Disruption is inevitable. It can be a positive or negative force, but companies must be prepared for it. With Disruption Management shaping Asia, unprepared companies that lack support to manage the challenges and opportunities it presents will find themselves at a disadvantage.
With Asia a continent that is constantly evolving, new technologies and industries are always emerging, which can lead to disruptions in the market. Recent research from the Harvard School of Business found that more than nine in ten (92%) of businesses in Asia Pacific stated that an adaptive culture and continuous employee upskilling are very important. However, only 30% say their organisation is prepared for unexpected changes or disruptions. Therefore, unless these disruptions are identified and managed, they can cause significant damage to a company.
Why do companies need a robust disruption management strategy?
There are many benefits to having an effective disruption management strategy. It can help companies avoid financial losses, protect their reputation, and maintain a competitive edge. Additionally, it can help companies adapt to changes in the market and keep up with new technologies.
However, implementing an effective disruption management strategy is not easy. It requires a lot of planning and resources. Additionally, companies need to be able to identify potential disruptions early on and have a plan in place to deal with them.
How to implement a disruption management strategy
The first step is to identify the different types of disruptions that can occur. There are four main types of disruption: technological, economic, political, and social – each with its own challenges and opportunities.
- Technological disruptions – new technologies are rapidly entering the market and are a powerful force for change, disrupting the way we do things and creating new economic value. Digitisation and big data are fuelling new business models, for example, e-commerce platforms like Alibaba, Grab and WeChat. They levelled the playing field when they launched, enabling emerging-market companies and small businesses alike to challenge larger industry incumbents from advanced economies.
- Economic disruptions – are caused by changes in the economy. For example, the global financial crisis of 2008, Covid and the war in Ukraine have upended the global economy causing humanitarian crises, price rises, inflation and slowing growth. The outlook for the world economy is not looking promising. The UN reported that GDP growth has been cut to just 3% over two years, with significant downside risks from further intensified war in Ukraine and faster than expected monetary tightening by developed country central banks. All this is against a backdrop where economic activity remains uncertain due both external factors like trade tensions between China/US.
- Political disruptions – such as changes in government policies or regulations – can significantly impact businesses. In a rapidly changing and increasingly interconnected world, leaders need to be prepared for disruptions that can travel around the world quickly. A recent MGI survey found that global executives believe macroeconomic and geopolitical instability are the biggest risks to their growth. In the Asia-Pacific region, businesses face potential challenges from issues such as disputes in the South China Sea and volatility in economic growth in several countries. It is essential for companies to monitor these political disruptions and be prepared for how they may change the operating environment.
- Social disruption – is an event or change that causes a significant break from social norms or values. In recent years, there have been several social disruptions that have had a profound impact on societies and businesses around the world. For example, COVID-19 has been one of the most significant social disruptions in recent history, causing widespread economic disruption and upending social norms. The #MeToo movement and the legalisation of same-sex marriage are two other examples of social disruptions that have significantly impacted how we live and interact with one another.
The second step is to develop a plan to deal with each type of disruption. The plan should include measures such as identifying the risks, assessing the impact, and developing mitigation strategies.
Third, companies must put the plan into action and monitor the results. This includes regularly reviewing the plan, making necessary changes, and implementing a system to respond quickly to disruptions.
Finally, companies must seek out support when implementing a disruption management strategy. Many service providers can help companies with all aspects of their strategy, from identifying risks to developing mitigation plans. Additionally, software solutions can help companies automate some of the steps.
Developing an effective disruption management strategy is essential for any company operating in today’s global economy. By creating a comprehensive strategy, companies can protect themselves from the adverse effects of disruptions and take advantage of the opportunities they present. Additionally, seeking out support from service providers and software solutions can help companies ensure that their strategy is implemented successfully.
HELPING COMPANIES RESPOND TO DISRUPTION THROUGH INNOVATION
We live in a fast-moving world where disruption has become a way of life. At Lim-Loges & Masters, we offer a forward-thinking, innovative approach to help organisations remain at the forefront of change. We help our clients identify and prepare for any disruption through innovation, giving them the confidence to mitigate, manage and find opportunities created by disruptions before, during or after it has happened.
- We empower leaders and individuals to create and embed an environment of innovation to solve any problem and ensure their organisation is future-ready.
- We combine design thinking, behavioural insights, and lean processing principles to create a holistic and innovative problem-solving toolkit.
- We strive to help drive impactful change and pivot your organisational transformation.
If you’re facing disruption challenges and want help developing a strategic plan to deal with them, please contact Lim-Loges & Masters. Our team is ready and waiting to help you drive impactful change and pivot your organisational transformation.