Taking Advantage of Business Changes to Maximize Value - Research Paper Example

? Business changes are continual and inevitable processes that are used effectively to maximize on business value. The common forces of change in business world include globalization, technology, and societal shifts. The changes have improved ease of access globally. Businesses have often taken advantage of such changes to maximize on shareholder’s wealth, profits, and social responsibilities as a way of improving their success. The paper is subdivided into three major sections, namely, introduction, body, and conclusion. The introduction captures the background of change in business with the implications and consequences. The main body evaluates the advantages that business can derive from the business changes to maximize on its values, the actions that business should take to be ready for future changes expected and finally the skills and competencies, which are most appropriate in the ‘new world’ of business. The conclusion section reinstates the thesis and presents the major arguments of discussed. Taking Advantage of Business Changes to Maximize On Value Introduction Businesses have to respond to changes in their operations because of various factors. The business regulations often change. Technological innovations and the need to respond to globalization have all contributed to changes in business operations. Societal shifts and trends change continually, and business have to respond to the needs of their customers by changing their processes, strategies, and operations. Innovations and advances in information technologies have contributed immensely to changes in business processes and operations across the globe through the capacity to bridge the geographical divide. The consequences and implications of advances in information technology in businesses are varied. These changes may affect some businesses positively whereas others may be affected negatively. Nevertheless, an appropriate response to the changes should be by taking advantage of the change forces to maximize on various business dimensions, including shareholder’s wealth, profits and social responsibilities among other things. Businesses need to prepare adequately for the future changes. Skills and competencies are essential assets for dealing with the changes experienced continually. How businesses should take advantage of the changes, mainly on information technologies, to maximize of their value is discussed expansively. Further, recommendations on the appropriate requirements that they need to have and the actions they ought to take to prepare effectively for future changes are provided. In addition, the prerequisite skills and competencies to work effectively in the ‘new world’ of business are offered. Opportunities Provided By Changes in Business to Maximize On Return Value Advances in Information Technologies Advancements in information technologies offer opportunities for businesses to change into innovations that may help in maximizing their business value. Advances in technology can help businesses introduce new products and services into the market to meet the needs of their customers. Further, new technologies can help in developing new business models, which may be used as a competitive advantage against the competitors (Lorenzo, Kawalek and Ramdani 107). Changes in business processes brought about by information technologies may be used by an organization to build on customer value proposition. Technologies and changes may influence businesses to provide their services to the customers efficiently, and with high quality. Quality and effective services and products can be offered to clients and customers using new information technologies that reduce on costs and optimize time. Such changes may help businesses retain and attract huge customer base because of enhanced customer responsiveness (Lorenzo, Kawalek and Ramdani 107). Information technologies are dynamic but businesses use them as essential organizational assets. These new technologies may be used to improve business processes and strategies to suit the market demand better and realize above-average returns. Businesses should embrace the changes due to globalization and technological innovations as they drive the need for firms to meet strategic requirements and sustain competitive advantage in their operations. Globalization and technological innovations have made it possible for business organizations to create new business models, which may include diversifying markets and growing branches (Tsai 3). Developed business models, such as e-business can help business organizations to redefine and change their processes to improve customer relations, exchange of information with business partners and forge strategic alliances with competitors. E-business does not act only as competitive advantage to businesses, but is used as an imperative tool in competition. Changes like e-commerce have helped businesses increase their speed of change, innovation and operation. Globalization and technology can be used by business to enable them seek out more information on their customers and adapt to new cultures. Changes in technology and globalization can be utilized by businesses to intensify on international competition and seek out new opportunities, which are customer-focused (Tsai 3). Globalization Globalization has brought changes in business world such that the global community has been made accessible. Globalization can be used by business entities to enhance their shareholders’ value through outsourcing of cheap labor, talent, or skills from other locations across the globe. High quality and low cost labor services outsourced can help decrease business expenditure and result in increased profit margins (Shemwell 92). Sustainable competitiveness in business can be determined through changes in technology, information, and knowledge. Businesses can take advantage of globalization, new information, knowledge, and technologies to improve on business economic and operational efficiency. This often requires that businesses change through redefining and reevaluating their practices and strategies (Tsai 3). Business organizations can leverage on the new and vast opportunities created by globalization, which has contributed to the new economy, and advances in technology to satisfy the strong demands of complex information networks, an increasingly dynamic international economy, and the never-satisfied clients in this new economic environment. The business world is characterized by increased information demands, augmented complexity and intensifying tumult and diversity. These trends points toward a more demanding business environment, changes in organizational designs, decision structures and business processes, which can be achieved through globalization and technological advancements (Tsai 5). The changes in global business environment can be used to accomplish requirements for competitiveness and success. Globalization can be embraced by businesses to help them develop better and strategic relations with clients, personnel, communities, suppliers, and other stakeholders to be fundamental to survival and competitiveness. Establish such strategic relations can be a basis for new, progressive corporate strategies