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This is the second part of the article `The Strategic Positioning of Business Service Providers in the New Economy'. The first part was published in the MIM E-news on 6 February 2006.
Now that we have established that there is a need for business service providers to go with the flow in the new economy, driven by the new game with its new rules and dynamics, as well as identified the various opportunities present, that they can use to seek new profits streams. |
How do we get there?
Let us examine our strategies on two levels, both on a micro and macro level.
The first of which is at the micro level. Here we will adapt the famous Cashflow Quadrant from Robert Kiyosaki.
The Cashflow Quadrant states that an individual's means to more cash can be conceived through four quadrants:
1. In Employment
2. Self-Employment
3. In Business
4. Investment / Service Seekers
Hence, for each of the above starting points, how do we get there?
1. In Employment
The key attribute of a person in employment should cover them as being a knowledge worker, adopting an attitude of life-long and continuous learning. He or she should possess a deep and unshakable amount of integrity, not being swayed by the whims and fancies of ill habits of less transparent superiors, yet not to hold so dear to their principles without being attune to broad business issues.
To be a prime candidate within his or her working environment, in their role as a service professional, the employed player of the new economy must be technology savvy, harnessing the ever-changing encyclopedia of the Internet to expand their knowledge.
He must also have excellent communication and leadership skills, through the exemplification of strategic and critical thinking skills. Rather than focus on merely getting the job done, the employed new economy player must also focus on bringing the best values to their customers, internal and external by excelling in the comprehension of converging information.
2. Self-Employment
As a free-lancer and self-employed person, the first point to pay stringent attention to is the acquisition and honing of the key attributes and skill-sets required of a business service professional.
Rather than be a jack-of-all-trades, master of none, choose to be a niche player with niche technical skill-sets. As a freelancer with limited resources, he / she must excel in one very niche area of expertise, and rely on complimentary partners to provide a whole product service offering to your clients. Through this, capitalise on your specialisation while offering differentiated
services to the niche market.
Being an individual running a business entity need not always mean tonnes of sacrifice, to make up for the limited number of hands. Leverage on technology tools to create a molecular organisational structure.
Finally, adopt a competition strategy, which is to band together with like-minded goal driven new economy self-employed individuals with different skill-sets to offer a wider range of services when so requested by the clients.
3. In Business
The new economy opens vast doors for those who are in business. Re-look at how the business affairs are conducted today. Reinvent them by re-examining the whole service value chain to make it more efficient and effective.
Expansion does not necessarily means the acquisition of larger office space, or increasing the number of personnel. Mergers and strategic alliances are ways of exploiting economies of scale and building competitive advantage. Like the self-employed, look at collaborating with competitors.
There will come a day when the business service provider needs to understand the increase in the demands on human capital, and keep their knowledge workers happy by adopting flexible work patterns.
Focus on the next engine of growth, which would be the technopreneur market. The first catalytically point towards the new economy, demonstrate the overt benefits that you bring to this particular community by building your competencies around it.
Next render key knowledge-based services such as assurance and trust services, business advisory and management consulting services, technology consulting services and even financial planning services.
Finally, think global in the new economy, but act local by joining technology exchanges and networks, before heading across the seas.
4. Service Seekers / Investor in Services
Finally if you are a service seeker, it is indeed a harder task of selecting only the best for the service you want.
Always look for knowledge-based service providers. The businesses today want to get additional mileage outside of the scope of work indicated. Look for value adding services. A one-stop shop would be a better choice in view of time and effort constraints.
The responsibilities of achieving a congruent status of being a nation player in the new economy do not lie solely on the shoulders of the business services providers. They may get there by themselves, or with other like-minded individuals, the macro forces must be there to move and to smoothen the path of these business service providers.
Rise to the occasion and collectively ride on the networks of professional associations' power that the business service providers are affiliated to interface and lobby with the relevant authorities and parties for new opportunities. Among some of those mentioned earlier includes building an e-service information infrastructure, offering professional services to the entrepreneurs grown under the
Technopreneur Development Flagship, create the professional service community through funding from DAGS, seek active participation opportunities in other national development programmes.
More often than not, we see the pot of gold at the end of the rainbow, but it is the process of getting there that hinders our movement forward. Like a rainbow, it is an uphill climb that is not always laid with the best steps. But with a systematic and strategic approach to identifying how best to climb this curve, based on our prevailing environment and situation, the business service providers
shall get there and prosper.
Victor Ooi is a graduate of the MIM-MSM Executive MBA (IT & Management) and Chief Executive Officer of Biz Aid Technologies Sdn Bhd.
MIM is the national management organisation committed to promoting continuous management learning. Independent, non-political and non-profit, MIM is also a development centre for enhancing and maintaining professional management standards and competencies. Inaugurated as a voluntary society in 1966, MIM continues today to introduce the best in management practices from all corners of the world to
our Malaysian companies and serves as a platform for the free exchange of management knowledge and experience. This year MIM celebrates 40 years of delivering management excellence, having not only grown in stature and membership support in forty years, but having also established itself as the authoritative voice of management in the country. MIM's national charter and challenges will require it
to be innovative and forward looking to prepare Malaysian workers and the present and future generation of managers to be able to competently handle and manage new dynamic challenges, enabling us to navigate our way to compete successfully and to achieve our Malaysia 2020 vision of becoming a developed nation.
For more information, contact MIM Customer Service at Tel: (603) 2165 4611, Fax: (603) 2164 3171, email enquiries@mim.org.my or visit www.mim.org.my
