Never has it been more imperative for companies to tightly integrate their business goals and vision with their IT systems. The business environment is characterised by the need to improve productivity, efficiency, and innovation. Companies that fail to achieve these goals have a greater than ever probability of not just being left behind but facing annihilation altogether. Fortunately, there are multiple solutions available to accomplish these goals and it is just a matter of having the corporate zeal and focus to translate ideas and goals into execution.
Learning is eternal; not just for humans but for businesses as well. Businesses will learn in soft and hard ways and the best businesses learn in both. The soft way of learning comes from the day-to-day operations, from managers, colleagues, clients, and various internal stakeholders. The hard way is learned from the external world, characterized by Michael Porter as the five forces (Supplier Power, Barriers to Entry, Buyer Power, Threat of Substitutes, and Rivalry). The Depression of 1930s brought a large amount of spikes and volatility. The businesses that succeeded were able to adapt and learn at every stage. The current economic trials and tribulations have as many lessons to teach.

Are Businesses Being Fooled by the Randomness of the Economy?

The bubble and bust in the IT sector some eight years back brought with it layoffs and criticism of the technology industry from which it still hasn’t recovered. Cornered, most IT companies tried diversifying their business – some succeeded, some stretched so much that they confused the offering and ended up closing altogether. Rescue came from a variety of sources and the lucky, resourceful businesses started growing as part of a new industry bubble.

Once the recession showed its face again in the summer of 2007, the busts were noticed across the board as the financial system, the root of the economy, collapsed.

The geographic markets did not all react the same way. The western world witnessed as an ‘economic storm’ what the eastern world experienced as a slowdown. Businesses totally dependent on markets in the west were the worst victims. Arab countries stood erect in the storm, with their businesses the least affected. This may be because many here practice a family-run business model, which is less affected by an international recession and generally behaves more cautiously. The economists were unable to predict the randomness of the economy and were forced to rewrite their financial forecasts.