New to Change? A Lesson On Why Ignoring a Needed Change Can Be Detrimental to Your Business

Remember Blockbuster Video?

You may not, but in 2004 Blockbuster Video had 60,000 employees. Today, it doesn’t exist. Its value proposition was pretty straightforward – you’d walk into one of 9,000 Blockbuster Video stores and rent a movie to take home.

What Blockbuster didn’t take seriously was that streaming movies online would be a thing. It was too late by the time it figured it out – even tried to stream movies itself.

Perhaps you realize that you need to adapt and change to survive. In Blockbuster’s case, they were at the top of their game when the market turned. Rather than leaning into the change and using its considerable market share to remain at the top – Blockbuster denied the required change and paid the ultimate price.

Side Note: Blockbuster was not alone. Blackberry failed to recognize the challenge of Smartphones (and the Apple iPhone). Netflix failed to recognize streaming content. SAP and the SaaS model brought by Salesforce. And the list goes on…

Whether you are a market leader or trying to become one – technical change is part of your future. Charles Schwab is a perfect example of an “old company” that has shown it can embrace change. Faced with the prospect of the internet and its impact on investing, Schwab recognized the need to commit to online trading fully and was one of the first major Brokerage Firms to do so. It’s even more amazing knowing that Charles Schwab’s brand color is beige – the blandest and least bold of brand colors.

If you now realize that you need change and are considering a digital transformation for your company, know that going into Change is an all-encompassing organizational decision.

Congratulations- you are done with the easiest part once you’ve selected and procured the software. Too often, there is little thought given to the hardest part. Buying Software isn’t the hard part. I can go out and buy a Chinese Dictionary. Learning the language is unquestionably the harder part. Software is no different. Once you have the software, invest in patience and the right people to make your change effort successful. If you don’t, can you pick up the latest Star Wars for me at Blockbuster?

If you want to learn more about what you can do to make change a success at your organization, start with a self-assessment.

The Thing About AI

Artificial Intelligence is here. If it is like the early days of the Internet or VR, it will be unmonitored and unmanaged before systems are put in place to box in its current form. However, it’s not going anywhere, and you should be prepared to understand it and leverage it if you want to stay relevant. We aren’t suggesting cutting-edge AI work but knowing how you can use AI for note-taking and automating some of your tedious work will only benefit you as an individual. On the Organizational level, AI will undoubtedly bring about another wave of Digital Transformation – be prepared.

References

A Look Back At Why Blockbuster Really Failed And Why It Didn’t Have To from Forbes; Type: Article

Did Netflix Really Put Blockbuster Out of Business? from Top Accounting Degrees; Type: Article

Executive Summary

• Eyes Closed but Pockets Full – Blockbuster owned the video rental market in 2004 but failed to recognize the threat posed by internet streaming.
• Conversely, Charles Schwab recognized the same potential and proactively changed their business model to survive and thrive, the change created by the Internet.
• Digital Transformation is a holistic company shift that requires fearlessness, as shown by Charles Schwab.
• Patience, Empathy, and Focused Direction are key to unlocking and sustaining Digital Transformation efforts.
• AI is another level of change that will bring about another wave of Digital Transformation – at both the Organizational and Individual level.

Originally Published February 11, 2018