Staying Competitive in the Light of Disruptive Technologies and Innovations

It is shocking to hear and important to know that sometimes the best management practices, even on highly praised-successful companies, have a high chance to fail when faced with unpredictable market innovations, or what Clayton Christensen calls disruptive technologies. Good management practices give managers the ability to discover sustaining technological innovations before they happen. It helps them predict, plan for, and execute strategies before their competition and continue to be the leader in the market.  Unfortunately, these “typical successful” management practices, the ones taught by most managing schools and known by the most professional people working in the field, are not very efficient when it comes to disruptive technologies. Christensen explains that disruptive technologies tend to emerge when they are least expected; they cannot be predicted through typical management strategies; and are usually discovered by successful companies when it is to late for them to defend their leading position in the market. The reason why these innovations are so dangerous is because they emerge as a substitute to existing, successful, products. Hence, companies that have enjoyed long success should never arrogantly believe that their spot as a leader in the market is untouchable. Because disrupting technologies are things that have never been done before, it is important to know that they cannot be researched as sustaining technologies would, they do not have an establish market, and therefore, their success or direction cannot be predicted in advance. Hence, Christensen recommends managers, that when faced with emerging disruptive technologies, they break away from their successful management practices. She recommends a few strategies for dealing with these kinds of technologies that is highly supported by Cisco’s CEO, John Chambers, and the success of their business.  

Putting together all the articles and advice from John Chambers and Clayton Christensen, I came up with what I think could work as a strategy to help my future theater company strive when faced with disrupting technologies (or perhaps even help us come up with our own unique disruptive technology innovation to get us on the lead of the theater industry!). I am aware that technology innovations, disruptive and sustainable, happen in every single industry. In the case of theater today, a disruptive technology many managers are still trying to fight, in my opinion, is the emergence of online TV, like Netflix. Even though this competition has been going on for a while, it is important for managers in the theater industry to be aware of what this technology entails. People today are more hesitant about going to the theater because they have the chance of staying home and watching TV shows instead. Especially when considering the price comparison, it is harder to convince audiences to get out of the comfort of their house to go out to the theater. Hence, theater companies must come up with a smart and different way of convincing their market to come to them. In my case, after learning about disruptive technologies, I can see this as an opportunity for a new theater company to bring up another disruptive technology to light. It’s a matter of knowing how to go about it smartly. Here is what I have thought of:

• Theater managers should always stay aware of new competitors, new technologies, and new disruptions in the market, by placing their companies in a location near where most industry innovations have been happening in the past few years. In our case, two states that come to mind are New York and L.A.
• Theater managers should be aware of and try not to fight against stakeholders, as they are the ones guaranteeing their success in the theater world. Hence, if you see a chance for a disruptive innovation, take part of your group and develop the idea as a side-project, trying not to affect the experience of your stakeholders.
• Since disruptive innovations cannot be analyzed, plan to start the innovation project in a smaller scale. Do not compromise all your resources to the same project and the same market, but instead, take it as a trial-and-error experiment. Take a small population, try the new product on them, and see what they say. If the product is suitable for this audience, you are good to go. Otherwise, try a new audience or try editing your product to suit the existing one until you hit the right one, but using your resources consciously.
• Be aware of both, what costumers ask for, and how they are acting to predict what they will like to see in the future of theater.
• And finally, as Cisco does, make sure to start the earliest you can, moving your disruptive innovation plans as fast as you can to ensure the first-mover advantage.

References:

Chambers, John. "Cisco’s CEO on Staying Ahead of Technology Shifts." Harvard Business Review, May 2015, hbr.org/2015/05/ciscos-ceo-on-staying-ahead-of-technology-shifts. Accessed 23 Sept. 2018.

Chambers, John. "Cisco’s CEO on Staying Ahead of Technology Shifts." Harvard Business Review, May 2015, hbr.org/2015/05/ciscos-ceo-on-staying-ahead-of-technology-shifts. Accessed 23 Sept. 2018.

Christensen, Clayton M. "Discovering New and Emerging Markets." Harvard Business School Press, 2006.

Christensen, Clayton M. "Introduction: Why Good Companies Fail to Thrive in Fast-Moving Industries." Harvard Business School Press, 2006.