Reinventing Business Models In A Disruptive World

Author

Hugo Moreno

March 9, 2017

Today middlemen are either disappearing as customers go directly to manufacturers or reshaping entire business models, like Amazon or Uber. Any player, from within or outside the industry, can come in unexpectedly with a new business model, typically fueled by innovative technologies and ideas, and render everyone else obsolete.

This is among the issues explored in a recent Forbes Insights study, “Challenge or Be Challenged: How to Succeed in Today’s Business Environment,” sponsored by global performance consulting company Gap International. (Key findings from the survey of 400 top global executives that forms the basis for the study were addressed in a previous blog. The second blog in this series of three discussed how companies increasingly operate as part of a network of alliances with a flexible culture.)

In fact, 70% of survey respondents say they are “extremely concerned” or “somewhat concerned” as to whether their company will still be relevant and competitive in two years. And more than half of respondents (51%) report that disintermediation is having the biggest impact on their business.

A changing competitive landscape is another factor compelling companies to reframe their focus and discover new capabilities that will lead to transformational change. It’s not enough to keep pace with industry stalwarts. Nearly three-quarters of companies (72%) consider businesses that most resemble them to be competitors. And 57% of leaders view startups from the same industry as greater competitors than enterprise-sized companies. That’s because many of these smaller, nimbler outfits are focused on continuously innovating from within, and these emerging companies’ rates of innovation are outpacing that of established companies.

Rather than rely on R&D to come up with new ideas, innovation must be institutionalized from the top down, with business leaders inspiring employees to create new product categories, redesign business processes and rethink growth strategies.

Eager to bring a fresh approach to their markets, many companies are turning to technology. In fact, a staggering 77% of business leaders report being “mostly proficient” in technology. Nearly three-quarters (72%) of respondents are already seeing tangible results from digitization in terms of market share increase. And 66% are experiencing tangible results from digitization in product innovation. Looking forward, 40% of executives say technology is where the most change will occur in a company.

In a relatively depressed global market, revenue increases are most likely to be found in market share. However, it’s not today’s markets that are changing. Rather, by institutionalizing innovation, companies are significantly increasing their market share.

But it’s big data that’s truly helping companies alter the trajectory of their business performance. From examining historical buying patterns to predicting consumer trends, vast volumes of bits and bytes are reinventing the way companies connect with consumers.

Summing up:

• The need for institutionalized innovation has never been more paramount. Faced with the enormity of a competitive environment, demanding consumers, fluctuating customer needs and the acceleration of competitive threats, innovation is the key to achieving market share in a world devoid of natural organic growth.

• Organizationally, culture reigns supreme as the most important factor in enabling the attainment of corporate objectives. With an empowered and appreciated workforce, free of hierarchical organizational structures, there is more opportunity for increased effectiveness.

• The economic stratification of society will demand discrete segmentation strategies to satisfy clearly disparate functional and emotional needs.

• Corporations must revamp their views on competition. All market players, even competitors, should be considered potential partners in various levels of alliances.

• Technology is increasingly becoming a multifaceted enabler in effecting change.

• The millennial generation is consequential, both in its ability to contribute to a corporation’s success by offering new ways of thinking, and in its presence as a new breed of customer with fresh aspirations and needs.

 

This article was written by Hugo Moreno from Forbes and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

There is 1 comment

  • Reinventing Business Models In A Disruptive Wor... - 03/10/2017 08:13
    […] Today middlemen are either disappearing as customers go directly to manufacturers or reshaping entire business models, like Amazon or Uber. Any player, from within or outside the industry, can come in unexpectedly with a new business model, typically fueled by innovative technologies and ideas, and render everyone else obsolete.  […]

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