1. Methods to disrupt the industry

Numerous approaches to disrupt an industry: focus on customer/market relevance or operational excellence

Difficult to achieve competitive differentiation if the focus is solely on one or the other

Must consider both as they are interrelated and interdependent

Customer/market relevance:

• Changes basic customer experience, journey, behavior, influence demand, organizational engagement
• Achieve via market innovation: new markets or transforming existing market

Operational excellence: innovatively use technology for higher/better performance and quality (at lower costs), improved productivity, reduced waste

2. Creating an internal and external focus

Internal focus	External focus
What do we need to do to continue doing business ? What do we need to do differently ? How do we manage the risk associated with each opportunity ? How do we monitor and control our journey ? How can we improve operational efficiencies ? How can we reduce costs ? How do we get to where we want to be ?	What markets do we serve ? What products and services do we currently provide to the market? Are they valuable ? What opportunities are there for growth or disruption? What threats do we face ? What capabilities do we have that open new avenues for us in existing or new markets ?

 

3. Influencers on organizational market position

Strategies must balance customer need/market relevance and operational excellence:

• Focus on only one creates waste
• Improving operational excellence is great (can’t improve customer experience without it). Understand the impact of improvement (how much to get the best gain ?)

Utilize a balanced approach (small, incremental changes) to reach the sweet spot of improvements:

• Develop a strategy that looks at both internal and external improvements, together, rather than separately to achieve benefit
• Looking outwards/inwards

	Looking outwards	Looking inwards
Customer/market relevance	How are customer needs changing ? What products and services will they need ? How will they procure and use them ? What opportunities are emerging ? How easy will it be to do business with the organization ? What PESTLE factors need to be considered ?	How do we engage with customers ? How do customers experience the way we deliver products and services ? How do our employees and technology support the customer experience ? What will we need in order to exploit new opportunities ?
Operational excellence	How do other organizations perform ? What technologies do they use ? How much do they spend on running their business ? What PESTLE factors need to be considered ?	What are our capabilities ? Is there a better way of running the business ? Can we use technology more effectively and efficiently ? How will performance need to improve over time ?

 

Go back to ITIL 4 Strategic Leader Certification Course: Disruption to finish this chapter or to the main page ITIL 4 Strategic Leader Certification Course.