Years ago, a mentor taught me that the ability to anticipate and prepare for the future is not merely advantageous it’s crucial. Over the past 30 years in business, I’ve encountered numerous instances where this advice was proven true. I’ve observed that companies and individuals who concentrate on “what’s next” and consistently look forward to what’s coming are positioning themselves for long-term, sustainable success. This proactive mindset often termed as future-proofing, allows an entity to stay competitive, foster innovation, and secure lasting growth. This article will explore many scenarios where the capacity to foresee the future is critical for long-term success.
Leading organizations within three of the world’s largest telecommunications companies — Verizon Wireless, T-Mobile, and Comcast NBC/Universal — have provided a deep understanding of sustainable growth and the necessity for forward-thinking. Successful businesses acknowledge that the market is constantly evolving, driven by technological advancements, changing consumer behaviors, and global trends. By anticipating these shifts, companies can proactively adjust their strategies and operations. Understanding and predicting market trends enables businesses to maintain a competitive edge. This demands acute observation and analysis, as well as a commitment to invest in research and development. For example, companies that anticipated digital transformation have garnered substantial benefits by early adoption and integration of new technologies.
The US telecommunications industry remains a leader in innovation. Decades ago, in the late 1990s, Verizon invested heavily in wireless technology, which was met with skepticism due to its profitable landline business. Critics argued that this move would erode the company’s base of loyal landline subscribers. At that time, Verizon had over 70 million landline customers. Fast forward to the present, and only 2 percent of U.S. adults exclusively use landlines, another 3 percent primarily rely on them, and 1 percent have no phone at all. A substantial proportion of landline users are aged 65 and older, which is the only demographic where landline households exceed wireless-only ones. Considering that in the early ’80s and ’90s, landlines were central to every home, isn’t it astonishing that less than 2% of households retain the service? Looking back, it’s hard to imagine a time when homes would be without a landline telephone. Even with the advent of cell phones, the idea seemed far-fetched!
Companies such as VZ that keep pace with emerging technologies can leverage innovations to develop new products, enhance efficiency, and improve customer experiences. This not only gives them a competitive advantage but also creates new avenues for revenue. VZ demonstrated its ability to look around the corner by investing over $25 billion in broadband technology known as FiOS. The early internet was dominated by services like AOL (dial-up), DSL, and ISDN, among others. I recall times when picking up the phone at home meant hearing static on the line because someone was using AOL through our landline service. VZ recognized the need for a better solution to support home Internet access without interfering with phone use, and thus, FiOS became VZ’s strategy.
The advent of fiber optic technology was revolutionary, offering the ability to deliver voice, video, and data services through a single fiber optic line, thinner than a strand of hair. In 2005, I joined a team tasked with deploying FiOS to the first community in Quantico, VA. Despite some initial challenges, particularly with the video service aspect (as a telephone provider venturing into the cable TV business), there was an immediate demand for the service. Today, VZ boasts over 7 million FiOS subscribers, predominantly in the Northeast region of the US. Had VZ not been visionary and anticipated the future needs of consumers, one can only speculate where they would stand today. Futureproofing is the practice of adopting various strategies to ensure a business remains robust and prosperous in the face of future uncertainties, embedding resilience and adaptability into the very core of the organization.
An agile business is adept at swiftly adapting to market changes. This agility stems from a culture that fosters experimentation, continuous learning, and the swift implementation of innovative ideas. Such businesses are more resilient to disruptions and can seize emerging opportunities effectively. As technology advances, particularly with the rapid integration of AI/ML, the reliance on human interaction is diminishing. The McKinsey Global Institute projects that by 2030, up to 30% of the hours currently worked in the US could be automated, potentially displacing 12 million American workers. Similarly, Goldman Sachs forecasts that AI could disrupt 300 million jobs globally by the same year. In this landscape, the workforce remains a vital element in safeguarding a business’s future. For decades, companies have wrestled with the ongoing imperative to enhance profitability, often resorting to workforce reductions as a regrettable but recurrent strategy.
Continuous learning and development programs are crucial in equipping employees with the skills necessary for future challenges. Fostering a culture of innovation and collaboration can lead to groundbreaking solutions and the discovery of untapped markets. Personal development is not just a company requirement; it should be an individual’s primary tool for long-term success. Reflecting on and evaluating your current skills can motivate you to further develop and refine them. It’s reasonable to pursue personal development to enhance your existing skills and talents, even if it involves occasional failure. With AI/ML, the need for many manual tasks within a role can be reduced or even eliminated. Individuals who do not keep up with innovation are doing themselves a disservice. I recall an employee who was reluctant to learn the new technology that we were adopting. I shared with him a story from a mentor of mine. My mentor stated that he owned a VCR and hundreds of tapes that his family frequently watched. He was adamant about not abandoning his VCR. Unfortunately, the day came when his VCR stopped working, and he discovered that no one in his city could repair it. At Circuit City, an employee suggested he switch to a DVR, but he refused. He then settled for a less sophisticated unit, however it was never the same. Over time, as streaming became popular, he let his tapes deteriorate without converting them. He lost most of his tapes and now regrets not embracing technological advancements, wishing he had been more forward-thinking.
Companies can secure long-term sustainable growth by concentrating on future developments, preparing for changes, and making their operations resilient. This proactive strategy not only fortifies them against uncertainties but also enhances their value and profitability.
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