Digital start-ups have the advantage of being able to reinvent businesses and industries by addressing consumer needs in completely new ways. Just look at what Uber is doing in the transportation business and what Airbnb is doing in travel.
To compete, incumbents need to create their own “digital attacker” businesses that can allow them to be more disruptive in their own approach. Incumbents can build strategic advantage by leveraging existing strengths—brand recognition, existing customer relationships, and niche products and services. The key is to do it quickly. Digital speed is as much as five times faster than traditional business, and that speed is essential to becoming a leader or a fast follower.