What is BANI World? And How Does It Affect the Business World?
BANI World defines a world that is rapidly changing, complex, and difficult to predict. Understanding and adapting in time is beneficial for business.
BANI World is a concept that futurist Jamais Cascio has defined to describe the current world, which is full of rapid and unpredictable changes. This includes both foreseeable changes and those that come with unexpected variables, making future forecasting a challenging task.
Of course, this rapid change affects every field, including 'doing business.' In this article, we will introduce you to what BANI World is and how this concept affects businesses in the digital age, so entrepreneurs can be prepared to face it and gain a competitive advantage.
Table of Contents
- What is BANI World and How Does It Affect Society, Business, and the Economy?
- What Does “BANI” Stand For?
- What is VUCA World and Why is it Called the Old World?
- How is BANI World Different from VUCA World?
- Techniques for Adapting to the BANI World
- BANI World is Something Business People Must Adapt to and Prepare For
What is BANI World and How Does It Affect Society, Business, and the Economy?
BANI World is a framework that helps us understand and define the current global situation, which is full of complexity and rapid change. Whether it's economic volatility, political situations, changing trends, business outcomes, or even human behavior, all can be understood under the 'BANI' concept. This concept helps businesses in their analysis for financial planning and marketing strategies, making them more appropriate for the context of the modern world.
What Does “BANI” Stand For?
The origin of each letter in BANI World is explained based on current real-world situations as follows:
B - Brittle
The 'B' in BANI World stands for 'Brittle.' In the current era, running a business is not as easy as it was in the past. Many factors have made businesses more brittle, especially for SMEs. It's noticeable that if a business fails to adapt to changing trends in time, it can lose its competitive edge in the market, even with a well-planned strategy.
To explain it simply, Artificial Intelligence (AI) has taken on a greater role, especially in creating content quickly. This makes businesses that still rely solely on traditional search engines unable to meet the demands of consumers who want speed. This point is a crucial factor that entrepreneurs must be aware of and continuously adapt to.
A - Anxious
'A' comes from Anxious, or human anxiety. As mentioned, the current era is characterized by rapid change, including the dissemination of unverified news, which creates chaos both in thought and in society as a whole. This has led to people becoming more anxious and paranoid about various things.
The business sector has also been affected by this change, especially with the introduction of technology into organizations. This has led many companies to restructure and reduce resource costs by using technology instead.
N - Nonlinear
'N' comes from Nonlinear, which literally means 'not in a straight line.' In the context of the world, economy, and business, it means that the outcomes of things cannot be accurately predicted today. For example, in the past, organizations could often predict future trends to aid in business decisions, such as fashion trends, consumer trends, or even color trends, as well as forecasting potential impacts.
But in the BANI World, predicting these things has become much more difficult because various factors and variables come into play along the way, causing businesses to move in a nonlinear direction. This results in forecasted outcomes being inaccurate or delayed compared to what was calculated.
I - Incomprehensible
'I' stands for Incomprehensible, or difficult to understand. This arises from the complexity of each individual, each with their own ideas, leading to conflicts and arguments. In business, this can result in strategies becoming more complex and harder to understand, as each person wants to present different ideas and perspectives.
What is VUCA World and Why is it Called the Old World?
The practice of naming the world in business and economic terms didn't just start with BANI World. There was a previous name, 'VUCA World,' which was used to describe the world in the era before BANI.
VUCA World defines a world that must constantly be prepared for various situations and threats of all kinds, to be able to adapt in time before problems arise. It consists of the following elements:
- V-Volatility: Fluctuation from rapid change.
- U-Uncertainty: Lack of certainty due to a lack of information.
- C-Complexity: Intricacy that makes analysis difficult.
- A-Ambiguity: Vagueness from a diversity of ideas.
The reason VUCA World is called the old world is that today the world is changing so rapidly that preparing for various situations has become much more difficult. Therefore, there needs to be an increased effort to understand and predict possible futures to be able to handle situations in business and other areas with flexibility and efficiency.
How is BANI World Different from VUCA World?
Many may wonder how BANI World and VUCA World are different and which concept should be the primary guide in business. To put it simply, VUCA World focuses on dealing with variables that may affect the business, whereas BANI World focuses on understanding the complexity and rapid changes to be able to adapt to each situation in time.
For example, the payment system is being disrupted by Fintech technology, forcing various banks to react quickly to avoid losing financial opportunities. At the same time, they must understand the changing behaviors of consumers. This requires adaptation and the development of software to meet consumer needs. For this reason, a payment system like 'PromptPay', which is fast and stable, was created and has been able to retain its customer base.
Therefore, for entrepreneurs, it is not necessary to adhere to just one principle. They can adapt concepts from both models to suit their own business, to ensure the business can operate as smoothly as possible.
Techniques for Adapting to the BANI World
If you are running a personal business, BANI World is something you should understand so that your business can adapt to situations in a timely manner. Techniques for adapting to the BANI World include:
- In Life: Try to understand the changes, accept them, and find ways to solve problems, while also taking care of the mental well-being of your family and yourself.
- In Business: Always be aware that change can happen quickly. Try to think of various solutions and always consider potential opportunities.
- In Finance: Be more mindful and meticulous in financial planning, and look for new channels that can facilitate smooth financial operations.
BANI World is Something Business People Must Adapt to and Prepare For
BANI World is a definition that says the world is changing rapidly, whether in terms of lifestyle, consumer behavior, trends, or the complexity of social and psychological aspects. This requires people to constantly adapt in various areas, including lifestyle, finance, and even business. Because the world is changing so fast, consumer behavior also demands speed. This is not just about keeping up with trends, but also includes the consumer experience, such as ordering or even fast payments.
KGP understands the changes in the BANI World. We are an online payment service provider that supports payments from various channels so that businesses can operate without limits. No matter where your customers are, they can pay conveniently via Meta Pay, QR Payment, Mobile Banking, credit or debit cards, Payment link, E-Wallet from TrueMoney Wallet, and also Online Direct Debit services.
KGP, Payment. Make It Smooth.
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