Wikipedia defines business disruption as:
“an innovation that creates a new market and value network that eventually disrupts an existing market and value network, displacing established market leading firms, products, and alliances”.
Recent examples of companies causing disruption are Uber, Google and AirB&B. These have disrupted markets and value networks for SMEs in transportation, advertising and hospitality, forcing many to adapt or cease to exist.
How does an SME adapt to their market and value chain being disrupted? Firstly, it is important to spot disruption early. There is often a driver in the form of technology innovation behind it. Understanding the technology helps predict the future. Surprisingly it is often simpler and quicker for an SME than a large organisation to adapt.
Once disruption is recognised, be prepared to change – or even transform your business.
But what is the difference between change and transformation?