Businesses today operate in a world of unprecedented technological disruption. Not long ago megatrends like mobile, e-commerce, cloud and big data were slated to change the world and dominated all decision making. Today, these so-called megatrends are commonplace, replaced by new behemoths like blockchain, artificial intelligence, robotics and Internet of Things (IoT) technology. These technologies are top of mind in discussions focused on product planning/development and future investment decisions. Given the velocity of change in the last 10 years, however, even these seemingly cutting-edge technologies could soon be replaced.

Faced with constant disruption, businesses now operate in a volatile, uncertain, complex and ambiguous (VUCA) environment, which has implications across industries.

1. Customer behaviors are changing. With the shift to digital, customers have access to greater pricing transparency and choice — allowing them to be more selective and demanding than ever before. This translates into a tighter squeeze on margins for many businesses.

2. Industry structures are being disrupted. Successful companies, sitting at the top of their industry and enjoying robust margins, now face steep competition. New players from a variety of backgrounds are infiltrating traditional industries with innovative business models. Giants like Uber and Airbnb have disrupted the status quo and created totally new industries.

3. Business cycles are shrinking. Entrepreneurs looking to disrupt stagnant markets have forced businesses to shorten product and business cycles to remain competitive. It does not take much for the hunter to become the hunted in the VUCA environment, so technology companies must adjust their business models to keep pace with newer and quicker competitors. If they can’t, they’ll be forced out.

While the threat of disruption is real, it also presents a massive opportunity for growth. Those who can evolve stand to win big but this cannot happen if they play by yesterday’s rules. Management must consider these six rules in order to succeed in this time of disruption.

Innovate And Take Charge Of The Future

The VUCA environment makes predicting market evolution nearly impossible. Past trends and successes are no longer the North Star acting as an indication of what’s to come. By relying on innovation, companies can be in the driver’s seat and shape the market the way they want to play. As they explore new ideas, companies must take risks and shouldn’t be afraid to cannibalize themselves in the process.