Impact of societies on organizations in future
On 27 March 2013, Mr. Ranganath N.K, MD, Grundfos Pumps India delivered the 2nd MMA Endowment Memorial Lecture on ‘Impact of Societies on Organizations in Future’ at the Thanthai Periyar Arangam auditorium, Chennai organized by the University of Madras.
An extract of his knowledge sharing session:
“It is expected that the world will witness tremendous urban growth by 2015. There will be a wave of a new set of consumers emerging across globe. It is said that communities and cities will affect emerging companies in future. The trends that will impact the future business are the rebalancing of economic power and the shifting of the centre of power eastwards rather just concentrating in the West. The agriculture sector will also see an explosion of demands but dip in supply. This will create an imbalance, which can be addressed only through high productivity and innovation. The fundamental business model will undergo a drastic change from a realistic to a virtual setup.
The driving reason behind these changes is an exploding population. It is expected that the world population will reach 8 billion in next 15 years, with India alone contributing 250 million. The consequences of this increase in population are urbanization which will be go up by 64% by 2050, which in turn will increase the demand for water, food, services globally. The decreased availability of arable land for agriculture will be reduced which will result in decreased productivity. The mini cities to support mega cities will be flourishing.
The manufacturing units will function as multi-location well-networked functioning units. Jobs will become more cognitive than physical and repetitive. This will result in acquiring a new type of talent pool or upgrading the existing talent pool.
The education system to cater to the new organization has to undergo a sea change and the focus will be on applied knowledge rather than book knowledge and expertise in a narrow field. Learning will be more experiential and through interactive media rather than in class rooms.
Transportation will be either as data to be physicalized at the user end. Unmanned goods and people movers will be used on networks that connect individual buildings and mega cities.
Organisations will span the globe and will work 24/7 delivering goods and services seamlessly.
People in organisations will have to cooperate rather than compete.
Globalization and urbanization coupled with technology will force a paradigm shift in the way we work and where we work. Work can easily be broken into smaller tasks and redistributed around the globe.
Dramatic improvements in real time communication, including the development of “virtual worlds”, are transforming the concept of where the workplace is and when is work time.
The boundaries between work and play and leisure and between formal paid work and informal work are getting blurred and are shifting rapidly.
In the new organisation there are people who are diverse, geographically spread, speaking different languages and having different cultures but who have to work towards a common goal. In such circumstances, organisations need to have a larger purpose than the business itself.
The main challenge for these organizations will be achieving one single goal having the talent pool from diverse sectors. To achieve this goal in this new model, the organization set up will change from a power pyramid to wheels with spokes to share the responsibilities for the growth of organization.
The main driver for this shift will be work life happiness and work satisfaction. To achieve this one should pursue one’s interest as a career.
Organisations should perhaps become like good NGO’s but with a profit motive too – may be an oxymoron today? But this may be the order of the day tomorrow.
If the organisation goal is not aiming at a cause far beyond just business, then the organisation will perhaps not be successful and may even become dysfunctional.
All these changes are driven by the society and the norms, the business model will undergo change for which the world should prepare itself to survive in the changing world.