NVIDIA's founder, president, and CEO, Jensen Huang, recently shared a thought-provoking perspective on how companies can navigate the challenge of adaptability (Fortune, 2024). Huang reframed the issue of "AI domination" and the concerns about AI potentially replacing human jobs. He emphasized the importance of innovation-driven adaptability as a survival strategy in today’s business landscape. Using the example of companies navigating technological change, he proffered that our focus should shift from worrying about AI as a job replacement. We should appreciate that the real risk was failing to leverage AI for innovation. According to Huang, AI can perform 20% to 50% of tasks—depending on the role—far more effectively than humans. The real threat, he emphasized, isn’t that AI will take your job but that “the person who uses AI to automate that 20% is going to take your job.”
His perspective challenges us to rethink our approach to change and resilience.
When we think of resilience, we often imagine being bulletproof. Weathered from attacks with nicks and some bruises yet still standing. A testament to endurance —staying strong and bouncing back from setbacks. But resilience means something radically different in a world with frequent market shifts, tech revolutions, and global disruptions. Today, resilience isn’t about what you do after change; it’s about preparing for it and embracing it. As Mr Huang has suggested, it is the ability to accept innovation and leverage it based on your reality. Fear of change must be reframed with an opportunistic lens where new realities become your new playground. Companies that understand this aren’t just responding to change; they’re shaping their futures with agility and foresight.
Is Old-School Resilience Dying?
The traditional view of organizational resilience refers to the ability to recover from adverse situations by managing existing company resources and capabilities (Chowdhury et al, 2019). Think of reconstruction after a storm or patching outdated systems after a cyberattack. These are all reactive to bounce back after a disastrous event. There are also traditional responses taken aftermarket shifts or in response to competitive action. Consider the Cola Wars of the 1980s and 1990s which reached a climax, where Coca-Cola and Pepsi-Cola engaged in a series of marketing gimmicks and upmanship designed to protect their brand and hold fast to their customer base.
From Recovery to Reinvention: The New Face of Resilience
Our current reality however requires a different approach. The traditional approach to resilience has its place but the old formula no longer works. Preparing for yesterday’s challenges won’t save you when tomorrow’s curveballs come. Just last month Samsung Electronics Co. saw a sharp drop in its market value, losing $122 billion. This wasn’t due to a disaster or any operational flaw in its operations. The company's struggles and reduction in market value were issues of competitor agility in AI memory and chip manufacturing. The Economic Times has coined it as “a stark example of how quickly fortunes can turn in an industry where the spoils go to those who maintain a technological edge” (Economictimes, 2024).
Companies are not surviving because they can weather a storm but because they are poised to welcome it. Not needing to react in fear because they have adapted, innovated, and leaned into the future. Staying static in these times isn’t resilience; it’s a recipe for irrelevance. The modern definition of resilience is thinking beyond your present operations and asking, “What’s next and how quickly can we innovate and adapt to stay relevant?” Martin (2012) describes it as an evolutional framework where the organization continuously transforms to deal with external factors.
Innovation: The First Cornerstone
If one were to assess the current business environment, it could appear to be an uphill battle navigating stability. Competitive challenges, market disruption, new technology, and shifting consumer demand create critical choices: innovate or brace for turbulence. Consider how external shifts have reshaped markets. Geopolitics has changed trade routes. The US-China trade war incentivized US energy companies to shift their customer base to Japan and India. Companies like BMW practiced nearshoring by shifting operations to Mexico. Technology and the rise of the Gig economy have created a new category of employees through remote work. AI, automation is currently changing how we learn, network, exercise, and even date. Those who adapted saw opportunities and revised their business models where others saw only challenges.
Disruption Readiness
The toy market gives a glimpse into disruptive readiness. This industry must compete aggressively for kids’ attention in a market with several options for digital entertainment. Companies like Lego have revitalized and reignited their products by collaborating with brands like Marvel, Harry Potter, and Star Wars. They have also strengthened their brand by launching Lego animation movies example their recent collaboration with Creative, Pharrell Williams for the Piece by Piece biopic (Lego,2024).
