Fromtheeditor ’ sdesk
BY KERRY PIPES
Disruptive Innovation
At the Franchise Leadership & Development Conference this September , I was struck by a theme that has grown from a small clattering to a loud drumbeat in recent years . You ’ ve no doubt heard the term “ disruptive innovation .” Coined about 20 years ago by Clayton Christensen , it ’ s essentially the idea that innovation can create a new market or service by improving on and displacing an existing market or service provider — and the companies that provide them . The result is a new player with a new product or service and an older , established organization gasping for sales , market share , and even life .
Thought leaders within the franchising community understand this concept . They know it could happen just about anywhere and to any brand . It ’ s why brands must keep their finger on the pulse of changes in their markets , changes in their customers , and more important with each passing year , with technological change . No one wants to wake up one day and find they ’ ve been replaced simply because they refused to recognize the inevitable — and act on it — before it was too late . There are a lot of cabbies around who interpret Uber as a dirty word and have experienced the mega start-up disrupting their market and ability to generate income .
Forbes magazine publisher Rich Karlgaard , a keynote speaker at the conference , had a number of great observations , one of which was related to this idea of disruption . He said that with the pace of disruptive change accelerating , some franchise brands will be blindsided by upstart competitors who have their finger on the pulse of today ’ s changing marketplace and consumers . See the Oxi Fresh story on page 14 , for example .
To stay healthy , he said , companies must have strong values internally and be adaptable externally . Author of The Soft Edge , a book emphasizing the importance of a company ’ s values as a competitive edge , Karlgaard told attendees that without a healthy internal culture characterized by purpose , loyalty , passion , and commitment , brands really have no chance of surviving into the future . For newer brands competing for a slice of the market pie , this kind of disruptive , innovative thinking is exactly what they need . For legacy brands hoping to stick around , some serious reckoning should take place internally on a regular basis .
What is the purpose of your brand and its products and services ? What role is change playing around your brand , products , or services ? Do you have an eye on technological innovation ? What do your customers say they want ( or don ’ t want )? These questions are just the tip of the iceberg . It ’ s not just recognizing that change is always in the air , it ’ s being prepared to respond effectively to that change with innovations and adaptations of your own . Or else you might want to start preparing to be disrupted . n
Franchise update | Q4
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4 Franchiseupdate ISSUE IV , 2016