Recently, we have been approached by lots of publications to be part of their latest articles on the new hot topic – disruption.
“Can disruption help to reinvent the reputation of outsourcing services?”
“Chrissie, tell us how DDC OS UK is helping to disrupt the outsourcing industry!”
To be honest, I wasn’t really sure what ‘disruption’ was; at least in relation to outsourcing. The word usually carries negative connotations, so why is it now so prominent, and, should we be associating with it?
‘Disruptive innovation’ is a term first used by Clayton Christensen[i], and he was referring to a process in which a new entrant or less recognised product or service starts to become popular enough to replace, or at least displace, a conventional product or service. Think mobile phones versus fixed-line telephony, and more recently, video streaming websites like Amazon and Netflix compared with the likes of the Blockbuster video rental stores.
Christensen contrasts this with ‘sustaining innovations` where he poses the theory that market leaders innovate at the very pinnacle of their market, satisfying the most demanding of their customers, but in turn, charging the highest of their prices here. Apple has mastered this, giving us what we want before we know we want it; just look at the iPod or the iPhone. Released a little over 11 years ago in 2007, the iPhone has gone on to sell over 1 billion devices. That is not a typo.
“The defining traits of disruptive innovators are lower gross margins, smaller target markets, and products and services that are often simpler than their contemporaries”, states Peter Daisyme in his article ‘What Is Disruption, Really?’[ii]
So, to that end then, disruption is about changing the way a customer thinks and more importantly spends. Disrupting their attitude to buying outsourced services; changing the playing field in the industry, and helping the client to understand that the market leader may not always be the best choice. After all, isn’t that what outsourcing buyers are really looking for anyway – a new approach?
In a recent report called ‘The Future of Outsourcing’[iii], Raconteur reported that 64% of the UK companies that outsource are doing so for business transformation reasons. But surely the majority of business transformation comes from innovation? Disruption is change, change is transformation – so, in essence, we outsource to disrupt.
Researching the topic of disruption is an extensive task in itself but two stand out comments I believe bring it all together and have enabled me to, not only understand but, be motivated by disruption include;
“Disruptors are innovators, but not all innovators are disruptors — in the same way that a square is a rectangle but not all rectangles are squares.” Forbes magazine[iv]
“The future of all industry is disruption – and that’s a good thing.” Wired Magazine[v]
So, are we, at DDC OS UK, disruptors in the outsourcing industry then? Absolutely.
For years we have been growing our market share by being agile and innovative, looking at projects in a different way from our competitors. But don’t take our word for it. Ask our client Brandbank, a digital content provider who grew their turnover by 360% in the first 4 years of working with us. Ask the Global Sourcing Association, who recognised us this year as an Emerging Player in the Outsourcing Industry.[vi]
Working in many industries; from Utilities, where we have embraced the disruption that has arisen from greater competition and helped many suppliers build a loyal customer base; to charities, where we have recognised the need for digital transformation and expanded our offering to help charities meet their new targets; to analytics, where we develop our own software to turn the likes of GDPR into an opportunity. The list goes on…
We do not fear disruption, we embrace it! We are driven by it. Driven to disrupt outsourcing, to disrupt our client’s industries, because if we don’t we will fade away. Much like the Walkman, or Blockbuster!
So, come and talk to us, find out how we can help to transform your business – after all, we transformed ours!