A disruptive strategy is an outcome of disruptive innovation. As defined by Clayton M Christensen a disruptive innovation is an innovation that creates a new market and value network & displaces incumbents. Although almost all firms have been using data in some form or other in their decision making, the differentiating factor would stem out when firms holistically evaluate strategies for the entire organization rather than departments & functions working in silos. Next generation leaders will have a task of identifying strategies to stay relevant in intense competition.
As Doug Laney’s often cites three Vs., each of which describe a component quality of Big Data: volume (the amount of data); velocity (the speed at which data is created); and variety (the types of data). A fourth V: veracity has been added to the list. As companies see volume, velocity, variety & veracity of the data & start aligning themselves to a new paradigm it becomes very important to align their strategies right. As new methods are experimented & tested it is increasingly becoming important to implement bare minimum good strategies to survive in intense competition.
Increasing levels of digital information, rapidly decreasing technology costs and sophisticated analytics are radically changing the world of business. Organization’s strategy needs to change in a digital world. This often means that new leadership may be needed that can architect and implement digital and analytics-related transformation.
Part of the challenge that leaders face is its sheer diversity to classify data into structured & unstructured. Converting those into insights, designing strategy & implementation of the same will be a key role of leadership. This must be done within the time frame where data is relevant. Otherwise the lag will push the organization down & rather than fighting competition the organization may go down due to its own strategies getting implemented at a very brisk rate.
The key areas that need to be focused upon would be to identify source of data, derive prediction for the future & classifying the data so as to maintain the veracity of the same. The leadership team has to therefore create new organization structure to carve out niche strategies for the organization.
We at IIFT, therefore seek to hear from industry stalwarts on how they view & cite visible changes in the industry.