In a session run by Marc Sansó, an Industrial Engineer, MBA graduate and Director of EAE’s Master of International Business, students at the School explored the change processes brought about by digitization, based on the expert’s input. How to evaluate the impact of change processes on organizations and how to detect these change processes were two of the questions answered over the course of the presentation.
To be able to understand the new age that we are now facing, it is useful to analyse all the previous eras that have brought about social progress. The start of the Industrial Revolution in 1775 led to great change at a global level. “It was one of the most important developments in the history of mankind”, explained the expert. The age of machinery had arrived, although a few more decades would past before it reached its culmination. As Marc added, “it was the first time that the process was driven by technological innovation”.
The lecturer continued his historical review with an analysis of the second age of machines, which “started with a new disruptive technology”. The 1980s brought with them far-reaching transformations in professions and communications, as well as an increase in life expectancy. “The implementation of this second age also lasted several decades”, confirmed Marc Sansó, who went on to highlight the fact that the culmination of this revolution was the arrival of the internet.
We are now facing a new disruptive change but how can we identify change processes in competitive settings? This question posed by the innovation expert generated reflections among the participating students. The answer revealed that “they begin in specialized segments, affecting product definition rather than the solution that they provide”.
Later in the session, another question was asked: “what impact do change processes have on organizations?” The Director of the Master in International Business explained that, as a general rule, they usually generate an initial rejection, distrust or even contempt. “After triggering reactions from the status quo and causing a redistribution of profits, they give rise to new business agents”.
Any change or progress comes with a cost. Costs related to friction, searching and the object of purchase are some of the issues brought about by the new business model. “Customers now have to make an effort to get information about a product or service they want to acquire”, explained the speaker in reference to the cost of searching, among others.
To bring their analysis of this new age to a close, the students of EAE Business School concluded that “digital transformation facilitates the emergence of new competitors, whose business model minimizes the inefficiencies of tradition models”. With this conclusion, Marc Sansó made a reference to the costs that we have to deal with as a result of the arrival of this new change.