Busness Challenges Mitigation Essay
The unprecedented technological and ideological shift in the contemporary business environment has led to introduction of new business approach. These approaches have not only helped in business advancement but also brought innumerable shortcomings due to adaptability issues. The world needs a new economy that is primly restructured if ccrucial social and environmental goals are to be met (Alperovitz, 2011). The challenges can be mitigated through thorough and robust adoption and adaptation of innovative ways. Today, businesses are faced with uncertainty of the future, inability to monitor performance and technological shock due to lack of adequate knowledge, consequently demanding that business to innovate.
The uncertainty of the future is not a desirable element in a business. The ability to predict the future trends by the business makes it easy to adjust to those tunes of changes. However, the indeterminate sequence of events in the business environment has made it difficult for the CEOs to adapt. The unpredictability of the economic environment has aggravated the business processes. For instance, the lack of prediction mechanisms of the macroeconomics and microeconomics will inadvertently lead to poor decision making by the managements.
Next, inability to monitor the performance of the business poses enormous challenge to the business growth. With the technological deficit in most firms, there is lack of performance indicators that offers organizations with insights for adequate performance. In addition, most business lacks the knowledge of developing the KPIs that helps avoid the pitfalls in operations. Well-developed KPIs enables the business to communicate metrics useful for decision-making. On the contrary, the contemporary organizations depend on simple finance indicators do not more than to clog up the company reporting channels.
Thirdly, technology shock is another challenge to the organizations. By definition, technological shock refers to the abrupt change in technology that significantly impact on economic, political and social outcomes. Regarding to the business operations, the technological advancement inadvertently leads to production shift. In most occasions, these technological growths lead to increased revenue or decreased business profitability. Either way, the two outcomes depends on the applicability and adaptability of the technological feature. In the contemporary business, the management have to work extra hard to meet the demand of these technology.
The advent of innovation has since been the best strategy for mitigating the dire effects of the above challenges. Knowledge creation is the primary tool for ensuring improved conception of the business operating systems. Innovation creates opportunity for the management to reach out to the employees. It is difficult to implement a process that is hardly understood by the employees. Assuredly, the top management may get the gist of the operation system while to the junior employees it might be an inconceivable phenomenon. Therefore, in order to alleviate the junior employees from this quagmire, it is the mandate of the management to engage the employees in system oriented training. As Ikujiro Nonaka, 2007 alludes, these approaches include; the spiral knowledge model, from metaphor to model and from chaos to concept model. The proper utilization of these models can help improve knowledge creation and communication process.
Secondly, business can utilize the art of innovation to exploit the various business opportunities. Innovation is the fundamental quality of an entrepreneur. It is through innovation that the entrepreneur creates new resources crucial for either existing or new business. Innovation uses opportunities such as unexpected occurrences, incongruities, process needs and industry dynamics among other external opportunities such as demographic changes, new knowledge and perception (Drucker, 1985). Regardless of the item of innovation, the application of these principles will enhance the business ability to control its operations.
In summary, the upshot of technological advancement is the technological shock which has led introduction poor operation system. Consequently, the poor operation system has made it difficult for the business to predict the future of the investment. In addition, the inappropriate application of the new operation methods has instead undermined the performance monitoring capacity. Nonetheless, these challenges can be mitigated through the named innovative ways. Therefore, these challenges work to the advantage of the organization as they seek to highlight the possible revenue leakages in the business.All free essay examples and term paper samples you can find online are completely plagiarized. Don't use them as your own academic papers! If you need unique essays, term papers or research projects of superior quality, don't hesitate to hire experts at EssayLib who will write any custom paper for you. A professional team of essay writers is available 24/7 for immediate assistance:
Alperovitz, G. (2011). The Old Economy’s Not Coming Back. So What’s Next?. Journalism For People Building A Better World. Retrieved from https://www.yesmagazine.org/new- economy/the-new-economy-movement
Drucker, P. (1985). The discipline of innovation. Harvard Business Review. Retrieved from http://file:///C:/Users/P03/Downloads/293555753_Drucker_P._F_6684925142479490.pdf
Nonaka, I. (2007). The Knowledge-Creating Company. MANAGING FOR THE LONG TERM. Retrieved from http://file:///C:/Users/P03/Downloads/293555753_Ikujiro_Nonaka_8794765350052570.pdf