Forbes published this article a few years ago (and seemingly every major other outlet published a similar one) detailing just how fast the Fortune 500 is currently and is expected to be disrupted.
40%!! Let that sink in. Not “40% will lose market share”, or “40% will struggle.” Nope, 40% will be GONE.
We live in the age of disruption. We’ve actually been living in the age of disruption (just ask the newspaper and bookstore industries) but are just now becoming aware of this.
But why is this happening?
Every industry is unique but to summarize it tightly,people have options, they know they have options, they know where to get these options, and the amount of choices that are well suited for their specific perceived needs (more on this in a later post) are vastly more prevalent than they were even 5-10 years ago. Technology has enabled this, but it’s the information access that is causing the disruption.
The established business world (ie- Fortune 500) has been in a reactive mode. This used to be an OK strategy, wait and see what is growing/trending and then grow portfolio via M&A. The problem is, in today’s world by the time a trend has reached Early Majority (see Rogers Bell Curve) it’s already too late.
The only way to beat this is better strategy, insights, and intelligence.
The culprit isn’t the executives, it’s not the companies themselves, it’s the accepted industry norm to continue building strategy, insights, and intelligence from the same core information (surveys, polls, focus groups) that they’ve done for 50 years. To build the right strategy, it starts with having the best intelligence. Antiquated ways of getting insights to guide your strategy will give you antiquated results.
Welcome to the Age of Disruption.