Leadership In The Era Of Disruptions
“Leadership is based on
inspiration, not domination; on Cooperation, not intimidation” William Arthur Wood
Envisage being a captain
of troop fighting a battle on many fronts for a small piece of resource with
your allies and adversaries. Top up this thought with the scenario that the adversary have no regard for
the rule and keep on changing it to fit their requirement. Also new players on
all side keep propping up on regular intervals. If one can imagine this situations - they can
understand that what is like “Achieving Leadership in the Era of Disruptions.”
Banking sector in 21st
century saw new encompassing technology, more interconnected market, partially
deregulated market (in some segments,) vibrant workforce and general
willingness to experiment with the ideas, products and services. This century also
introduced intensified competition, increased government supervision, high
labor costs and aggressive campaign for new ideas. The world market in general
and banking sector in particular which was earlier dominated by the concept of “survival
of the fittest” started warming up to the idea of “survival of the smartest.”
In Modern Times,
disruptions (disturbance which interrupt an event, activity or process) is
becoming a fast normal and leadership (action of leading a group of people or
an organisation or the ability to do so) need to keep over evolving to compete
with the market realities and cultural considerations. In ideal cases,
disruptions leads to leader being more open to new ideas, become catalyst to
technological advancement and bringing more transparency in overall business
processes.
Professor Klaus Schwab,
Founder and Executive Chairman of the World Economic Forum in his book, “The
Fourth Industrial Revolution” highlighted that mankind is at the beginning of a
revolution that is fundamentally changing the way we live, work and relate to
one another. The same idea is also highlighted in recent World Economic Forum,
where it was highlighted that – “In scale, scope and complexity, the
transformation will be unlike anything human can have experienced before.”
Why Disruptions:
Challenges
Over the last few
decades, The Banking sector is becoming aggressively volatile to the consumption
of new idea and services. Few major reasons which can be identified for this is
as follows:
1.
Seamless Connectivity: This is both the
primary reason and the effect of the disruption in the market. Due to increased
connectivity medium, the demographic of one geographical area now knows the
banking products and services offered in other markets. This is pushing the
market to adopt the best practices products of around the globe leading to
generations of new business partners and entrepreneurs according to local
needs. One of the best example is the Indian gaming industry. Unheard till few
decades back, with one of the world's largest youth population, India is poised
to become one of the world's leading market in gaming sector. Currently valued
at USD 890 million, the Indian gaming industry is estimated for the annual
growth rate of 14.3%. Consequently, it is helping to create many more Indi -
Gamers who are developing games as per the local needs seriously competing with
the big shark like EA and Rockstar.
2. Cultural Consciousness: Over the last
decade, there has been general increase in the acceptance of the demographic
diversity all around the globe. With this acceptability, a newfound sense has
came to move forward more regional products and not to be dependent on the
homogeneous products. This in turn led to the creation of a new bred of
entrepreneurs who started challenging the status quo in the market. New product
and ideas were experimented with and with the big success of the few idea, it
led to catalytic effect on the society. In the Indian concept, one of the best
examples is Patanjali products . As per the article the Livemint, coinciding
with the fall of established brand in the FMCG segment - is the rise of
Patanjali, which has a marginal presence in the beauty and personal care market
with 0.2 market share in 2011 (Euromonitor Data.) It had the highest price in the
share of 1.9 % to become the number 8 brand of India with a 2.1 % share in 2016.
The advertising campaign of Patanjali focuses on breaking established chain
with the focus of creating a unified market on the basis of cultural consciousness
of India. This is focusing brands like Fabindia and Maharshi Yogpeeth to
introduce small cultural consciousness in their product.
3. Regulatory Activism: The Indian Prime
Minister – Shree Narendra Modi in the world economic forum in Davos commented
that, “many societies and countries are becoming self-centered. It seems that
globalization, as opposed to its definition, is shrinking. Such misplaced
preferences cant be considered any lesser threat than terrorism or climate
change. We must admit that the shine of globalization is fading.” In a new
emerging trend, the government around the globe has started to play very active
role in the market. This reciprocates directly to the Banking sector which is fearing
the burn with its more closed supervision and evolving policies. This in turn
is ensuring banks to be vigilant to local practices and requirements in
addition to product/ services/ ideas and demand.
Leaders
and Disruptions – How to tame the dragon
- Using Technology as a catalyst – the digital era ensures a plethora of data in market. These data help in kick starting the complete information bandwagon to get competitive advantage in the system. A leader has to use this technological advancements to support either of potent or a new form of demand. One of biggest disruptors in modern market - Reliance jio entered the market and the first two years itself captured 13.9% of market. The same was only possible for JIO because they were able to provide improvement over a present demand and much lower cost. This was possible because Reliance invested the major amount in technological advancement by lying data cable around a major portion of the region. A leader has to prepare for new technology to reap benefits.
- Create a demand by tapping New Market: Ellon Musk with SpaceX create a demand for the segment untapped before. In words of Musk – he was able to do so by identifying the desire and providing the adequate resources to make it a demand. In the same way, new age leaders need to identify the demand and aim to create it in want and thereafter need.
- Developing Entrepreneurship and work culture of Co Operation: Intrapreneurs are employees of a company that have many of the attributes of entrepreneurs. An Intrapreneur is someone within the company that takes risk in an effort to solve a given problem this can be achieved by aligning the workforce with the organisation long-term needs and goals. An example how the workforce impacts organisation culture can be demonstrated by the incident when Snapdeal layoff a portion of its workforce just before Diwali. In later years, the promoter had accepted that it was wrong move and could have been averted. In recent times, each and every staff has to think that organisation as his/ her own to survive in the market.
Few Biggest Disruptions Since 2016
Let's look at the top three disruptions and what we have learnt from them:
Repackaging as per the ethical values: AIRBNB - As per their website = The san Francisco-based home sharing giant is now active in 65000 cities in 191 countries and has more than 3 million listing on platform including its claim, 3000 Castles and 1400 tree houses.” AirBnB with its aggressive marketing made the whole concept of having guests visible again. It shows that the old idea can be recycled again. Banks in the same way can the plan to offer the old product like gold loans in repackaged content to generation Y customers.
Automation – Lyft – the SanFrisco based ride sharing company is now positioning itself as an alternative of Uber. Also with its focus on innovative processes – the rider has the option of rounding off the fair amount and give the balance to charity.” And teaming up with Waymo for the development of self driving card, this company is actively preparing itself for the future. Banks in same way, are already working on the model of self kiosk and branch less banking.
Space Management – We Work – is the new darling of the international market place. Based out of New York, it provides shared workspace for the entrepreneurs and small start-ups, etc. Recently it signed a deal with Microsoft Office for the same. This type of idea can be adopted by the bank as opening of branches the major cost in remote areas. Indian market has also seen such disruptors in the past like Bansals Flipkart ( disrupted retail Brick and Mortar stores). Indianzed Ola with now Ola auto and bike, Patanjali with its unique umbrella market, etc. Those small in size, Indian organizations are also challenging the status quo and also fast evolving with the market requirement.
Conclusion:
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