If you were a teenager in the 90s, you would probably remember the music retail store, Tower Records. Back then, there were several branches in Metro Manila, two of which were at the Quad (now, called Glorietta) and at the Alabang Town Center. Tower Records was “the place to be”’. More than a store, it became a hangout for many. Customers could ‘sample’ the music albums by popping the CDs in the CD players provided, enabling them to be certain of their purchase. I have very fond memories of that music store. In fact, my husband and I had our second date there. So, when Tower Records folded globally in 2004, I could not help but feel a bit sentimental.
Tower Records is just one of the many businesses that were negatively impacted by disruption. Even though the business was considered cutting edge when it first launched, and was also one of the first music retailers that went online, it was not able to keep up with disruptions in the industry. In the case of Tower Records, companies like Apple and Napster – through the iPod and mp3 downloads – offered customers a more convenient and inexpensive way to enjoy music, making switching to their products, at the expense of CDs and Tower Records, a no-brainer for many consumers.
Disruption is happening left and right, and affecting all industries and organizations of various sizes, at different levels and paces. For an organization to remain relevant and achieve success in any business environment, it must try to anticipate and respond quickly to disruptions in its industry, learn to leverage digital technology in appropriate aspects of the organization, and innovate where possible.
How do you disruption-proof your organization?
Be the disruptor and agent of change within your organization and in the industry in which your organization operates. Find ways to do things better, faster, easier to improve operational efficiency, customer satisfaction, and ultimately improve your bottom line.
Further, a good way to identify threats and opportunities for your organization – from other disruptors or as an opportunity for your own disruption – is by keeping a close eye on new innovations, whether technology-related or not, that may affect the way your organization operates and performs. You should be on the lookout for industry trends, current affairs, the passage of new laws and any new digital technology or management methodologies that may impact your organization. Not even that, imagine, for yourself, what it would take to shake up your industry – and go out and make that change.
Knowing these will allow you to understand why or how certain business objectives are not being met, identify how to improve certain aspects of your business including your products, your people, your processes, and identify opportunities for growth.
How will you know when it is time to act?
There are telltale signs that an organization needs to develop a plan to avoid falling behind its competitors and/or wasting resources. If your organization is experiencing any of the scenarios below, it is likely time to start thinking of how to address these issues.
- Your organization is not performing as you had hoped and has continuously failed to achieve objectives and is falling behind sales targets.
- Competitors are offering their products and services at a lower price point or through a better delivery process and you have noticed that they are eating into your market share.
- Your customers have been giving negative feedback about certain aspects of your product or service.
- Your organization is still doing things manually and not utilizing digital technology to streamline internal processes.
How can you ensure that your organization remains relevant and profitable?
To remain competitive, it is crucial for an organization to:
- Conduct Industry and Market Research – As cliché as it sounds, knowledge is power. Staying on top of industry trends and making a continuous effort to learn about the customer will enable organizations to provide more meaningful and personalized experiences that customers expect and appreciate.
- Business Intelligence – Using business intelligence tools to collect, analyze and visualize data into a more relatable and easy to consume format will enable organizations to react timelier to crucial pieces of information that may impact an organization’s performance.
- Continuously Innovate – Innovation doesn’t just involve the creation of new products or services. Innovation can also be applied to other areas of an organization such as product systems, processes, marketing, customer engagement among others. By improving the way business units are run, an organization can increase employee productivity and decrease costs, ultimately increasing its bottom line.
For an organization to gain and maintain a competitive advantage in the digital era,it is more crucial than ever to be aware of the new innovations, trends and, even the future, of the industry. Organizations should also make use of digital tools to improve efficiencies where possible especially in the areas of marketing, customer services, operations, human resources and business intelligence. Internally, it is important to develop a culture of innovation and implement processes that will help the organization achieve agility to be able to successfully ride the waves of disruption.
If you want to know how to be a disruptor, are confused about how to tackle disruption in your industry, or just want to find ways to operate more efficiently, our network of professionals may be able to help. Visit www.mastermindsco.com to learn about the services we provide or call us at + 632 9075554.
