How I’ve Built Companies That Disrupt and Adapt

The formula for a prosperous company is simple. Take a high quality product and add excellent customer service. Voila! Profits. But it’s never as easy as that. Getting a company to profitability and then keeping it profitable are true challenges.

The rapid changes created by technology have made it that much harder for companies to stand the test of time. Businesses must rethink, re-imagine, and refocus. All businesses feel the pressure. Not just Tesla or Apple, but companies across all sectors are asking how to stay innovative.

Adapt, And Do it Quickly

To be disruptive in any industry today requires producing new products and services quickly. And you don’t have to look far for inspiration. Just look at your customer. Your customer will tell you everything you need to know about what needs aren’t being met. Keeping up with those needs and meeting them is how winners are made.

When I was working in media, print was king. It also cost about half of what it does today. Then the world went digital. All of a sudden, newspapers that weren’t nimble enough to embrace the inevitable were lost. The quality of news hasn’t changed in 100 years, but old media has teetered and new media has skyrocketed.

In financial services, mutual funds were probably the most important innovation in the investment management industry. But they are outdated. They are high cost, tax inefficient, and often poorly constructed.

At Personal Capital, we know our consumers want transparent and easy access to their entire financial picture. We made that happen. But that’s not enough — we have to make sure that their finances are being managed well. That’s why we explain to our clients why mutual funds were great 40 years ago but awful today. Not offering mutual funds is just one way we’ve adapted and are pushing the broader financial services industry. It is the customer’s best interest that you have to look at if you are going to disrupt any space.

Recognize Your Connectivity

All industries have been changed by connectivity. The two industries that have seen the most change: media and finance. Why? Because media and money don’t rely on a physical good. These businesses can all be conducted electronically. Which makes it cheaper, faster, and — if done right — better.

As a leader at Chipsoft, the company behind TurboTax, connectivity allowed me to move large amounts of information associated with taxes online. Previously, you needed a professional accountant to do your taxes. But filing taxes is just about following the rules, and rules can be automated with software. Years later, TurboTax still lets people conveniently file their taxes electronically, never needing an accountant or to stand in long post office lines on April 15th. For the first time, software was used to connect people to their personal finance information. All in a real-time way that was never done before.

I started Personal Capital to connect people to their financial information, wherever they are, so they can make sound financial decisions in real time. The fintech sector is not putting the disruptive brakes on anytime soon. I can guarantee that. The growing abundance of consumer data and smartphones presents a huge opportunity. But to continue being disruptive, businesses need to think beyond their immediate location and think about how to leverage connectivity not just to grow, but to stay relevant.

Moving From a World of Stasis

We are looking at a whole world that is being revolutionized by technology and information. The opportunity to make big changes and advancements has never been higher. And yes, failure is to be expected.

To be a success, you need to spend a lot of energy creating a reliable and high quality product. And as much energy, if not more, adapting to the changing times and the needs of your consumer. It is difficult for big companies to make big, disruptive changes. This leaves so much room for anyone to create a product in market that is unmet and fuel future innovations.