One key metric will be the cost to revenue ratio – and disruptive innovation has the potential to take it to a new benchmark i.e. in the low 30s. Leading indicators can surface the efficacy of the strategy mapping process and how well it is positioned from the perspectives of the operating environment, market potential, customer segmentation by needs / use[2] ( shifting beliefs and behaviors of stakeholders[3] ) etc. In addition, how well can the existing model tolerate the cannibalization of existing products and services – what are the tradeoffs, and what value transfer is there and what will be the justification?

Opportunities

It is said that the likelihood of disruption from within the industry is low and it will be easier to engage third parties as catalystswith outsiders disrupting in collaboration with the insiders. There exists a spectrum of collaborating possibilities and the challenge is to seek out arrangements that are goldilocks-like. This seems logical and will be a pathway worth exploring.

Some key considerations will include the following:

Can the following be considered as disruptive innovation or merely upgrades, cool features etc. over-serving existing customers hoping to attract higher margins?

• improving service quality
  • cheque-cashing outlets,
  • money transmitters, car title lenders, payday loan stores,
  • person- to-person lending and quick loan options.
• different channels offering ease, reduced pricing and serving the under- and unbanked.
• enhance operational flexibility and optimize business processes
• innovate in product development and pricing
• improve speed to market to stay competitive and dynamic
• keep pace with innovation and social phenomena in redesigning customer engagement strategies.
• IOT
  • sensor technology could revolutionize loan collateral tracking and balance sheet reporting for both SMEs and corporate client
  • real-time monitoring of inventory or livestock for manufacturing and agriculture segment
  • perform automated and near real-time balance sheet reporting

Conclusion

We may all understand value creation. What we don’t quite fathom is the fact that there are outside disruptive forces ever on the ready to pounce at the slightest opportunity to take away value.

The telltale signs often times are quite visible and because people are ordinarily so pre-occupied and or so jaded by the daily grinds that these signals are considered as mere noises and ignored. Worse, these are assumed to be the norms. They are not normal! When a system invites externalities, it is a sign that all is not well and it is a matter of time that drastic changes will take place. All you need is to take a step back and identify the externalities and simply ask: why is this happening?Asking the right question is half the battle won.

The traditional method of erecting moats and generating negative externalities can be likened to the great wall, for it encourages individuals from within to join forces from outside to break down the barrier and take away the spoils.

[1] Key performance indicators

[2] not by product, market share, demographics e.g. indication / patient pool

[3] Example of metrics measuring outcomes