Disruption is on the Move…Is Your Company Ready?

By October 9, 2014Disruption, Trends

You may think your industry is safe from this phenomenon. Here are 5 trends that should serve as a warning that no business is completely safe.

Disruptive innovation…business disruption…you hear or read about these terms constantly: in editorials and articles in business publications, blogs, and conferences…literally everywhere business people interact. So what exactly is it and what does it mean for businesses today?

Disruptive innovation, according to Clayton Christensen who coined the term, “describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.” So, mobile phones are making landlines nearly obsolete; tablets are disrupting PCs; and e-commerce has been affecting the business of brick-and-mortar stores.

What does this mean for companies?

Businesses depend on investment and investment depends, to a great extent, on the expectation that the enterprise will succeed and grow. An article in The Wall Street Journal in July discussed how disruptive trends could affect the surge in profits experienced by asset managers; a surge which reached $93 billion in profits in 2013, based on managing global assets of $68.7 trillion. But, according to the article, growth is going to be more difficult, because of trends which will make the old ways of judging market performance less reliable.

This article touches on the trends that could potentially affect every business and service by making them more or less attractive to investors. They include:

  • Regulatory change that will result in greater compliance burdens affecting product innovation and growth
  • Digital and data revolution which is transforming operational aspects of all businesses
  • Investors preference for nontraditional assets that are specifically oriented to their needs or desires
  • Globalization is accelerating due to a demand for greater diversification
  • New competitors offering nontraditional assets – this trend is one that affects asset managers themselves rather than the companies they manage

The world today is moving at lightning-fast speed, and businesses that hope to have a future need to move just as quickly in response to changing markets and changing consumer behavior. Companies need to be agile, innovative, and visionary. They need to see that train coming around the bend before they’re overtaken by it. Better yet, they need to foresee what mode of transportation will replace that train. Companies that do this will be attractive to investors; those that don’t may experience the fate of the horse and buggy.

Check out the full Wall Street Journal article here.

 This blog originally appeared on the AmeriQuest blog Website.

Kate Freer

About Kate Freer

Kate Freer is Vice President, Marketing for NationaLease, and is responsible for go-to-market strategy, demand generation, branding, positioning, and communications. She has spent most of her 15 year career in the digital marketing space fostering brands in high-growth companies.

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