Perhaps you are in a café, scrolling through your social media feeds before you head into work. Perhaps you are researching our company (and we welcome you!) during office hours. Maybe you’re even putting us all to shame, reading this article on the stationary bicycle at your gym.

No matter what the context, artificial intelligence (AI) has in some way brought you to this page. Whether Siri gave you directions to get here, or your LinkedIn account suggested this article, based on an algorithm of your specific interests. AI is responsible for getting you here, to this moment, now.

Office Goals

The modern office, especially, the modern start-up, has a great challenge to confront. The challenge: to utilise digital transformations to pioneer innovations in their businesses.

Although this challenge can be quite menacing at first, the prospects inspire hope for the future of workplace operations. AI presents a critical technological innovation, whose roots date back to more than a half-century, but whose modern implications are more ground-breaking than ever before.

For the new-age entrepreneur, at any step of their career, the acquisition of knowledge in this field can be a game-changer in their path. Let’s learn what exactly this powerful tool can do.

AI: What exactly is it?

According to HubSpot, AI “is a broad area of computer science that makes machines seem like they have human intelligence.

Is it really that simple?

Actually, yes.

Despite the extensive media portrayals of robots taking over the decision-making process for communities, artificial intelligence simply expresses the capacity of computers to be trained to interact with humans. Full stop.

The implications of this relatively simple field are excitingly complex, especially for your business. “Smart” computers can help increase the efficiency of company operations and help you focus on what’s really important. From spam filters to automated dictation of notes, AI can help you keep your eye on the prize.

Chatbots are an excellent example of established computer programs lifting the burden of repetitive business activities. While bots take care of fielding customer concerns, your employees can advance outreach methods and collect valuable data to improve the impact of your business.

Models such as these increase the value of any successful venture. However, it is important to remember that learning about these processes is as essential to your business as utilising this cutting-edge technology.

Lifelong Learning: A Love Letter

So: how do you invite artificial intelligence, and recognition of its abilities, into your life?

The first step is simple. As with any stable relationship, you must put forward an effort to get to know it.

Some ways you can engage your team through learning have already been explained in my colleague’s recent post. You can do even more:

• team workshops
• retreats
• available learning opportunities (my team presents new learning every Friday)
• classes

These simple options can increase the productivity of your team and get you on track to the next great breakthrough.

Recent years have sharpened the skill set of AI programming to a previously inconceivable, and somewhat spooky, level. Developers in Australia and the U.S., for example, designed a program called the “Nightmare Machine”, which first identifies fear and can then produce it.

First, they fed the machine visual material, which the team then responded to, to discern what imagery provokes the neural networks that are psychologically traced to fear. Finally, the program then created imagery based on this learning to simulate nightmares.

The takeaway of this program was to better understand the psychological partnership that is possible between humans and machines. Good work produces good results, and if you invest time to learn about how AI can improve your life, you can drive excellent advances in your field.

We have the power to shape digital transformations to make them work for us, not the other way around. If we open ourselves to the possibility of growth, we can make wonderful things happen.

Feeling inspired? Subscribe to our newsletter for news, tutorials, and exclusive interviews with the best and brightest of the business world.

Der Beitrag What AI Can Do For Your Company erschien zuerst auf Argo Ventures.

Zwar gibt es so etwas wie den Eureka-Effekt oder das Aha-Erlebnis. Was jedoch unsichtbar bleibt, sind die unzähligen Stunden – manchmal Monate und Jahre -, die zu diesen Momenten geführt haben. Stunden des Nachdenkens, Experimentierens und Lernens.

Innovation ist gleichzeitig ein kumulativer und ein plötzlicher Effekt. Die Temperatur steigt langsam an, bis der Siedepunkt erreicht ist. Aber ohne nachhaltige Anstrengungen kann der Siedepunkt nie erreicht werden.

Im Mittelpunkt dieser Bemühungen steht der Lernprozess.

Für Innovationen ist es unerlässlich, dass die Person – egal ob Unternehmer, Ingenieur oder Wissenschaftler – kontinuierlich lernt. Es muss neues Wissen erworben werden, um Verbindungen herstellen zu können, die nicht offensichtlich sind. Ebenso wichtig ist es, die stetig wachsende Menge an Beweismaterial im Auge zu behalten. Welche Richtung schlagen wir ein, wenn etwas nicht funktioniert?