focused on people, and addresses the problems facing businesses presently (Palazzi and Starcher 7). Businesses should take advantage of technological advancements and globalization to maximize on profits and shareholders’ value through reduced transportation costs. Technological innovations has brought about better transport infrastructures, which can help businesses improve the ease, speed quality as well as quantity of global inflows of information across the globe (Arias and Patterson 94). Social Responsibilities Societies develop and change gradually with inventions, research, and innovations. The resource bases are exploited; needs and preferences of targets markets change and new markets are created. The changes within the society compel businesspersons to create value for society through shifting their resources to high productivity regions from low productivity regions (Tripod 1). Forces that force businesses to change can be a good advantage to help organizations improve the living standards and quality of life of communities in which businesses operate. In the process of transforming such societies, businesses have an opportunity to maximize their value through profits. Such advantages include contributing toward the well-being of the society to sustain growth because of satisfaction from contributions made. Changes provide opportunities to enhance symbiotic relations such that the business decisions and social policies are established on shared value principle. Successful businesses have established long-lasting contributions to communities in which they operate. Globalization provides businesses with massive opportunities to promote their social progress in the process of making profits. Through this means, such businesses sustain themselves effectively for some time. Globalization increases the target market for businesses and increases their chances of seeking out various communities and societies to contribute socially toward their success (UNESCAP 4). Continual changes in global business contributed to by forces like globalization have brought in negative effects and influences to the society. Through globalization, the environment has been increasingly damaged and human well-being affected negatively. Business can take advantage of such changes to assume roles and responsibilities under transformation to maximize on value and real-life proposition of social responsibility and accountability. This can be achieved through reorienting the perception and working style of the corporate world (Fernando 336). The environment can be improved through technological advancements involving the use of cleaner and environmentally friendly technologies. These changes can necessitate business to transform the problems within the society to beneficial resources. Instead of using machines that would emit high levels of greenhouse gases to the atmosphere, business can take advantage of technological advances to use machines that do not use coal and limit environmental pollution. Companies that expand their market base to new areas can take advantage and create a good social relation with the community by initiating social developments before establishing business ventures in the region. This would endear the community to them and improve their reception, contributing to increase consumption and ultimately maximized value (Fernando 336). Business Preparation for the Future The world of business is constantly changing and as a result, any organization that wishes to remain in the ever-changing business environment ought to be prepared to take the coming challenges. Several businesses are engaging in belt-tightening, cutbacks, cost cutting, and redundancies in a bid to remain relevant while the market is shrinking in terms of revenues and orders are declining. The effectiveness of these actions is always short-term for they are used to alleviate a problem in the short-term. In business, such a time is the best to implement management strategies, which are new for the purposes of driving an organization forward. It is worth noting that organizations involved in making improvements now have a higher chance of succeeding in future. On the contrary, organization which do not invest in any meaningful changes have higher chances of failing because they sit in their comfort zones for long and before they realize it the competition takes them out of the market (Morford 42). The most important question that most investors ask themselves is the reason why they should make improvements now. In order for any business to prosper, one ought to make changes, which used to work before. Before, for example, property buyers would buy a house and resale it at a profit after making minor improvements. This has changed and it is impossible to make a profit after doing such a deal now, which means that, investors must come up with means of ensuring a profit. This can be achieved through making improvements that are more complex. This is applicable in any business because all sectors of the economy are undergoing tremendous changes. Investors should always be on the lookout for the areas that need improvement (Morford 43). Now is always the best-suited time for making changes that would lead to improvement of a business. This can be attributed to the fact that it is impossible to implement any changes when a business is doing well because all targets would be met, which means that there would be no reason to implement change. It has to be noted that most businesses today have lesser work to do. This gives the business enough time and resources to implement the much needed changes in order to succeed tomorrow. Economic recovery is definitely inevitable despite the pessimism that has filled the lives of thousands of people in business. The fact that the time is quieter now gives business people enough time to lay strategy for improving their profits in the future. In addition, when an investor makes the best improvement she or he is able to maximize profits. This gives an investor a competitive advantage in the business world (Kaliski 10). The key to the success of any business is the quality of products and/or services an organization offers. Some people believe that the finished product is the one that reveals the quality of an organization’s products but it has to be noted that the whole process of production determines the quality of a product. The quality cycle affects all businesses because defects on services and/or products are because of errors. Poor systems are the sources of these errors and it means that they should be corrected before a business loses its customers. When products and services have defects, it takes time to correct the defects. The time taken to correct such defects ought to be invested in another new work, which would increase profits for the organization. Business processes, which produce defective goods and services, ought to be improved in order to save the time taken on a production. Although many businesses are aware of the need of improving production processes, in most cases emphasis is put in the wrong place and this result in going back to the same problem (Kaliski 11). Most businesses take too little time to plan on the best course of action. This leads to coming up with the wrong improvements, which cannot