Organizations spend too much time looking in the side and rear-view mirrors when identifying ways to generate an increase in revenue, while lowering cost. Achieving these require a transformation process to remain relevant.
Most organizations are led with the uncertainty of the results that stem from the collision between disruption and innovation in today’s marketplace. Companies using innovation as a resource have become smarter, faster and more strategic in their approach to delivering what the customer needs. But for some, decisions are being made without having the clarity about how to go beyond expectations to deliver great customer experiences, or how to take advantage of new technologies to cut costs, or how to improve quality and transparency, while revealing improved value that will be sustaining over time.
However, the greatest uncertainty that keep decision makers up at night and scratching their heads after hours is how to build disruptive business models to keep their organizations relevant regardless of what happens within their existing markets.
The challenge lies in the organization’s decision makers achieving an understanding about how to clearly define and articulate disruption in the form of innovation to create timely new business models that adapt well to the existing constructs of an organization’s culture. Addressing this single most significant issue is in itself a hurdle to overcome while figuring out how to create greater value for the organization’s future.
Organizations must begin to think about turning disruption and innovation into critical assets used to increase their ability to unlock the right resources. These resources can then be used to close the gaps between strategy and execution regardless of what is happening in the world around them. Mainly because disruption and innovation are similar in that they are both makers and builders of something better (Better your Best) when done correctly.
As stated by Harvard Business School professor and disruption guru Clayton Christensen, “disruption takes a left turn by literally uprooting and changing how we think, behave, do business, learn and go about our day-to-day while displacing existing norms to produce something new, more efficient and worthwhile.” To define and articulate disruption in the form of innovation means to build a business model that translates into greater organizational value and relevancy.
Regardless of the model being considered, it has to achieve a state of Innoruptions™. This would mean that the operating business model must facilitate flawless execution at every turn with stepped-change improvements focused heavily on getting the entire culture focused on doing the right things to get the right things done. It also means that to produce profit while lowering costs (in parallel), sustaining the changes must never stop. Any model chosen must follow these three strategies to be realized:
- First, the model must challenge incumbent thinking and behavior to cause innovations to happen faster, more effectively and on the mark with the real needs of the customer—before the customer actually realizes the need for themselves.
- Second, the model must facilitate the strategic delivery of increased capacity with on-demand velocity (speed).
- Third, the model must challenge the very core of conformity to formulate a predictive and disruptive platform into a systematic way of thinking and behaving across an organization’s entire ecosystem.
A simple way to visualize the right operating model using these foundational rules with discipline is to think of it as having several parts, each requiring decision makers to adopt major changes in the way they work.
The adopted changes must adhere to seven guiding principles if they have a chance of working: target critical vulnerabilities (within existing norms), boldness (to go where you have not been), surprise (cause a shock to the system for something fresh and new), focus (achieve dogged discipline on the future picture), decentralized decision-making (remove un-invested members on the future), rapid tempo (do the right things to get the right things done with speed) and combined arms (think holistically and use all available resources).
In our experience, targeting the most critical aspects of an organization’s marketplace strategy can unlock the most value in the shortest possible time using these principles. Namely because they are potent when applied individually and devastating when applied as an integrated whole (Source: The Marine Corps Way). They provide a useful framework for establishing ways to go against the norms when building a new disruptive business model.
What’s important to realize is how not to fall into the traditional traps of trying to improve existing behaviors and norms. Instead, decision makers must focus on reimaging the entire organization and customer experience to unlock unforeseen value. By not falling into traps, developed new business models can overcome incumbent models simply by following no more than five constructs to realize real change, and they must be inextricably linked. But keep in mind, the foundational rules that were mentioned earlier must also be followed as guiding precepts to streamline the transformation process.
The five constructs are designed to secure the organization’s decision-rights, information (data), structure (culture) and motivators (influences). They’re outlined as technology integration, forward-thinking analytics, lean prototyping, organizational behavior and strategy execution:
- Technology integration: the use of digitalization and technology resources for improvement processes.
- Forward-thinking analytics: the process of gathering data to discover intelligent opportunities.
- Lean prototyping: the process of streamlining procedures, eliminating waste and building cultures of continuous improvement for flawless execution.
- Organizational Behavior (OB): the process of improving the team’s interaction as it relates to the future picture.
- Strategy execution: the disciplined process of delivering on your intended purpose across the entire ecosystem.
Combined, these five constructs represent the stepped-change improvements that are focused on building your new business models. When executed correctly, the business model—Innoruptions™— will cause cultural shifts resulting inspired disruptive creativity and innovation without the tension of dispersed leadership.
In the end, this guidance will demonstrate how developing a disruptive business model can completely transform the organization, its revenues and customer experiences, all while lowering costs to develop value, relevancy and the needed advantage within the organization’s future picture.
Strategy and Disruptive Business Models
Is the competitive marketplace talking about you, your leaders and your organization? Does your team understand how to articulate the organization’s strategy to boost profitable growth? Are your leaders and teams empowered to execute on the organization’s strategy without being micromanaged?
Here at FlexRight Solutions™, we outline five key constructs to any organization’s success. Since our founding, we continue to stress the importance of using the key constructs to achieve a strategic advantage (establishing trends) versus a competitive advantage (following trends) in the marketplace. We feel that it all begins with establishing disruptive business models as the primary organization’s strategy. We work with leaders and organizations to develop strategies that go beyond best practices to deliver extraordinary results.
Want to know more about our process? Contact us today.