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Creating Autonomous Organizations Capable of Flexibly Adapting to Changes in the Business Environment

Changes in the business environment – such as widespread acceptance of the Internet, upgrades to the information infrastructure through advances in IT technologies, and the rise of emerging economies and markets – have opened the world as never before, allowing corporations to expand their competitive reach and activities throughout the globe. The conventional methods of setting business plans or strategic designs based on a predictable future are no longer viable in today’s business environment.

In future, corporations will be required to do more than just accurately forecast business and market conditions. Only by creating an autonomous organization capable of flexibly responding to changes in the business environment, will corporations secure the ability to realize the sustained innovation so vital for success

Strengthening Stakeholder Relationships through the Creation of Customer Value

Fundamentally, mature markets around the world are contracting in size, and global competition is increasing in intensity at the same time. These trends also affect the cohesiveness of a company. Customers are now presented with a larger number of options, and this is followed by changing power relationships between suppliers and their customers. The employee incentives and evaluation frameworks put in place under the assumption of steadily increasing growth are also no longer effective. In order to build new stakeholder relationships in this newfound environment, corporate activities must be designed to create ‘customer value’ that is focused on what is important for both the ordinary citizens and for the users.

Nurturing Model-Revolutionizing Capabilities Centered on Intangible Strengths

What would be most important for companies that face the need to make big changes in their business structure? When facing change, complications may sometimes arise when deciding between “what’s important” and “what’s necessary,” as the legacy of past strengths could become an obstacle when attempting to address present challenges . In order to overcome these complications, companies must discover the intangible strengths (intellectual capital) that are interconnected with their corporate identity, and determine what is important and needs to be protected, while deciding what needs to be changed. At the same time, companies must also revolutionize themselves by leveraging both the “hardware side (capabilities, stock, systems)” and “software side (recognition, motivation, foundation)” of their intellectual capital.

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