Tuesday, April 26, 2011
In the information economy, one usually realized that almost everything economically around him or her is somehow connected to the web.
Last month, there was an interesting article in the NY Times about how global companies responded to a black swan event within their supply chain.
# From our experience, the black swan usually originated from within one's settings.Occasionally, the long-term rewards for "just-in-case" situation exceed the short-term rewards for "just-in-time" situation. In various cases, many companies do not like to prepare for the long term. ... Adding inventories and backup suppliers reduces risk by increasing the redundancy in a supply system. It also enhances resilience. The trade off is the increase of operating costs. If you were the chief decision maker, would you choose the Just-in-time model or the Just-in-case model? ... When deciding, what strategic and operational factors would you focused on?
Under the settings of the information economy, our world is considered to be strategically flat.
Successful business strategists understand the grand connection from the basic ingredients through the suppliers to the manufacturers and finally to the marketplace. The connective understanding of the economics, the logistics and the other tangible influences enabled them to prepare for the best case scenarios and the worst case scenarios. Anticipating possible scenarios is how they have always stayed ahead of the curve.
The key to succeeding is having the time, the resources and the skills to properly connect the dots.
Based on your various projects, do you know the tangible specifics and the connections from the initial stage to the final stage?
Do you know the connections of the influences that control your settings?
When the strategists see the tangible causes of the connections, they would have a better chance of enhancing their settings. Whether they have the wisdom and the courage to pursue the opportunity is a different tale.