Disruption is not new. More than 100 years ago, the Ford Motor Company gave the world its first automobile which revolutionized transportation — and disrupted a number of industries, including wagon and carriage businesses, and the makers of buggy whips.Disruption is a major concern for business leaders, who worry about new rivals disrupting their business models and unsettling their industry’s equilibrium. The fear of making the wrong choices leads some companies to strategic paralysis.
Disruption has become a real buzzword within today's business landscape, with the likes of Uber and AirBnB transforming the way businessesfunction and engage with customers. On the other hand, organisations like the Lonely Planet who failed to adapt to changes in technology and customer expectations fast enough have fallen behind the more customer-centric disruptors such as TripAdvisor.
Amazon and Flipkart are posing a major challenge to traditional and modern retailers. The century old taxi industry faces serious competition from the ride aggregators spearheaded by Uber and Ola who have given us our 24X7 personal driver. Online streaming companies like Netflix and Hotstarare a serious threat to television and multiplexes by putting entertainment in our palms. Paytm and PayPal are disrupting the banking system by attempting to replace physical wallets with mobile payment options.
Businesses get disrupted for a variety of reasons. Inability to keep pace with rapid change and old beliefs that past success is a guarantee for future growth,exposes them to the risk of becoming irrelevant. Companies that are stuck up with all their past investments and refuse to consider them as ‘sunk costs’,are more likely to ruin their future. Companies such as Nokia, Kodak and the Swiss watch industry have learnt their lessons the very hard way.
Judging your competitors products with your own norms of success, fearing that executing a disruptive strategy will result in the cannibalization of your own brand, choosing to ignore potential new entrants because you feel there are too insignificant and failing to adapt to newer ways of doing business could cost your dearly.Many disruptors start with limited resources, sit in a proverbial garage in some corner of the world and go on an all-out offensive to win.
If you want to be a disruptor you will need to adopt a different mindset. Some of these thoughts could guide you on the right path:
Disruption can seem like a threat, but it can often be a game-changer for you. Your opportunities to rethink your business have never been so great. The challenge facing you, no matter how mature your organization, is the same challenge facing any new start-up. You need to create a new business model, a fresh value proposition, and sustainable system of customer-facing capabilities while positioning your business enterprise for long-term success.