Using technology as a disruptive force

DISRUPTION is a word most frequently linked to technological innovation.

Many innovations hailed as industry changing are in fact incremental or evolutionary. And that is not to take away from their benefit to the customer or their significant impact on that business’ growth. True disruption can actually prove to be a very hard sell.

“Technology can be a potential disrupter but there is a gap between coming up with something that can be disruptive and actually making it disruptive,” says James Waterhouse, who is chief executive of Deal Connections as well as being a technology partner at Endless and owning a data business.

He adds: “You can have the best idea in the world but it is very difficult to make that idea stick enough and to generate enough noise to call yourself a disrupter. That requires the old skills of getting something to market.”

AIM-listed transport technology business Tracsis plc has a market capitalisation of £120m employing 400 staff across nine UK offices. The company, which started life as a Leeds University spin-out in 2005, also has offices in Australia and the US and has recently completed its eighth acquisition.

Chief executive John McArthur explains: “We are very interested in real time data capture and using that data to predict outcomes basically around transport and pedestrian related problems.”

 

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But it is less interested in disruption: “With transport companies that is about safety first and it has to work. If we talk about disruptive technologies that’s not right – it’s about showing them something that works. You need to tread carefully or you can waste a lot of money. We see technology as an enabler and we are market led by customers,” says McArthur.

Harrogate-based fintech business Nostrum Group has been going for 15 years and employs 85 staff. Chief executive Richard Carter says he believes that technology will enable the transformation of financial services but adds that the company only focuses its efforts on those businesses that will be most receptive to the possibilities of change.

“When we talk to new lenders, which we prefer as they have no legacy systems, if they don’t understand digital and don’t want to get into self service for consumers then we just won’t deal with them.

“We look for organisations with digital aspirations, that have funding, a requirement to adherence to compliance and that have a clear business plan. If we think they will be a winner then we will deploy our resources. For us it is about the client already understanding what digital is.”

Judit Petho, chief executive of fast growing law firm Genus Law, agrees: “Disruption is important if you can execute it otherwise it is just an idea.

“As a new company you don’t have a lot of time to educate your customers so it is better to go in somewhere where there has already been some discussion but nothing has really happened.”

The Leeds-based firm is structured as a company rather than a partnership and positions itself as a challenger law firm that wants to disrupt the legal sector through a business-focused approach and the use of technology.

“The opportunity in the legal and accounting industries is out there – it is about dissecting the market in a completely different way. Turning the thinking around on how you execute it is critical and that is where professional people lag behind those in technology. That’s great for us as it gives us a massive market.

“There are areas of law where people want daily contact with their lawyers but if you have just certain legal issues, and like terms and conditions you have to deal with regularly, then that is not what you need. The client wants value for money and for their problem to be solved quickly.

“To package our service up we need technology and we need our lawyers to be tech savvy. That disruption is not exciting for the client but it is how we deliver that service and manage the efficiencies – that makes a difference,” adds Petho. 

 

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