Welcome!

News Feed Item

Companies at the Top of Their Game May Already Be Obsolete: Coming Waves of Disruption Will Threaten The Biggest, "Safest" Market Leaders, According to Innosight

Radical Transformation May Be the Only Way to Save Some of Today's Most Successful Enterprises, Says New Book "Dual Transformation: How To Reposition Today's Business While Creating The Future"

LEXINGTON, MA -- (Marketwired) -- 04/19/17 -- They are household names, some more than a century old. Ford Motor Company, Aetna, Johnson & Johnson, Singtel, Adobe, Xerox, Netflix, Intuit, Brigham Young University-Idaho. They come from different industries and span the globe, but have one thing in common: each has confronted threats to its business model and the need to radically change its business in the face of major disruption.

Big disruptions have upended markets for mobile handsets, personal computers, cameras, newspapers, books, magazines, music, broadcast television and so on -- felling a long list of well-known companies along the way.

The most viable response to such radical disruption, according to the authors of the book Dual Transformation: How to Reposition Today's Business While Creating the Future (Harvard Business Review Press, April 2017), is a two-track process: transforming the core business to enhance and extend its life, while building a new and different business to power the future.

This kind of "dual transformation" depends on leveraging an established company's unique difficult-to-replicate assets such as brand, scale, and decades of accumulated know-how. By sharing these capabilities and assets between the efforts, the established can come out on top, and help define the future.

Consider the challenge facing automakers: autonomous vehicles and web-based ride-share services are threatening their traditional business model. In response, the 113-year-old Ford Motor Company is evolving from a "car company" into a "mobility services" business. "Cars" will be just one component of a very different business model.

"In every mature industry, incumbent leaders are extremely vulnerable to competitors offering greater simplicity, convenience, and affordability," says Scott Anthony, managing partner at growth strategy consulting firm Innosight. "And those at the top of their game are most vulnerable."

"Dual transformation offers a way to fortify a core business that has brought past success -- maximizing its relevance and resilience," says Anthony. "But it's also a way to leverage disruption and find strong growth in a new and under-served market. Growth that will power the company into the future."

DUAL TRANSFORMATION: THE RIGHT RESPONSE TO DISRUPTION

Dual Transformation helps executives spot the signs of unfolding disruption, devise a strategy to address it and manage the crises that arise during the transformation process. To demonstrate the challenge -- and the power of the dual transformation solution -- the authors tell the stories of companies that have transformed themselves, creating the next version of themselves that may ending up in a very different place from where they started, such as:

  • Adobe: Cloud-based "software-as-a-service," with greater affordability and flexibility, revolutionized the computer software business. To survive, and find new growth, Adobe had to transform: Its core business became subscription software services (for content creation), with growth powered by a new digital marketing business (for content distribution).

  • Aetna: Anticipating a radical shift toward wellness-based and value-based health care, Aetna is transforming its business model: away from "insurance," toward population health management, disease prevention, and pricing for value.

  • Singtel: In response to radical change, the Singaporean telecomm company, and Southeast Asia's largest mobile provider, transformed its core business model from voice to data, and launched a venture investment division to exploit growth opportunities in new technologies and applications.

"Dual transformation is very different from typical CEO challenges, like restructuring, or downsizing, or a new product innovation," says Clark Gilbert, co-author and president of Brigham Young University-Idaho. "It forces the CEO to work deep in an organization's culture to build two truly new business models simultaneously."

DISRUPTION IS COMING -- AND NO ONE IS SAFE

There is no such thing as a safe incumbent. Radical innovation is creating new markets, and new products and services, every day. The ripple effects will be felt in every corner of every enterprise, public and private, including some unexpected places:

  • Auto insurance: Driverless cars should have far fewer accidents. What does that do to the business model of insurance companies whose revenues depend on the auto market?

  • Long-distance shipping: When 3D printers make small-scale local manufacturing cost effective, what happens to companies that ship millions of tons of manufactured goods over long distances?

  • Consumer banking: With e-payments offered by a wide range of non-bank companies, how soon will consumers "cut the cord" with banks, like they're doing with cable TV companies?

  • White-collar work: Professional jobs are being lost to robots and algorithms in insurance claims, securities trading, medical diagnostics. Today even robots are writing the news.

OPTIMIZE FOR THE FUTURE -- NOT THE PAST

Dual transformation addresses one of the biggest mistakes that today's business leaders make: a present-forward view of strategy that is based on the assumption that the future will resemble the past. As a result, their growth strategy becomes rooted in today's business and today's data. When change is too incremental, businesses sooner or later end up defending an obsolete business model.

Dual transformation builds on a "future-back" view of strategy, by contrast. This begins with the assumption that tomorrow will be different than today, involves looking at powerful trends that hold transformational potential, coming to consensus about the future environment, and developing shared aspirations about the company's future state.

"Business leaders have to imagine the future and begin creating it, today, in both the core business and the new growth business," says Mark Johnson, co-founder and senior partner at Innosight. "They have to imagine what the company's markets will look like in five, or ten, or twenty years; design a company that can be successful in that future; and transform today's company right now, so it can still lead when that radically different future finally arrives."

For more information, a copy of Dual Transformation: How to Reposition Today's Business While Creating the Future or an interview with Mark Johnson and Scott Anthony of Innosight or Clark Gilbert of BYU-Idaho, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at +1 (212) 255-8386 or [email protected].

ABOUT SCOTT D. ANTHONY
Scott D. Anthony is the Managing Partner of Innosight. Based in the firm's Singapore office, he leads its Asian consulting operations and its venture-capital investment activities (Innosight Ventures). He has worked with clients ranging from national governments to companies in industries as diverse as health care, telecommunications, consumer products and software. He is the author of The First Mile (Harvard Business Review Press, 2014), The Little Black Book of Innovation (Harvard Business Review Press, January 2012) and The Silver Lining (Harvard Business Review Press, 2009). He is the co-author of Seeing What's Next (Harvard Business Review Press, 2004) and The Innovator's Guide to Growth (Harvard Business Review Press, 2008).

ABOUT MARK W. JOHNSON
Mark W. Johnson is Cofounder and a Senior Partner of Innosight, which he co-founded with Harvard Business School professor Clayton M. Christensen. He has been a strategic advisor to both Global 1000 and start-up companies in a wide range of industries, including automotive, health care, aerospace/defense, enterprise IT, energy and consumer packaged goods. He has also advised Singapore's government on innovation and entrepreneurship. He is the author of the best-selling book Seizing the White Space: Business Model Innovation and Growth and Renewal (Harvard Business Review Press, 2010).

ABOUT CLARK G. GILBERT
Clark G. Gilbert is the 16th and current president of Brigham Young University-Idaho. He served previously as the CEO of both the Deseret News, Utah's longest running business and one of the nation's fastest growing businesses, and Deseret Digital Media. Clark is a former Professor of Entrepreneurial Management at Harvard Business School and an associate academic vice president at BYU-Idaho. He is also a founding partner of Innosight Ventures, where he has served as a founding director of several health care and media startups.

ABOUT INNOSIGHT
Innosight, the strategy and innovation business of global professional services firm Huron, helps organizations design and create the future, instead of being disrupted by it. Acquired by Huron in 2017, Innosight is the leading authority on disruptive innovation and strategic transformation. The company collaborates with clients across a range of industries to identify new growth opportunities, build new ventures and capabilities, and accelerate organizational change. Learn more at www.innosight.com and www.huronconsultinggroup.com.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=3130898

Contact:
Katarina Wenk-Bodenmiller
Sommerfield Communications, Inc.
(212) 255-8386
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.