Any Generation is Worth Reading! 4 Tips to Disrupt Family Business

          Taking over a "Family Business" is already a significant challenge for the next generation. When faced with the harsh waves of disruption, the task becomes exponentially more difficult.

          To equip the heirs of these businesses to confront challenges in the business world and stand firm, Ariya Thalerngsri, Managing Director of the Southeast Asia Center (SEAC), spoke at a seminar titled Upside Down Thinking: The Opportunity to Grab & Go Faster. He encouraged the heirs to ask themselves clearly...

          If they need to adjust their mindset in business to “Upside Down Thinking” to unlock themselves from the trap of being the 3rd or 4th generation of a family business, can they keep pace with the digital age?

          1. Disrupters VS Core Business Heirs who aspire to lead must stop viewing the Core Business as satisfactory just because it is still operational. They need to rethink how to disrupt their own business before considering how to disrupt others.

          2. Venture Capital Investors VS Public Market Investors One of the key principles for new entrepreneurs in finding business partners is to not just focus on the monetary value of the investment but to seek those who share a passion with the organization to drive the business toward its goals.

          3. New Sales Teams VS Established Sales Teams While family businesses may have longevity, that doesn’t mean they should become outdated. As the business world changes, organizations must adapt. A crucial mechanism is to create change within the organization by bringing in new talent to drive the organization forward with fresh ideas while maintaining the core values of the family business.

          4. Early Adopters VS Pragmatists Another vital aspect of thriving in a world full of disruption is that heirs must seek out Early Adopters—those willing to embrace change for the better. Ariya illustrated this with the example of Grab, a ride-hailing service that emerged to address unmet consumer needs in transportation. Before it became widespread, it had to start by finding Early Adopters ready to experience something new.

          After answering whether they are ready to revolutionize their organization, if the answer is yes, the next step for the heirs is not to abandon the family business to create a new one, but to figure out how to disrupt the existing business to ensure its survival through 4 strategies, which serve as essential knowledge for the new generation of executives.

          1. Market Shift refers to creating change in the market by addressing Unmet Needs or issues that frustrate customers. For example, Grab remains in the transportation business but has transformed its service model to better meet consumer demands, such as offering convenient app-based ride-hailing that eliminates cash issues and provides accurate arrival times.

          2. Societal Shifts means responding to new preferences in society or creating New User Preferences. A clear example is Amazon, which pioneered online retail as the world's largest online bookstore, revolutionizing business by studying consumer behavior that increasingly favors online shopping for its convenience, especially for older populations who may prefer not to shop in person.

          3. Disruptive New Technologies refers to moving existing businesses onto technological platforms. For instance, Netflix began as a DVD rental service with home delivery but evolved by recognizing the global trend towards technology, developing a new platform to disrupt its original business and becoming a giant in video streaming.

          4. New Business Models involves creating entirely new business models without concern for the old world. An example is Google, the giant search engine that continuously innovates to provide superior services that enhance everyday life.

          In a business world where the big fish easily eat the small fish, it has transformed into a new world where the fast fish eat the slow. Heirs who do not want to become the slow fish that cannot keep up must quickly rethink their strategies and leverage the solid foundation of their family business in ways that even startups would envy. -TerraBKK