Disruption pays off

IN today’s business environment, a successful executive or organisation should not shy away from swimming upstream, going the other way, disregarding the conventional wisdom and, effectively, ignoring the herd.

Understanding disruption in business

The herd instinct is clear in nature, and just as clear in business. Most executives and the organisations they lead feel more comfortable following what others are doing than standing out as “loners” or mavericks.

Ignoring the herd takes great psychological strength, and is a sure way of embracing disruption.

Disruption in business refers to the profound and sudden changes that can upend traditional industries and established companies. The rapid advancement in technology, coupled with changing consumer demands, has created an environment where disruption is not only common, but also necessary for growth.

Disruption can render existing skills, products, services or business models obsolete, forcing organisations to adapt or risk becoming irrelevant. Companies like Amazon, EcoCash, InnBucks, Mukuru, Uber and Airbnb are prime examples of disruptive forces that have revolutionised their respective industries by challenging conventional norms and offering innovative solutions.

This article explores the concept of disruption in business and emphasises the importance of embracing change to ensure long-term success.

The role of technology

Technological advancements play a pivotal role in fuelling disruptive changes in business. The advent of the internet, mobile devices, and artificial intelligence has drastically altered how businesses operate, communicate and deliver value to customers.

These technologies have created new avenues for reaching customers, streamlining operations and disrupting traditional industry practices.

For instance, e-commerce platforms have transformed the retail landscape by offering consumers more convenience and choice.

Shifting consumer demands

Disruption is not solely driven by technological advancements but also by changing consumer demands and preferences.

Customer expectations have evolved, with focus on convenience, personalisation and sustainability.

Businesses that fail to anticipate or adapt to these shifting preferences are vulnerable to disruption.

By staying attuned to consumer needs and embracing emerging trends, companies can position themselves as disruptors, rather than victims of disruption.

Gaining competitive advantage is exciting, staying on top is hard

Let us face it. If we look at the top companies list in 2000, in South Africa, Nigeria, Kenya, Zimbabwe, Botswana, Rwanda and other African countries, how many of those remain on top in 2023?

Big companies closed or scaled down operations. Some even relocated to new markets outside the continent. Others got swallowed up in mergers, and many more filed for bankruptcy. Effectively, probably half the companies are no longer on the list.

The competitive pressures businesses face are constantly in flux: new ideas and disruptive technologies emerge, the economic power of countries shifts, and market dynamics change.

Yet business history is littered with companies that ignored change and pushed forward with flawed strategies based on the old environment.

To avoid this, the idea of “disruptive thinking” is used to challenge precepts and assumptions — to consider that, sometimes, the way to move forward is to innovate and do things never witnessed before at all.

Markets are dynamic; technologies and competitive pressures change. For businesses to survive, leaders must motivate staff to avoid fixed thinking.

Disruptive thinking is a leadership tool that encourages creative responses to problems.

In today’s African market, competition is fierce and every percentage point of market share is hard fought and precious.

The benefits of embracing disruption While disruption poses challenges, it also presents significant opportunities for growth and innovation.

Embracing disruption allows businesses to break free from outdated models and explore new markets, technologies and business strategies. By proactively disrupting themselves, companies can stay ahead of the curve and maintain a competitive edge. Disruption encourages entrepreneurship and fosters an environment that promotes creativity, agility and adaptability.

Organisations that prioritise innovation and promote a culture that embraces change attract top talent, unlock new revenue streams and generate long-term value.

Strategies for embracing disruption

To adapt to disruptive forces, businesses must adopt a proactive mind-set. Here are some strategies to embrace disruption effectively:

1. Continuous innovation: Encourage a culture of innovation by nurturing creativity and supporting employees in generating and implementing new ideas.

2. Agility and adaptability: Be flexible and responsive to changes in the business environment. Monitor market trends, consumer behaviour and emerging technologies, and be ready to pivot when necessary.

3.Collaboration and partnerships: Engage in strategic collaborations and partnerships that can provide access to new markets, technologies or expertise. This fosters an ecosystem that supports growth and reduces the risk of disruption.

4.Customer-centric approach: Prioritise understanding consumer needs and preferences. Invest in market research and gather customer feedback to develop solutions tailored to their needs.

5.Long-term vision: Develop a long-term vision that anticipates potential disruptions and sets a clear direction for the organisation. Regularly review and update this vision to stay aligned with the evolving business landscape.

Conclusion Disruption is an inevitable aspect of the modern business landscape. Rather than fearing or resisting it, business executives and organisations must recognise the opportunities that disruption presents for innovation and growth.

By embracing change, fostering a culture of innovation and being agile in response to market dynamics, businesses can position themselves as disruptors, leading their industries forward.

Ultimately, only those companies willing to adapt and leverage on disruption effectively will thrive in the ever-evolving business landscape.

Stephene Chikozho is the managing director of Urbane Create Agency — a strategy, marketing and advertising agency. He writes in his personal capacity. You can follow him on social media (Instagram, Facebook, X, LinkedIn, Threads) WhatsApp +263772409651 or emaimanagingdirector@urbanecreate.com