Technology-driven disruption is happening now. And according to a recent study from Deloitte, The Age of Disruption: Are Canadian Firms Prepared?, only 13% of Canadian organizations are considered highly prepared for disruption. An organization’s size, age or industry vertical had little bearing on how prepared they are to adapt to the rapid advances in technology that are bringing significant changes to the Canadian business landscape.
Disruptive innovation, a term coined by Clayton Christensen a Harvard professor, “describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.” A relatively recent example of disruptive innovation is video streaming. Netflix leverage this technology and forever changed that way in which we rent movies; eventually putting Blockbuster and other video rental stores out of business.
Disruptive innovations will continue to shape how we work and live, and while this may present significant challenges for organizations to manage, it also offers incredible opportunities. According to Deloitte’s research there are four areas in which organizations should focus on to not only prepare for and withstand disruption but also capitalize on the technology-driven changes heading our way.
Cultivate awareness: Encourage a culture of curiosity, awareness, and understanding of potential forces (technology or otherwise) that could disrupt their industry. This knowledge can be used to better position organizations to prepare for future disruptions.
Build the right culture for preparedness: Develop a flexible and resilient organization, and foster a culture of innovation. This can be protective and help companies see opportunities to capitalize on technology-driven disruption.
Foster organizational agility: Embrace new ways of managing and engaging employees, and making organizational decisions to avoid becoming hindered by archaic fixed business models.
Develop effective resources: Research emerging technologies for the purpose of investing and adopting new cost-effective processes. Attract and retain critical talent to move the company forward. By acquiring and deploying the best talent and technology, organizations can better their competitive position and prepare for technology-driven disruption.