Thanks for your comment Kartik. I agree with you that traditional businesses are failing to understand the younger generation and attract customers. This comes down to traditional business still being run by out of touch executives (e.g. Donald Trump!!). I came across an interesting article about digital leadership in the digital economy. The article covers a research programme sponsored by SAP. It identifies a rising generation of millennial executives who want change and aren’t impressed with the lack of digital leadership of senior management.
The research turned up some interesting numbers for businesses with strong leadership –
· 38% more likely than others to report strong revenue and profit growth.
· More mature strategies and programmes for hiring skilled talent (85% vs. 64% of others).
· Building diversity (56% vs. 48%).
· Succession planning (72% vs. 50%).
To achieve this, the companies –
- Embrace digital technologies. They are executing on a company-wide digital vision and embedding technology in all aspects of the organisation.
- Simplify decision-making. They make data-driven decisions in real time and distribute decision-making power across the organisation.
- Flatten the organisation. They are focused on reducing complexity and bureaucracy and offering the latest technology to all employees.
- Build a digital workforce. They are focused on improving digital proficiency among managers and employees and emphasising transformation readiness and the strategic use of technology.
I think that if companies what to address the needs of Millennials they need to start hiring younger executives who can provide innovation in order to succeed in today’s world. As you say traditional business models and governments fail to adequately understand this generation. One way to overcome this is to build a strong leadership pipeline and the numbers above back up this way of operating.