Lebenslanges Lernen in der Wirtschaft

Unternehmertum ist ein Wettbewerb. Die Teilnehmer müssen ihr Bestes geben, um zu gewinnen.

Die wissensbasierte Wirtschaft, in welcher wir uns derzeit noch befinden, vollzieht sich einem Wandel. Unterscheidungsmerkmale und Wettbewerbsvorteile sind nicht mehr durch reinen technologischen Vorsprung zu erreichen. Der Fokus der Wirtschaft verlagert sich auf Kreativität und Erlebnisorientierung.

In beiden Wirtschaften ist es das intellektuelle Kapital des Einzelnen und der Gruppe, das darüber entscheidet, wie gut sich ein Unternehmen entwickeln wird. Der einzige Weg, um diese intellektuelle Kapazität zu erhöhen und wettbewerbsfähig zu bleiben, ist das lebenslange Lernen.

Innovation und Lernen

Um Innovationen durch Lernen zu steigern, müssen zunächst drei Dinge getan werden:

• den Kern des Lernens identifizieren,
• die Verbindung zwischen Lernen, Neugier, Kreativität und Innovation herstellen, und
• herausfinden, wie Neugier und Kreativität gefördert werden können.

Der Kern des Lernens

Der Prozess des Lernens hat verschiedene Aspekte. Am häufigsten wird er mit unserem Gedächtnis in Verbindung gebracht. Unser Gedächtnis spielt zwar eine wichtige Rolle, jedoch ist es nicht die Grundlage für das Lernen als solches. Um die Wurzel zu finden, hilft es, sich die besten Schüler der Welt anzusehen – Babys.

Babys haben einen unersättlichen Lernappetit. Sie erforschen jedes Objekt hinsichtlich seiner Haptik, seines Geschmacks und Geruchs. Sie wollen herausfinden, wie die Dinge funktionieren. Sie sind an allem interessiert, sogar dem Alltäglichen. Mit zunehmendem Alter verlagert sich ihr Interesse auf menschliche Beziehungen. Sie wollen herausfinden, warum die Dinge so sind, wie sie sind.

Dieser Wunsch nach Wissen wird als Neugierde bezeichnet.

Diese angeborene Eigenschaft ist ein Mittel für Menschen, um Informationen über ihre Umwelt zu sammeln. Und es ist eine Eigenschaft, die für das Lernen unerlässlich ist. Denn um effektiv lernen zu können, muss zuerst der Wunsch nach Wissen und Verstehen existieren. Das Einprägen von Fakten kommt danach.

Dieser Wunsch liefert die Motivation, Antworten auf Fragen zu suchen und eine tiefere Untersuchung der wahren Natur von etwas durchzuführen.

Der kuriose Link

Wir wissen nun, dass Neugierde das Lernen beeinflusst – sie ist das erste Glied in der Kette. Jedoch fehlen noch einige Schritte, bis das Endziel Innovation erreicht ist.

Bevor Innovation stattfinden kann, findet ein kreativer Prozess statt, um Erkenntnisse zu gewinnen und Probleme zu lösen. Mit anderen Worten, Kreativität ist das, was die Innovation ausmacht. Kreativität und Innovation sind miteinander verbunden.

Die nächste logische Frage ist, was Kreativität hervorbringt. Um neue Erkenntnisse zu gewinnen und Probleme zu lösen (oder kreativ zu sein), muss eine Person vier Dinge tun:

• die wahre Natur des Problems identifizieren,
• das aktuelle Wissen sammeln, das zur Lösung des Problems beiträgt,
• verschiedene Perspektiven zur Bewältigung des Problems einnehmen und
• experimentieren.

In allen vier Phasen der Kreativität ist der Einzelne oder die Gruppe darauf angewiesen, kontinuierlich zu lernen. Sie müssen sich Wissen aneignen, sowohl durch das geschriebene Wort als auch durch das, was sie durch Experimente produzieren.

Dies zeigt, wie Lernen und Kreativität miteinander verbunden sind. Man kann keine Kreativität haben, ohne zu lernen.

Kreative Problemlösung erfordert, dass Sie sich das entsprechende Wissen aneignen. Wenn man einen Schritt weiter geht, sieht man, dass Neugierde ein wesentlicher Bestandteil der Kreativität ist. Ohne eine tiefe Faszination für ein Problem und den Wunsch, es zu lösen, ist es unwahrscheinlich, dass Sie relevante Erkenntnisse gewinnen.

