Be the one who puts you out of business...

Posted on 12th September 2016 at 4:10pm by Carl Reader in Business, Random Musings

I read an interesting article from Gary Turner (MD of Xero UK) about the iPhone 7, in which he mentions that the small update was effectively a tell for a much bigger impact next year. As someone who often guesses the "second bounce of the ball", I have every reason to believe he might be correct, and here is my take on it.

As we stand today, we are entering a period of disruption. The last one has been and gone, over the last decade. Apple intentionally destroyed it's iPod with the iPhone. Netflix and Lovefilm destroyed their postal model with online streaming. It could be argued that iTunes is being destroyed by Apple Music (although I'd contend that it's potentially too little, too late).

Businesses that haven't embraced this "disruption" stuff are suffering. Sage - once the UK leader for accounting software, was too heavily dependent on box sales, and too certain about it's profits continuing. It might still make a recovery from a strategic perspective (the share price is certainly doing OK); although I suspect that this will be via acquisition and a wholesale shift in direction.

Perhaps the worrying thing about this all for stale businesses is that the pace of disruption is ever increasing. I often rake through the crowdfunding sites, trying to sort the wheat from the chaff and seeing what's out there. Some businesses truly are turning existing models on their head. Any business with independent distribution, few dominant players, and a "1990's" experience is ripe for disruption. Taxis. Bed and breakfasts. You get the drift...

Exciting times for those at the front of the curve. Are you prepared to do yourself out of business?

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