Telstra Wholesale’s Powering your business through relentless change white paper shows that clinging to old business structures can halt innovation, and effectiveness, meaning you're more likely to fall victim to digital disruption rather than reap the benefits.

Reinvigorating your business structure, to become more innovative and efficient, is the key to being the digital disruptor of your industry - rather than one of the disrupted struggling to cope with change.

Across the country, 87 per cent of business leaders agree that "businesses that don’t embrace flexible, agile business models would cease to be competitive in the future", according to Powering your business through relentless change a study commissioned by Telstra that spoke to 200 Australian C-level executives. Our research also suggests that such ‘transformational business models’ are much more effective than traditional businesses at achieving a range of positive business outcomes such as revenue growth, customer loyalty, and partner satisfaction.

While they agree that clinging to old structures can cause them to stagnate, many Australian businesses I talk to aren't quite sure how to go about reshaping their organisation so that it's ready to meet new challenges. They talk a lot about digital disruption, but they usually haven't taken any action – tending to think that disruption is further from their door than it actually is.

Not quite knowing what to do - and therefore doing nothing - is not a strategy for dealing with digital disruption, but unfortunately it sums up the approach of some Australian businesses.

So what’s the solution?

Focus on your customers, regardless of where digital disruption comes from

Nearly half (48 per cent) of Australian business leaders say that non-traditional players are a growing threat to their market, according to the study. It's good that businesses are aware of this, but obviously it's difficult to combat a threat when you're not sure exactly where it will come from.

There's no one-size-fits-all answer but, regardless of the source of disruption, one key is to ensure you continue to be focussed on customer outcomes. This means understanding what your core business is and what your customers value by talking to them and really listening to what they're saying.

It sounds like common sense but in our industry we can get so excited about technological advancements we forget to focus on the true value for our customers.  I believe customer relationships are one of the most valuable business assets, and the better we understand our customers the easier it is to nurture and strengthen our relationships in the face of growing competition or industry disruption.

Understand your business before you try to change it

When you're ready to reassess your business structure, start by asking what your current business structure was created to achieve. Why are you organised in the way that you are? Why do you focus on certain things? Why do you have certain processes?

Then ask yourself if this existing structure is going to be able to successfully deliver on your customers' expectations now and in the future. Are there advances in technology, leveraging automation and simplification, that can help you better meet that challenge?

"Not quite knowing what to do and therefore doing nothing is not a successful strategy for dealing with digital disruption, but unfortunately it sums up the approach of some Australian businesses."

Sarah McGeehan – Director Business Innovation, Telstra Wholesale

This introspection can be a difficult process. Embracing change forces you to step out of your comfort zone and may mean facing up to some difficult truths, and if it doesn't make you uncomfortable, you may not be looking closely enough.

There are also the human challenges of hierarchy and empire-building, with some people wanting to hold on to what they've got rather than accepting change for the greater good. Embracing a new business structure can also demand new skill sets which present staffing challenges, especially in family-based small to medium businesses.

Proceed with caution – don't try to change everything at once

Business transformation is a balancing act, you’re looking to lead the disruption within your industry, while also keeping an eye on the traditional revenue streams that have made you successful.

Experiment with sections of your business by looking at processes and considering what has the most impact on your customers. Then, build on that momentum, while being open to the idea that you might need to alter your course slightly along the way.

It's important to have a view of what success looks like and set some milestones, so you can see if you're heading in the right direction. It's also critical to have a few customers who will offer honest feedback along the way, so you understand how the change is affecting them.

There’s one thing for sure, though: don't wait until your business is hurting before you act.

Learn more and download the whitepaper