Mastering The Duality Of Digital: How Companies Withstand Disruption

Building new digital businesses while digitizing legacy operations.

Incumbents must mount a well-calibrated, dual effort to create new models and digitize current businesses. Keep reading here at McKinsey.

Traditional company, new businesses: The pairing that can ensure an incumbent’s survival

Big companies need to innovate outside of their core business.

Taking the explore & exploit approach to innovation is the only way to survive long-term disruption and truly thrive in the business world. Follow this link and invest a bit more than 5 minutes to read …

In Fast-Moving Industry, Ferrari Stays The Course

Lessons for companies faced with technological disruption.

Remembering how your company creates and captures value is essential in any any decision making exercise. Read the full 2 minutes story here.

How Big Companies Can Outrun Disruption

Big companies should not replicate startup cultures and need to stop branding innovation as ‘really fun’.

The stark reality is that innovation is extremely hard, as it involves a ton of failure, disappointment and requires colleagues to be brutally honest with each other. Read full story here.

McKinsey’s Three Horizons Model Defined Innovation for Years. Here’s Why It No Longer Applies.

Taking a time-based approach to innovation might have worked in 2000, but it’s not a valid strategy in today’s cut-throat business world.

Many disruptions can be rapidly implemented by repurposing existing Horizon 1 technologies into new business models. Keep reading here …!

On the difficulty of defining disruption

Read here how disrupters are often novelties or fleeting. How does time and traction factor into the definition of disruption?

“What is viewed as disruption is often plain old luck.”

Strategy of Innovation vs. Innovation Strategy

“Whether the companies are private or public, shareholders are demanding a vision for the future. How will these old, inflexible companies survive in industries facing disruption from scrappy, nimble, three person startups with zero budget that are miraculously gaining market share?

Blockbuster CEO Jim Keyes, speaking to the Motley Fool in 2008 said, “Neither RedBox nor Netflix are even on the radar screen in terms of competition.” Fortunately, most legacy companies have learned from Blockbuster and Kodak that to stay competitive, companies need to innovate or the revenue will plummet.

So what’s a CEO to do? “Our strategy is to innovate.”

In response to disruption, every day another company announces the launch of an accelerator or plans for “digital transformation” (whatever that is).

But what’s a strategy to innovate without an innovation strategy?”

The the full article here on grasshopper herder.

Technology Doesn’t Make Money, Business Models Do

A discussion on defining and designing a successful business model in a time of fast-changing technology and market disruption.

Disruption of the financial services sector is unlike anything the market has ever seen. This shift in market forces is being spearheaded by the acceleration of new technology in dramatic and unprecedented ways. But the real risk of technology is not its proliferation, nor its complexity, nor its uncertainty, but its distraction. It’s easy to get seduced by new technologies; they are bright and shiny and feel like innovative things. When we are distracted by cool tech and ignore the business model implications, we are using technology as an end instead of the means.It’s important not to lose sight of the fact that technology in and of itself doesn’t make money ­­– business models do.

Keep reading here!

Incumbents Strike Back

“Economists and strategists are debating both the causes and consequences of markets that are growing less competitive.
Some attribute the consolidation of power into the hands of a few to digital technologies; others point to structural factors. C-suite executives may be just as uncertain about the changes happening around them. Certainly, their expectations about how the business landscape will change in the next few years are mixed.”

Here is a new IBM Disruption study of 12,800 C-suite executives across 20 industries in more than 112 countries found these incumbents are refusing to be disrupted.