Speed, connectivity and creative destruction defines 21st century business success.
Think Yellow Cab.
One minute they have a near monopoly in what they called the cab business. Today companies like Uber and Lift are dominating this space redefined as “ride sharing.” Customers receive superior service through an algorithm and smart phone connectivity.
Both Uber and Lift are now tech pioneers pushing autonomous driving vehicles that will turn mobility into a service.
As your small business ends 2016 the question you have to ask is whether it is fast enough to succeed in 2017?
The Sustainability Of Change
Write this down and post it where you will see it everyday:
“The sustainable competitive advantage is learning faster than your competitor.”
This defines business success in our Information Age. It embodies why Silicon Valley technology companies continue to drive world commerce. These entrepreneurs have a culture of creative destruction. Learning faster is the foundation of their success.
No business, region or country can succeed by attempting to preserve the status quo or recapture past success.
Sustainable business success is now achieved through change that aligns with these two Information Age realities:
1. Knowledge doubles every ten years.
2. Computing power doubles every two years.
Any business, region or country that fails to engage with speed in learning and speed in computing will become a “Yellow Cab.”
Three Key Steps To Sustainable Change
As a business owner or CEO your role in the 21st century is to drive creative destruction. Whether you run a sandwich shop or corporation your focus must be on change.
The obvious question is how to achieve change that is creatively destructive?
Here are three steps:
1. Search for change.
The odds are that your business will not invent change.
What is important is that you see change coming and adopt it. To do so means going outside your normal business environment. I recommend to business owners or CEOs that they visit San Francisco at least every other year. The purpose of the visit is to search for change and to meet those that are creating change.
2. Engage with urban millennials.
Urban millennials are currently the 21st century’s change agents.
It is important to your business success to truly understand how millennials are not younger versions of the boomer generation but with a better understanding of how to use smart phones and social media. Millennials view the future differently and are the most diverse generation in our history. Urban millennial lives are captured by the concept of “cool with a purpose.”
They seek to align value with values. They are the future for every business including yours.
3. Create a change culture.
Change is hard for an existing business.
Most businesses have a lot to lose from change. Think Apple.
It was founded as a desk top personal computer company competing against IBM. Steve Jobs created Apple’s success by pursuing product revenue cannibalization. He creatively diminished its founding business by launching the iPhone and iPad.
Now Steve Jobs is remembered as one of the world’s greatest entrepreneurs. The challenge of creating a creatively destructive business culture is the opportunity for every business owner or CEO in today’s Information Age.
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