Future Proofing a Business

Hafsa Maryam
Sr. Assistant Professor
 What is Future Proofing?

 Every business is vulnerable to threats like running out

of cash or getting outcompeted, or simply
becoming irrelevant as technology and trends advance.
 Business environments are always evolving, with new
technologies on the horizon and constantly changing
consumer demands and preferences.
 If the business has to survive, it needs to be future-
proof.
 Future-proofing is the process of anticipating the
future and developing methods of minimizing the
effects of shocks and stresses of future events.
 In general, the term "future-proof" refers to the
ability of something to continue to be of value into
the distant future—that the item does not become
obsolete.
 The Key Threats

 Changing demand dynamics

 Machine learning and AI
 Irrelevance due to cheaper or simpler alternatives
 Disruptive tech tools
 Machine learning and AI

 The massive potential of machine learning and AI.

 These technologies are advancing quickly, and they've
shifted in ways most business owners haven’t been
able to predict or prepare for.
Irrelevance due to cheaper or simpler alternatives

 Businesses can also suffer if — or when —

 Their competitors are able to offer the same products
or services in a simpler or cheaper way for consumers.
 Accordingly, if one of the competitors discovers a
breakthrough in production or uses automation to
dramatically cut costs, the business needs ways to
survive.
 Disruptive tech tools

 True disruptors offer a fundamentally different kind of

product or experience, reaching entirely different
demographics or turning the industry on its head —
like what Netflix did for streaming services in an
industry dominated by cable.
 This is an especially powerful threat because
disruptors often emerge unexpectedly after
competitors refuse to take them seriously.
 Founders have to find a balance between two
different pressures.
 They need to quickly acquire early customers and get
them excited about the product.
 They also need to keep those people around even as
they adjust their pricing, evolve their product,
and change their business model.
Dilemma of Unilever
Discussion Examples
Changes in Demand Dynamics

 Needs being reshaped because:

 Changes in economic conditions (sachets, complex
product needs for example soap)
 Social conditions (fairness, animal testing)
 Responsible sourcing (bodyshop)
Strategies for Future Proofing

 Revamping the customer relations strategy

 Creating scalable structures
 Creating space for innovation