Markets and business models are shifting, and so should you keep up with these market changes if your business is to survive and succeed. Compared with the past, the current era of digitization represents an inflection point.
Consider individual trends such as artificial intelligence, virtual reality, Big Data, cybersecurity threats, drones, the Internet of Things, driverless cars, blockchain technologies, and more.
These new technologies have significantly changed the way we connect and interact as individuals, including how businesses deliver products and services to their customers.
Reinventing your business will determine whether you succeed or fail in the digital age. As the saying goes, disrupt or be disrupted. No company, business, or industry is safe from disruption. Today, individual businesses have the potential to compete against multinational companies and win.
These businesses are quick to anticipate market changes and flexible to get ahead of the curve. Sadly, many companies are blinded by their successes and aren’t willing to disrupt themselves. They are not experiencing their desired growth trajectory because they are stuck doing the right thing for too long.
Don’t get comfortable with the status quo and allow your business to get stuck on a strategy and mindset that no longer fit the market.
Here are a few questions to ponder, the answers to which will determine the future of your business:
- What is at the core of your strategy?
- Are you in touch with the customers you want to serve? When customers give you negative feedback, how often do you listen and act on it?
- Are you operating your business on the premise that you know what is best for your customers therefore they are supposed to buy whatever product or service you offer them?
- Are you keeping up with market shifts or you only know how to grow under one set of conditions or products and services, but not how to survive and strive under another?
- How robust and flexible is your IT infrastructure to help you innovate, perform your company’s Jobs To Be Done, and scale your business?
- Are you creating a strong culture that is focused on customers, including a culture that not only embraces change but seeks it out?
Given our world is changing faster, it’s imperative to continuously look for signs that things are changing and think about how those shifts would play out in the short-term, medium-term, and long-term, not forgetting the impact on the execution of your strategy and enterprise performance.
The signs can reveal individually. At times, they are part of a wider trend.
Nonetheless, how you adapt will determine whether you succeed or fail. Keep learning. Learn about innovations in your industry and beyond. Try out new business models and technologies and embrace a philosophy of constant change.
Once you understand how the market is changing and evolving, you can develop the right product or service and strategy that will help you achieve your desired outcomes.
We often talk of the ability to “connect the dots” and “take a helicopter view of the business” as key ingredients for success. But how often are business leaders and their teams doing this?
Across the organization, a culture of “them versus us” prevails. Important decisions are made at a functional level with little or no consideration of their impact at the enterprise level.
Having the ability to grasp the big picture and see how different trends intersect is essential for determining the right path or course of action to pursue.
So, how do you spot market transitions and develop a clear sense of where the market is going?
- Be curious and hungry for new ideas. Continuously ask tons of key performance questions and pay attention to what’s around you.
- From time to time, challenge conventional wisdom. It’s easy to stick with what you know about your business model, customers, competitors, markets, or industry but dare to pivot when conditions change.
- Don’t be nostalgic about the past or worried about protecting what you’ve built in the present. Always be curious about the future and develop a willingness to take calculated risks.
- Ask existing and would-be customers how they feel about your company’s products, services, and strategy. Instead of turning to sources that reinforce your existing point of view, seek multiple perspectives and cross-reference them as new facts come in.
- Develop an ability to handle multiple random data points at once. This will help you generate critical market, customer, and business performance insights and make smarter, informed decisions. Be careful to distinguish between the signal and the noise since data can be deceiving, especially when you’re looking for “confirmation” that protects your business model.
Data might not tell you why something is happening, but it does tell you what’s going on.
- Look for patterns and abnormalities that might suggest something is going on, including any interdependencies.
- Anticipate all the various scenarios of what could happen.
- Plan your course of action in response to what’s happening in real time.
As the signals of a market shift increase, the need to act becomes more imperative. Note, monitoring and identifying market shifts, and effectively taking the appropriate course of action is a matter of timing.
If you continue doing the right thing for too long and lack the boldness to disrupt both the market and your own organization, you risk being disrupted and left behind. There is no company that is too big to fail. Neither is there a startup that is too small to succeed.