Adapting to Disruption: Lessons Learned
Disruption is a buzzword that business leaders have been hearing for years now. In fact, 85% of companies believe that disruption starts with startups, according to a Deloitte survey. This is a crucial finding, as it emphasizes the need for companies to keep a close eye on new entrants in their industry and adapt to the changing landscape.
A great example of a company that responded to disruption is a publicly-traded global commercial real estate company that faced challenges from digital disruptors in their industry. Their sales force was uncertain about how to advise customers and which new technologies and startups to focus on. They needed a practical solution that could help them respond to the disruption and stay ahead of the competition.
To overcome this challenge, we recommended starting a low-cost scouting effort to engage startups in the disruptive space. We identified emerging trends, new entrants attacking their value chain, and competing solutions to address customer pain points. This allowed the company to learn which pain points were under pressure from new entrants and the range of solutions under development to address them.
The result of this collaboration was a focus on potential technologies and startups to watch, and a commercial collaboration that helped the company achieve increased efficiency and profitability. By automating a low-margin part of the business, they were able to respond to the disruption and stay ahead of the competition.
This case study highlights several key lessons that all companies can learn from. Firstly, it is essential to keep a close eye on new entrants in the industry. Startups and new technologies can disrupt the industry and change the competitive landscape. Companies must be prepared to adapt quickly to these changes.
Secondly, it can be necessary and affordable to engage with startups and new entrants. By collaborating with these disruptors, companies can learn about emerging trends and technologies. They can also identify pain points that are under pressure from new entrants and work to address them.
Finally, companies must be willing to embrace automation and other new technologies. Automation can help companies to respond to disruption by increasing efficiency and profitability. It can also help to free up resources that can be used to focus on innovation and other strategic priorities.
There are several ways companies can respond to disruption, but all of them begin by thinking outside the boundaries of the organization. One approach is a customer- and trend-focused approach that considers which new business models are better suited to the changing landscape.
Another approach is to actively build an innovation ecosystem around your company. By building an ecosystem of partners and collaborators, companies can tap into new sources of innovation and stay near the front of the industry learning curve.
A third approach is to fully embrace open innovation. By working with external partners, companies can identify new opportunities and create new solutions to address the changing needs of customers.
Disruption is a reality all companies must face, but the key is to respond deliberately to these changes. We've learned that by keeping a close eye on new entrants in the industry, engaging with startups and new technologies, and embracing automation and other new technologies, companies can stay ahead of the competition and thrive in the changing landscape. Companies that follow these steps can become the disruptors themselves, rather than just reacting to disruption.
