Disruption is the New 'Normal'

These are "VUCA" times! (Volatile; Uncertain; Complex; Ambiguous)

The world is experiencing a period of change unlike anything in history. Unprecedented advances in technology have altered the business landscape and changed – on a global scale – how people live, work and communicate.

Consider just one example. In 1994 the first 'smartphone' featuring software applications was released. Over the next few years’ numerous competitors emerged, however, in 2007 a tipping was reached. The release of the iPhone saw 'smartphone' technology burst into the mainstream market. Almost overnight smartphones went from being a tool reserved for corporate high-flyers to becoming an essential part of life for millions of everyday people. By 2016, more than 2 billion people worldwide - nearly 1 in every 3 persons alive on Earth - owned a smart device of one form or another. They are now so much a part of everyday life that many find it hard to imagine how they would cope without one.

Advances in technology have triggered a paradigm shift in how businesses communicate and interact with their customers. Google, Facebook, Instagram, Twitter and other applications are changing the way businesses operate. Information is available anywhere - anytime - instantly. And the pace of change is accelerating. On the horizon is a wave of new technologies: - IoT (Internet of Things), AI (Artificial Intelligence), Bluetooth Low Energy, iBeacon, BigData to name just a few. These technologies are on the verge of a tipping point, and like the smartphone their adoption will impact the global market place.

Changes in the business landscape however, are not limited to technology. People - the very fabric of the workforce are changing too. Consider this fact; in the past, it was normal for employees to remain with one employer for many years – often decades. Today the situation is very different. According to one study in the United States most employees will have between 10 to 14 jobs by the age of 35! How will this impact your company?

On top of the myriad concerns weighing on the minds of business leaders there is the shifting macro environment. The rising tide of economic uncertainty, soaring sovereign debt, the rise of fundamentalism and nationalist agendas are ever present threats. And following on Britain's decision to exit the European Union , the world now appears to be witnessing a shift away from a globally integrated economy to protectionist policies.

This is just a glimpse of the tsunami of changes that are - and will continue - to confront business leaders in the months and years ahead. How will this era of exponential change impact your company - your strategy - your board?

For many the pace and scope of change we are experiencing is overwhelming. Yet change also presents opportunity. Companies that are perceptive to the needs of the market and quick to adapt their business models to take advantage of the shifting landscape will not only survive, they will thrive in this emerging new world. Those that are prepared to embrace change will likely dominate and create a sustainable competitive advantage for themselves.

(If you like to learn about the likely impacts of the digital revolution, read the article “Where is technology taking the economy?” by W.Brian Arthur in the McKinsey Quarterly - October 2017)