Disruption is a word that makes the big guys in business look up and take notice. Ever since this word emerged in the business world it has been regarded as something that has a lot of potential and possibility. There has been a growing tendency of companies trying to align their business structure to the disruption that touches the business world. Any company that did not embrace the recent disruption lagged behind. Making up later is not a financially happy solution to consider. Given the strong influence that disruption, which in itself is happening at the blink of an eye every moment in the business world entrepreneurs all over are struggling to meet the change.
This is not a very good news given that entrepreneurs have every reason to suffer. A report on the Wall Street Journal published last July states that a number of 20 Fortune 500 CEOs left their companies early 2017. Interestingly 12 people left the company because of an industry upheaval. This includes new technologies and rivals.
People in the businessworld accept that they cannot cope up with the disruptions that seem to coax them to perform better, faster and change every working day. It is important that you do not fall in this category. The good news is that there is a way out. Entrepreneurs of today can override the tide of disruption by bringing in a culture of internal disruption in their business. There has been many companies that has done that. Companies that revived themselves in a way that even made the disruptors look up and take notice. Here’s how?
1. Go With the Change:
This is one of the riskiest ways to go about that also involves a lot of capital. This is followed by the ability of a company to effectively redirect it to the perfect transformation strategy.
The Redirect Approach can be best explained with the example of Macy’s which is a retail company that has gracefully not only survived but thrived the e-commerce storm. Macy has succeeded in riding the tide of disruption because it allowed itself to change strategy and move its investment from Brick and Mortar to Digital.
In January 2017, Macy’s has announced that its ongoing restructuring plan includes store closures and layoffs of around 10,000 employees would save the company a rough estimate of $550 million dollars. This Macy claimed that it would use for investment in digital strategies.
The Redirect approach shows us that moving with the changing times is one thing that entrepreneurs can do to keep pace with the changing business market and avoid a burnout.
2. Be your Own Competition:
The second approach is called the Self-Compete Approach. This approach has been taken by the ADP which is the industry-leading provider of payroll software. The Self Compete approach asks an entrepreneur to launch a wholly owned but separate company that acquires fresh talent in the market to face the same industry that an entrepreneur is losing business.
Following this approach ADP started the company called Lifion to compete with VC-Backed entrants like ZenPayroll. Lifon with a start-up mentality focused on faster innovation and delivery. It spread its offices to New York, India and California.
With Lifion in the market ADP became its own competitor. This presented the company two different approaches to the human capital management.
3. Re-invent Yourself:
Everyone is aware of the Major League Baseball’s decision to stop paying their third party digital service to broadcast its games. They moved on to creating its own service that stream the games directly to the consumers. They named themselves BAMTech.
Why did MLB do that?
The digitalisation of the business world, opened up as a source of new digital revenue for them. They decided against investing separately on this new possibility and focused on making money with the main business running the show for them.
MLB went to make success with BAMTech. Investors like Disney also showed their interest to the company. BAMTech has a value of $3.75 billion where Disney owns a 75% stake. It has also been referred to as ‘the biggest media company you have never heard of’ by a leading business magazine. BAMTech interestingly powers HBO Now, the NHL and the WWE Network.
The innovation and change in the business world is making it a very difficult place to thrive in. While there are some who make it sound doing business like a piece of cake, there are those who are still struggling with the innovations and disruptions that seem to ruffle their business feathers the moment they seem that they have settled things. The only difference with those who are doing well keeping aside financial or resource constraints is that they are stuck to the old way of doing things. Entrepreneurs now need to understand that maybe the old ways worked, but there is no reason to stick to the old ways only. There are different ways of doing things. Innovation and disrupting oneself would never harm a business if done the proper way.
Entrepreneurs must learn to reinvent themselves. Create the disruption in their business that would let them thrive. Wanting the business world to align to your business structure is wishful thinking you might say. But there have been people who have done that. Look at the way the business world runs now. It no longer runs the old way. But it does run the way a few entrepreneurs who dared to innovate, change and reinvent something that they thought needed to change.
You need not be one of those entrepreneurs who decided to leave their company because they were unable to face the disruptions in the business world. Look around your business. Look for a solution that can help you be the new disruption that the world would love to follow. You need not always be the one who adjusts your business to the changes in the business world. You can also choose to lead like those who have led business before you.