your past success is no guarantee of future success
A paradigm in business, is a generally accepted rule for success. For example, in manufacturing, scale matters – bigger factories lead to economies of scale and the ability to out-price your competitors.
But the world doesn’t stand still and paradigms shift – the rules of success change. And if you don’t change too, disaster awaits.
Here are some notable examples of paradigm shifts (and then I’ll talk about why paradigm shifts matter to businesses like yours and ours!)
| Title | Paradigm Shift | Example |
|---|---|---|
| E-commerce and Online Retail | From brick-and-mortar stores to digital storefronts | Amazon revolutionized retail by creating an online marketplace that offers everything from books to groceries, challenging traditional retail giants like Sears and Walmart. |
| Ride-Sharing and the Gig Economy | From traditional taxi services to app-based ride-sharing platforms | Uber and Lyft disrupted the transportation industry by allowing individuals to use their personal vehicles to transport passengers, altering labor models and regulatory frameworks. |
| Subscription-Based Business Models | From one-time purchases to recurring revenue models | Netflix transitioned from DVD rentals to a streaming subscription model, changing how media is consumed and monetized. |
| Remote Work and Virtual Collaboration | From centralized office work to decentralized, remote work environments | The COVID-19 pandemic accelerated the adoption of remote work technologies like Zoom, Slack, and Microsoft Teams, prompting companies to reconsider office space needs and workforce management. |
| Digital Transformation and Cloud Computing | From on-premise IT infrastructure to cloud-based services | Companies like Salesforce and Amazon Web Services (AWS) enabled businesses to scale operations and innovate faster by moving infrastructure to the cloud. |
| Sustainable and Purpose-Driven Business Practices | From profit-centric models to triple bottom line approaches (people, planet, profit) | Patagonia incorporates environmental activism into its business model, influencing consumer expectations and corporate responsibility. |
| Fintech and Decentralized Finance | From traditional banking to digital and decentralized financial services | Companies like Square, PayPal, and blockchain technologies such as Bitcoin and Ethereum are reshaping how people manage, invest, and transfer money. |
| Artificial Intelligence and Automation | From manual processes to intelligent automation | AI-driven tools like chatbots, recommendation engines, and robotics are transforming customer service, manufacturing, and data analysis. |
These paradigm shifts not only change how businesses operate but often redefine entire industries, creating both opportunities and challenges for companies worldwide.
Why Didn’t They See it Coming?
Do you notice anything about the companies that became successful when the paradigm shifted? None of them were in the sector they now dominate before the shift. It wasn’t taxi drivers that established Uber or book sellers that setup Amazon. The prime movers of a paradigm shift are usually from outside the sector – and so the existing companies, who are busy looking at their traditional competitors (ie companies like them), don’t see them coming. And if they do see them coming, they ignore them, even laugh at them. The existing companies believe that they know what it takes to be successful, and they have years of profit to prove it; they know the paradigms, and they hold all the cards.“Why should we change? Look how successful we are!”
In one of the most famous missteps in business history, Blockbuster turned down the option to buy Netflix for $50 million in 2000. In 2010, Blockbuster went bust and in August 2025, Netflix was worth $500 billion. Blockbuster’s success under the old paradigm blinded them to paradigm shift.So, What Has This Got to Do with You?
I think there are lessons here for every organisation, whatever their size. And the first is:your past success is no guarantee of future success
You have to continually reinvent yourself, regularly looking outside your sector and asking:what should we be doing differently?
Forget the adage, ‘if it ain’t broke, don’t fix it’, that’s the motto of the paradigm dinosaurs who disappeared when the shift happened. Instead, keep in mind this quotation from Peter Drucker:“The future can, will and MUST BE DIFFERENT”
Or as Marshall Goldsmith said:“What got you here, won’t get you there”
And Wessex IT?
There’s another common feature of all the paradigm shifts listed above: technology. In every case, it is technology that drove the change, that transformed industry giants to also-rans and enabled upstart startups to take over.Technology is THE major driver of business change.
While you may not be facing the kind of seismic changes in the examples above, your success can be derailed by competitors making better use of technology.Technology may be your biggest threat – but also your gateway to the biggest opportunities.
Wessex IT can be your technology partner, helping you to stay abreast of new developments and ensuring that your systems help to give you competitive edge now and in the future.