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ITIL 4 Strategic Leader Certification Course: Disruption

To begin this course, go to the main page ITIL 4 Strategic Leader Certification Course.

3. Disruption

Disruption: impact of a new/changed internal/external factor. Consider the various sources: PESTLE or four dimensions

1. Digital disruption

Key message: when digital technology changes any aspect of an organization and how it functions. Successful organizations react quickly and also use digital technology to disrupt the environment and gain an advantage

Three levels:

  • Ecosystem
  • Industry/market
  • Organization
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Ecosystem Industry Market Organization

Digital technology change impacts organizations across multiple industries and markets

To disrupt the ecosystem, use disruptive digital technologies across the business, in multiple market segments and industries simultaneously

Digital technology introduces a change to a specific industry or group of related industries. Typically a result of pursuing operational excellence

To disrupt an industry:

  • Use technology to compete more effectively and grow market share (bankrupt or acquire competitors)
  • Use technology to create a spin-off organization, which sells the new technology to competitors as products or services

Neither method is a guarantee of competitive advantage. Once public, others may do it better or further develop the technology

Digital technology impacts a specific market or market segment

Market disruption, like industry, is a result of:

  • Improving the delivery mechanism
  • Improving products and services
  • Improving customer engagement models
  • Duplicating success in one market to another

Organizations typically are not disruptive: have well-established markets, products, services, operation. Disruptions in their markets require them to recover to preserve market position

Will use technology that disrupted its environment to continue to be competitive which will disrupt their own organization

May become so successful, they become the market leader, developing a new innovative culture

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2. Organizational viability

Organizational agility: an organization’s ability to move and adapt quickly, flexibly, and decisively in response to events in the internal or external environment

Organizational resilience: an organization's ability to anticipate, prepare for, respond to, and overcome adverse events in the internal or external environment

Organization’s mission and vision and subsequent business model manage the agility and resilience expected by stakeholders, they must know external factors (PESTLE) and organizational priorities and objectives to accurately develop resilience

2.1. Long-term viability

Organizational viability directly related to strategy:

  • Pay attention to internal/external environments, consumer needs and their rate of change
  • Organizations must be able to pivot, recover, change directions

Disruptive events allows for change: focus on agile and lean (streamline events, improve operations, exploit new innovations/technology, deliver new products/services)

Go back to ITIL 4 Strategic Leader Certification Course for the other chapters if you completed this Disruption chapter.

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