Apple is one of the best examples of , but what can other CFOs do to innovate their own businesses?

Not only must CFOs look at the Current quarter numbers, they must also understand the emerging/disruptive Trends and innovations that could decimate their business or alternatively see any opportunity that may need them to shift their current business towards in order to gain share and profit. These discussions need to be one of the key items in a company’s “Enterprise Risk” and strategic evaluation.

Many examples come to my mind of early technology companies who failed to innovate their business models. Kodak was the first to introduce digital cameras but failed to innovate their Business Model to avoid cannibalising their own high-margin film business – eventually finding themselves filing for bankruptcy driven by competition from digital camera adoption. Similarly, Handspring’s Treo was the first smartphone, an early innovator, and then Palm, BlackBerry and iPhone came in to the market. As you know, some of the names are no longer around, while another is fighting hard to stay in the game.

So what should we do to be ahead of the game? It goes back to the key principles of how you manage yourself and your organisation.

• Ensure that you are in touch with the current market trends in mobility, social media, technological innovation trends, applied material research/trends, partnerships/alliance evolution, as well as local, regional and global investment trends impacting your industry.
• Be ready to run game theory with your CxO colleagues or challenge them on any new trend that you are aware of to see if they are prepared for all possible scenarios.
• Include this as part of your “Enterprise Risk” assessment process, at least once a year to ensure that all senior leadership is going to talk about this collectively.
• Every time you see a success story or a setback, ask a question if there is anything to be learned from it.
• Don’t make it an occasional discussion but a necessary/must-have discussion on a regular basis.
• Don’t assume that your company is not prone to disruption, trust me it is. Even Facebook, Apple and Amazon have new disrupters that are starting to challenge them (please read: “Eight Innovators Reshaping Our World: Time Magazine”).
• Maintain or be ready with capital reserves to steer your company through acquisitions
• Data, information and analytics are required to ensure you understand your business, customers and competitors.

Accept that any new innovation is expected to challenge both current price and the margin your company makes. More often than not, business model innovation can create a multiplier effect to develop new value with higher margin and revenue

What examples come to mind when you think of business influencers, such as the rise of social media?