It is only through playing-it-safe, as well as doubling-down, that organizations should emerge stronger — with outsized returns — when an economic slowdown has passed.
And while not all industries are affected by superfluid markets, technologies such as internet of things (IoT), blockchain and artificial intelligence are reducing market friction at a rapid rate says Balis. In a world of superfluid markets, hard boundaries between companies, and even sectors, are eroding, companies need to be able to scale their workforce up and down with ease, interact seamlessly with their suppliers, and consider offering products and services to customers that they have never served before.
We are only at the beginning of this business cycle. Companies, suppliers and customers are forming networks that make transacting and collaboration easier as traditional frictions dissipate—all with the goal of coming out of economic slowdown stronger than before.
Clearly, a networked ecosystem that thrives in superfluid markets is not something that emerges overnight. It is the result of strategic planning, investment in new technologies and engagement with third parties. It is for this reason that EY teams developed its own Supply Chain Reinvention framework to support clients that want to make the switch from a linear supply chain model to a networked ecosystem.
Yet it is only through doubling down, as well as playing-it-safe, that organizations should emerge stronger — with outsized returns — when the economic slowdown has passed. The enterprises that engage in this strategy will succeed at transforming themselves into cost-efficient, resilient and flexible enterprises that will flourish in the turbulent times ahead.
Related article
Summary
In turbulent times, play-it-safe and double-down are the right strategies for businesses to reinvent their supply chains.