Quiz: Disrupt or Drown

 

By Eve Bayer

When we think of businesses such as Blockbuster and Woolworths, they’re often now little more than a cautionary tale. A warning for other industries that change is inevitable and that there will always be a smaller, faster and more disruptive competitor coming to the fore. But it’s easy to assume that that you’d spot it coming, right?

Unfortunately, even the most receptive and well-intentioned businesses can become victim of an industry revolution. It’s not always easy to spot and the day to day can easily distract us from stepping back and taking sight of the bigger picture. So what can you do to protect your company and ensure that you’re not left behind?

Here’s our quiz to help you ensure you lead the revolution and don’t become swallowed by it.

1. Can you see what’s around the corner?

A. Yes, my company has X-ray-vision-meets-crystal-ball intuition

B. Sort of…but I’ve still got blind spots

C. Should I go outside??

There are often big, blinking lights indicating that change is on its way, but because these developments are so ingrained within our everyday lives, we fail to spot the impact they could have on our businesses. Economic pressures, new technologies and enhanced customer expectations are all factors which could help you to predict which way your industry is poised to move. As an example, the rise of the internet has heightened the expectations of the everyday consumer, making them accustomed and almost desensitized to having information at their fingertips at the click of a button. When faced with a slow site, an automated service or an ‘office hours’ only response, this leads to frustration and a customer that is all too ready to transfer their business to a more customer-orientated alternative when one presents itself.

How market research can help here: to spot the changes that could change everything, conduct exploratory scans of your market in a way that truly uncovers non-obvious opportunities that you (and your competitors) are missing. Also ensure that you engage with influencers and ‘lead users’ in your category as these are the select group of intuitive consumers who can articulate unmet needs in your business, that the mainstream often can’t.

2. Are the little fish on your radar?

A. Yes, and if we can’t beat them, we’ll invest in them

B. Sort of…but we’re not sure whether to be friends or frenemies

C. Who, those little guys? C’mon!

How aware are you of those small ‘sort of’ competitors who have little market share and hardly any customers? Often they seem alien to your business–a company that is trying hard but is in no way ready to take on business at your level, or mark itself as an industry leader. Yet a small spark can create a blaze when placed in the right environment. After all, just look at how digital image technology disrupted traditional industries such as Journalism when a camera phone suddenly meant that anyone could become a reporter and be the first to break news. Noticing competitors and the effect they are having on your industry is the only sure-fire way to decide whether to invest or acquire them, or to learn from them. After all, just think how different thousands of lives would be if Myspace had thought to snap up the ‘college-orientated’ Facebook network when it first came onto the social network scene.

3. How many times is “that’s the way we always did it” used as an excuse in meetings?

A. Never! We’re agile as a Yogi

B. About as often as the printer jams

C. Only when we’re running over…

The flexibility that a small company has to pivot, react and trial features much more quickly is often what leads to its success over a bigger, less-agile competitor. Because without lengthy sign off processes, levels of hierarchy and huge capex investments depreciating their balance sheets, a startup has unencumbered development. They are able to ask a customer what they want and implement it the next day. They can provide the type of personalised service which can’t always be scaled, but which is worth its weight in gold in the early stages. This type of ‘small business’ mentality is difficult to implement in a large, defined industry. But consider the cost of remaining handcuffed by ‘but we’ve always done it this way.’  Whether it’s a ‘hackathon’ event once a month, or an innovation team who work in an incubated space, putting the steps in place to create a more agile way of working is crucial in predicting change and adapting to it. We’re looking at you, cable companies!

4. Do you know what business you’re in?

A. Yes and we’ve got 2020 nailed too

B. It’s something to do with mergers and acquisitions right?

C. I think so… but we could use a refresher

Staying open-minded about just what business you are in is often the key to success and being agile enough to pivot at the crucial moment. Just look at companies such as Airbnb. They’re an accommodation rental service at the moment, but their ambition is to be the world’s biggest hospitality brand. Car rental service Uber is currently in the business of moving people and goods, but in five years time? They’re looking to evolve beyond a taxi disrupter to become a disrupter of all things logistical and experiential. And to use the cautionary tale of Blockbuster, if only it could have viewed itself as in the entertainment curation business, not the video distribution business, then they would have used the digital revolution to transform their brand, rather than get run over by it. How you frame your category will directly inform how you strategise your future growth and how vital you’ll be in your consumers’ future as a result.

How do you score on our ‘disrupt or drown’ quiz?

Mostly A’s: way to be ahead of the curve – we’ll see you in the future!

Mostly B’s: do you have commitment issues? Maybe it’s time to get off the fence!

Mostly C’s: let’s talk!

Share your thoughts and your score – if you dare!