Steve Brown is CEO of Nelson, Canada’s largest education technology company and developer of Edwin, a digital learning ecosystem.
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Technology is increasingly disrupting established industries and changing the way legacy companies deliver value to their team and clients. In a post-pandemic world, the need to incorporate technological innovations is more important than ever.
Once referring largely to the internet, new technology now encompasses areas like cloud computing, automation and artificial intelligence (AI).
Embracing new technology is crucial for businesses to accelerate growth, increase efficiency and drive profitability. Failure to incorporate technology into a business strategy can lead to missed opportunities.
Adapting: The Road Ahead
The automotive industry is a perfect example of this need to adapt. Tesla led the way in incorporating battery and software technology into modern-day vehicles, and now brands like Cadillac are following suit, with the U.S. electric vehicle market projected to grow to $137 billion by 2028.
As the Tesla example highlights, you need to think ahead to discover new routes to innovation. As a business leader in a technological era, you have to challenge yourself every day to do better and be better than yesterday.
As we embark on 2023, many leaders are evaluating whether now is the time to incorporate new technology into their businesses. The question often is, why should companies shift their business model if their current model is working?
The Challenge: Embracing Change
Studies have shown that companies that fail to embrace digital technologies are at a higher risk of losing customers to competitors. A PwC study found that 82% of the top-performing companies provide a strong digital experience. However, for industries that have been around for decades, or even centuries, embracing technology can be a daunting task.
Some leaders may be resistant to change because they lack digital skills. Other leaders may lack a full understanding of the potential benefits technology can bring to their organization.
The key here is that the only bad idea is no idea. Take Apple, for example; a computer company at its core, it now dominates other industries, including telecommunications, with its iPhone.
I believe leaders, especially those in established companies, need to look at the core of their business to seek what’s truly valuable and understand that embracing new technology is the only way to remain relevant. For Apple, the value was to connect. Technology opened the door for this potential.
The Opportunity: Streamlining Operations And Increasing Efficiency
With new technology, businesses can process vast amounts of information quickly and easily. Digital transformations are allowing businesses to be more nimble and pivot in response to possible threats or challenges. Technology can help unpack data and reveal key customer behaviors, ensuring that you are efficiently targeting your audience.
Technology can also provide businesses with feasible options during labor shortages. The pandemic caused a major disruption in America’s labor force; in 2021, more than 47 million workers quit their jobs.
New technologies can help you optimize schedules, reduce the need for overtime pay, automate tasks and boost productivity. There are tools that can replace administrative and complex tasks, making a workforce more efficient while driving down unnecessary costs.
The Solution: Self-Disrupt
So how can traditional industries that are resistant to change take advantage of these opportunities? The solution is to self-disrupt.
I have seen how technology can help previously resistant businesses automate processes, reach new audiences and connect with customers. In fact, I speak from experience, and as the head of a company that has been around for 107 years, I know how self-disruption can offer solutions.
As a publishing company, we recognized the need to deliver content so that educators and students could interact digitally. Our own self-disruption and adaption involved creating a digital learning ecosystem. By embracing digital transformation, we were able to be part of a global and growing edtech and smart classrooms market set to grow to over $232 billion by 2027.
The benefit of self-disruption is a speed-to-market advantage; business leaders already understand their core product and can start farther ahead if their business creates a safe space for that self-disruption. However, if leaders do not properly “imagineer,” disruptors from outside the organization (external interferences) can move faster than from within.
“Imagineering” is about imagining success while engineering new ways of working. I’ve found that embracing discomfort is the most effective way to re-engineer how a business operates. Leaders need to start with dissatisfaction and “imagineer” new ways of success.
Four Steps To Overcome Complacency
Established businesses can overcome the hurdle of complacency through four steps.
1. Get your team involved. Ask the question, “If the business model were to blow up today, how would we rebuild it?” The leader must show that they are open to a rebuild and that there is no such thing as a bad idea.
2. Think tactically. Next, take those new, bright ideas and put pen to paper. What actions are required to make this rebuild happen? Create a strategic plan that incorporates a work back schedule, outlining the steps, tasks and timelines needed to bring the idea to life.
3. Present to the board. Once a strategic plan is laid out, the leader must bring this self-disruption to the board. It is the board’s job to push, review and approve a plan. A board of directors acts in the best interest of a company; they can provoke additional ideas and provide the mentorship needed to make self-disruption a reality. It is, however, up to the leadership to set the strategy.
4. Take time alone. Finally, leaders must prioritize taking time to be alone with their thoughts throughout the self-disruption process. With self-disruption, leaders are looking at a whiteboard of endless opportunities, and no self-disruption is successful without taking time for reflection.
New technology can be tricky to understand and propose to a board of directors. However, the impact it can have on a business’ bottom line and core function makes it too significant to ignore. Legacy businesses need to find routes to overcome complacency, for internal self-disruption is more impactful than external interference.
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