NEW DELHI: The future of growth whether in jobs or in profits will come from companies that either create platforms, or are outsourcers or are providers or product or services, said James Root, Chairman, Bain Insight Group.
Addressing the
Yes Bank Economic Times Global Business Summit (GBS) on Saturday Root said that most companies and business will have to face several challenges going ahead. These challenges would include technology, changing workforce, no more easy growth markets and short-term view of public markets.
“We are transitioning to the era of scale insurgency,” said Root.
He added that some of the traditional businesses may have to either foray into new businesses or launch new products. He divided companies into three categories – the emerged, the emerging and the ones rediscovering themselves. The emerged companies may include the ones like
Netflix or
Google, while Jio or
Airbnb would be the emerging ones while
Microsoft and DBS are re-discovering themselves.
While several management gurus have earlier said to succeed companies need to be either low-cost or differentiated. ‘That may not hold true now,” declared Root. As scale insurgents will have to bring new approaches to the “what’ and “how” of business is built.
The firms of future will have to be both low cost and differentiated and they will have to do so through networks and partnerships and not necessarily through assets they own.
He concluded by saying that to manage the firms of future even leadership skills will be required to inspire the teams.