Companies of the future
When you think of mega corporations or even medium sized ones, buzzing office spaces with a lot of employees come to mind. This however, is set to change. According to Naval Ravikant, one of the most prominent Silicon Valley venture capitalists, the companies of the future, even billion-dollar ones, will operate with about four to five employees.
This is because outsourcing almost all the traditional divisions of a company like production, sales and marketing, accounting, logistics, administrative work etc. is envisioned to become the new norm. While traditionalists still disagree that corporations will be willing to relinquish so much control to outsiders, what is harder to argue with is the increasing efficiency and cost effectiveness that these specialized service providers offer.
Even today, it is possible to start an online business on platforms like Shopify where production, shipping, accounts, customer service and administrative work is effectively outsourced with minimal to no complications.
Though entrepreneurs are still wary of relying solely on drop shippers who are sometimes unreliable, the average profit of a manufacturer that drop ships is 18.33% higher than manufacturers who use traditional methods. A bottom line that is hard to ignore. And the good news is that drop shippers are rising to the challenge and improving.
Customer service specialists too have evolved from standard call centers to 21st century ‘contact centers’ that provide services that range from managing emails and orders, voice calls, real time chats, interactive voice response menus and automatic call backs among other services. And all this is on offer 24/7 so that orders, bookings or complaints after hours are no problem. However, it must be conceded for now that some businesses will benefit from a more personalized and nuanced approach with customers.
Virtual assistants that set up meetings, make reservations and even send flowers and cards to busy executives’ loved ones all the way from a control center in Bangalore too are all the rage in some circles. Not to mention the likes of the AI powered Google Assistant that impressively understands some of the subtleties of ordinary conversations and is set to revolutionize how things are now done. This though has a long way to go since these services are still not practical for entrepreneurs in parts of the world where languages, cultural backgrounds and business climates are very different relative to the markets these services are currently on offer for.
However, what is increasingly clear is that even though Maldivian businesses are still to a large part steeped in convention, as the technology and the efficiency of specialized service providers evolve, the way business is done will radically change. AI based software and hyper efficient specialist firms that solve many problems for businesses that currently require the physical presence of several employees to do the work will take over the landscape in decades to come. The disruptive effect of these changes will have far reaching implications for the labor market, businesses and policy makers. Adaptive measures should be put in place to ensure that those entering the labor force are properly equipped to thrive in an environment that is fundamentally different in comparison to the one in which previous generations operated in.