Oftmals sind es die Momente, in denen man sich nicht aktiv mit dem Problem beschäftigt, in denen diese Erkenntnisse auftauchen. Die Herausforderung bleibt im Hinterkopf verankert, und auch wenn Sie sich für einen Moment mit etwas anderem beschäftigen, arbeitet Ihr Gehirn im Hintergrund weiter an einer Lösung. Aber das passiert nur, wenn ein Mensch darauf fixiert ist, das Problem zu lösen – das heißt: Er neugierig genug ist.

Die Verknüpfung von Lernen und Innovation stellt sich also wie folgt dar:

Neugierde auf ein Problem > Lernen und Experimentieren > Kreative Lösungen > Innovation

Growth vs. Fixed Mindset

Wenn es um Lernen geht – sei es in der Wissenschaft oder in der Wirtschaft – werden Sie auf das Konzept von „Growth Mindset“ vs. „Fixed Mindset“ stoßen. Dieses von Carol Dweck entwickelte Konzept unterscheidet zwei grundsätzliche Denkweisen, die das Lernverhalten von Menschen prägen.

Growth Mindset

Die Wachstumsmentalität zeichnet sich durch die Idee aus, dass ein Individuum alles lernen kann. Das Ausmaß unseres Könnens ist nicht genetisch festgelegt – vor allem, wenn es um Wissensarbeit oder die Entwicklung von Fähigkeiten geht. Diese Art der Denkweise ist positiv und optimistisch in Bezug auf das Potenzial eines Individuums. Sie sieht Intelligenz und das menschliche Gehirn als eine flexible Grundfläche, die durch ausreichend Bemühungen ausgebaut und verbessert werden kann. Anstatt Intelligenz und Lernen als genetisch gegeben zu betrachten, geht es mehr darum:

1. Wie viel Mühe jemand bereit ist, in seine Weiterbildung zu stecken,
2. Wie viel freiwillige praktische Übung auf die bestmögliche Weise unternommen wird,
3. Wie ausgeprägt Charakterzüge wie Biss, Ausdauer und der Wunsch zu lernen sind.

Typischerweise wird jemand mit einer Wachstumsdenkweise eher:

• Probleme als eine interessante Herausforderung sehen: Ein komplexes Problem wird als etwas angesehen, das in jedem Fall gelöst werden kann. Es geht nur darum, herauszufinden, wie. Ebenso wird es als Chance für Wachstum gesehen, nicht als unüberwindbare Blockade.
• Mehr am Lernen interessiert sein: Lernen funktioniert am besten, wenn ein Mensch neugierig auf etwas ist. Wenn Sie glauben, dass Sie etwas nicht lernen können, werden Sie es wahrscheinlich auch nicht weiterverfolgen.
• Ambitionierter sein: Ein Growth Mindsert steht für die Vorstellung, dass der Mensch alles lernen kann. Dies befähigt den Einzelnen, sein Potenzial zu entfalten.

Fixed Mindset

Die „starre Mentalität“ stellt das Gegenteil dar. Diese Denkweise ist negativer in ihrer Natur und argumentiert, dass unsere Fähigkeit zu lernen und die Grenzen unserer Intelligenz in der frühen Kindheit angeboren bzw. bestimmt werden.

Menschen mit einem Fixed Mindset zeichnen sich dadurch aus, dass sie eher:

• Eine negative Einstellung zum Lernen haben: Sie glauben nicht, dass Lernen für sie möglich ist und fühlen sich deswegen demotiviert.
• Andere negative Eigenschaften manifestieren: Ein Fixed Mindset geht über das Erlernen neuer Fähigkeiten hinaus. Wenn ein Mensch glaubt, dass er sich nicht ändern kann, wird er nicht als Person wachsen. Das bedeutet, dass er Charakterfehler haben kann, die unadressiert bleiben.

Befürworter dieser Denkweise glauben, dass manche Menschen bestimmte Dinge einfach nicht lernen können – zumindest nicht annhähernd so schnell wie es vielleicht andere können.

Diese Mentalität ist ein Problem, mit welchem wahrscheinlich auch Sie in Ihrem Unternehmen zu kämpfen haben, insbesondere wenn es um Neueinstellungen oder die Umschulung älterer Arbeitnehmer geht. Offenkundig stellen Menschen mit einem Growth Mindset die besseren Mitarbeiter dar. Das bedeutet jedoch nicht, dass Sie jetzt einen Großteil Ihrer Belegschaft entlassen sollten. Denn die gute Neuigkeit ist: Ein Growth Mindset lässt sich trainieren.

