Helen Steel is Managing Director of Streamlion Consulting. The Berkshire-based company helps SMEs to apply for grant funding and start-up finance, and provides scale-up advice. Helen talks about the need for businesses to disrupt their industry or risk being disrupted.
The mantra in today’s fast-changing business world is: disrupt or be disruptive. The UK market has seen first-hand how disruption can lead to stagnation. From the rise of digital bank revolutionaries such as Monzo and Revolut, to the fall high street giants Woolworths and BHS.
What is disruption and why is it important for business?
Disruption is more than just innovation. Innovation improves products and processes. Disruption fundamentally changes the way an industry functions. It is the difference between adding features to an existing phone and creating a new device.
Deliveroo has revolutionized the food industry. This British startup was founded in 2013 and revolutionised the food industry by bringing high-end restaurants together with traditional takeaways. Deliveroo has created a whole new market and changed expectations of the average household about food delivery.
The cautionary story of Blockbuster UK is a reminder that businesses can fail if they do not adapt. Blockbuster, once a common sight in British high streets and shopping centres, has fallen victim to streaming services. Netflix and Amazon Prime, whether they were unwilling or unable to evolve to the new world of streaming services, appeared to have wiped Blockbuster off the face of earth.
Why does every business require some disruption? Survival and growth are the answers.
AI is only becoming mainstream by 2022 but it’s already being used in tens of thousands of offices. Businesses can’t afford to stay stagnant when consumer preferences are changing so quickly. Businesses can be competitive by remaining flexible and open to changes.
It does not mean reinventing a company. Instead, it means creating a culture of change and calculated risks. BrewDog disrupted the UK Beer Industry not by using technology but rather by introducing craft beers with unconventional marketing.
It is important to balance disruptive initiatives while maintaining core business operations. Google, for example, achieves this by allowing its employees to spend 20% of their time working on innovative projects that are outside their core duties. They can stay ahead of the curve with new ideas and innovative developments.
Thomas Cook’s collapse in 2019 is a good example of the risks associated with ignoring disruptive trends. The world’s oldest company in the travel industry failed to adapt after 178 years of business to the growth of online booking platforms.
Those who can successfully navigate disruption will reap the rewards. Ocado was founded in 2000 and became the UK’s very first online-only grocery store. Now, it has expanded to provide its technology to retailers worldwide.
In the future, we will see that emerging technologies such as AI and Blockchain promise to disrupt multiple industries. It is clear that UK businesses should embrace AI and blockchain, not as a danger, but rather as an opportunity to grow, innovate, and lead their industries.
Charles Darwin said, “It’s not the smartest or the strongest species that survives. It’s the one that is most adaptable to change.” The one who is most adaptable is the one who will survive in the future.
The first time this post appeared was on HR News.
