Key to success hinges on disruption, change

PIONEERING technological applications are causing businesses to rethink their models as they face competition from previously inconceivable sources – often organisations without physical structures or employees.

Technology and innovative solutions remained the ultimate “disrupters” changing the way consumers transacted and interacted with brands, says FNB franchising head Morné Cronjé.

“Franchisors such as Uber (and Airbnb) have demonstrated how technology has created new platforms for doing business in South Africa.”

His comments, coming before the bank’s annual franchise leadership summit in Joburg at the end of the month, echo sentiments expressed at the annual Green Buildings Council of SA congress last month.

In that arena, Tomorrow Today founder Graeme Codrington said business was operating “at the dawn of the digital age” and the keys to success hinged on “disruption and change”.

Google, Netflix, Airbnb, Uber, Trip Advisor, WhatsApp, PayPal, Amazon and Facebook are among the world’s most valued brands, yet most did not exist 10 years ago and their business practices are “disrupting the norm”.

More specifically, Uber and Airbnb were respectively the largest taxi and hotel companies in the world, yet they did not own a single asset, while Amazon, Netflix and Take-A-Lot used customers’ data to understand their needs and offer them personalised services that played to their pockets.

“Franchise brands must stay abreast of trends that may influence consumer behaviour… this is changing constantly and franchisors should tweak their business models to remain relevant,” Cronjé said.

Codrington said humans reaching the legal driving age in 25 years’ time would not need drivers’ licences as driverless cars would not only exist, but be compulsory.

That revolution would create a transport system that did not require traffic lights, dedicated lanes or speed limits.

By removing the human element the vehicles would communicate between themselves and facilitate transport navigation.

He said that innovation would cause further disruption as vehicles now were under-used, with owners using them only 2 percent of the time.

So a driverless vehicle could work for owners during its downtime – become an Uber cab or eliminate the need for vehicle ownership as Uber becomes the world’s transport operator.

“In the face of ever-increasing globalisation and competition, it is a company’s ability to adapt and create a new and prosperous future that is key to its survival. An aggressive strategy focusing on customer needs and wants, and innovative products and solutions are needed to capitalise on new investment opportunities,” he said.