Companies across different sectors, whether large or small, are experiencing a radical shift in their business operations due to the rapid adoption of technology. Today, the availability of disruptive technologies has increased exponentially. The disruption would occur over several years or decades during the industrial era, whereas now, technology can disrupt entire industries in a few months. The Covid-19 pandemic has accelerated this trend even more.
An accurate description of this age can be the “Digital Age.” Exponential new technologies combined with new management principles would unlock massive new value creation. But innovation isn’t just about the technology itself. It is about solving a problem by creating a novel approach. While taking the concept to reality, one can use many technology levers. According to the article 3 Innovation Strategies for the Age of Digital Disruption, disruption happens when any company in any industry acts along the following three dimensions – run (do business), change (do better), and reinvent (do different). Along with incremental innovation, i.e., improving an existing product or service, firms should also focus on radical innovation to reinvent their business.
In the Digital Age, it is difficult to be impervious to the effects of digitalization. In How Incumbents Survive and Thrive, London Business School professor Julian Birkinshaw mentions that fighting against disruption is hard. He proposes three alternatives for firms to survive disruption – Double down (on existing strengths), Retrench to ensure survival (by forming alliance with other firms or lobbying), or move away (seize opportunities in new markets).