Turning disruptive change into a competitive advantage

In today's fast-changing business environment, companies need to react quickly and decisively to disruptive market changes. Yet many enterprises lack the ability to respond swiftly to these competitive threats. The classic case of an enterprise that stumbled in this way is Kodak's failure to adapt to the digitization of the film business. And ironically, Kodak was one of the early developers of digital photography. But Kodak's missteps are far from unique. Today, this is happening in the auto market, which is witnessing a potentially dramatic shift in the locus of value creation away from global OEMs such as Ford, GM, Honda, Toyota and Volkswagen, and toward companies that are supplying technology for self-driving, connected and electrified vehicles. Research at the MIT Center for Transportation & Logistics identified three main types of developments that can trigger the emergence of new business models in an industry. 1. commoditization of the core business, 2. changing customer preferences, and 3. innovation.