One of the biggest challenges facing successful companies is how they can respond to the rise of new technology which is changing the game for them. It’s time to adopt the new rules and adapt to the environment or risk disappearing.
The legacy systems and processes built by big corporations over the years leaves them in a crisis situation, unable to adapt to the new business environment.
Netflix, however is an exception to this. It has managed to swiftly turn technological disruption to its advantage.. Its original business model was the DVD-by-mail concept but that has changed drastically over time. With the emergence of smartphones and tablets, Netflix has radically reinvented its business by incorporating online streaming and moving away from the traditional DVD and TV channels. They kept testing and evolving different features using emerging technology to create a better user experience for their clients.
Given the fast paced nature of technology and innovation decision making now needs to be achieved at the same speed.
Companies need to foster a culture of experimenting and testing to keep reinventing themselves.
A different mindset is needed to take-on disruptive ideas that might sound instinctively “bad” or even “mad”at first.
Renting out a bedroom may not have sounded like a wise idea, but today AirBnB is competing with some of the world’s largest hotel chains.
Is now the time for companies to embrace ‘bad’ ideas, test them and kill them-off quickly if they don’t work?
Adapting to a fast paced world under-pinned by technological advancement comes from cultivating a culture of innovation. And its only when decision-making and change management happen at a more rapid pace that organisations will be able to change and adapt to markets.