The shift index – How companies need to understand and adapt to the changing environment

The shift index is a year long research work done by the one of the greatest all time business thinkers John Hagel, who runs the Centre for Edge at Deloitte. In his conversation with Francois Gosssieaux, John talks about some significant shifts that companies need to be cognizant of  and adapt themselves for a change:

Foundation Index

  1. The exponentially price-performance capability of computing, storage and bandwidth is contributing to five times the adoption rate of previous infrastructure like power and telephone networks
  2. The line between internet and wireless media will continue to blur further enhancing our abilities to connect irrespective of the location

This represents potential for companies to precipitate, participate in and profit from knowledge flows and reducing interaction costs due to digital infrastructure.

Flow Index

  1. Individuals are finding new ways to reach beyond the four walls of their organization to participate in  diverse knowledge flows.
  2. Sources of economic value are shifting from "stocks" of knowledge to flows of new knowledge – It is no more about protecting and hoarding proprietary knowledge but building scalable offerings around it
  3. Worker passion -Workers who are passionate about theri jobs are likely to particpate in knowledge flows

One of the big challenges for companies is that unlike information or
data flows, knowledge does not flow easily – as it relies on long-term
trust-based relationships. So the key to success in this new economic
reality is to move from a transactional world to a long-term
trust-based world. Examples of taking on a knowledge flow approach
include letting your key customers participate in product innovation,
or turning them into affiliates to allow them to help one another.

Impact Index

  1. Consumers possess much more power based on availability of more information and choice
  2. Brand disloyalty – Consumers are becoming more and more disloyal to brands

There is host of other impact index identified – competitive intensity, labor productivity, ROA performance gap, firm topple rate etc.

The report  provides a fantastic perspective to various changes companies need to prepare and plan for to gain leadership in the market place. Download the report here.
Download Us_tmt_ce_ShiftIndex_0620092_1344(2)

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