Key Questions For Business Agility: Defining Your Company’s Problem Now
Companies embarking on a quest to create greater business agility are better tuning in to the market around them as well as the culture within them to successfully respond to opportunity. They’re able to do that because, at one point, someone sounded an alert that there was a competitive threat or an impeding development from one of their disrupters.
In the spirit of business agility, your focus in this situation is to reveal this company disrupter problem. This is a typically a problem attributable to the organization’s inability to accurately sense market changes and effectively adjust its go-to-market strategy in a timely manner. In other words, the business is at risk to effectively pivot on it’s go-to-market strategy.
The S&P tells us many stories about a company’s inability to face problems head on.
A well promoted study by Innosight, “Corporate Longevity: Turbulence Ahead for Large Organizations,” illustrates how Fortune 500 companies are being disrupted by smaller, more agile companies. The findings warn business executives that about half of the S&P 500 will be replaced over the next 10 years. Some notable companies that have already been dropped from the S&P 500 over the last six years are Kodak, Sprint, Abercrombie & Fitch, JCPenney, RadioShack, Dell, Avon, The New York Times, and Safeway.
Companies today are competing on a whole new playing field. Customer demands are changing too fast for most companies to keep up. As the world becomes more digital, traditional companies are being disrupted and are rapidly losing market share to more agile competitors.
If your company executives lack of awareness of these shifts, you may be on your way to a similar fate. The key is to accurately define your organization’s problem. Modern companies need to rethink how they will adjust in order to survive. In today’s competitive landscape, speed matters.
When defining your company’s problem, research answers to these two questions regarding competitive and customer pressures.
1. What are the new competitive pressures for your company?
What chatter does the industry have about disrupting your space?
Who are your company’s biggest emerging digital disruptor competitors?
How large of a threat do they pose?
Can these digital disruptors sense and respond to customer demands and develop a unique solution that would pose a competitive threat to your company?
What are your company’s key competitive advantages and disadvantages in responding faster than these digital disruptors?
2. What are the new customer pressures for your company?
What are today’s customer needs that are no longer met by your company’s solutions? What is your company’s current level of customer satisfaction?
How is your company sensing these changes in order to meet the expectations of more demanding customers?
What patterns from your customer feedback can help you predict a future disruption, drop-off, complaints, and lost deals?