Digital disruption isn’t disruption anymore: Why it’s time to refocus your business

Is your interpretation of digital disruption leading you astray? Here, Chris Riddell shares his advice on how to reposition your business for the digital opportunity

Digital disruption: There is no doubt this was the buzz-phrase of 2014. There is no doubt it is going to be the hot topic for CMOs and all c-level executives in 2015.

But there’s a problem. ‘Disruption’ isn’t ‘disruption’ any more – it’s an earthquake. I believe the label we have put on this phenomenon is distorting our perception of its magnitude and impact. And that’s dangerous for you as a leader, and dangerous for the future of your business.

So how should we respond? How do we ensure our current understanding of digital disruption isn’t leading us astray? How do we avoid taking our eyes off the main game and being distracted by the latest shiny object to appear in our field of view? Good questions!

To look forward into the future, we need to begin with a quick look backwards to the rise of digital disruption.

Buzz-phrases and Buzz-kills

The initial concept of digital disruption emerged almost 20 years ago and was introduced by Harvard Business School professor, Clayton Christensen. His original theory related to ‘disruptive innovation’ and referred to the way new ideas and technologies could be deliberately employed to upset the status quo, redefine industry best practice and change the very rules of the game. Of course, emerging digital technologies, as primitive as they look to us today, were the keys to creating this rapid and disruptive innovation.

Fast-forward to 2015 and the meaning of the term ‘digital disruption’ has morphed significantly. Now it’s a buzz-phrase used to describe the impact new digital technologies are having across all industries and sectors.

There’s a problem though. Forgive me for being a ‘buzz-kill’, but I’d argue that while the phenomenon of digital disruption is real, the term itself is no longer a helpful way of labelling what is happening. In fact, focusing on digital disruption could be damaging your organisation’s ability to respond to future challenges. At the heart of this issue is our understanding of what ‘disruption’ actually is.

The seismic upheaval that is occurring is massive. The tectonic plates of society and business are being shifted and shaken. However, for many of us, our understanding of ‘disruption’ does not align with change of this magnitude.

You could argue, “That’s just semantics” and you would be absolutely right. What’s in a word? Everything! Shakespeare’s Juliet argued that, “A rose by any other name would smell as sweet”. The semiotics experts would beg to differ.

The way we conceptualise an issue has a huge impact on the way we react to that issue. The label we attach to it affects both our intellectual and our emotional responses to it. Those labels are either meaningful and helpful, or misleading and damaging.

So what exactly is wrong with ‘digital disruption’?

3 ways digital disruption could be leading you astray

Here are three reasons why labelling this phenomenon as digital disruption is potentially dangerous:

  1. Firstly, ‘disruption’ implies problems: The changes brought by advances in digital technology and social media are perceived as troubles that need to be fixed or solved. Straight away, this casts these changes in a negative light.

    If businesses and executives think of this new state of being as a damaging situation, rather than a positive opportunity to be grasped, they immediately get defensive. They batten down the hatches to weather the ‘storm’. Often, the thinking and action taken to tackle ‘problems’ is much less creative than that applied to ‘new initiatives’. Thinking is often based around restoring the status quo or ‘holding on, until the storm passes’. In a rapidly changing environment, these attitudes and actions are recipes for disaster.

  2. ‘Disruption’ implies this is a temporary state of affairs. After the disruption things will return to the way they used to be. Put simply – they won’t. The world has changed fundamentally. Like Neo taking the red pill in The Matrix, there is no way to get back to the way things were.

    This is not a temporary disruption to service – the old models and methods of doing business have largely been superseded. Failing to recognise this could put you and your organisation at a huge disadvantage.

  3. ‘Disruption’ implies this is a minor tremor rather than a major earthquake. The fact is, things don't get much more major than this. This is a paradigm shift - a new way of thinking and understanding. The game has changed and as we will see, this paradigm shift has emerged out of a massive power shift.

