After hearing the term ‘extinction,’ the next appropriate thing that rings a bell is philosopher Herbert Spencer’s iconic phrase, “survival of the fittest.” As demonstrated in the term, survival of the fittest explains that individuals or bodies that best adapt to their environment in a dangerous situation survive. Any individual or body failing to adapt to a drastically changing and threatening environment is subject to extinction, just like dinosaurs did 70 million years ago after the big asteroid struck Earth.
This theory of “survival of the fittest” applies to businesses as well, which often struggle to cope with a challenging business environment to thrive in a competitive market.
A comprehensive strategy for business often helps navigate a threatened environment to weather the storm and survive. This article from The CEO Views enlists four strategies that businesses must adopt under a challenging situation to avoid extinction and ensure survival.
Business Extinction
Business extinction refers to a situation where a business ceases to exist, often because of factors like market disruption, unsustainable business practices, or technological advancements that get in the way. But looking at the brighter side, it can be said that the extinctions of businesses often give birth to new business models, making way for technology-driven companies to thrive in a disruptive business environment. Devising a strategy for business in such a situation is a good option to help companies from shutting down completely.
Talking about that, we can take COVID-19 as an example of such a disruption that affected millions of businesses across the globe, pushing them towards closure as a result of a reduction in customers’ physical presence in stores. However, the mass closure of businesses during the pandemic led to the introduction of new tech-based business models that started operating online to reach out to customers locked down in their homes. Similar to this strategic approach of leveraging technology to help a business survive in a disruptive environment, there are some other strategies that companies can adopt to ensure they save themselves from extinction.
Four Strategies that Could Save a Business From Extinction
In the newly evolved business world, where every other business is leveraging technology and embracing technological evolution as the inevitable, they are here to stay. In this market volatility, businesses lacking technological expertise are under the threat of extinction, and with a comprehensive strategy for business, this hurdle could be demolished to ensure they fit into the picture. Below are the four effective strategies that companies can adopt to achieve that goal-
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Adopting New Technology, If the Old One is a Hindrance to Business Growth
With continuous technological evolution taking place in the present-day business landscape, having an old and ineffective technology model for a business can impede its growth. A skilled and technologically trained workforce can be a solution for a business aspiring to adapt to a new technological framework that requires efficient handling.
Business staff might resist this technological change if they are not comfortable and confident in using the advanced technology. In such a scenario, tracking the performance of the staff in handling the new technology and addressing the problems they are facing firsthand can help the business from extinction. As an effective strategy for business, this technological training for the workforce can take a business to new heights.
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Getting Aware of Technology Solutions that Competing Businesses are Using
With the rapid advancement in technology, companies are launching an endless number of technological solutions in the marketplace. It is not possible to become aware of each of them, and hence, research organizations are reviewing various categories of solutions across industries. This is helping businesses become aware of the solutions that are used by their competitive firms.
Businesses can consider using only the ones that are financially viable for them by knowing about these solutions in detail. Companies can interact with businesses operating inside or outside of their industry to know about the solutions they are leveraging, and can partner with some of those with a similar vision for expert opinions. Technological solutions like resource management platforms, employee management platforms, and more can be a promising business strategy that companies can utilize to thrive in this competitive business world.
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Preparing a Technology Alignment Plan
An extensive strategy for business is a savior for a company that is on the verge of closure. To thrive in this tech-driven, competitive business environment, having a technology alignment plan can help a business make each of its departments aware of the upcoming technological change. Businesses must bring their people into confidence and operations in perfect alignment before implementing a radical change in their technological framework. This is where the technology alignment plan comes into play, helping businesses identify gaps in existing models, determine the budget for execution, and state objectives that they wish to achieve.
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Building a Cross-functional Team for Successful Implementation
Real-world cases have revealed that many technological change fails due to a lack of developing a team that understands and is accountable for executing the change. A ship that is on the verge of sinking requires a strong and capable captain to save it from drowning. The same goes for companies that are struggling to withstand the test of time in a crisis situation and are on the verge of extinction. Similar to a sinking ship that desperately needs a capable captain to help it avoid sinking, such companies also require a team of competent members who can navigate the change and help them from sinking.
A cross-functional team can bring people with diverse skills, expertise, and backgrounds under one roof from different departments of a business to achieve a shared goal. The more diversely skilled the team is, the greater the chances of success are. With such a cross-functional team, businesses can thrive in a competitive business environment and leverage technologies at their best to avoid complete closure.