Umerziehung zum Growth Mindset

Angeborene Intelligenz oder „Nichts ist unmöglich“ – Wo liegt die Wahrheit? Wie immer irgendwo in der Mitte.

Fakt ist: Menschen haben genetische Einschränkungen in Bezug auf ihr Gedächtnis, ihre Konzentrationsfähigkeit und neuronale Verarbeitungsgeschwindigkeit. Aber gleichzeitig sind die meisten Menschen auch nicht bereit, die notwendige Arbeit zu leisten, bis sie an ihre tatsächlichen Grenzen stoßen. Zwar gibt es eine genetische Grenze für „Intelligenz“, aber sie sollte niemanden davon abhalten, zu lernen. Unser Gehirn hat eine erstaunliche Lern- und Verbesserungsfähigkeit, und wir haben gerade erst damit begonnen, sein Potenzial zu entdecken.

Wenn Sie Teammitglieder haben, die durch ein Fixed Mindset geprägt sind, ist das Wichtigste, was Sie für sie tun können, ihr Selbstvertrauen zu stärken und ihnen zu helfen, ein Growth Mindset aufzubauen.

Der beste Weg, ihnen dabei zu helfen, ist:

• Schaffung einer druckfreien Umgebung: Wenn Sie versuchen, jemandem mit einem Fixed Mindset das Lernen aufzuzwingen, wird er sich vermutlich nur stärker in seinem Glauben verankern. Stattdessen sollten Sie der Person Freiraum geben, um die Denkweise selbst zu entwickeln.
• Unterstützung beim Lernen: Das Growth Mindset ist geprägt durch das Vertrauen in die eigene Lernfähigkeit. Manchmal müssen Menschen durch positive, inkrementelle Erfahrungen langsam ihr Vertrauen in sich selbst zurückgewinnen.
• Anerkennung von Lernmeilensteinen: Stellen Sie sicher, dass die Fortschritte Ihrer Mitarbeiter anerkannt werden, damit sie positive Gefühle zum Lernen entwickeln.

Schaffung einer Lernkultur

In diesem Teil haben wir darüber gesprochen, wie Lernen Innovationen fördert. Im nächsten Teil werden wir einen Blick auf praktische Strategien werfen, um dies im geschäftlichen Kontext zu erreichen. Wir werden darauf eingehen, auf welche Arten Ihre verschiedenen Teams lernen, wie Sie ihr Engagement steigern können und wie Kanäle für das Feedback der Mitarbeiter geschaffen werden können.

Der Beitrag Wie lebenslanges Lernen Innovation fördert (1/2) erschien zuerst auf Argo Ventures.

What makes a great company?

Vast hours have been dedicated to answering this question. The best academics and consultants have all tried to figure it out. With good reason – 80% of entrepreneurs fail within 18 months of business.

But nobody can agree on a single, definitive factor. Business can’t be reduced to a simple formula. Instead, there are many factors colluding to create the stopping power of the most successful businesses. Factors such as team, market and customer demands. There is one factor that brings them all together, however. There is a metaphorical ‘glue’ that gives meaning, direction and coordination to the various elements of successful business.

The ‘glue’ i’m referring to is vision.

By providing a destination and purpose for the organization, a powerful vision is capable of bringing people together to define an industry.

Destination and purpose

Vision acts as the destination and purpose of an organization’s existence.

Where do you want to end up?

In order to make progress towards something, you have to know what you are aiming for. You need a target – a goal.

Vision represents a combination of the two. It is having a moving target that you are continually trying to hit. And also, an idealistic endgame. Vision represents how your company moves on a day to day basis. It’s the driving force that energizes your people as they build products and interact with customers.

It also represents the big Why – the big change that you want to see in the world. If we actualize our vision, how will the world be different?

Understanding vision

The story of Steve Jobs has been told countless times. It’s been dissected and taught throughout business schools. It’s even been made into movie (more than one actually). But the reason why it’s effective is that the message is clear and easy to understand. Especially if we want to define and understand vision.

Steve Jobs and Steve Wozniak changed the world. They built one of the most successful companies of all time. They named it Apple, Inc. The name itself doesn’t seem fit for a computer company. Had they been working with business consultants at the time, they would have walked out in protest. But the name itself gives insight into where Jobs was coming from. He wanted to be different. He wanted to challenge the status quo. He was the square peg that society wanted to fit in the round hole. He rejected this idea.

