November 6, 2012
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Today’s overall mood of the global economy and our domestic economy is challenging for any business.
Many industries have fundamentally changed. For example, home entertainment distribution virtually imploded with on-demand, Redbox, and iTunes.
“The automotive industry no longer exists as an industry solely based on manufacturing,” said Pop-Up City editor Koen Knitel. “Of course, without factories there will be no cars, but this part of industry has left [us and] … The old manufacturing industry has made place for the automobile experience economy.”
“This consumer experience can be found in more and more types of industry, with experience stores popping up in inner cities to lure new customers,” said Knitel.
The far-reaching implications of economic changes are felt on the other side of the globe as well. To survive economic changes in industry, “A private shoemaking company in Wenzhou, Zhejiang province, [adopts] new technologies to help its manufacturers maintain their competitive edge.”
Technology has increased their market leadership as “laser machines [help the company] improve its productivity… Before, it took a skilled worker an hour to make hollow patterns on a shoe’s leather upper wrap. But with the laser machine, everything is done in two seconds. ‘Few shoemakers worldwide have the technology. It boosts our efficiency exponentially,’” a company spokesman said.
A changing economic tide brings about one very important thing: opportunity.
Every organization needs to find its place in the rapidly evolving world order, and every business within its industry must maintain its standing in that order. Here’s how I believe forward-thinking executives can lead the way:
1. Commit to quality over quantity, both in company size and product development.
With hugely profitable websites being run by 1-2 people, thousands of employees don’t make you powerful. They make you expensive, necessitating an ambitious output schedule. Keep only those truly dedicated experts and ask them to be accountable and resourceful; put out only quality products which the group can confidently, passionately promote.
2. Become less organized.
It may seem counter-intuitive, but less organization when it comes to staffing is essential. Organizational charts and major divisions were designed for the railway system. Each individual should bring expertise to a team, and teams should be flexible enough to allow everyone involved in a project to discuss it from conception to development. Nothing new should be executed in assembly-line fashion.
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