I’ve just finished reading “Coffin Corner” by Amel Karboul. It’s a book full of disruption and unknown unknowns. It’s probably a must-read for managers in the 21st century.
You somehow can’t escape the feeling that everything is changing at an incredible pace. Fintechs are disrupting the financial industry, the sharing economy is shaking up the taxi and hotel industry and business models designed in Silicon Valley are constantly discussed in the media.
However, there are also signs that the opposite is true. The Economist wrote by citing a McKinsey study that “…an American firm that was very profitable in 2003 (one with post-tax returns on capital of 15-25%, excluding goodwill) had an 83% chance of still being very profitable in 2013; the same was true for firms with returns of over 25%.” A board member of an American ice cream manufacturer speculated at a conference about the end of competition. He added how they are thinking about finding new models of cooperation with their competitiors to work for the social good.
Where does that leave us? Whether companies need to reinvent their business model or not they should be thinking about the effects of their activities on the common good and how to create shared value. What are your thoughts on this topic?