He believed that personal computers should be in the hands of everyday people. Not just business executives. He wanted to empower the masses by giving them tools to advance the mind. He wanted these computers to have an intuitive user experience – designed for the everyday person. He wanted to beautify and democratize access to technology. That was his vision.

The Why, the How, and the What

In his best selling book, ‘Start With the Why’, Simon Sinek created a model that encapsulates what vision is. In what he calls the Golden Circle, there are three aspects: the Why, the How, and the What. Here is some further clarity:

• The Why – This circle represents the problem or need you are solving. It also represents the shift in the status quo that you are trying to bring about. You could be solving the problem of internet connectivity in Africa. But your broader Why is to bring the human family together.
• The How – Alone, the Why of your vision is just a dream. There needs to be a pragmatic road map that leads to the achievement of the Why. This is the building aspect where processes and systems are put in place to achieve the vision.
• The What – The final circle refers to the output of the two inner circles. What is the product or service that is being built in relation to the vision? What are the features that allows it to solve that particular problem?

Starting with Why

Having vision is about the Why of what you do. The best businesses are laser-focused on the problem they are solving. But they go further. They have a definitive mission which goes beyond that particular problem. And ideally, they define a new status quo.

Here are some examples of company visions and their Why:

• Facebook – To give people the power to share and make the world more connected.
• Apple – To make a contribution to the world by making tools for the mind that advance humankind. (This was quoted from Steve Jobs as his original vision).
• Google – To organize the world’s information and make it universally accessible and useful.
• Amazon – To be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.
• TED – To spread ideas.

None of these vision statements talk about what they do. Nor do they mention how they do it. But in the background, these are the factors that allowed them to achieve the Why. Hence, the Why, How and What are all interconnected and codependent.

Google doesn’t speak of the complexities that their search algorithms have. But it’s this robust technology that allowed them to organize the world’s information. This despite there being others on the same mission.

Apple’s original vision statement isn’t about how aesthetic their products are – although this was a core part of how they achieved their vision. Instead, there is a greater feeling of revolution and empowerment. Great user experience was just a means to achieve that.

In all, although the How and What of vision is important (critical to achieving it), the Why has to come first. Otherwise, there is no concrete destination to build towards.

Becoming a visionary leader

Creating a great business is hard. Bringing together a great team, identifying markets, solving customer problems and fending off competition. These are just a few things you have to deal with. And without a concrete vision about why your company exists and what you believe in, excelling in these areas is much harder.

Your ability to harmonize the various aspects of business through a strong vision is key.

To illustrate why, let’s take a look at a charismatic visionary: Elon Musk.

An example of a strong vision

Musk is one of the founders of PayPal. He went on to found SpaceX and Tesla Motors, which he both actively runs. He is also the founder of Open AI, the Boring Company and various smaller ventures. Some even describe him as ‘Iron Man’, in reference to the superhero who shares the same inventiveness and desire to take on the world.

But what is it that distinguishes Musk from other entrepreneurs? He’s smart, but there are thousands of smart entrepreneurs who aren’t as successful. What sets him apart is his otherworldly vision for the future. And I mean that literally – SpaceX’s vision is to make humanity a multi-planetary species. Likewise, Tesla Motors vision statement is to drive the transition to sustainable vehicles.

Through this strong sense of purpose, Musk is able to do what others aren’t. He is able to thrive despite the many setbacks he’s faced. Here’s how Musk’s vision impacts his business:

• Building a team – Musk’s compelling vision appeals to the talented and idealistic. The best people aren’t just looking for a job, they’re looking to change the world. Through working with Musk, they’re able to do so.
• Overcoming adversity  – Musk has overcome a huge amount of adversity. He struggled to get funding for his ideas. He faces negative PR, funded from incumbents in the car industry. He has to overcome difficult technical challenges. Yet at every stage he has managed to succeed – something only possible with a strong purpose.
• Penetrating the market – Tesla is making waves in the centuries old automobile industry. It’s an industry with high barriers to entry, powerful lobbies and red tape that keeps upstarts at bay. In Q2 2018, Tesla shipped 40,740 vehicles. Considering his cars range in price from $55,000 to $100,000, Tesla is doing very well.
• Spotting opportunities – How many entrepreneurs can go toe to toe with the American, Chinese and Russian governments? Musk’s SpaceX brought spaceflight into the private domain. Where other entrepreneurs shied away, he had the vision to seize the opportunity.

