Subject: Disruptor or Disruptee? Notes from CEO Coffee Meeting 25/09/2018

What did the related ChairX Digital Disruption event at Harvey Nash discuss 2 weeks ago?

• Typically the Board's/shareholder's financial imperative will override the degree of investment and change required
• Disruption can be 
• Macro, or business model
• Micro, or operating model
• The Board cannot afford to stand still

What do we mean by digital disruption?

• Technological change ranges from minor functional enhancements to a restructured (often low cost) industry platform
• Industry examples - Uber for taxis; Monzo, the app-based bank
• Operations example - the Slack app, for improved communication
• Impact - in Switzerland, some people are being paid not to work
• Should the propensity for being disrupted be put as a risk on annual reports?

How far ahead should (and can) we look? Responses included:

• Innovation on an industry level is 'an impossibility' (assuming a typical financial imperative)
• Startups and/or very large innovation budgets are the likely source of disruption
• We should be flexible and responsive rather than over-emphasise strategy and planning

As an example technology, how could 3D printing affect you or your business?

• Teenagers would like to design and print their own trainers at home (see Nike, Adidas et al); awaiting printer cost reduction
• Highly responsive prototyping is available now on a wide range materials
• Other technologies include artificial intelligence, robotics, autonomous vehicles, etc.

How should CEOs, and Boards, take full account of disruption?

• Decide which technologies are relevant to your industry and business and watch them closely
• Consider your reaction capability
  
• Consider how frequently you should be discussing strategy

Summary

• To be a disruptor, fund free thinking at the micro and/or macro level
• Major disruption may take major funding and long term payback times
• Most organisations will fare best through watching closely and reacting quickly

John Bickell is a Member and Host of our CEO Group and runs a consultancy specialising in growth strategies and their execution. 

He can be contacted on 07801 824115  email johnbbickell@gmail.com

and via http://www.chairx.network