Moving in a Disruptive Direction
March 9, 2018
5 minute ReadSome still dream of inventing that next big thing, the singular product that will change everyone’s lives for the better.
But these days, a disruptive discovery doesn’t have to be about a “what.” It can just as easily be about a “how.”
Think of the companies that have made a distinctive, game-changing mark in their industries – Airbnb, Snapchat, Venmo and the like – and it’s clear that each one has created value by delivering ease, streamlining processes or simply adding more fun. They have answered questions and met needs before consumers even realized they had any, often creating a sense of immediate comfort and logic right out of the gate.
“When a company — or an individual — is a disruptor, they’re always thinking a little bit ahead,” said Artemis Berry, vice president at the National Retail Federation (NRF). “They’re always embracing change. As human beings, that’s something that’s really hard to do. Change is not easy, and a lot of people see it as a negative. But not disruptors.”
Berry, who had a background working with tech startups before joining NRF almost a decade ago, has kept her eye closely on the space. She enjoys the energy, drive and creativity disruptors bring to the forefront, she said – and knows full well it can be contagious, regardless of the industry.
Take car washes as an example. Sure, the overall process must result in a cleaner vehicle. But a large part of disruption is about the experience of the consumer, and there are always fresh opportunities to create excitement through sights, sounds, scents or greater simplicity. Think of augmented-reality/virtual-reality experiences, for example, as well as easier, higher-tech options for payment and coupons. Think about unexpected joy in addition to convenience, and customers will be more likely to return.
Miguel Gonzalez, president and CEO of Micrologic Associates, which offers software and turnkey management systems for car-wash and lube companies, said memberships have been a great disruptor for the industry, allowing for more consistent revenue and minimizing the impact of the weather. He’s seeing members-only lanes at washes and expects there will be entire members-only washes in coming years. He also has seen revolution with payment kiosks and mobile. Ten years ago, the thought of credit-only kiosks would have been considered crazy, he said, but here we are.
But disruption also is happening behind the scenes. Gonzalez said his clients increasingly are asking about data analysis and forecasting. “More and more customers are using data in their business and analytics to make better decisions,” he said. “A few years ago, car washes were being run out of a shoebox, but now they’re taking advantage of the technology side of things, especially the point of sale and the data they can gather from their customers.”
One of the benefits is that car washes typically are small businesses, and small businesses have the ability to be more agile. But, Berry said, “It’s difficult to think of an industry that currently going through a disruptive phase or isn’t expected to within the next few years.” Look at the automotive industry, with autonomous vehicles and alternative fuels. Then there are luxury brands, selling direct to consumers, as well as travel. Each is undergoing or is on the verge of significant changes all its own.
This summer, CNBC released its fifth annual Disruptor 50 list, a multi-industry collection of companies whose innovations are “changing the world.”
“These forward-thinking startups have identified unexploited niches in the marketplace that have the potential to become billion-dollar businesses, and they rushed to fill them,” CNBC said. “A startling 31 are unicorns that have already reached or passed the billion-dollar mark. In the process, they are creating new ecosystems for their products and services.”
At the time the 2017 list was released, the 50 companies had raised almost $44 billion in venture capital to make things happen. Already, CNBC said, “It’s hard to think of the world without them.”
The good news is that today’s environment is one that increasingly values creativity and unique experience.
For those, then, who are willing to dream, to shift, to take a chance, to do something different, NRF’s Berry offers a bit of disruptive advice:
There is something a little bitdifferent about a disruptive personality, Berry said. Companies that are disruptive often
- have one or more people like this at or near the top. Make sure there’s at least one person in your path who will
- challenge you to experiment and grow in fresh ways. Alternately, partner with another businessperson/company with a
- complementary service for a unique offering.
Berry is a fan of the NPR podcast “How I Built This,” which focuses on innovators, entrepreneurs, idealists and the movements they created. “They break down things that have grown to be so big and get them down to their core,”
Berry said. “Disruption doesn’t have to be complicated. It can be one simple thing your company can do better. Some of the biggest successes have been simple ideas rooted in actual needs.”
Retail may be a key industry to watch for strategy and inspiration. That industry thrives on disruption, Berry said.
Besides, despite all the talk of e-commerce, 90 percent of retail transactions are still done in stores. The majority of retailers are small, independent owners, main-street shops. “You hear a lot about the mainstream brands, but if you think about retail, you also have to think about the shops in your neighborhood, the individual business leaders running them, and how they’re part of the economic system in the U.S. and the world,” Berry said. Retailers can be a scrappy lot, continuing to seek out new ways to delight customers and keep the registers ringing.
Disruption means moving beyond what is to consider what could be. Do you know what your customers’ biggest pain points/frustrations are with your business – or your competitors? If not, ask. Think about how you can meet those needs, in addition to what makes you unique – and how you could do it even better.
You can’t be out ahead if you’re still struggling to keep up, especially in this area. How are you doing with mobile options? With using data to meet customers where they are – and then go beyond their expectations? “Consumers are being trained by all of these models out there,” Berry said. “They have tech in hand. It’s not that all disruption has to do with technology, but it has left everyone hungry for more. Consumers have much higher expectations, no matter the business.”
“You can’t be disruptive on a large scale if you don’t have the culture right,” Berry said. “When you look at companies that have been tripping over themselves recently, it’s obvious that you’re going to get caught if you don’t have it right. Even if you only have a few employees, the customer will get that.”
Overall, disruption begins not with an idea but a mindset.
“You don’t need to be the next Uber or Airbnb,” Berry said. “But you do need a little bit of ability to take a risk. A lot of things considered super-disruptive models began by just solving one simple problem.”