Companies are increasingly operating as markets, a shift that requires a fresh approach to strategy, leadership, and management. Operating as a market means creating an ecosystem where internal and external resources compete and collaborate to deliver value. This approach can lead to greater efficiency, innovation, and resilience.
To successfully transition to this model, companies need to consider three key factors. Firstly, they must determine whether they have a compelling reason to operate as a market. This could be a need to tap into external talent or resources, or a desire to foster innovation. Secondly, companies need to assess their readiness to manage the risks associated with this approach, such as loss of control or potential conflicts. Finally, they must be prepared to invest in the necessary infrastructure, such as digital platforms, to facilitate this model.
While operating as a market can be challenging, it can also offer significant benefits. Companies that successfully make this transition can become more agile, innovative, and resilient, positioning them for success in today’s rapidly changing business environment.
Go to source article: http://sloanreview.mit.edu/article/is-your-company-ready-to-operate-as-a-market/