I have recently visited the IMD event on “Navigating the future”. It was very interesting to listen to the MBA class of 2016, discussing some of their work and findings.
One focus was the need for Business model transformation and the driving forces of change (including changes in customer values and behavior, technology changes like big data and cognitive computing, regulatory changes and more).
There is no doubt that almost all companies are facing these forces of change, and as a result more Volatility, more Uncertainties, more Complexity and Ambiguity.
So what do you do? Is it better to have a proactive or a reactive strategy?
I think there is no one answer.
Clearly every company has to understand their market and their own position. What are the new challenges, where do you see the potential for disruption, who are the competitors and what are they doing (don’t forget to look outside of your industry for new competitors).
There has to be a conscious decision to follow a proactive or reactive strategy. Both have some advantages and disadvantages. And any decision should be regularly reviewed.
But you have to make a call – just keep on going is not an option.