Disrupting to succeed
by Miki SaxonPost from Leadership Turn Image credit: nookiez CC license
Chapter four from IBM’s The Enterprise of the Future (a steady Saturday feature since July 12; be sure and download your free copy) is about extreme innovation, AKA, serious disruption.
Innovative products and services aren’t enough any more.
“As one U.S. CEO explained, “We’re starting to think about things we couldn’t do before.” With the Internet, businesses can now find niche markets for rare, surplus or highly specialized goods — a virtual “garage sale,” as it’s often called. Business processes, as well as some products and services, are becoming more virtual. New delivery channels and electronic methods of distribution are overturning traditional industry conventions. And these advances are not just changing the way individual companies work — they’re creating entirely new industries.”
So what exactly is happening? Is there a direction that the majority believe will work?
“Among those making extensive changes to their business models, enterprise model innovation is the dominant choice. Forty-four percent of CEO s are focused solely on enterprise model innovation or are implementing it in combination with other forms of business model innovation. This trend toward enterprise model innovation is even more pronounced in emerging economies (53 percent).”
What does ‘enterprise model innovation’ mean? It refers to the challenge of offering your customers something truly different all by yourself—a business model that is fast dying in a world of speedy global connections, sophisticated, interconnected consumers and breathtaking speed of change.
“While 38 percent of CEO s plan to keep work within their organizations, 71 percent — nearly twice as many — plan to focus on collaboration and partnerships.“
And the most important point, as pointed out by one Australian CEO, “It’s about deciding when to collaborate, whom to involve, how to lessen the destructive force of competition.”
More on this next Saturday.
Is your company involved in enterprise model innovation?
Your comments—priceless
