Is it possible for a small young company to outperform an industry titan, for David to beat Goliath? Yes. Just ask Uber, Netflix and AirBnB. Upstart Uber became one of the world’s largest taxi companies without owning a single taxi. Netflix revolutionized the video market, essentially putting Blockbuster out of business. AirBnB has become an accommodation provider to be reckoned with, without acquiring a single piece of real estate. It’s called disruptive innovation. And many a senior leader across North America loses sleep over whether it could happen to their company, and perhaps more importantly, how they could prevent it.
Disruptive innovation is often overlooked
Historically, established corporate leaders don’t often see disruptive change as a hazard, usually because it starts when their own company’s profitability is robust and the competitive impact is minimal. However, by the time the threat is conspicuous, the disruptive force has already gained so much traction that any efforts to reverse the tide are futile. So what is really needed is an advance warning system. Which is exactly what I cover in my latest column for The Globe and Mail, out this morning!
In this column, I identify three specific actions leaders can take to assess whether their company and industry will come under attack, well before the threat becomes a reality; three things you can do to ensure that you don’t become collateral damage when your market niche is disrupted.
Note: if you are a subscriber to The Globe and Mail, you can also read the column directly at their website at this link: https://tgam.ca/2KFP2zO
So I’d love to hear your experiences and perspectives on disruptive innovation. What have you observed in your industry? What have you seen that leaders have done really well, or missed completely? Please share by commenting below.