Leveraging opportunities from digital disruption: A shared value approach at Australia Post

Abstract

Digital disruption, can represent either a major threat or a major opportunity for organizations. Key to determining whether digital disruption harms or benefits a firm are the steps organizations take to respond to this disruption. In this research we extend extant theory on innovation disruption and shared value by exploring how the creation of shared value, particularly through a firm's community engagement practices, can play a role in shaping how the organization responds to major digital disruptions. The increase in consumer use of digital technology has underpinned significant disruption to the traditional business of postal operators globally. We explore the response of one postal operator, Australia Post, to digital disruption. The results of our case study analysis of Australia Post suggest that a shared value approach can provide firms facing digital disruption with four key benefits: 1. Shaping the capabilities of a firm, such that they are better positioned to respond to digital disruption; 2. Establishing an effective conduit for firms to gain knowledge and insight needed to implement new innovations necessary to respond to innovation; 3. Assistance in implementing new business models; and 4. Enhancing the firm’s brand equity.