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Reinvention is the new realityBrexit: How organisations can thrive in a disruptive world

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Disruption demands reinventionFrom the financial crisis to the possibility of Grexit, disruptive forces are globally evident as never before. Brexit is the latest shock wave that brings an urgent need for organisations and businesses to change. To successfully respond to such forces, enterprises need to embrace disruption and use it as a catalyst for continual reinvention.

Brexit has amplified the need for organisations to become more agile, responsive and innovative, to address immediate external challenges and prepare for future eventualities.

There is no certainty around Brexit, only speculation. However, organisations should be preparing for impacts on a number of wide-ranging business aspects, including: access to markets; availability and quality of talent; data security; regulatory compliance; and their operations and supply chain. Rather than letting uncertainty delay them, enterprises should be seriously considering the potential disruption to their operations while making plans for future reinvention to improve their ongoing competitiveness.

As with all disruptive forces, Brexit brings major opportunities for organisations to respond by developing the capabilities they need not just to survive, but to thrive and succeed.

Disruptive forces generate opportunityDisruption might come from many angles, for instance:

• Increased competition enabled by digital technologies

• External market shocks such as the global financial crisis

• Slowing global growth and declining commodity prices

• Political impacts such as Brexit and the possibility of Grexit.

Disruption-driven excellenceIn the 2015 Global C-suite Study, IBM identified a small group of enterprises that excel in times of disruption, on two counts. They enjoy a strong reputation as leading innovators and they surpass their industry peers in terms of revenue growth and profitability. We’ve called these organisations Torchbearers.1

Historically, Torchbearers have innovated to achieve standout results. These sorts of organisations combine short-term reactive measures with preparative moves towards a reinvented business to ultimately deliver increased growth and efficiency.

“On the one hand, we don’t know what we don’t know, which is why most people are doing more listening than talking right now. But, looking hard at your business now and thinking about how it will be post-Brexit will identify the actions needed for continued success and growth.”

Phil Hussey, Vice President, Industry Solutions Sales Team, IBM UK.2

IBM Global Business Services

Thriving in a disruptive worldThose organisations destined to be successful in a rapidly changing business environment, frequently disrupted by external shocks like Brexit, will offer their customers new products, services and experiences. They will establish new and different business models, build new expertise, establish new ways of working and embrace disruptive technologies. Leading organisations will advance this process by exploring possibilities, creating pilots and looking for opportunities to collaborate.

The route to reinvention and response 1: Envision possibilities and challenges/

plan for eventualities

• Use envisioning sessions, such as Design Thinking, to develop a definitive reinvention and repair blueprint

• Use scenario planning to prepare for potential Brexit outcomes

• Conduct assessments to ascertain your level of exposure to Brexit challenges and build a base of data to guide decision making.

2: Create pilots

• Build pilots and prototypes using Agile approaches

• Test with customers and bring to market quickly to generate feedback and iteration

• Develop short-term responses to immediate threats and opportunities to secure the present, while building towards future capability requirements.

3: Deepen capabilities

• Turn successful pilots into strategic initiatives that make significant improvements beyond operational efficiency

• Link changes to core operations with strategic changes that prepare the organisation to compete in the future

• Continue to build and deploy new capabilities while planning their future performance and function.

4: Orchestrate collaboration

• Embrace holistic reinvention, rather than a series of point solutions

• Maintain a clear focus on customer aspirations and desires

• Adopt the broad range of partners needed to create that customer promise.

Immediate actionAssess your exposure and address:

Customers and markets

Employees and skills

Data security and privacy

Regulatory and compliance

IT

Operations and supply chain

Locations

Finance and procurement

Future imperative

Pursue a new focus: new business models, market activation

Build new expertise: actionable insight, responsive operations

Establish new ways of working: restless talent, orchestrated collaboration

Embrace disruptive digital technologies

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IBM: The ideal partner for an ever-changing worldIBM takes a positive and realistic approach to disruption and the opportunities these forces present. We can collaborate with your organisation, combining business insight, advanced research and technology to give you a distinct advantage in an ever-changing world. In these disruptive times, we can help you to innovate and differentiate at an ever-faster pace.

The 3 pillars of a successfully reinvented organisation

Strategy

• Begins with a focus on experience

• Embraces disruption

• Governs a unique business model and partner network

Operations

• Continuously self-reinvents

• Fosters a culture that encourages iterative innovation

• Integrates physical with digital

Technology

• Decapitalises investments by sharing and renting

• Is fluent in Agile, analytics, cognitive and mobile

• Operates at the full potential of enabling technologies

Reinvention Drivers:

Cloud

Cognitive &

Analytics

Mobile

Internet

of ThingsSocial

Security

New Focus

New ExpertiseExpertise

New Ways to Work Actionable

Insight

Responsive

Operations

Orchestrated

Collaboration

Restless

Talent

New

Business

Models

Market

ActivationExperience

Cloud

Cognitive &

Analytics

Mobile

Internet

of ThingsSocial

Security

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What is reinvention?3

Organisations are adopting new business models and enabling new customer experiences as industries converge, supply chains fragment and new ecosystems and sources of value emerge. Focusing on the use of multiple technologies such as cloud, cognitive, mobile and the Internet of Things (IoT), the reinvention process is about rethinking customer and partner relationships from the perspective of need, use or aspiration.

It’s all about helping organisations to create unique, compelling experiences for their customers, partners, employees and other stakeholders. These benefits arise either from the direct provision of products or services, or through the orchestration of products or services by collaborating with partner organisations. The most successful reinvented businesses establish new engagements with their customers, acting as enabler, conduit and partner.

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Produced in the United Kingdom September 2016 All Rights Reserved

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1 IBM Institute for business Value Executive Report – Redefining Boundaries, Insights from the Global C-Suite Study, p10

2 The Times Special Report – Enterprise Agility, 13/09/16, Brexit: What can we learn from the 2008 crash?

3 IBM Institute for business Value Executive Report – Digital reinvention in action: What to do and how to make it happen, p8

Discover how you can start using Brexit as a catalyst for positive business transformation today.

Call Phil or Jessica for more information or to arrange a tailored session with our dedicated Brexit Solution team.

Phil Hussey

T: +44 (0)7802 917945 E: phil_hussey@uk.ibm.com

Jessica Douglas

T: +44 (0)7720 071963 E: jessica.douglas@uk.ibm.com