And, on your own, that can be enormously difficult to pull off. When you find profits declining, the typical reaction is to cut costs. You let accountants run the business, and they are loath to invest in a new model. Consider, though, that it’s much easier to plan for a new model than to be forced to create it. How do you start?
Add Disruption to Your Enterprise Culture
Establish a subculture that works in tandem with the predominant culture of the organization. The idea is that the offshoot will build up a completely new business model and culture. And when the larger organization peaks and begins to decline, the newer way of operating can be transferred to it. Some of the most successful enterprises are assembling Generation Y teams to give a different perspective on the marketplace, identify trends, detect early warning signs, and even advise C-level executives. And they’re pointing out things that get completely missed by senior management—for instance, the idea that success comes from behavior as much it is does from processes and technology.
In the past, this strategy required huge investments in time and resources and left you with the possibility of significant stranded costs. Now, with the consumerisation of IT, it’s easier to test a new business model by entering the market quickly without massive capital investment.
For example, if you take advantage of anything as a service, you can create a fairly large organization to test a new model with a minimal skeleton crew and just buy your services as you go. If that first model doesn’t fly, the regret costs are very low. So you can actually iterate and try quite a few models in quick succession until you hit on one that works.
Stoke a keen curiosity for disruption. Develop strategies such as internal ideation processes that encourage employees to think of new ways to disrupt the marketplace. It’s simply a matter of establishing and nurturing a highly responsive, agile organizational culture.
Disruption can have a hugely positive effect if you play it right. Enterprises that constantly watch for openings, treat every change as a positive opportunity, and aren’t afraid to break tradition are the ones that flourish—no matter what the market does.
This blog first appeared on Ron Brown’s blog
Author: Ron Brown
Ron Brown brings more than 26 years of experience in the IT industry and is widely considered as a thought leader and expert in the areas of strategy, innovation, disruption, cloud computing, enterprise architecture and business process management.