Innovation and disruption are coming to many organizations. For some, it is already upon them. For others, it is moving so quickly that leaders either do not see it or they misunderstand it. New research by the Center for Excellence in ERM at St John's University highlights three big ideas.
#1 — Companies must learn to see the waves of disruption coming at them.
Interpreting what is noise versus a signal is critical. The sooner the better. It is critical to link the detected signal to the current business model, risks, and strategic plans. As others have noted, continuing to believe the same things over and over can have serious negative consequences. Challenge the traditional thinking at your organization.
#2 — Organizations need to create their own innovation waves to keep up or disrupt others.
Innovation is a response to strategic risk. If the innovation person/team is not talking to the team that is watching for the waves of disruption coming, then a serious disconnect exists.
#3 — Organizations must identify the risk in new innovations.
If you know the real risks and the related dimensions, the chances of success increase and more innovation can be done. Not understanding the related risks seems foolish in today's environment.