To discover your disruptive advantage, leaders first need the understand the difference between Transformation and Change. Only then can they distinguish between investment that creates a better version of the past (Change) from that which creates a new future (Transformation).
With 2017 well underway, thousands more firms have embarked upon digital initiatives under the guise of ‘digital transformation’. The reality for many, is that there is nothing transformational about their venture, which wasn’t born out of a process of innovation. And some, if they’re were brutally honest with themselves, would acknowledge their initiatives are technology upgrades at best, which are desperate attempts at defending in a disrupted market.
Transformation Takes Courage
The truth is, it takes courageous CEOs and Board Directors to go beyond creating a better version of the past (Change) and discover their disruptive advantage to transform their business with digital at its core.
Many firms are now on the back foot as they attempt to regain lost market share that new disruptors stole from under their nose. Consider what the Dollar Shave Club did to Gillette and what Uber has done to London’s Black Cab industry, and the countless other examples.
Some will deploy effective defensive strategies well, while others will never actually catch up with their disruptors, because by the time their digital change initiatives see the light of day, disruptors are likely to have moved two steps ahead again, and new disruptors might also have entered the scene. So what’s the solution?
At this time of uncertainty and disruption, strategy design and execution have never been more important. The challenge is not simply to spend time on strategy, but to truly inject courage into strategy – by engaging in courageous conversations, sparking courageous considerations, and ultimately making and acting upon courageous choices. – Jonathan Goodman | Vice President of Deloitte Canada
Discovering Disruptive Advantage
Leaders need to embrace innovation, understand the difference between transformation and change, and discover their disruptive advantage. They need to inject courage into their strategy by deliberately challenging what got them to where they are today. they need to appreciate uncertainty and their vulnerability in the face of disruption that they can’t see coming. They need to learn how innovation can be the source of their own disruptive advantage, and not wait for the next wave of disruption to play out in their blind spot.
In today’s world of exponential change, organisations that get too comfortable with the status quo are at major risk of disruption. If you’re not experimenting and, as a director, if you’re not asking questions about how your organisation is navigating and plugging into disruption, forming new ecosystems, and tapping into open markets, then your organisation is at risk. In the area of talent alone, if you’re not leveraging talent outside your organisation, you’ll never win the war of ideas because the smartest people in the world don’t work for you. – Andrew Vaz | Global Chief Innovation Officer at Deloitte
Deloitte has published a 56-page report in which they share the views of Deloitte business leaders and independent non-executive directors from a number of global firms, on how boards can prepare for and leverage disruption.
The discussion populating the report addresses topics such as strategy, culture, innovation, technology, and disruption.