Going Out by Going In Business Model Innovation in the Kingdom of Saudi Arabia

Technology as a whole is moving rapidly. Innovations such as ridesharing and automated vehicle technology, for example, are reaching the market much more quickly than innovations of years past. Barriers that once took decades to overcome are now being tackled in years–like the issue of autonomous vehicles coexistence with pedestrians.

In the enterprise space, this perpetual sprint forward means that western companies can no longer automatically consider themselves at the forefront of technological innovation. In fact, the U.S. is not a leader in either manufacturing or service industry innovation.

With such rapid, global innovation, professionals must have robust business management skills that include the ability to identify and implement international technologies to aid businesses worldwide. Many industries take a rushed approach—believing that this pace is necessary to remain at the forefront. What it actually tends to do, however, is create holes and uneven production workflow, producing limited positive results and even leading to lost data or information.

While the speed of innovation is important, it is more vital that organizations understand where the market disruptors are coming from, why they are producing such an impact, and how the technology may better serve the enterprise.

Enterprises are not the only aspect of the global market to have access to more information; consumers are now increasingly connected. The data indicates that 77 percent of Americans own a smartphone. While this number tends to be lower in developing countries, global business management specialists must consider that consumers have instant access to information such as price, quality, and competitor information on any given product.

This places more pressure on companies to remain active online and to promote a positive brand image and product presence in every social arena. The constantly connected consumer not only has product information readily available, but also has instant access to trends, brands, and other companies. Customers are able to share their own experiences and hear the experiences of others on-demand via highly engaged social media communities and easily accessible news outlets.

References

Meyer, M. W. (2017). Going Out by Going In Business Model Innovation with Chinese Characteristics. Thunderbird International Business Review, 59(4), 473-482.