Building Resilience to Technological Change

On Monday the government announced the AI Opportunities Action Plan containing fifty recommendations for building resilience to technological disruption in the British economy. The government intends to accept them all. 

The government's AI action plan mirrors what forward-thinking businesses should be considering: strategic investment in technological capabilities and talent to build the organizational cultures and skills which can cope with technological change. For organizations looking to future-proof their operations, this article offers a blueprint. 

Stories of failure to adapt are commonly whispered about: Blockbuster, Kodak, perhaps now Intel. Case studies of those who adapted generate fewer column inches. 

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A tale of two companies

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The Fall of  Kodak: Foresight alone isn’t enough

Foresight of technological disruption alone will not protect your market share. The case of Kodak serves as a sobering reminder of how even industry giants can fall to technological disruption. Despite inventing the first digital camera in 1975 and investing billions in digital technology, Kodak failed to fully embrace the new business models (not just new technologies) that digital photography enabled. They clung to their traditional printing business model even as they acquired Ofoto, a photo-sharing platform that could have become their Instagram moment. Foresight and awareness of change alone did not guarantee success - Kodak saw the digital revolution coming but failed to truly transform their business model to capture its value.

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From Pages to Pixels: How Publishers Survived the eBook Revolution

The firms that not only endured but grew from the digital publishing revolution illustrate how process iteration and adaptability to technological change is key for business longevity. While publishers initially resisted the eBook wave through artificial pricing and format protection, the most successful players like Penguin Random House fundamentally restructured around content rather than medium - creating flexible teams, developing format-agnostic production capabilities, and building systems that anticipated continuous evolution. These organizations learned that success lay not in perfect adaptation to any single technological shift, but in building systems that expect and embrace ongoing change. Uncertainty from emergent technologies does not prevent established players from reaping rewards of progress.

What can we learn from these two examples? Below we identify concrete steps that organisations can take to improve their chances of success. 

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Building Resilience to Technological Change

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Move away from annual competitive analysis

The annual competitive review is a relic of slower times. Software-as-a-Service (SaaS) has slashed entry barriers – what once required millions in infrastructure can now be launched with minimal investment. With the addition of AI tools new competitors can develop and scale products in weeks, not years. Market share can shift dramatically between quarters, making monthly competitive analysis essential. It is wise to monitor established rivals and emerging players alike before they gain significant market-share before the next annual review. 

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‍Create incentives for learning, 

Make learning about new tech worth everyone's while – and that means both time and money. Set aside dedicated hours in the workweek for people to explore new tools and ways of working. When someone brings a good idea to the table – like automating a tedious process or finding a better way to serve customers – make sure it shows up in their performance review and (where relevant) bonus discussions. Put simply: investing time in finding smarter ways to work needs to be recognized and rewarded.

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Have a high tolerance for implementation frictions‍

Don't expect overnight miracles when rolling out new technology or ways of working – good things take time. Think about this: today your team couldn't function without Excel, but remember the early days of spreadsheets? People struggled for months before the real benefits kicked in. That's normal. Set realistic timelines and expect some frustration along the way. But keep your eyes open – while patience is important, know when to pull the plug on tools that clearly aren't working out after a fair trial.

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Identify the early adopters‍

Look around your team – you'll likely spot the natural tech enthusiasts who are always first to try new tools and help others use them. These employees are golden. Give them the space and recognition to either scout for useful new technologies or teach others how to use them effectively. It's often better to tap these internal experts than to rely solely on outside consultants (even us!) – they already understand your organization's needs and culture

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Be deliberate in who you hire ‍

Acquiring great hires is always a competitive game. Early adopters of remote and hybrid work didn't just survive the pandemic – they created a lasting competitive advantage in talent acquisition. Today's leading companies continuously evolve their benefits packages to match technological shifts: just as cycle-to-work schemes reflected yesterday's commuting culture, tomorrow's benefits might include autonomous vehicle allowances or virtual office stipends. The message is clear: companies that lag in modernizing their workplace practices risk losing top talent to more adaptable competitors. The people you miss out on are also disproportionately likely to be the ones who best understand the new technology and the shifts that will ensue. 

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The path forward isn't about perfectly predicting technological shifts, but by building an organization that's curious and ready to adapt. Competitive advantage is a function of the world that we operate in: as that shifts, your strategy and edge must too. 

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Paradigm Junction help organisations take decisions now, to prepare for uncertain futures and navigate technology-caused change. To find out more get in touch. 

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