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May 07

Will your business survive disruption?

Posted by Andrew Geddes at Sunday, May 07, 2017

March/April eNews…

“Discover the 3 major Business Disruption solutions that keep SME owners ahead of their competitors!”

We have just returned from running our March SME Leaders’ Forum in Niseko, Japan.

The two topics most discussed were digital disruption and whether we had a Big Exciting Audacious Goal (BEAG) to really inspire our teams.

Obviously a BEAG needs to incorporate the effects of business disruption or it won’t be achieved! The business will be gone before reaching it’s BEAG!

Disruption is very obvious in some sectors (eg…taxis and Uber) but less obvious in other sectors (eg...recruitment).

However, we all agreed the rate of change was escalating in all our sectors and that meant we needed to create a climate inside our companies that encouraged innovation or we might not survive.

Daily stand-up reviews with front line team members on “What delighted customers  yesterday?”  and “What created angst for customers?” fed into weekly Senior Management Team (SMT) operations meetings was regarded as the best way to create a sense of urgency in our companies for innovation.

The critical factor was “What action did the SMT take?” and “How long before things changed for the front line team members?”.

The creation of a faster pulsing business in terms of both communication and actions brings a willingness to try new things as long as management don’t jump on things that don’t work!!!

Research published by global advisory firm PwC suggests Amazon has invested heavily in logistics so it can get product into consumer’s hands in the markets it operates in within a few hours of order placement.

If you try to compete on price or convenience with this offering, you may not last long.

However, if you can differentiate your offering, you may survive.

Take Portugese fashion firm Farfetch which works in nine languages to link 481 traders in 42 countries with buyers across 190 countries. Based in Portugal’s north-west coastal city of Porto, with offices in nine countries, a global staff of close to 1500 and $US800 million in gross sales in 2016, Farfetch is a private company with a market valuation of more than $1 billion.

It is the number one full-price online destination for luxury shopping in terms of traffic, according to several web analysts.

Obviously they set a Big Exciting Audacious Goal to inspire and motivate their team members. 

There is no doubt that digital and technological change is affecting all stakeholders of every business in the world right now.

Ask yourselves the following big questions each quarter in your strategy review sessions…

“How do our customers want to communicate with us and do business with us?”

For example, Oroton announced it would not renew the contract of Australian actor Rose Byrne as the face of the company, preferring “younger influencers” to represent the brand.

Influencers are young media users like Indy Clinton, 19 years old with 97,000 Instagram followers, who charges companies $50 to post on Instagram.

Brands and companies particularly in the fashion and lifestyle sectors are teaming up with sociol media stars across all platforms to spruik their goods, favouring them over sponsorship deals with celebrities.

This is just another example of disruption sweeping across a sector.

Accounting firms and their clients are moving to cloud based accounting so the accountants can have access to business data and apply various analytical apps to provide timely relevant reporting on business activities and so the annual compliance production process is more efficient. They are then adding specialist advisory service offerings like help with computing and website design and social marketing  to complement this more timely reporting approach.

Join us at our free webinar Tuesday May 16th 12 noon AEST to discover the 3 major Business Disruption tools that keep business owners and their Senior Management Teams ahead of their competitors.

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