ABU DHABI // Speaking at the majlis of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, a former IBM chief executive had one very important piece of advice: embrace change.
In a lecture titled “Re-think: A path to the future”, Samuel Palmisano, chairman of the Centre for Global Enterprise, a private non-profit research institute, told high-profile officials and members of the ruling family that a successful company needs to embrace globalisation and compete on a global scale.
Companies need to move away from historical business models to ensure they are not left behind by reconceptualising their internal-management systems.
“To be at a multiregional scale you need to engage the external world to operate in different models than accustomed to historically,” he said.
He cited the ridesharing company Uber as an example, saying it managed to reach 45 countries in only five years. This was possible because the company took advantage of a technology platform, something companies must do.
“Data is expected to grow by 800 per cent by 2020 – 20 billion different user characteristics,” he said. “We need to see how data can address an individual customer. How the message to that customer can be customised.”
He said companies needed to be transparent and own up to any mistakes made. With social media, companies would be unsuccessful if they tried to conceal information.
“You need to know how to manage data rather than be defensive about it,” he said.
Companies also need to engage in public policy.
“I never wanted to go to Washington, I just wanted to run the company and be left alone,” he said. “But it would be naive to think you don’t need to engage.”
He concluded by advising guests to be globally consistent and locally relevant, be good at what you can do and do only that, empower employees and trust the workforce.
He said companies must have a common culture and common value system to ensure all branches were in line.
osalem@thenational.ae
