Digital disruption is affecting businesses across nearly every industry and sector, ushering in profound change. As organisations find value in breaking away from the status quo and adopting new and innovative ways of conducting business, the urgency to keep up is only increasing. The time to hesitate is over: now is the time to get cracking on transformation.
A recent article in strategy+business by our colleagues Mathias Herzog, Tom Puthiyamadam and Nils Naujok examines ten principles that successful organisations have embraced in order to change the way they do business.
In essence, they are:
- Embrace the new logic – Has a competitor brought a new business model into your industry? There will be a reason for it. Examine their model for the customer need it is addressing – one you may be ignoring. Then take a fresh look at your own.
- Start now, move deliberately – Don’t panic. You won’t have time to catch up later, so start now and make strategic, calm moves. Breathe.
- Focus on your right to win – There’s only one way to win and that’s by embracing your approach to doing business. Align your value proposition with your capabilities and products.
- Create your customers’ future – Love your customers, learn about them – and then continue to do both. With customer loyalty you’ll gain access to the insights you need to adapt and change.
- Price to drive demand – If you can find a way to reduce costs, customers will come. It’s no coincidence that many of today’s disruptors have business models engineered to drive demand.
- Profit from overlooked assets – Have data, facilities or staff that are underutilised? Time to look at them differently. Sharing is caring and is even better when it delivers revenue.
- Control your part of the platform – Companies can’t be experts in everything, nor should they be. Make use of others’ platforms and systems to enable you to do the thing you are the expert in.
- Integrate, don’t isolate – All aboard. Innovation and transformation need to be whole-of-business affairs, not sidelined to the ‘if it works we’ll integrate it’ lifeboat.
- Challenge the rules – Regulations are put in place to protect people, but when they no longer do their job they turn into cumbersome red-tape. Consider being the product or service that alleviates the pain point.
- Define a new way of working – Use digital technology to stir up the melting pot that is your business. Teams that draw on all types of expertise – from business to experience and technology – will think differently and provide superior insights.
By re-examining the truths you thought you knew about your industry and customers, and then shaking up how your business addresses those, you will be able to compete with up-and-coming disruptors. Afterall, that’s essentially what they’ve done.
Transforming an entire business may seem like an insurmountable ask, but with a little courage and a lot of commitment, it can be achieved and digital technology harnessed to your benefit.