Disruption and innovation- the keys to growth
Disruption and innovation: the keys to growth
The ability to innovate and adapt to new markets and competitors is now, and will continue to be in the years ahead, a determining factor in the growth of companies. Markets are characterized today more than ever by high levels of uncertainty and volatility. The only way for businesses to manage this is to implement disruptive business strategies that increase brand differentiation and improve their positioning in the market.
The term “disruption” in the business world is often applied to a certain group of companies that have emerged in recent years: the so-called startups, which have burst onto the scene with totally innovative business models. However, the concepts of disruption and innovation also apply to large corporations that operate in traditional markets. Being a market leader today is no guarantee of future strength, and this is why we increasingly see large companies entering new business territories, guided by smaller companies with deep market knowledge. This type of alliance is carried out as part of what businesses call “digital transformation”. Companies large and small are focused on two fundamental objectives: to survive and win the battle for growth.
What are the six critical tools for business disruption today?
1- Ability to anticipate: changes in society and the market are silent but unstoppable. That is why it is crucial to anticipate and detect new trends and values, understand them, and address them in an innovative and agile way.
2- Measuring the reality of the market: in an increasingly complex business landscape and with a clear tendency towards personalization and over-saturation of information, it is important to understand the reality of the market in which we operate. Brands can implement reliable measurement processes to significantly reduce uncertainty.
3- Transforming the company's culture: to face a future in which change will be constant, it is necessary for business structures to adapt, with simple, flexible teams, as well as talent management that can efficiently source and deploy new skills and competencies.
4- Creating disruptive alliances: the acquisition of startups allows companies to enter new markets or be more relevant to existing ones. When this is done in a less aggressive way, it leaves the younger company with full autonomy, maintaining its brand and, above all, fosters learning from more flexible and simple business models.
5- Revitalizing the essence of the business: while new growth strategies are set in motion, companies must reinforce their essence and everything that allows them to gain new clients: brand strength, mental awareness, taking care of the point of sale, a good communication strategy, and an effective media plan.
6- Being client-centric through experiences: putting the client in the center requires a business to be seamlessly disruptive and responsive. This means becoming an “omnibrand”, reinforcing the brand’s values at every touchpoint. Brands must address consumers’ feelings by looking for ways to enchant them, and to base branding on experiences that reinforce brand choice.
Companies have transitioned in recent years from managing costs to managing growth, and being disruptive is an implicit but essential part of that. Now more than ever, brands must think differently, move beyond their core business, and prepare to move from idea to execution quickly to achieve sustained growth over time and stand out from the competition.
CEO, Kantar Worldpanel & President, Kantar Spain