How to not get disrupted in business

 

Throughout the 80s and 90s time period, there was a strong competition in the point-and-shoot camera film industry amongst Canon, Fujifilm, and Kodak. But not all of these companies exactly saw the future of disruption coming with digital cameras and digital imaging photography, and how it would change the way people take and share photos. 

Here are some ways businesses can avoid getting disrupted:

1. Adopt a wider-ranging perspective 

Too much is changing with innovation and technologies for businesses to have a nearsighted or myopic lens as you watch for disruptions happening. You must be willing to have a perspective that goes beyond the narrow slice of their industry verticals. Market disruptions can happen when a new startup introduces a new technology or a different or innovative way of delivering goods or services to customers. Disruption can also come from new economic developments, government policy changes or even extreme weather (climate change) events.

They shift market power among competitors, challenge existing business models and approaches, realign trade patterns, reorient supply chains, drive business relocations, and more. It’s important to pay attention to new trends or shifts. “New innovations and market disruptions are happening in all different parts of the country, not solely just from Silicon Valley or New York City.” said Srikant Sastry, of Grant Thornton LLP. 

2. Pay attention for early signs or indicators

Now, it was probably hard for Blockbuster to see beyond having having brick and mortar video rental stores and that people would be open to consuming movies with dvd mail rentals or streaming. The internet and cloud has opened up a lot of new innovations, and while it is almost impossible to predict disruptions, those who are paying close attention can pick up on the early signs of market shifts. So startups and legacy brands that have watched how consumers are gravitating to shopping online more, or using ride-hailing delivery services for convenience, were in a better position to navigate or launch a rival services than those who dropped the ball on the next big thing.  

“The market is a great indicator,” said Faisal Hoque, CEO of software firm Shadoka and author of Everything Connects: How to Transform and Lead in the Age of Creativity, Innovation, and Sustainability. He went on to also mention, “If a customer is asking for something different or reacting in a new way, that can be a first indicator of a shift.”     

3. Take inventory     

It’s one thing to be in touch with what changes are happening with new emerging technologies or with consumers to help identify possible shifts or disruptions in the market. But you also need to be paying attention what is happening inside your own enterprise. Taking stock or inventories of what is happening inside the different business units of your company. Is there customer churn or complaints? Is revenue or sales going up in one area and dropping in another, that might suggest a trend could be happening. And this should not be done only once a year; taking inventory should be conducted with your managers every quarter, to stay ahead of where these things are trends that could be shifting with your industry or customer needs. 

4. It’s better to have departments work together instead of silos

In one respect, people may view companies that have strictly-ruled department structures as being efficient and super focused on the departments’ targets and goals. The problem is that if your department is working in a silo, then it can be more difficult to try to navigate changes or disruptions. Smart companies will have more inclusive communication across the entire organization, which helps the business to stay more agile and able to pivot or change directions when necessary. Google is famous for having those weekly all-hands Friday meetings — known as TGIF, hosted by the founders with every employee, of which the first 30 minutes are for reviewing product launches, demoing new ones and celebrating team wins and holding no-holds-barred Q&A sessions. Mr. Hoque says “It may be easier for companies to stay in silos, but that just makes them more vulnerable to disruption.” 

5. Become more diverse 

When you are needing to make sure that your company does not get disrupted by new a competitor or shift in the market, it takes more than just management’s perspective to watch out for it. Many innovative technology companies will hire a diverse employee workforce, in terms of age as well as culture. And having different types of people can bring a broader range of perspective which can help a business identify the new threats or opportunities that a more homogenous crew might not pick up on. How gender-diverse is your company’s leadership culture? Srikant Sastry of Grant Thorton, suggests that companies should possibly seek out partnerships with local colleges and universities, which may have a different perspective on trends or innovation then the corporate world does. “The key is to not leave it all to the executive suite, or the wave will crash over your head,” he said. Champion diversity and inclusion to boost innovation. 

6. Be curious about change 

Sometimes when disruptions come along, some businesses will just look at it as a fad that will soon fade and will not displace what they do or offer, etc. Other companies will see it as threat and devote resources and employees to keeping track of that threat or disruption. The CEO of Blackberry clearly did not see or understand the threat of Apple’s Iphone, its software, apps and what the ecosystem surrounding them would be.

The point is that in either case —  concern or lack thereof — will determine a corporation’s response to a change or disruption. In the age of digital innovation, many companies will run workshops and hackathon contests to foster and build a culture of creativity, curiosity and ideation. William Lee of Probooks NY has stated that “they help build curiosity and collaboration,” he also went on to say. “And if leadership actually uses the results of a hackathon, that helps build trust that the company values employees’ visions.”