move the business forward. A deficiency arising from an area, which was not addressed, arises in the future and defective products or services are produced. The cycle repeats itself if the business rushes to address the problem. Planning should be allocated enough time because if more effort is put towards planning, many future problems could be avoided. The performances of all implemented changes ought to be checked from time to time in order to ensure that they are working. After performance of the checks, one is able to understand what other changes need implementation or improvement (Morford 44). Since each organization is unique, it means that each business should have its set of principles because businesses cannot follow a set of rigid rules. Businesses could follow a set of principles, which focus on improving quality, profitability, and efficiency. Many people expect procedures and systems to be very complex but it has to be understood that they should not have much paperwork for they should be kept simple. When the paperwork is more detailed, people tend to leave chunks of information and end up missing important details. On the other hand, documentation is very important because it formalizes a process and makes it possible to notice deficiencies (Kaliski 11). The Most Important Skills Needed in the New World of Business The size of an organization does not matter when it comes to communication. Although people have to know what they need to, information overload should be avoided. It is important to understand that the information employees need in order to increase efficiency and what they need to be told. Information management is very important in the success of a business because it gives employees the knowledge to make the right decisions in a timely manner. All-important information should be recorded because it would be needed in the future. Some key employees who hold important information for the organization should be encouraged to impart the knowledge to other employees because they might be unavailable at certain times due to leave or any other issue. They should be encouraged to do so through provision of the necessary infrastructure (Morford 43). Mode of communication plays a critical role in the establishment of information channels in an organization. The method used should be the most suitable at that given time. Information management is very important because it ensures that employees have all-important information readily available. In addition, the information must be up to date because outdated information has higher chances of leading to errors. The information should be easy to analyze and understand what is needed. This reduces errors because employees do the right things at all times. Different levels of information are needed at different granularity degrees in order to ascertain that each employee has enough information that would aid in making the right decisions. If employees are provided with very little information, they are unable to make informed choices whereas when they are given too much information, they have difficulties in data interpretation or they might miss important information (Arias and Kate 100). It is important to understand the kind of information that should be availed. The usage of the available information plays a significant role in ensuring that every member of the workforce has access to what she or he needs at any given time. Customers are very important in every business and this means that it is important to understand the information they require. Most businesses forget their customers when analyzing their information but it is worth noting that customers are in need of information. In addition, customers require some businesses to record some information and this should be clearly understood. The world of technology has undergone tremendous changes and this means that no matter the size of an organization, an information technology department is critical. It is easier to present and record data using IT than any other means. Small organizations require a very simple method of data presentation because this ensures that the data is easily retrievable. On the contrary, bigger companies require complex networks for their IT department (Arias and Kate 100). There are several off the shelf products, which might not necessarily meet an organization’s requirements. As discussed earlier each organization is unique, one must therefore choose the product that best suits his or her needs. When purchasing the software, an off the shelf product might not suit the needs of the organization, which means that a bespoke product is the best because it would be tailored according to the organization’s needs. Moreover, it is of paramount importance to note that a bespoke product is cheaper because it offers an organization an unlimited number of licenses as opposed to an off the shelf software, which might require an organization to buy a license every time a new employee joins the organization (Arias and Kate 110). Information technology offers real time information and this plays a critical role in ensuring success of any given organization. Organizations are able to process their information at great speed thanks to IT. A successful IT system must be in a position to interpret data accurately and at a great speed. Employee, supplier, and customer interactions should be conducted at any given time and from every corner of the world as opposed to traditionally when it was conducted in office buildings. These interactions play a crucial role in increasing efficiency in any given organization. Increased efficiency means increased profits for the organization and satisfaction for the clients and suppliers. Most successful enterprises operate on 24/7 basis (Morford 42). Traditionally, organizations’ products and services success were measured in terms of the functionality they brought to the customers. This has changed and customers need to have an intimate feeling with the products and services or the brands they buy. Online communities have an increased influence on products as they transcend social and geographical backgrounds. Customers are always ready to work with organization that actively listen, give customer feedback, and openly change. The attributes that make customers become intimate with an organization’s products should be analyzed in order to ensure that the customers’ experiences differentiate an organization’s products from those of the competitors. This implies that IT is very important in the life of a new business (Tsai 4). Conclusion Despite the changes and interruptions brought by globalization, technological advancements, and societal shifts among others, businesses can position themselves appropriately to take advantage of such changes and maximize on their values. Such changes provide opportunities to improve relations among stakeholders, accomplish social responsibilities, and improve customer responsiveness. Business value can be maximized through lowering expenditure in embracing quality and efficient processes, methods and equipment. Organizations should embrace the use of IT in order to ensure that exchange of information happens in real time. Works Cited Arias, J. C. and Kate Patterson. 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