The business world has entered a new era, where uncertainty, ambiguity and disruption seem to be the only constant in the equation. We have entered an era where innovative business models are challenged everyday, and competitive advantages vanish into thin air, an era of “accelerated disruption”. There are three main factors that have increased the speed of change in business environments. In this post we will explore these factors and provide some ideas on how to assess your organization’s capacity to thrive in this environment.
Social, economic and geopolitical change
Increased globalization, global connectivity, migration, urbanization and changes in the population pyramid are rapidly shifting the business landscape that has dominated the last century. In the book On Global Order, Andrew Hurrell explores the complexities of a globalized society, and how the paradigms that have traditionally governed the world’s order are being challenged. The social and economic changes, and the world's geopolitical reconfiguration, will continue to affect the degree of uncertainty, unpredictability and turbulence in global markets.
The rise of exponential technologies
In the book Big Bang Disruption, Larry Downes and Paul Nunes defined exponential technologies as “advances that promise repeated doublings in improvement of both price and performance over a relatively short intervals, possibly as often as every year or two”. The development, adoption and application of exponential technologies is reshaping the way organizations innovate, compete, interact and create value to customers. In the near future a diverse range of industries will be disrupted by innovative materials, 3D printing, automation, artificial intelligence, big data and the internet of things.
Game changing business models
In the last decade traditional business models have been challenged by the rise of business ecosystems, on-demand professional communities, crowdsourcing innovation, crowdfunding and collaborative business platforms like Uber and Airbnb. The business mindset is also shifting into collaboration. It is increasingly common to see a company outsource its excess capacity to competitors or crowdsource the solution for a major business challenge.
Business digitalization, global connectivity and customer-centric approaches have produced phenomena like hyperscaling (reaching millions of clients in a short period of time) and the disappearance of barriers of entry. Exponential technologies will push business model innovation forward in upcoming years, turning the ability to constantly assess strategies and rapidly reconfigure the business into a major competitive requirement.
Is your company ready for accelerated disruption?
Accelerated disruption is real and is here for good. If you care about the potential impact of accelerated disruption in your business, you should start asking the following questions:
How is your organization’s strategy validated to keep up with the disruptions of the environment?
When has your organization best anticipated changes in the external environment?
How does your organization encourage experimentation?
How does your organization enable increasingly efficient and effective collaboration with other companies?
How does your organization enable a business-oriented mindset for all its employees?