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Networks in the New Era of Business

Technological developments have changed the way companies need to run in order to be successful. Because of network effects, companies that are well positioned often get a larger share of the market than they would have otherwise. These, along with other factors such as the importance of security and new expectations about how companies should conduct themselves, have led to a new era of business, in which companies must grapple with difficult questions that they would not have previously had to think about.

The McKinsey Group came up with several questions that they believe all companies should be thinking about. “What is our mission and purpose as a company, and over what time horizon? Who benefits from our success and what are our responsibilities? How do we leverage data and technology responsibly? What are the implications for our operations of rebalancing global and local imperatives, within countries and between countries in a more complex geopolitical world?” These questions show that the group is looking at the global network that it is a part of and trying to consider how their actions will affect the rest of that network. Because of the accessibility and spread of information, companies can be held accountable if they do not live up to their ideals. A responsible company must take the time to consider how their actions will affect everyone and everything it is connected to, and that network is growing every day. At the same time, the importance of network effects in today’s economy means that companies must look for the best ways to position themselves to ensure that they can get ahead of the competition and generate enough interest in their product that people will have high expectations of them and want to used their product. In this new era of business, companies will have to deal with new expectations in a changing environment. Understanding the networks that they are a part of will be key to succeeding in this era.

Source: https://fortune.com/2019/11/15/mckinsey-new-era-business-strategy-questions-companies-should-ask/

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