Muath Almansour: فوائد الإضطراب الإستراتيجي The Benefits of Strategy Disruption

Assalamu alaikum wa rahmatullah (Peace be upon you) Whenever people encounter a disruption within their business, they always think it's a bad thing. The concept of strategy disruption has been widely misunderstood and even sometimes misapplied. Whether adopting and implementing a new strategy, processes, system, or even an M&A event, that could potentially disrupt the entire business. Many researchers and authors use disruptive innovation to describe a situation in which an industry is shaking up. But that is to produce it. Understanding disruption is about understanding what true innovation is and possibly improve our business operations. In fact, disruption is a significant factor for organizations and businesses to grow and even be more successful. It is ok to shake things up within your business, while adopting a new strategy, making key investments, or even taking risks. They are all good steps to drive the business to specific goals. When you think of companies that encounter a disruption and made it very successful, let’s talk about Uber, for example. When was the last time you used the cab? It’s probably been a while. That is because you've been using the ride service app, which is as simple as a push of a button. This strategy disruption has not only changed the customer's perspective, but also changed the driver’s experience. Another great example of Netflix. Netflix has evolved to take over the video rental industry and change the way we watch movies and TV shows. It was not even enough for them to disrupt the entire video rental industry. They are even making their own movies. Another great example of a company that made it very successful of disruption is Airbnb. Airbnb took a stake in the hotel industry of travel and tourism. And they have hosted more than 60 million guests around the globe. And what’s made Airbnb so popular is the disruption of the hotel industry. They are offering affordable homestays in prime locations, and so many other privileges. While the world may not need another Uber, Netflix or Airbnb but one thing that we know for certain is that these industries will one day change as a result of marketplace and innovation. So before a company is about to encounter disruption, it is very critical to have a plan. Not every disruption would lead to successful outcomes. And therefore, it is very critical to have a plan and develop a strategy that carries risk. And this one is one of the most critical steps to take. In fact, one of the most difficult steps to take. Each business model involves risk, but if executed correctly, can deliver huge rewards. When facing a clear and dramatic threat and doing what you've been always doing simply won't work. In fact, innovation as disruption forces the business model the most. To overcome disruptive threats and embracing risk is often the most challenging decision leaders must make. But with the right data, insight, and strategy in mind, the risk can become the reward. The question is, is strategy disruption good for the business? The answer to this question does not depend on the markets or outside forces. It depends on the psychology of business leaders. If leadership is able to recognize an opportunity for disruption to quickly respond to another disruptive business, then the business will be rewarded. So what are the benefits of strategy disruption, there are so many. It improves our business agility. Businesses that started the disruption are well known for being flexible, agile and innovative. It also creates growth opportunities. Businesses that are open to new innovation and challenges are well known to bring in new people with different skills. It helps the business to think outside the box and even bring a unique experience. Another great benefit, it improves business processes. When we evaluate our current market share and possible solutions to our customers’ needs, we evaluate our own processes and how to improve better and innovative products and services. It also creates values. Businesses that started the disruption will often see a higher return on investment. It also expands into new markets. Disruption can help a business expand its market with its products and services. And finally, which is very critical. it creates a better brand. Businesses are all about having excellent reputation in the market and to get this great brandi n the market in a faster and more efficient way. Since there are benefits in the strategy disruption and in fact, there are even other benefits to our community. So how can strategic disruption offer to our society? It’s all about simplicity, having user-friendly platforms and applications. It's about timing, accomplishing our task in a faster and efficient manner. It's about opportunities to recruit talented people. It's even affordable. You can get product services for competitive pricing. And most importantly, it’s economical. It helps to contribute to GDP. If there is a takeaway to my talk, I would say understanding disruption is not about creating better ideas. It’s about being defensive and looking out for a new competition in the market that might disrupt your business in the future. Businesses can integrate disruptive innovation for business operations, expand into new markets, and even explore ways to boost their revenue. The secret of strategy disruption is to break the existing bottle and pave the way for the emergence of a new one. Thank you. (Applause)