The world is changing rapidly, and industries that drive the
global economy are changing with it. Some industries have seen explosive growth
in recent years, while others have slowed or disappeared entirely. Large companies
are going out of business faster than ever before. In fact, 88 percent of the
companies on the Fortune 500 list 50 years ago are gone.
اضافة اعلان
While unicorns (startups worth over $1 billion) used to be
rare, today, there are more than 1,100 worldwide. Big companies may have earned
their slow-moving reputations over the years. However, they can still become
just as growth-focused as their upstart competitors and drive the economy
forward, paving the way for a brighter future.
Innovation is crucial in an intensely competitive global economy, and companies must focus on developing their economic engine to generate money and sustainability."
Innovation is crucial in an intensely competitive global
economy, and companies must focus on developing their economic engine to
generate money and sustainability. The "economic denominator" is a
concept made popular by Jim Collins, the writer of "From Good to
Great," who encouraged leaders to transform their companies from good to
great by developing a hedgehog concept. The critical point is identifying an
economic engine to focus on how a company generates money and sustainability.
Jordan recognizes the importance of macro-economic stability
and enhancing its doing business eco-system, cutting the red tape and bureaucracy,
upgrading its economic legislation framework, and streamlining its financial
judicial transactions. In 2022, the government adopted the Economic
Modernization Vision 2033, an economic reform strategy for the next 10 years
aiming to double Jordan's growth rate and increase the quality of life. This
calls for a significant increase in public and private investment.
Companies listed on the Amman Stock Exchange witnessed an 85
percent increase in profits after tax in 2022 compared to the previous year,
reaching 2.4 billion Jordanian dinars ($3.3 billion). Therefore, building on
success, they must focus on the "economic engine" transformation to
translate all customer value into future cash flows.
Companies can respond by viewing the whole picture of their business practices and auditing their entire supply chains.
This success enables businesses to build momentum in every
cycle and achieve better results. However, at the heart of all Flywheels are
elements that inevitably follow one another, thus accelerating growth and
creating stable economies of scale.
These corporate leaders deliver more than just financial
returns; they also build enduring institutions; they are vehicles for
accomplishing societal purposes and providing meaningful livelihoods for those
who work in them.
The International Monetary Fund had downgraded its forecast
for 2.9 percent global growth in 2023 due to rising supply chain risks,
financial instability, and recession. According to a report by Accenture,
supply chain issues could result in a potential €920 billion cumulative loss to
the GDP across the Eurozone by 2023.
Traditionally, economists and financiers have argued that
the sole purpose of business is to make money; the more, the better, while the
new management theories focus on optimizing enterprises from lean production to
disruptive innovation.
Companies can strengthen their business by establishing
end-to-end, actionable visibility of spending by business process, function,
cost category, and business unit, as well as reducing expenditures and investing
in AI with its potential for tremendous growth and its ability to revolutionize
existing industries.
AI is expected to be one of the fastest-growing industries
of 2023, already valued at $328.34 billion. It has revolutionized many
industries, such as healthcare, finance, and transportation. Through
automation, improved data analysis capabilities, and predictive analytics, AI
is helping businesses become faster and more efficient while cutting costs.
AI is expected to be one of the fastest-growing industries of 2023, already valued at $328.34 billion. It has revolutionized many industries, such as healthcare, finance, and transportation.
At the same time, other technologies like 5G, blockchain,
the cloud, and the Internet of Things are building and speeding up, and all are
enhancing each other. Companies must re-design their processes and ensure their
people have the skills required for a world where we increasingly collaborate
and work alongside capable and intelligent machines.
Companies can respond by viewing the whole picture of their
business practices and auditing their entire supply chains. They should also
consider switching to renewable energy, moving to more sustainable packaging,
and allowing people to work remotely when appropriate.
Finally, visionary companies also need to take concrete
actions in the long run and invest far more in creating new technologies and
business practices, training and developing their human capital and supporting
research and development. Also, they should stimulate constant progress by
setting bold goals and instituting grassroots mechanisms to realize their
policies.
The writer is a Jordanian public-sector government
investments management company board member and a regular regional energy and
industrial commentator. Hamzeh holds an MBA from the University of Aberdeen,
UK, and a BSc in Mechanical Engineering.
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