How to Self-Disrupt Why is it that companies so often struggle to predict their own disruption? We recommend engaging in disruptive planning.
Among companies with more than $600 million in annual sales, one in five likely will not survive the next five years1 Soul Searching in an Age of Disruption We continue to live in a fast-paced age of disruption where emerging technologies are changing every facet about how companies fundamentally interact in society. Industry lines continue to blur, and the B2B vs. B2C paradigm is eroding. Today, having a digital business model is requisite for survival. Along this wave of change, companies often find themselves struggling to both sense disruption at their periphery while also fortifying their core business. It is up to leaders to prioritize investment across those activities. Key Innovation Drivers Businesses should propel themselves into new territories and innovate their operating models by leveraging key technological developments and communication channels such as:
Network Effects
A World of Data and AI
Connected Devices and IoT
Sites like Yelp and Twitter are the 90% of today’s data was created Smart objects provide companies https://www.forbes.com/2016/05/20/practice-creative-destruction-to-avoid-becoming-a-victim-of-it/ public face of companies, while in the last two years.2 The rise of with vital data to manage companies like GoFundMe and Big Data opens avenues for machines, increase efficiency Uber are scaling people power. machine learning and AI. and save costs and lives. 1
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https://www.forbes.com/2016/05/20/practice-creative-destruction-to-avoid-becoming-a-victim-of-it/ IBM Marketing Cloud, “10 Key Marketing Trends For 2017” © Market Strategy Group, 2018
July 2018 www.mkt-strat.com
Planning for Disruption, a Framework To survive in this age, companies must be proactive in envisioning their future disruption. Disruptive planning, to be successful, has to be normalized as part of company culture, which takes time and commitment from leadership. It also takes the discipline of follow-through and a commitment to innovative, atypical thinking strategies. We recommend that the executive team engage in the following sessions on a quarterly basis:
Session
Actions
Outcome
GUIDING COMPASS
Conceptualize a set of vision statements around, “What does disruption mean for our business?”
Established enterprise direction including what our company will become and what we will do (and won’t do) to achieve success.
BELOW THE WATERLINE
Review the market context, highlighting potential opportunities and challenges arising from other disruptors. Create a plan for how to arrive at our company’s vision.
Understand our organization’s current competitive positioning. Know what it takes for our company to meet objectives.
PLANNING AGILITY
Establish a process to review and reconsider our priors in formulating enterprise strategy. How will our plan change for unknown unknowns?
Alignment across leadership on how to prioritize focus & resources, while remaining open to alternate futures.
BUILDING A PLATFORM
Determine how we need to enhance the enterprise platform to optimize our capability to capitalize on opportunities.
Agreement on key initiatives our company needs to support for more effective execution.
So What? Making this Actionable Companies must engage in disruptive planning and be disciplined in adhering to their strategic plan. The right people need to be in the room to make a measurable difference. This can’t replace typical planning sessions; rather, this can enhance them. While these sessions might be short and simple, they can serve as a foundational guide towards future success. We suggest that leaders form a multi-functional panel of experts and convene global luminaries from diverse industries to bring the periphery into focus. About Market Strategy Group Market Strategy Group sees business differently. To us, winning isn't about going from Point A to Point B. It's about aligning three distinct dimensions — business direction, people & process, and markets & customers — to drive growth. Getting this right is critical to your bottom line. And it’s more than an operational challenge — it is often a strategic issue. We help organizations develop a solution custom to their situation.
© Market Strategy Group, 2018
http://mkt-strat.com/
July 2018 www.mkt-strat.com