Extreme Disruption.... Embrace IT or Disappear
Two alarming predictions reported by Forbes Magazine should cause a sense of urgency for
every association and their members:
Within 10 years, 40% of the Fortune 500 companies will cease to exist, or fall to bankruptcy due not keeping pace with the lightening-fast change in the marketplace.
The top 10 jobs in 2010 didn't even exist in 2004!
Your members no longer have the luxury of time on their side. Change used to be 10 years ago, an element that was in the future someplace and we could slowly move towards it. However, today, change is racing at every industry; pushing and demanding quick decision making, constant innovation, and a customer service experience where people emotionally connect with your company and product.
Remember, disruption ONLY happens to companies who allow change to get in front of them.
Following is a road map for any association and their members to follow, to get in front of change and minimize the impact of disruption to their business model:
What is Causing Disruption?
Three dynamic forces are now working in a "perfect storm," causing change to happen faster than at any other time in our history. I have written about these in previous blog posts:
Emerging Technologies
Demographic Shifts
Consumer Buying Habits
Why Does Disruption Happen?
Market disruption happens for one simple reason...Friction, Anxiety, and Stress exists in your business model.
Where Does Friction, Anxiety, and Stress Exist For Any Business Model?
All three of these occur in the following areas:
Product
Delivery
Customer Experience
Operations
Workforce Culture
Every company needs to have an internal process through which they, in real time, can identify where the friction, anxiety, and stress exists in any of these areas, and then innovate and improve them in real time.
How Does the Internet of Things and Industry 4.0 Play a Role
As well as working through the five areas in a business model above, a company needs to ensure that they are leveraging the five key elements below to have the perfect blend of physical/digital performance at all levels:
People
Machines
Technology
Processes
Data
If any company can identify their threats of disruption, figure out where the friction, anxiety, and stress is in their business model, and maximize Industry 4.0 and Internet of Things, then, and only then, will you have a chance at staying in front of disruption.
Failure to do so puts your company at risk of disappearing in the next 10 years. Get serious about keeping the disruption topic in front of your members. It will be the one element that helps them thrive in the ever-changing business climate that we now live in. This is where the TRUE VALUE of providing high levels of member value are hidden. Solve your members biggest pain points...and they will be members for life.