Ditch disruption and look to the future

So, forget thinking about ‘disruption’. This evolving digital revolution is neither minor nor temporary. And rather than creating problems, it continues to create exciting opportunities and solutions across the board for all industries. Increasing efficiencies, improving access to customers, speeding up communication, opening up new markets, reinvigorating existing markets… the list goes on.

How then should we conceptualise this social and technological tidal wave? My suggestion is to call it a digital redistribution. And at the heart of this is a redistribution of power. Understanding this is the first step to refocusing your thinking and your marketing strategy and positioning yourself to ride this wave of change.

Three effects of digital redistribution

New digital technologies and tools have increased access to information, improved connectivity and speeded up the communication process. In addition, more people have more access to more information more quickly.

Access to information and new technologies mean power. Here are three ways digital redistribution has created a power shift:

  1. Power has been redistributed away from institutions and businesses, back into the hands of citizens and consumers;
    • Consumers have faster access to more accurate information, giving them increased ability to compare and contrast products;
    • Online buying allows consumers to access a global marketplace and much greater freedom of choice;
    • With the social media ‘megaphone’, word of mouth- the most powerful form of advertising- just got a whole lot louder. The comments of a few can have more impact, more reach and often more credibility than an expensive marketing campaign.

  2. Power has been redistributed from big, slower-moving corporations to smaller, more agile businesses which can give them an edge in a rapidly changing marketplace. Smaller businesses:
    • Can innovate more quickly adopting and adapting new technologies;
    • have smaller infrastructures so they have less capital and emotional investment in maintaining the status quo;
    • can now market competitively with big businesses and maximise their ‘bang-for-buck’ using the power and reach of social media.

  3. Power (and market share) is being redistributed from slow adopters of more customer-centred business models, to businesses that are able to rapidly embrace this new paradigm and successfully engage with their customers at a deeper level.

Those businesses that still have a ‘broadcast’ model of marketing will continue to lose market share to those businesses using new technologies to develop a relationship with the customer (a two-way interaction with benefits to both parties).

Don’t just react – refocus

Massive change is both disturbing and disorientating. So what are some principles to help you as a CMO to surf this tidal wave of change? Here are four suggestions:

  1. Don’t just react: Don’t be dazzled or intimidated by the new technologies. Instead, carefully consider how this digital redistribution and resulting power shift impacts and will continue to impact on marketing your business.

    You can safely assume three things – people will continue to get greater access to information, connectivity (of everything with everything) will increase, and the speed of communication will accelerate.

  2. Refocus on what is important: Remember the main thing is still the main thing. Know what your ‘main thing’ is and ensure your team and your customers know what it is too. Aim to deliver excellence and value so your clients have something positive to tweet about.

  3. Clarify your message: The online world is crowded with ‘content’. I call it ‘digital static’. The key characteristics of messages that cut through the static are that they are clear, simple and customer-focused. Say more with less and your message will stand out.

  4. Harness the power of digital to get you there: If you know what your core business is and you have a clear message, digital technologies are the ideal instruments to help you achieve your objectives. Refocus, clarify and then choose the right tool for the job.

The brave new digital world

Don’t let the talk about digital disruption lead you and your organisation astray. The key is to recognise it for what it is – a paradigm shift that is here to stay. It’s a fundamental redistribution of power that is changing the game.

Best of all, as a CMO, it can open up a brave new world of opportunity for you and your business. So, don’t panic. Refocus your mission, clarify your message and then confidently harness the power of this digital redistribution as it carries us into the future.

About the author

Chris is a globally recognised futurist, media commentator, and digital expert with unparalleled insights into emerging trends and behaviours. Chris was recently voted as one of Australia's top 20 most inspirational speakers in 2014.

He has worked with some of the biggest brands in the world including Pedigree, Wrigley, Starburst and Snickers.

You can find him online via Twitter: @chrisriddell , or visit him online at: www.chrisriddell.

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