing staff, in order to unleash their potential and work beyond the borders of business as usual.
In order to conclude, we could say, that it is not an easy task for existing companies and CEOs that have been used to treat or be treated in a totally different way in an old form of capitalism to be adjusted in a new era.
Nevertheless, the time of reality has come and those that will show adjustability, effectiveness and reliance on new trends, will face a great success for their business, having also the respect of the society they are operating and serve.