Hasbro another toy and entertainment giant has noted that the entertainment industry is being transformed by more adult and more digitally engaged customers. They have noted key trends such as kids aging up and adults becoming more playful. Their response has been to focus investments on the consumer segment called “kidults” (consumers aged 13 and older). They have leveraged partnerships by launching a Peppa Pig theme park in Germany in partnership with Merlin Entertainments allowing them to tap into different categories (Hasbro, 2024).
“It’s about skating to where the puck is going as opposed to where the puck has been,” Chris Cocks, CEO of Hasbro,2024
Resilience Redefined: Moving from Reactive to Proactive Strategies
These cases support Rochetta et al (2023) who argue that resilience is more than a process of return to a “pre-crisis equilibrium”. They posit that it involves a series of transformations. In so doing a creative process emerges fostered by innovation. It requires a culture poised to continuously create and recreate an innovative process that allows businesses to be more adaptable and flexible to face external and unforeseeable shocks. Companies bounce ahead by leveraging their innate capabilities. This contradicts past definitions of resilience that focus on returning to the "before" state. According to Rochetta, economic shocks should instead trigger “economic agents to innovate” which will propel the organization to evolve into a better version of the past where innovation isn’t just encouraged but embedded. This underscores the importance of fostering a culture where creative thinking and experimentation are the way of being. (Ludwik, 2023).
In these cultures, innovation is everyone’s responsibility. This creates an empowered team that continuously contributes to the company’s success. 3M has been noted for its innovative culture. It has been called the “15% Culture” which allows technical staff to spend up to 15% of their work time on projects of their choice. In response to the social shift of labor challenges within manufacturing, 3M is introducing automated technologies like the 3M™ Finesse-it™ Robotic Paint Repair System, which works with third-party vision systems to automatically identify and repair common paint defects on automotive production lines. In response to hybrid working, 3M recently launched The Post-it® App for Microsoft Teams.
“Our technology platforms and institutional expertise allow us to move forward through disruption. We can see around the corners of intersecting trends to understand and respond with science-based innovations at scale in ways no one else can or does.” Dr. Jayshree Seth, 3M Corporate Scientist, 2023
Agility Mindset: The Power to Adapt
Resilience demands more than just readiness to react—it requires an agility mindset, an adaptive capability that empowers businesses to pivot, innovate, and proactively shape their paths forward. If innovation is the race car, agility is the fuel that keeps it moving swiftly through change. Business agility is a set of organizational capabilities, behaviors, and ways of working that afford your business the freedom, flexibility, and resilience to achieve its purpose. Agility means having the capacity to refine its business model—before it’s too late. It’s about developing processes, teams, and mindsets that are flexible and responsive. There are interesting cases that exist. You may be surprised to learn that Vogue magazine has existed since 1892. How have they remained relevant in an industry where ...
" In Fashion one day you are in and the next day you are out? Tyra Banks
The Fashion Industry’s Bible” moved from having a mainstream offline presence to becoming even more influential by adapting its brand to an online model. With the use of online influencers and by working with the world’s biggest brands they have been able to build a following that includes several generations. Despite the fickleness of the fashion industry, this magazine has been transformed to maintain relevance. Over the past few months, I observed how they executed branding agility during the US elections in 2024. Their status as a fashion magazine didn’t make them shy away from political activism.
They demonstrated flexibility in their brand messaging schooling their followers of the younger demographic on the “power of the vote” strategically using attractive political influencer Jack Schlossberg of the Kennedy lineage.
Why Adaptation Is the New Standard
Agility is not easy if the organization is not structurally or culturally designed to move quickly to pursue transformation. It demands a deep understanding of market dynamics, competitive edges, and consumer needs. Red Lobster’s is now filing for bankruptcy due to short-term tactics that failed to align with modern consumer expectations. To address waning foot traffic post-COVID-19, Red Lobster attempted ‘innovation’ through sales promotions alone. This failed in an age where restaurants such as Chipotle and Chick-fil-A were offering more curated experiences to attract millennials to their customer base.
