The system is not working. That is how a paradigm shift begins: the established way of seeing the world no longer functions.
Matthew Fox – American Actor
It’s the end of companies as we know them.
It started with Joseph Schumpeter, who was the original voice of creative destruction early in the 20th century. Capitalism was evolving. Tech was growing. New businesses were spreading throughout the world. Schumpeter saw that capitalism inherently brought social, political, and economic disruption. Almost a 100 years later, creative destruction is accelerating. Companies have to reinvent themselves based upon their context, regulatory requirements, competitive pressures, and customer requirements.
Large companies have a visceral sense of urgency and even vigilant fear in COVID time. The winners in this competition feel continuous pressure to self-disrupt to maintain their competitiveness. What are companies doing? Business models change. Processes are redesigned. Products are innovated. Services are developed and delivered in a just-in-time basis. Automation is everywhere.
Let’s look a few industries that have been disrupted: mechanical watch, automotive manufacturing, Yellow Book publishing, high tech manufacturing, banking, real estate, newspapers, publishing, and retail. Gone or changing. Let’s look at paradigm shifts in the automotive sector. Toyota Motor President Akio Toyoda: “The automotive industry is now hurtling into an era of profound transformation, the likes of which come only once every 100 years.”[i] Think autonomous vehicles.
Work Lesson Earned: If you work for a company with obsolescent ideas, processes, apps, and products, it’s time to analyze your work risks. Ask yourself: What are the likelihood and consequences of your company or client losing its competitive position and becoming a buggy whip company’? What happens if it downsizes due to COVID? How are you going to be impacted? What are your contingency plans, your Plan B’s and C’s?
[i] ‘My Own Personal Automotive Disruption’, Industry Week, February 5 2019.