Creating a compelling vision

You should now have a greater understanding of the importance of having a vision. Now it’s time to turn inwards.

Start thinking about your current situation. Do you even have a vision? Or is it just a vague idea about what you do and how you do it? Worse, are you on autopilot with no clear sight of where your organization is going?

Making it concrete

You probably have some idea of where you are taking your business. But having a vague idea of your purpose isn’t going to give you the effect that you need.

A fuzzy vision won’t remind your people about why they come into work everyday. It isn’t going to give them the fuel they need to do their best work.

Likewise, if your customers don’t get a sense of what you represent then you are missing out on a key competitive edge. Do you want your customers to think about you based on what your product does? Or would you rather they align with your brand as an expression of their values?

A study by researchers at the University of Bangkok and Macquaire University found that there were 7 aspects of a powerful vision. They were:

• Conciseness
• Clarity
• Future orientation
• Stability
• Challenge
• Abstractness
• Ability to inspire

These factors play an important role in the message that you are trying to communicate. But it’s also important to look at the factors that inform your vision in the first place. In other words, how do you find your Why?

There are four steps that will help you construct your Why.

1. Identify problems

Think about what problems your company is solving. Think about the implications of these problems and the effects if left unsolved.

For instance, let’s say you are a manufacturing company that produces parts for wheelchairs. The problem you are solving is that you are helping people to be more mobile. If left unsolved, people’s life quality will suffer.

2. See past it

Next, it’s important to go beyond what you are currently solving. You need to be able to see the forest from the trees.

In other words, you can’t just be fixated on your specific problem. You have to be thinking about the future and adjacent problems that you aren’t solving. You have to visualize how your organization can tackle the whole industry, both now and in the future.

In the example of the wheelchair manufacturing company, you could have a broader vision to give people lifelong access to great mobility. This would extend their focus past just wheelchair parts and more into the domain of personal transport. The emphasis of ‘great mobility’ could mean developing ways of enhancing general mobility – even for people without disabilities. This could mean inventing a completely new method of personal transport – something akin to a Segway.

3. Define values

Then you have to start thinking about what your company represents. What are the ideas, beliefs, and values that guide you as you go about solving these problems?

Think beyond profit. Do you represent honesty? Fairness? Changing the status quo? These are the values that give work meaning beyond simply earning a living.

With the example above, the company could embody values of freedom, equality of access and respect regardless of physical ability.

4. Create a story with meaning

Finally, you want to bring it all together to create a story that has meaning. You now exist to represent a mission. Your organization is embarking on a new journey.

„We are Mobility Manufacturers Inc. We represent freedom, equality of access and respect for all. We exist because everyone should have the ability to easily and efficiently move around our shared planet. We started 5 years ago when we personally experienced the difficulties and lack of access that disabled people have to deal with.“

Next steps

One final aspect of developing a vision lies within yourself as a leader.

You may have a compelling vision, but you need to embody and represent it. The vision has to be communicated through you. And for it to resonate, it has to be congruent with who you are.

So, who are you? And how do you plan to change the world?

Der Beitrag Why Vision is a Leader’s Most Important Skill erschien zuerst auf Argo Ventures.

3. New business models

The digital age has brought about new ways to conduct business. The internet and ubiquitous smartphones have opened up new customer channels. They have also opened up completely new ways of doing business, with some companies being internet only.

These new business models can be extremely lucrative thanks to the scaling power of the internet. But for companies who aren’t able to harness its potential, it can mean extinction. Let’s take a look at the most popular new business models: Sharing economies, x-as-a-service, data-centered businesses, ecosystems and decentralized organizations.

Sharing economies

The description of ‘sharing economy’ isn’t completely accurate, but generally refers to the use of products or services without any ownership on the customers part. For instance, AirBnB allows locals to rent out their houses to travellers which helps experience the culture better when travelling. RelayRides is another example that allows people to rent out their cars to others.

These platforms have been powered by the matchmaking potential of the internet, combined with the accessibility and distribution of smartphones.

If you are in the hotel or car businesses, these new models pose a threat to your margins. In order to be competitive, new strategies such as delivering tailored customer experiences and aspirational branding are necessary.

X-as-a-service

Similar to the sharing economy, B2B providers are becoming vendors of technology which they lease out for a monthly fee.

