Business Objectives » Why Business Aims Change - Technology and Performance

Introduction to Why Business Aims Change

Businesses don't stay the same forever. Just like people grow and change, companies must adapt their aims and objectives to survive and thrive. Two major forces that push businesses to change their aims are technology and performance issues.

Think about it - when Netflix started, they posted DVDs to customers. Now they're a streaming giant creating their own TV shows. Their aims completely changed because of technology!

Key Definitions:

• Business Aims: The overall long-term goals a business wants to achieve, like becoming market leader or maximising profit.
• Business Objectives: Specific, measurable targets that help achieve the business aims, like increasing sales by 20% this year.
• Performance: How well a business is doing compared to its targets and competitors.
• Technology: Tools, systems and innovations that change how businesses operate.

Technology as a Driver of Change

Technology is probably the biggest game-changer for modern businesses. It can make old business models obsolete overnight, create new opportunities and force companies to completely rethink what they're trying to achieve.

How Technology Forces Aim Changes

When new technology emerges, businesses face a choice: adapt or risk becoming irrelevant. Here's how technology typically forces businesses to change their aims:

💻 Digital Transformation

Companies must shift from physical to digital operations. Banks now aim to be "digital first" rather than focusing on high street branches.

📱 Mobile Revolution

Businesses change aims to become "mobile-friendly". Restaurants now aim to increase app-based orders rather than just walk-in customers.

🤖 Automation

Companies shift aims from labour-intensive to automated processes. Manufacturers now aim for "lights-out" factories that run without human workers.

Performance Issues Driving Change

Sometimes businesses are forced to change their aims because they're simply not performing well enough. Poor performance can be a wake-up call that current aims aren't working.

Types of Performance Problems

Performance issues come in many forms and each type might require different changes to business aims:

📈 Falling Sales

When sales drop, businesses might change from growth aims to survival aims. They focus on keeping existing customers rather than finding new ones.

💰 Profit Squeeze

Shrinking profits force businesses to change aims from expansion to cost-cutting. They might aim to reduce expenses by 15% instead of opening new stores.

🗑 Market Share Loss

Losing customers to competitors makes businesses change aims to focus on innovation or customer service rather than just price competition.

Real-World Examples of Aim Changes

Let's look at some famous companies that changed their aims due to technology and performance issues:

Technology-Driven Changes

📖 Amazon's Evolution

Started as an online bookstore with the aim of being "Earth's biggest bookstore". Technology allowed them to expand, so they changed their aim to being "Earth's most customer-centric company" - selling everything online.

🎧 Spotify's Disruption

The music industry's aim was selling physical albums. Spotify used streaming technology to change the game. Now record labels aim to get their music on streaming platforms rather than in record shops.

Performance-Driven Changes

Performance problems often force the most dramatic changes in business aims. Here are some common scenarios:

From Growth to Survival

When businesses face serious performance issues, they often have to abandon growth aims and focus purely on survival:

⚡ Crisis Management

During the COVID-19 pandemic, many restaurants changed their aim from "expanding to new locations" to "surviving through takeaway and delivery". Those who adapted quickly survived, whilst others closed permanently.

The Process of Changing Business Aims

Changing business aims isn't something companies do lightly. It's a careful process that involves several steps:

Challenges of Changing Aims

Changing business aims isn't easy. Companies face several challenges:

Common Obstacles

Understanding these challenges helps explain why some businesses succeed whilst others fail when changing their aims:

• Staff Resistance: Employees might resist changes, especially if it affects their jobs
• Cost: Changing aims often requires significant investment in new technology or training
• Time: It takes time to implement new aims, during which competitors might gain advantage
• Risk: New aims might not work, potentially making performance worse

Success Factors for Changing Aims

Some businesses are brilliant at changing their aims when needed. What makes them successful?

Future Trends

Looking ahead, several trends will likely force more businesses to change their aims:

• Artificial Intelligence: AI will automate many jobs, forcing businesses to aim for AI-enhanced operations
• Sustainability: Environmental concerns are making businesses change aims to become carbon-neutral
• Remote Work: Technology enabling remote work is changing aims around office space and employee management
• Personalisation: Technology allowing mass customisation is changing aims from mass production to personalised products

The businesses that thrive in the future will be those that can quickly adapt their aims when technology changes or performance issues arise. Those that stick rigidly to outdated aims risk becoming the next Blockbuster or Kodak.