Devoted to Managers and those that seek to improve their management skills

Companies are continually bringing new and innovative products and services to market. How you respond and how quickly could be the determining factor in whether your business, service or product line survives.

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You’ve probably read about the buzzwords called “disruptive innovation, which refers to this phenomenon which turns the market over on its head and you either respond and adapt or die.

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Probably the most well-known and recent example was the iPod that shook up the music distribution model. Or other companies that use the direct-to-consumer process of ordering, such as Dell, which has their competitors still scratching their heads over their own supply chain processes. 

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Here are a couple of realities concerning disruption that you need to know: 

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1. Technology is not at all the only disruption there is. If one of your competitors develops a product that completely makes your line mute, than you have a major problem to deal with.

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2. Disruptive products or services aren’t always easy to spot. Most of these disruptions don’t reveal themselves in the mainstream market. Usually the first ones to try and adopt these products or services are those who desire lower prices or things simpler or easier to use. Many aren’t in the particular market to begin with. 

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3. Companies enamored with their own success. One of the constant reason these disruptions go under the radar of successful companies is their illusion that it will go on indefinitely. Many times it is at the point of record sales that innovations reach the market place and aren’t considered real or even perceived threats.

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4. Initially innovations are more costly and less effective. That is another reason why they are for the most part ignored by their existing competitors. 

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The key way that many companies deal with these potential threat is to communicate with their regular or former customers to find out what they are buying now. That is probably the key way to see what’s coming up behind you before it is too late to respond and do something about it.

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A lot of it also has to do with your attitude. Don’t think that because things are going great now, that it will ensure the continuing success of your company. Don’t be stuck in a rut and be ready to act with speed and agility and you should be ok.