The reinvention of their marketing, food quality, and ambiance (CNN, 2024) was substituted for an all-you-can-eat shrimp special which cost the company $11 million. They should have understood how cultural shifts were evolving with consumer preferences. Thus, reinventing their business model through sustainability and consumer-centric innovation. While agility contemplates the adjustment to market conditions, Red Lobster offers a stark reminder that agility requires more than short-term tactics. It requires a consumer-centric approach to inform the context, quality, and pace of capturing new opportunities.
Agile strategies are crucial for organizations needing to make quick decisions and respond effectively to market changes. By design, agile approaches emphasize flexibility, adaptability, and iterative processes that align well with volatile business environments. Here’s how they empower quick decision-making and responsiveness:
Iterative Planning and Execution Agile strategies enable companies to act based on real-time feedback and evolving market conditions, minimizing the risk of pursuing outdated strategies.
Cross-functional Collaboration Agile frameworks prioritize cross-functional teams that combine diverse expertise, allowing faster information flow and a deeper understanding of market demands.
Customer-Centric Focus Agile emphasizes continuous feedback from customers, enabling companies to understand shifting customer needs and preferences. With ongoing input from users, teams can rapidly adjust offerings to better align with market demand.
Reduced Hierarchy and Decentralized Decision-Making Agile approaches encourage decentralized decision-making, allowing teams closer to the front lines to make swift choices without waiting for executive approval.
Continuous Improvement and Adaptability Agile values continuous learning and adaptation, which promotes a mindset of resilience within the organization. Teams are encouraged to reflect on their processes regularly, refining strategies based on performance data and environmental changes.
Redesigning Resilience: Building an Innovation Strategy
In a landscape marked by rapid shifts, staying competitive demands that companies embed agility and innovation as core principles. Modern resilience requires more than the ability to withstand disruption—it involves actively transforming to meet evolving challenges. Instead of simply recovering from setbacks, resilient organizations continuously adapt, positioning themselves to grow and thrive as change becomes the norm. It's more than just enduring change—it’s about anticipating it, adapting swiftly, and using it as a launchpad for growth.
Those who adapt quickly, learn continuously, and innovate courageously will shape the future of business. Leaders who cultivate cultures ready to embrace new challenges and seize emerging opportunities will secure their place at the forefront of tomorrow’s landscape. Companies like 3M, Hasbro, Lego, and Vogue show that when companies prioritize agility and innovation, they don’t just influence their future—they shape the future of entire industries.
The choice is clear: while we can’t control the wind, we can adjust our sails to steer forward with resilience.
No part of this publication may be reproduced, translated, stored in a database or retrieval system without expressed permission from the author.
Reference
Chowdhury, A., et al. (2019). Traditional Views on Organizational Resilience. Journal of Business Continuity and Risk Management.
Martin, R. (2012). Evolutional Frameworks in Business: Adapting to External Forces. Business Strategy Review.
Rocchetta, G., et al. (2023). Beyond Resilience: The Role of Innovation in Responding to Economic Shocks. Journal of Strategic Innovation and Resilience.
Ludwik, M. (2023). The New Era of Resilience: Embedding Innovation as a Core Strategy. Global Business Insights.
Articles and Reports:
Economic Times. (2024). Samsung’s Sharp Drop: The Cost of Lagging Behind in AI Innovation. Economic Times, October 2024.
Fortune. (2024). NVIDIA’s Jensen Huang on the True Risk of AI for Businesses. Fortune Magazine, October 2024.
CNN. (2024). Red Lobster’s Downfall: The Cost of Short-Term Tactics over Long-Term Strategy. CNN Business, September 2024.
Hasbro Inc. (2024). CEO Chris Cocks on ‘Kidults’ and Future Consumer Trends. Hasbro Press Release, 2024.
Lego Group. (2024). Lego and Pharrell Williams Collaborate for 'Piece by Piece' Biopic. Lego Newsroom, 2024.
Company Sources:
3M Corporation. (2023). Dr. Jayshree Seth on Innovation Through Disruption: Embracing Automation and Agility. 3M Annual Report and Press Statements.
Vogue Magazine. (2024). Vogue’s Political Push in the 2024 US Elections: Influencing Through Fashion. Vogue Magazine, 2024
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