You Won't Be Taken Out by a Competitor

I hope you have some favorite authors (Michael Gerber, Brene Brown, Jim Collins, etc.). I certainly do. And one of them is Clayton Christensen. I consume everything I can by him. If you haven't read (or listened to) his two biggest books, I highly encourage you to do so right now:

- The Innovator's Dilemma - https://amzn.to/42PL9iR

and

- The Innovator's Solution - https://amzn.to/4hwJ7bZ

He literally defined what "disruption" means in the modern business world.

So anyway . . .

Disruption is far more than being conquered by a wily competitor, or one with more money. Most people fear those outcomes. But Christensen makes clear that disruption is not about losing the battle you're fighting today. Disruption happens when someone comes along with a better business model

You won't be taken out by a competitor. You'll be taken out by a new business model.

I always try to steer people away from paying attention to your competition. I absolutely believe that your so-called competition is irrelevant. It's very rare, in the 21st century, to have two monster competitors who divide 95% of the market between them. And it's impossible in small business, by definition. And so, it's never true that you lose a dollar when I earn a dollar.*

You've probably heard the old truth that your real competition is no decision or no change. That's true most of the time. But don't forget that you can simply be displaced. That's where most businesses die: They are displaced, but not by the competition. They're displaced by new technologies and businesses made possible by new technologies.

In my lifetime, many businesses have simply vanished. Consider almost any kind of small appliance repair. Do you remember TV repair shops? Oh, some also repaired VCRs. And don't forget "video" rentals like Blockbuster. And, along with them, record stores.

I'm not talking about the disappearing technology itself. That's normal and essentially built into your job. You'll always adopt the new technology, even if you're slow to get there. 

I'm talking about the business models that don't exist anymore. When I first got started as an IT consultant, I made really big money getting people connected to the Internet. This was literally 1995 and it was the bluest ocean that ever existed. There were thousands of companies connected to the Internet, and hundreds of millions that were not.

That business model lasted less than five years. IT consulting onsite became the next big thing. And then managed services and cloud consulting. Now it's software (and everything else) as a service. Next up AI.

How will AI disrupt your business? It's not completely clear yet, but hints are all around. (See my blog from Feb. 3: https://blog.smallbizthoughts.com/2025/02/the-two-biggest-challenges-for-msps.html).

Consider: What do you do most of the time? Google it. Now open Gemini or ChatGPT and ask how to fix your biggest problems. Today, an eager tech-savvy client can do that. Tomorrow, the average office manager will be able to.

Example: Router Configuration by AI

I opened Gemini and asked, "please give me step by step instructions for configuring a new cisco router." It responded:

Configuring a Cisco router can seem daunting, but it's a straightforward process when broken down into steps. Here's a comprehensive guide to get you started:

1. Preparation

• Gather necessary equipment: You'll need the Cisco router, a console cable, a computer with a terminal emulation program (like PuTTY or Tera Term), and any necessary network cables.
• Connect the console cable: Connect one end of the console cable to the console port on the router and the other end to a¹ USB port on your computer (you may need a USB-to-serial adapter).
• Open a terminal emulation program: Configure the program with the following settings:
  • Baud rate: 9600
  • Data bits: 8
  • Parity: None
  • Stop bits: 1
  • Flow control: None

2. Initial Configuration

• Power on the router: Once the router powers on, you'll see a series of messages in the terminal window.
• Enter privileged EXEC mode: At the prompt, type enable  and press Enter. You'll be prompted for a password if one has been set.
• Enter global configuration mode: Type configure terminal  and press Enter.

3. Basic Configuration

• Set the hostname: Type hostname <your_router_name>  (e.g., hostname MyRouter)  and press Enter. This gives your router a unique name.
• Configure interfaces:
  • Identify the interfaces you need to configure (e.g., GigabitEthernet0/0, FastEthernet0/1).
  • For each interface, enter interface configuration mode: interface <interface_name>  (e.g., interface GigabitEthernet0/0).
  • Assign an IP address and subnet mask: ip address <ip_address> <subnet_mask> (e.g., ip address 192.168.1.1 255.255.255.0 ).
  • Enable the interface: no shutdown .
  • Exit interface configuration mode: exit .
• Set passwords:
  • Enable secret password: enable secret <password>  (this encrypts the password).
  • Console password: line console 0 , password <password> ,  login .
  • VTY password (for remote access): line vty 0 4 , password <password>  ,login  .

4. Advanced Configuration (Optional)

• Configure routing protocols: If you have multiple networks, you'll need to configure a routing protocol (e.g., RIP, OSPF) to allow the router to forward traffic between them.
• Set up DHCP: If you want the router to assign IP addresses to devices on your network, you can configure it as a DHCP server.
• Configure NAT: If you want devices on your local network to be able to access the internet using a single public IP address, you'll need to configure Network Address Translation (NAT).

5. Save the Configuration

• Exit global configuration mode: Type exit  until you are back in privileged EXEC mode.
• Save the configuration: Type copy running-config startup-config  and press Enter. This saves the configuration to the router's NVRAM, so it will be loaded when the router restarts.

Important Notes:

• This is a basic configuration guide. Cisco routers have many advanced features that you may need to configure depending on your specific needs.
• Always consult the official Cisco documentation for your specific router model and IOS version for the most accurate and up-to-date information.
• Be careful when configuring your router, as incorrect settings can cause network problems.

Additional Resources:

• Cisco Getting Started Guide: This guide provides basic information about setting up a Cisco router.
• Cisco Configuration Fundamentals: This guide covers the fundamentals of configuring Cisco devices.
• Cisco Command Reference: This reference provides detailed information about all of the commands that can be used on Cisco devices.

By following these steps, you can successfully configure your new Cisco router and get your network up and running.

It's not perfect. It's probably not your process. But it's a good start. And with some follow-up prompts, it could be better. You might be called in to fine-tune the setup.

Your current business is disappearing. Are you ignoring it to see if this fear is justified, or are you thinking about how to build the technology business of the future?

How can you adjust the value chain so that you continue to be worth paying month after month? In the transition period (probably 5-10 years), I think the best bet is to increase the personal touches and customer service. Whether you're fighting AI or mega-MSPs, good personalized service will always win the day.

But you need to make it happen. Your business won't change by itself. You need to take action now to start building the future of your business. And the two big questions remain the same:

- Where are you going?

and

- How will you get there?

Feedback Welcome

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* Let's be clear. If you're losing clients to the competition, they're doing something better than you. They've got better value somewhere in the value chain. Everyone wants to whine about price, but it's a pain in the neck to change IT consultants if you have a good one. If you regularly lose clients to the competition, either you're responsible for some pain or they've already moved to a business model that's better than yours.

:-)