{"id":15848,"date":"2024-03-22T11:09:50","date_gmt":"2024-03-22T03:09:50","guid":{"rendered":"https:\/\/dev.ekipa.co\/insights\/blogs\/adapt-or-disappear-how-business-agility-helps-companies-thrive-in-this-digital-age\/"},"modified":"2026-02-11T14:07:52","modified_gmt":"2026-02-11T06:07:52","slug":"how-business-agility-helps-companies-thrive-in-this-digital-age","status":"publish","type":"insights_articles","link":"https:\/\/ekipa.co\/en-my\/insights\/articles\/how-business-agility-helps-companies-thrive-in-this-digital-age\/","title":{"rendered":"Adapt or Disappear – How Business Agility Helps Companies Thrive in This Digital Age"},"content":{"rendered":"\r\n

We deep dive into what is business agility and why it matters for a business in today’s modern landscape. <\/em><\/p>\r\n\r\n\r\n\r\n

What do Blackberry, Speedy Video, Nokia, Myspace, or even those notorious SS15 bubble tea shops have in common?<\/p>\r\n\r\n\r\n\r\n

They all failed to adapt! Some may still be operational but have experienced a significant decline from their peak. This isn\u2019t an isolated phenomenon. Companies that fail to adapt will eventually fade away.\u00a0<\/p>\r\n\r\n\r\n\r\n

So it\u2019s not a surprise that 90% of Fortune 500 companies have vanished since 1955, according to a 2015 study<\/a> from the John M. Olin School of Business at Washington University. That same study estimates that 40 percent of today\u2019s F500 companies on the S&P 500 will no longer exist in 10 years.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n

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In today\u2019s ever-changing and competitive business landscape, it\u2019s essential for businesses to easily adapt to market changes, customer needs demands, and other unforeseen challenges like the COVID-19 pandemic, the Russian-Ukraine war, and the rise of artificial intelligence and automation through software like ChatGPT, in order to not only survive but also thrive.<\/p>\r\n\r\n\r\n\r\n

But the key to staying afloat isn’t just about having a solid business plan or strategy\u2014it’s about having and embodying agility, which in simple terms means being flexible and adaptive to change.\u00a0<\/p>\r\n\r\n\r\n\r\n

What is Business Agility?<\/strong><\/h2>\r\n\r\n\r\n\r\n
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Business agility is more than just a buzzword or a fad; it’s a set of management skills and principles for companies to survive and thrive in today’s modern business environment.\u00a0<\/p>\r\n\r\n\r\n\r\n

As per the Business Agility Institute<\/a>, business agility is defined as:<\/p>\r\n\r\n\r\n\r\n

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“A set of organisational capabilities, behaviors, and ways of working that affords your business the freedom, flexibility, and resilience to achieve its purpose. No matter what the future brings.\u201d Imagine what having the flexibility and freedom to jump on new market opportunities \u201cyesterday\u201d might be like.”<\/p>\r\nBusiness Agility Institute<\/cite><\/blockquote>\r\n<\/figure>\r\n\r\n\r\n\r\n

With agility, companies can quickly spot new opportunities on the horizon, allowing them to adjust with lightning speed, all while not only reacting and responding to changes effectively but proactively anticipating them. It enables teams to adapt strategies, processes, and operations quickly to seize new opportunities, mitigate risks, and stay ahead of the competition.<\/p>\r\n\r\n\r\n\r\n

It\u2019s about fostering a culture of flexibility, continuous improvement, and innovation where ideas, no matter how unconventional, are nurtured. Leaders who practice business agility are transparent with their people, keeping everyone in the loop so they can navigate confidently in stormy seas.\u00a0<\/p>\r\n\r\n\r\n\r\n

Essentially, companies with business agility are more equipped to anticipate market shifts, changing customer needs, and new technological advancements, and thus pivot swiftly and effectively when necessary. The mistake that Blackberry, Blockbuster, Sears, Nokia, and Myspace made was not keeping up with the times, especially in this digital era.\u00a0<\/p>\r\n\r\n\r\n\r\n

Why is Business Agility important?<\/strong><\/h2>\r\n\r\n\r\n\r\n

In today\u2019s volatile, uncertain, complex, and ambiguous world, unprecedented global events like the COVID-19 pandemic, the rise of artificial intelligence and automation through software like ChatGPT, and geopolitical conflicts like the Russian-Ukraine war could change the business world in a matter of days.<\/p>\r\n\r\n\r\n\r\n

Businesses with agility skills, behaviors, and practices are best positioned<\/a> to respond to uncertainty and successfully adapt to the changes that happen in this world. For instance, during the COVID-19 pandemic, when global seating capacity in flights fell by around 50% for the whole of 2020, AirAsia responded by developing its digital and other non-passenger airline businesses. This included the development of its “super app”, combining 15 types of products and services under three pillars: travel, e-commerce, and fintech. However, as of January 2023, AirAsia announced<\/a> that it has gone back to focusing on its \u201cbread and butter\u201d of travel now that COVID is officially over.\u00a0<\/p>\r\n\r\n\r\n\r\n

