Unpacking the Disruption Dilemma
Is Chaos the Price of Progress?
For the past several years, ‘disruption’ has been one of the most frequently uttered words in the business world. It is the buzzword of choice, the golden ticket to success, and the battle cry of many a corporate boardroom. This may seem surprising as, generally, we associate the word disruption as being something negative. All of the news recently about AI and digital transformation has largely been focussed on the negative impacts for jobs and livelihoods, strengthening the suggestion that disruption is something to be feared. So, is disruption good or bad? Is it an inherently chaotic force, or can it be a tool used for positive change?
In business circles, disruption has often been framed as a requirement. The prevailing wisdom suggests that if you are not actively disrupting your industry, you are destined to become a relic of the past. This narrative, while captivating, begs a crucial question: if every business rushes to disrupt their industry, are we genuinely advancing progress, or are we merely sowing the seeds of chaos?
Many would say that this constant desire for disruption by business leaders is a reckless endeavour, tearing down established norms without a clear plan for the future. But if it is so bad, why are finding ways to disrupt and innovate one of the key discussions amongst business leaders the world over? Business leaders need to concentrate on ensuring they are creating positive disruption.
Positive disruption represents a paradigm shift. It involves the active defiance of conventional practices, not for the sake of turmoil but to forge a path toward progress. Amazon, Spotify and Apple are prime examples of businesses that embraced technology and saw gaps in their respective markets by focusing on customer convenience and innovation. Amazon disrupted the retail industry by making customer convenience a top priority. Spotify, too, placed consumers at the helm and revolutionised the music industry by making music streaming accessible and affordable. Apple has been a disruptive company in several ways throughout its history. While it is often associated with innovation and product design, its disruption extends beyond just technology. Apple’s supply chain management is often cited as one of the company’s key strengths and a disruptive factor in the technology industry. It combines efficiency, control, and innovation to consistently deliver high-quality products while maintaining a competitive edge in the global technology market.
These companies did not set out to be disruptive for disruption’s sake. They did not loudly proclaim their intent to ‘change the game’. Instead, they identified unmet needs in their industries and introduced novel solutions that opened up entirely new possibilities for consumers. They didn’t destroy convention; they crafted a new one.
But here’s the crux of the matter: the aim should not be just to be disruptive, positive disruption is a by-product of finding new solutions and opportunities. What Amazon, Spotify and Apple have in common is their ability to identify gaps in the market and introduce innovations that benefit consumers. They didn’t tear down; they built up.
So, what is the secret to achieving positive disruption in business? It is about being forward-thinking, creative, and innovative. In an ever-evolving landscape where technology and consumer trends continue to shift, businesses that can harness technology with unique application and unlock fresh insights will have the tools to deliver innovative offerings without immediate competition. Easy to say, but not so easy to do, but there are three simple questions that business leaders can ask to start to build towards positive disruptions:
Why do our customers buy from us today?
It seems strange to start by what you already do, but too often businesses do not truly understand why customers buy from them and what they value. This is the start of creating true positive disruption rather than chaos. Once you have identified the ‘why’, you can start to look at ‘how’ to use positive disruption to build on this success.
What would make our customers buy even more and drive improvement in margins?
This focusses the thinking on identifying customer needs, both met and unmet, but with a clear view on the elements that truly drive value to the customer, and therefore, volume and margin opportunities.
Where can we improve our processes to increase our customer experience?
Process improvements and digitisation can be very effective at reducing waste and cost, but without a focus on maximising the customer experience can quickly descend into disruptive chaos. We have all seen the impact of digitisation strategies that have resulted in dissatisfied customers that no longer get the service they expect despite huge savings for the company. On the other hand, many companies, including those mentioned earlier, have created incredible experiences out of process improvement and automation. Just think about the suggested playlists on Spotify, or the order tracking and returns process on Amazon.
Disruption, then, takes effect organically. Others will naturally scramble to follow suit to avoid being outshone by a superior idea. The true nature of disruption is subjective; it depends on where one sits on the spectrum. It is neither inherently good nor bad; its impact is personal, and in the business world, those who innovate will ultimately benefit while potentially challenging those who can’t keep up.
Conclusion
The disruption dilemma boils down to a fundamental question: is disruption a chaotic force, or can it be a tool for progress? While the term itself is often misused and misunderstood, the answer lies in positive disruption – the act of forging a new path that benefits consumers and opens up fresh possibilities. Businesses should focus on being forward-thinking and innovative, not on being disruptive for its own sake. Disruption, when done right, isn’t chaos; it is a catalyst for positive change in the ever-evolving business landscape.