At some point, your company will be transformed by the market or the market will be transformed by someone else. Disruption is a matter of everyday life, and the speed of change is increasing dramatically, “said Mladen Fruk, Partner at McKinsey for Croatia on the ‘Disrupt Yourself’ panel.
Panelists argued that there is no moment in which a company must make a decision about transformation because trends change on a daily basis and completely erase the boundaries between industries from which a new ‘challenger’ may come. Technology completely changes the traditional industries. Those who don’t adapt will not survive, while simultaneously some new top global companies are literally being created in garages.
“When we mention the concept of disruption, the tobacco industry doesn’t come to mind first because it is an industry that has been conducting business the same way for 150 years. In the last few years, BAT has invested $ 2.5 billion in new generation products. The way forward in our industry is reducing the harm and we have known this for a long time. There is a whole range of new products in our industry, and we are confident that we will create so much more, said Antal Bekefi, General Director of Adria Region at BAT.
Siniša Đuranović, Senior Vice-president of HT disagrees when telecoms are classified as traditional industries. “We may have been on the market for a long time, but telecoms today are one of the drivers of change in society. We are the driver of change in all countries where we do business in. Telecoms bring new technologies to the general population as well as being carriers of digitalization. There have been so many transformations in this industry, ” said Đuranović.
And what is the right moment for change? Changes are constantly happening and proof of that is that today, the average life expectancy of a company from the S&P 500 index is 15 years, while about eighty years ago it was about 90 years.
‘I think that is one of the more difficult questions. Not only when to change but also how to determine the speed of change. In big businesses, you must sacrifice something. You must weigh between shareholder satisfaction and the future. We are constantly following trends. The tobacco industry is at a new beginning. Shareholders are excited about our vision for the future, but they also care about the results of the last quarter. We have to think about both, “says Antal Bekefi.