THE ECONOMIC SHOCK OF THE CORONAVIRUS PANDEMIC has accelerated several pre-existing trends, while also giving rise to entirely new ones. In the face of such rapid change, sexecutives are piecing together the future landscape of value and the new rules of competitive advantage.
New ‘value shifts’ are being driven by shifting customer needs and behaviours on the demand side, increased value chain uncertainty on the supply side and a reversal of many of the trends that have defined pre-pandemic globalization. Competitive positions, likewise, are more vulnerable during such shifts, spelling out both promise and peril for executives. Variously referred to as the new normal, the big reset and other elaborate monikers, the emerging landscape will be characterized by the emergence of new value pools and the erosion of existing ones.
There is hope in the midst of such uncertainty. Migration of value to these new value pools can be predicted, prepared for and harnessed. Indeed, executives who anticipate these value shifts will be best positioned to seize tomorrow. In this article I will provide a framework for identifying new value pools and realigning your business portfolio to reflect these new positions.
Shifting Control Points
Times of crisis are accompanied by sudden changes in supply-side and demand-side dynamics — as has been the case with COVID-19. These changes lead to the migration of value from established business positions to new ones, enabling new players to emerge and new business models to be created. Such migration of value is also accompanied by a shift in value network ‘control points.’ This value migration commoditizes some