One of the things I have come to learn and realize is that not all challenges are bad for your business, not all competition is bad for your business. In fact, some of the disruptions and challenges could be what your business needs in order to emerge from where it is now; to transform from being average to maybe above average.
Disruptions in the business environment allow businesses to introduce innovations that transform the way companies do business and consumers behave. Innovation is not an option today. Management should treat the disruptive changes as a platform for innovation. Most companies understand that to compete today they need to innovate.
The problem is that finding sources of innovation while still paying attention to the current business can be a struggle. But when certain disruptions occur you can use them as source of opportunities of becoming more innovative in your businesses.
There are four steps that management can follow when such disruptions occur to turn them into opportunities for their overall business growth and success.
The first one is, management should look into identifying local and global trends that can help signal potential radical shifts in customers’ behaviors. Find out if there is a correlation between those disruptions with the shift in customers’ behaviors, always on the look for better business models that can radically transform the company’s products or services, the marketing strategies and sales delivery, and overall business success. New technology creation is always looking to improving and advancing the way we operate and do business and things. There is always an opportunity to grow and become better if businesses adapt into the constantly advancing technology changes and disruptions that have to do with technology, and all other occurring developments in our societies. Therefore, management should treat such kind of disruptions as positive things for the business.
The second step is to select the identified ideas for further evaluation maybe by bringing a group of individuals together, it could be a specific innovative team that the company have created, and have each person share his or her analysis of disruptors. The team should periodically discuss what they have learned from the analysis, and brainstorm business ideas that leverage disruptors to create value for customers, and overall company. After that they should identify the potential value of promising ideas and organize a process for prioritizing and choosing among them.
The third step will be to turn the promising ideas selected from the second step, into opportunities. Management needs to plan new strategies to reflect the occurring changes by updating the business plan the highlights of both long-term and short-term new opportunities. For example; management should outline product-market positioning at entry and the capabilities and resources required for the new opportunities. But also create a plan for evolving strategy and capabilities to exploiting long-term potential for each opportunity.
Next step is creating an effective system to reduce risk and manage uncertainty. Management should learn to manage risk by identifying key assumptions and uncertainties in their business plans and ways of implementation to reduce uncertainty while building a sustainable business.
Management can also decide each time to create separate new teams responsible for leading radical business innovation and disruptive changes, or maintain a closer connection to established teams to facilitate future integration of new businesses into the established business.
Therefore in order to become skilled at this entrepreneurial innovation process, you must search for ideas in the face of disruption, after that explore them and turn those ideas into opportunities, then select potential opportunities to pursue, and successfully launch, grow, and evolve them to create sustainable advantage.
As your business grows, change must be considered. Change is a catalyst to business development and it enables a company to meet the dynamic needs of its customers and create growth opportunities. Change also allows a business to keep up with advancing technology and respond to different economic conditions.
If we are looking to grow, expand, and last for a long-term in the industry, definitely we must embrace some of the disruptions and changes. Change is very important for any business because without change businesses are likely to lose their competitive edge and fail to meet the needs of customers and satisfying the demand.
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To your success,