How companies can master disruptive changes : Date:
How can companies cope with upheavals and growing demands, for example due to digitisation, economic crises or the energy transition? How can small companies take advantage of the changes and drive established top dogs in front of them? This is what a team of scientists at Münster University of Applied Sciences is investigating – with funding from the Federal Ministry of Education and Research.
Some companies are actively bringing about radical changes in the market, reports Professor Thomas Baaken, head of the research project on disruptive change and innovative business models to cope with disruptive changes in small and medium-sized enterprises (titled „MaDiC”) at the faculty of economics at Münster University of Applied Sciences.
These companies develop innovative services and products which are mostly detached from the established structures. These products or services are often also considered worse in the beginning, are available at a lower price and always focus on customer benefit. From these niches, they „disrupt” – in the language of researchers – the market. In other words, they challenge established companies with new offers or business models. One example of this is sales via online platforms. When new products fundamentally change supply and demand, one speaks of „disruptive upheavals” or „disruptive change”. Other companies must recognise these developments and react quickly.
The research team at the faculty of economics at Münster University of Applied Sciences wants to find out to what extent the sequence of perception, evaluation and action differs between disruptive companies and those that are unable to counter the upheavals. To this end, the team interviewed a total of 65 managers at executive board level and evaluated the responses. One result is already certain: it is crucial that a company recognise disruptive upheavals early enough and accept them as a challenge rather than ignore them.
Research objectives: early recognition and active shaping of disruptive upheavals
Companies that find it difficult to master new challenges often do not allow themselves to experiment. Their activities and departments are directly subordinate to profitability. Subjects, products or demands that are not part of the core business are not pursued. As a result, these companies run the risk of not being able to withstand upheaval. The research team’s goals include facilitating the early detection of disruptive change, identifying successful disruptive business model patterns and having universities and companies work together on this topic. The results will be published both online and in a handbook. For example, small and medium-sized companies can use a short list of questions to find out which business strategies and concepts fit their situation.
Companies that often test new challenges are more successful
Analyses in the project show that successful companies actively deal with disruptive upheavals: while still focusing on their core business, they explore new areas, maintain close ties with start-up companies and cultivate personal exchange with their customers and as part of entrepreneur networks. They work on an interdisciplinary basis and experiment with new services and products as part of pilot projects. Thus, they develop simpler, cheaper and more customer-friendly business models which established companies often fail to recognise as competitors until it is too late.
The Federal Ministry of Education and Research is supporting the MaDiC research project with about 482,888 euros within the framework of the FHprofUnt funding line as part of the Research at Universities of Applied Sciences programme.