ArticlesBlog

Scott Anthony of Innosight on dealing with digital disruption

Scott Anthony of Innosight on dealing with digital disruption


I’m Scott Anthony, the managing partner of Innosight. So, as you start thinking about what it feels like to be inside of a large organization today, and how do you take all these disruptions coming at you and deflect some of them
and seize others of them? It starts with an understanding that while disruption sounds like a bad, dirty word and your mouth contorts when you say it, it actually can be a fantastic growth opportunity. The second thing you then have to understand is what do we have as a large organization? What are the unique assets or capabilities that allow us to do something that no start-up in the world could do? And then you recognize if you are to deflect disruptive threats or seize disruptive opportunities, you need to structure and act in the right way because it’s not the natural course for a large entity to do that. Because, after all, companies at scale are designed to do what they are currently doing better, faster and cheaper. They’re not designed to go and create tomorrow. So one of the big questions is why now? Why do I have to do something as an executive today? It really comes down to three things. The first is you look at the fundamental rate at which technology is advancing and it’s advancing at ever increasing rates. Second, you look at the pace at which people are adopting new technologies. New ideas spread around the world in an instant. Finally, you look at the impact that has on markets. Long-term research that we’ve done shows that 50% of the companies on the S&P 500 will not be on that index in 10 short years. The time to act for every organization is actually years ago but if you haven’t done it you need to act now. So one of the things that makes it really hard for large incumbents today is a new company can get off the ground and can become a global company seemingly in the blink of an eye. And when we live in this digitally interconnected world you can have something that goes from an idea to something that’s affecting markets all around the world in an incredibly short period of time. And this isn’t just isolated to traditional technology industries. You look at what’s gone on in the taxi industry and the hotel industry through Uber and Airbnb and some of the local competitors in different markets, everybody has to worry today about digital disruption.

Comment here