With global and local markets in a constant state of flux, businesses require the ability to adapt and respond to change in order to remain relevant and survive.
Survival of the fittest has become more acute than ever in today’s chaotic business environment. According to a recent study of more than 30,000 publicly-held firms in the U.S. over the past 50 years by Boston Consulting Group, public companies have a one in three chance of being delisted over the next five years, whether because of bankruptcy, liquidation, M&A, or other causes. To help put this in perspective, that’s six times the delisting rate that companies faced 40 years ago.
CIOs strive to craft technology roadmaps that map with what the business is expected to look like in three, five, and even ten years. A key challenge for CIOs is that any technology blueprint must be fluid enough to respond to changing market dynamics.
One of the steps that CIOs can take to develop adaptive roadmaps is by making them data-driven. The use of analytics can help CIOs and company decision-makers to identify customer and market trends that can then be used to adjust business priorities. From there, technology roadmaps can be adjusted to support refocused business strategies.
Hertz offers a shining example of a company that has adapted effectively to changing customer behavior. In the early 2000s, executives at Hertz began to recognize a growing consumer segment that was interested in car sharing services instead of car ownership. In 2008, the company rolled out Hertz On Demand, providing consumers access to hybrid, electric cars, luxury vehicles, and other options. Services offered to customers include short-term usage with hourly rental fees.
By 2012, Hertz On Demand had grown to 130,000 members and had projected revenues of more than $30 million.
To help bridge any gaps that may occur using a data-driven approach, CIOs should also work closely with company leaders in crafting business strategies to ensure that technology roadmaps are hitting on short- and long-term business goals. Through close collaboration with organizational leaders, the CIO can rollout a timeline of technology initiatives and projects designed to support forthcoming business goals.
“As the IT ecosystem changes and as industries change, how do we take out the old and put in the new with it being seamless you don’t even recognize that you’ve done it,” said Kristie Grinnell, CIO & VP IT, General Dynamics Information Technology in an HMG Strategy video. “It’s really about being more adaptive and it’s a step beyond agility – you just need to adapt and learn to be the chameleon as the world changes.”
- As markets continue to experience dramatic change, CIOs must develop technology blueprints that are fluid enough to respond to changing market dynamics.
- One of the steps that CIOs can take to develop adaptive roadmaps is by making them data-driven to identify customer and market trends that can then be used to adjust business priorities and technology strategies.