VUCA is an acronym for Volatility, Uncertainty, Complexity, and Ambiguity. VUCA is the driver of most disruption in business.
I believe we live in VUCA time. And, VUCA is changing how business is done:
- Worldwide communication networks and computers facilitate aggressive worldwide competition.
- Aggressive high-tech countries (ie. Singapore, Brazil, China, and Korea) grow in capability.
- Outsourcing countries (i.e. India, and China) are growing middle class markets rapidly and compete vigorously to retain markets.
- More competitors are emerging in many industries, at home and abroad.
- Previously regulated (and protected) industries are deregulated (i.e. finance, banks, airlines, telecommunications, utilities).
- Reinvented business alliances (using information technology) result in synergistic competitive strengths.
- Competition is based on new business models.
- Free trade agreements are being renegotiated and becoming more balanced.
- Alliances among nations change the role of international competition, as in the European Community.
- Customers have more online purchasing choices.
- Increased competition results in over supply and lower margins.
- Companies radically redesign processes to give higher customer satisfaction.
- Companies with new structures and redesigned processes are faster to market.
- Quality awareness causes customers to demand higher quality.
- Rapid growth of new technology lead to newer business opportunities and render existing operations obsolete
- New technology allows established markets to be attacked by new entrants.
- Reengineered factories with ‘lean’ manufacturing challenge traditional factories.
- New design (robotics, etc.) and manufacturing (3 D printing, etc.) technologies can quickly change the rules of competitiveness.
- Products designed for automated fabrication drive down prices.
- New product design to market cycles shorten.
- Everything is speeding up because of computers, networks, supply chain risk management, lean, and just-in-time techniques.
- Companies have less time to respond to new threats.
What else could you come up with?
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