Business Structure is Transforming and the Ground is Shifting

At CRICT, our consulting team comprises former Chief Executive Officers and senior executives who are Subject Matter Experts in their respective fields, and have gained insights on the underlying global forces that are pushing structural transformation in businesses:

Fusion of information and communication technologies (ICT). This fundamentally changes the nature of firms through an emerging networked structure that enables more collaborative work. Companies are going global in operation and trans-national in culture, new industries are replacing the existing ones, and technology is becoming a key differentiator of firms.
Intense competition due to deregulation of industries and liberalization of markets. The world is witnessing the effects of progressive and increasing industry deregulation and market liberalization with the rise of economic rationalism and decline of Keynesian demand management. These combined effects have opened up and created new markets and new opportunities. However, they have also brought the intensity of global and sectoral competitions to new highs.
Pervasive socio-cultural challenges caused by trans-national corporations. With the ever-expanding role of trans-national corporations and the progressive globalization of trades and workforce, the effects of globalization have shifted the focus from traditional economic factors to include the social and cultural milieu in which we live.

As a result, two distinct phenomena have arisen that are shifting the ground and changing the business landscape:

Emergence of a knowledge-based economy. Intellectual capital, which is not formally recognized in company balance sheets, can be regarded as the knowledge-based equity of a company. It is this dynamism of intellectual capital and its relation with its environment that gives rise to the competitive advantage of firms.
Socio-cultural impact of globalization on management. Globalization facilitates the import of Western management practices in economically less developed countries. However, they may not be useful due to market structural and socio-cultural differences. Hence, it is important to understand and resolve the complications managers from developing countries face in implementing Western management concepts.