Experience Requirements

STAIRWAY TO INSPIRATION

any established companies are victims of disruption at the hands of technologically savvy start-ups; not surprisingly, technology is usually cited as the culprit behind this disruption. However, the fact is that in many industries, both the disrupter and the disrupted have had access to similar technologies. If that is the case, the question arises: what is really disrupting businesses? According to marketing professor Thales Teixeira in her new book Unlocking the Customer Value Chain, the success of these new entrants is attributed to their ability to identify and serve an emerging customer need faster. In Teixeira's view, technology does not drive disruption, customers do. Agile companies should address the mindset and behaviours of customers and quickly create more value for them. Data is the key here because the more you know about your customers, the better you can determine which of their experiences you can improve. With rising customer expectations for convenience, quality and speed, new ways to serve customers and create value are being imagined, invented and implemented.This is done by capturing one piece of the customer value chain, or by following the steps a customer takes to select, buy and consume a product or service. Disruption does not typically come from a business that is already operating, but from a business that is attempting to offer customers a better experience. Uber, for example, did not come into being with the idea of disrupting the transport industry. Instead, they came up with the idea of creating a better and easier customer experience for people who did not have easy access to reliable transportation options. Ultimately, disruption occurs when you go beyond incorporating the Internet into standard business models and developing a digital equivalent. The real step that can cause disruption is adding an innovative idea or solution that augments the initial digital-based business idea. By doing so, the business idea or model transcends digitisation and creates a functional benefit for customers. For example, in 2007 when Apple released their first iPhone, the customer experience for transportation was greatly enhanced by the inclusion of a GPS unit, which worked in favour of ride hailing companies later on. To survive disruption, you have to adapt and evolve your business model to introduce new sales channels, revenue streams and customer segments. Netflix initially disrupted the video rental business by introducing their DVD-by-mail model, thus creating a business that offered better affordability, accessibility and availability to customers and then eventually transitioned into becoming a business that embraced video streaming.
- Fauzia Kerai Khan The writer is Chief Executive, i&b Consulting, Training, e-learning. fauzia@iandbconsulting.com
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