If you don’t you better start listening…it’s the sound of the bombs going off as disruptive innovation wages war relentlessly on your business.
Sound marginally exaggerated? Just ask Nokia how exaggerated that is after they were reduced from the largest manufacturer of mobile phones in the pre-apple era, to now just a share of around 5% worldwide. Or ask your local newspaper or favourite magazine how sales are after the birth of the internet? That’s the surrendering truth and reality of change in the market place in 2014.
One man who is trying to lead the resistance against this war, or at least highlight the dangers posed by it, is thought leader Steve Blanks. He got it right when he spoke recently to students from ESADE about creative destruction. He say the process is ongoing and even relentless.
So what is it? Another buzz word made up by guys in open necked shirts who want to spread mild panic across business battlefields? I think not…it’s a legitimate and real problem facing everyone who ever decided to go into business and it’s not just start ups who bear the brunt.
Since 1990, 70% of the Fortune 100 have been shot down and are now no longer in business. Falling foul, of not only the enemy but, in my mind, their own arrogance, once they were big they thought they would stay big-wrong, add to that a lack of innovative thinking, people like a product and that won’t change, also wrong and that has been proven only too well.
Over the next 25 years this battle will intensify, and for some will fall representing their company.
For others it won’t mean much, many entrepreneurs will run their affairs how they see fit, failing to plan for the destructiveness of creativity and will never move forward, while in the other instances, the forward thinkers will realise that considering how your business model sits within the company and ensuring it is encouraging innovation will mean they have a bomb shelter fit for anything anyone can through at it.
Steve Blanks and the other leaders in this field, understand that the question most entrepreneurs should be asking is not what idea can make me money, but how do I innovate and keep innovating? He believes to do that, the business model must centre around change rather than static continuation of the current model and goals.
It doesn’t matter if you are are just starting your first company or are the CEO of one of the largest corporates in the world, the same forces are at work which are ready to pull the rug from under your entrepreneurial feet.
So go build your shelter, get your bullet proof vest and ensure your business model means your are ready to fight tough on the front line, and i’ll see you there.