This means that companies no longer have to invest money into building out technologies from scratch. Instead, they can just pick and choose what they want and assemble it like Lego.

Data

Companies are always looking for ways to make better decisions. When it comes to important decisions like whether to launch a new product, guessing is never a good idea.

As it stands, 85% of companies are trying to be more data driven, but only 37% are succeeding. Being data-driven is one of the best ways to make better decisions. This is why data has become one of the most valuable commodities in the digital age.

Some companies like Facebook have built their business model around the data they collect. The fact that they know everything about us is valuable to marketing leaders who want to hyper-target their products. Other companies like Crunchbase act as aggregates of data which they package and sell.

Ecosystems

In certain industries, there are opportunities for key players to own the whole ecosystem. This isn’t achieved through pure financial and political power like in the previous century. Instead, it’s more about familiarity of service and ease of accessibility.

An example of this is Amazon and what they did to the book publishing industry. Leveraging their success as a book retailer, they branched out into e-readers and even starting their own publishing arm.

Having this monopolistic level of power has given them leverage over publishing incumbents who were slow to adapt to this change.

Decentralization

The changing ways in which we think also plays a part in the development of digital business models. Take the blockchain for instance. The technology and concept behind it is impressive. But it is the idea of decentralized ownership and cutting out the middleman which gives it strong commercial potential. With growing distrust in government and big business around the world, the demand for more transparent and fairer business models is being met by the blockchain.

And investors are lining up to back these new models. As of May, $1.3 billion was invested in blockchain companies by Venture Capitalists. This doesn’t include the billions poured in by crowdfunding.

4. Cultural Landscape

We have already talked about how digital platforms such as social media have given the average person a voice. Often, customers will use these platforms to voice their support or frustration with a brand. But it’s not just about customer service. It’s also about corporate social responsibility.

Social platforms such as Twitter and Facebook have given people the ability to start social movements and vote with their dollar. For instance, there have been movements to boycott brands that are run by people who may have controversial beliefs. An example would be the conflict between religious business people and the LGBT community. Similarly, businesses who are politically aligned with controversial issues such as gun ownership or immigration are often in the firing line from both sides.

The key takeaway? Businesses in the digital age are no longer faceless entities.

There is increasing pressure for businesses to ‘take a stand’ on certain issues. Particularly that which is seen as human rights, of political nature, and environmental sustainability.

A current example of a company taking a political position can be seen through Nike’s appointment of Colin Kaepernick as the brand face of their slogan, ‘Just Do It.’ For those not in the know, Colin Kaepernick is a NFL player who startet the U.S. national anthem protests by keeling for the national anthem during an American football game in 2016. This was done to protest what he viewed as systematic oppression of different groups in the country, fuelled by the then inflamed media coverage of excessive police force.

The protest continues to divide the country. But Nike’s recent appointment of Kaepernick as the ambassador for one of their campaigns has sparked outrage on social media. Since the release of the campaign last week, people across the US can be seen burning their Nike sportswear in protest against the company. In their eyes, Kaepernick’s refusal to kneel for the anthem was a sign of disrespect. And Nike endorsing him puts the company in the category of the ‘other’, politically speaking.

As a business leader, navigating this cultural landscape can be difficult. Where do you draw the line between strong personal beliefs, being socially responsible and maximizing the return for shareholders? That’s something every leader will have to figure out as culture and politics become more polarized.

5. Holistic Leadership

But your greatest challenge in the digital age is becoming a multi-faceted leader.

As competition increases and technology continues to disrupt, only the best leaders will thrive and continue to exceed value to shareholders and customers.

How do entrepreneurs achieve this?

For a start, the idea of a sales focused or technical focused CEO has had it’s time. We’re moving to an era where business leaders need to be able to wear multiple hats and see through different perspectives. This means your perspective needs to cover sales, marketing, people, product, technology and service.

If you as a leader aren’t curious and diving into all functions of your business then you will miss out on opportunities for growth.

This is why I advocate for executive coaching and business networks simply because the stakes are high. The challenges we discussed in this series are just the tip of the iceberg but can still prove to be fatal. In the digital age, what worked 10 years ago, or even 5 years ago, may not work today. And although you may be in a comfortable position now, that can all change in the next few years.

The best course of action is to be prepared and tackle the challenges before they affect you.

Der Beitrag The Great Challenges of Entrepreneurship 2/2 erschien zuerst auf Argo Ventures.