Defining Strategic Inflection Point
In Scott Bedbury’s, ‘A New Brand World,’ he discusses a very important moment for businesses called the “strategic inflection point.” Basically, it is the moment when a company must or needs to adapt in order to survive. They are faced with this crossroad, and in some capacity are required to change the fundamentals in which the company was created to fight off extinction.
This topic was first introduced and further examined in Andrew S. Grove’s ‘Only the Paranoid Survive.’ However, Bedbury examines this concept and provides four specific questions a company/business must answer in some capacity:
- What are our goals?
- Where -and what – to we hope to be in the future?
- What do we do if and when we get there?
- How will we measure success? (Bedbury, p. 26)
When viewing these questions it may seem obvious and easy to answer to many that are starting a business. Let’s be honest, defining your goals and setting up a road map of success are typically business 101 concepts. Furthermore, without clear direction many businesses may falter before even exploring the potential that underlies the brilliant idea (that is to say they created a brilliant idea in the first place). This creates an unsettling realization that stagnation at any point in business may cause extinction.
Why Do Business Need To Adapt?
So, what are we talking about here? What kind of events would bring companies to the brink of extinction? Is it Regulation? Competition or market saturation? Technology enhancements?
One could imagine that any and all of these factors may play a part in the design of a company’s formulation of a solid business plan, future strategy, and a direct correlation to a strong bottom line.
This leaves one to believe the reasoning for self-reflection and evolution are essential characteristics for the survival of a particular business. If a company does not innovate it’s business model to comply with the worldly standards, then they face untimely annihilation.
In light of recent events, evolving for relevance may be exactly what has been occurring in the digital world and financial sector because consumers have forced the hand of many businesses and institutions to adapt to the consumer. What has caused such a massive integration of technology?
Simply put – Blockchain.
Business Evolution In Real-time: Blockchain Technology
Essentially, this concept of evolution or this inner-evaluation and adaptation of business structure is exactly what is happening in the world of cryptocurrency and blockchain technology. Major corporations are finally adjusting to superior technology and embracing the beauty of decentralization. Specifically, the “strategic inflection point” has really swept through the financial sector in recent months with large investment firms, banks, and exchanges all adopting crypto into their investment portfolios and business models.
This obviously is a decision to stay relevant, and adapting to the technologically more advanced blockchain is essential for the survival of their business.
What does this mean for the future of cryptocurrency and blockchain technology?
If this continues to be the trend, then how long will it take for cryptocurrency to be massively adopted worldwide. Also, what will future business models look like for the next generation of entrepreneurship?
Individuals, startups, and businesses have been able to accumulate mass amounts of funding and growth with this quasi crowd funding phenomenon in the crypto sector. The concept of venture capitalism has sort of taken a backseat to every day investors backing business models they wish to see successful without the seemingly normal limitations found in traditional fundraising sectors. This new era obviously comes with its pros and cons but make no mistake that innovation and progress will be key components in our new digital reality.
What Does It All Mean?
There is no simple answer to determine the future of business. What may be relevant today will ultimately be of no use in 10 to 20 years. Technology is always rapidly changing and stretching the boundaries of what is thought possible. We live in a world that is designed on information technology which evolved from a world firmly created out of the the Industrial Revolution. The more connected we become in business the faster we evolve.
So, if large corporations, new startups, and the financial sectors all begin utilizing blockchain technology, then its lifespan may become shorter as new technology is created much faster due to more resources focused on its expansion. Thus, businesses will continue to see more “inflection points” and need to adapt accordingly if they wish to exist in the next century or decade.
Creativity, focus, and innovation will be key characteristics of successful business endeavors. This may not seem too different than what exists today for success, however, the fundamentals that underlie any business may be a paradoxical revolving catalyst. In order to maintain relevance, a company must constantly evolve.
Bedbury, Scott (2002). A New Brand World: 8 Principles for Achieving Brand Leadership in the 21st Century. (1st ed.). United States: Viking Penguin.
Grove, Andy (1996). Only the Paranoid Survive. (1st ed.). United States: Crown Business.