Southeast Asian startup Grab also pivoted, releasing<\/a> a feature extension within its all-purpose app called Pasar<\/em> on GrabMart, which was officially launched in March 2020 amidst Malaysia\u2019s peak quarantine operations, when convenience stores, supermarts, and fresh produce markets were seen as high-risk potential infection areas. This enabled users to order daily necessities on-demand like grocery items, stationery, health and beauty products, and other goods and services within the Grab app.<\/p>\r\n\r\n\r\n\r\n

Business agility is important for several reasons as summarised below:\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n

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Competitive Advantage<\/td>\r\nBusiness agility enables organisations to promptly respond to emerging opportunities and threats in the market, giving them a competitive edge.\u00a0<\/td>\r\n<\/tr>\r\n
Customer Satisfaction<\/td>\r\nAgile organisations are obsessed with customer feedback and expectations. This ensures products and services meet the evolving needs and preferences.<\/td>\r\n<\/tr>\r\n
Efficiency and Cost Reduction<\/td>\r\nAgile practices promote streamlined processes and efficient resource allocation by eliminating unnecessary bureaucracy and reducing time-to-market. This optimses operations and minimises costs.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n

Related: Read our article on how agile coach solves the issue of waste in organisations<\/a><\/p>\r\n\r\n\r\n\r\n

Benefits of Business Agility to your Organisation<\/strong><\/h2>\r\n\r\n\r\n\r\n
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Business agility is integral to the success of any modern company, with its benefits extending beyond customer service to virtually every aspect of the business environment. According to Business Agility Institute<\/a>\u2019s 2023 Business Agility Report,<\/a> continued investment in business agility over the last five years has resulted in growing returns for companies. Sixty-three percent of companies that reported an increase in business agility also saw an average overall improvement of 27%.\u00a0<\/p>\r\n\r\n\r\n\r\n

The most frequent benefits of Business Agility Ways of Working include:<\/strong><\/p>\r\n\r\n\r\n\r\n

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Faster Adaptation to Market Trends<\/td>\r\nAgile businesses can promptly identify these shifts and adapt their strategies, products, and services accordingly, enabling them to stay ahead of the curve.<\/td>\r\n<\/tr>\r\n
Enhanced Customer Satisfaction<\/td>\r\nAgile organisations are obsessed with their customers. They promptly respond to customer feedback, aligning products and services with customer expectations. This fosters higher satisfaction and loyalty, driving business growth.<\/td>\r\n<\/tr>\r\n
Increased Operational Efficiency<\/td>\r\nIn agile organisations, red tape is nonexistent. Streamlined processes eliminate unnecessary bureaucracy<\/a> and optimise resource allocation, enhancing operational efficiency and enabling faster decision-making and execution. This reduces the time-to-market for new initiatives.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n

Related<\/strong>: Crafting a Successful Digital Transformation Strategy for Your Business<\/a><\/p>\r\n\r\n\r\n\r\n

Challenges to adopting and sustaining Agility in Business<\/strong><\/h2>\r\n\r\n\r\n\r\n

According to the 2023 Business Agility Report, the top two industry-wide challenges continue to be in the area of leadership and change leadership. Other issues such as unsuitable organisational structures, practices and processes, and mindset and culture are also challenging for organisations.\u00a0<\/p>\r\n\r\n\r\n\r\n

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In our experience at Ekipa – any sustainable change of a business requires focused leadership and personal discipline to sustain the continuing evolution of the organisation.<\/p>\r\n\r\n\r\n\r\n

Principles to Implementing Business Agility in the Workplace<\/strong><\/h2>\r\n\r\n\r\n\r\n

We reference business agility coach and Sooner Safer Happier author Jonathan Smart<\/a> in our simple five-step guide. In his book, Jon explains how businesses can change their ways of working by adopting Agile to deliver better value, sooner, safer, and happier.\u00a0<\/p>\r\n\r\n\r\n\r\n

Here’s our simplified five-step guide based on his book:<\/p>\r\n\r\n\r\n\r\n

1. Leaders go first<\/strong><\/h5>\r\n\r\n
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Leaders (at all levels) lead. The origins of the word ‘lead’ are ‘to guide on a journey’. That means going on the same journey. Leaders is not ‘them’. Leader is you. Everyone is, or can be, a leader. #BVSSH<\/a> pic.twitter.com\/OCMC0MOHpR<\/a><\/p>\r\n\u2014 Jonathan Smart (@jonsmart) March 22, 2021<\/a><\/blockquote>\r\n