Whatever industry you are in today, disruption is afoot. Moreover, it’s not an overstatement to say that IT is enabling just about every new business model taking shape.

More than a decade ago, management guru Clayton Christensen predicted this type of disruption with his classic book, The Innovator’s Dilemma (Harvard Business Press, 1997). At the time, many businesses resisted the notion as too radical or unnecessary.

Later, in a 2008 Harvard Business Review article Christensen co-authored, Reinventing Your Business Model, he once again claimed that new business models are required to leverage new technology, address new groups of customers and to fend off successful disruptors.

Today, the reality of business transformation is clear. Nimble upstarts are challenging long-time industry giants — from publishing to retail, healthcare to financial services — which in turn is causing many old-style conglomerates to swallow up fledgling newcomers in an attempt to stay current.

For executives who are uncomfortable with upheaval, it may be time to retire to the golf links and pass the baton. For others — particularly CIOs — it’s an exciting time to lead and inspire. Bruce J. Rogow, a veteran IT consultant who has seen many business shifts and cycles, told me that CIOs are “at the vortex” of the current changes. In our Smart Insights interview this month, he says, “The ground is shifting under the CIO’s feet; IT has gone from a cost center to supporting new business models that make the enterprise competitive.” Rogow believes that “this is an exciting period when CIOs get to be leaders again, not just custodians.” [Read the full Insights here]

Rogow also explains that what’s unique about the current environment is the convergence of new technology platforms and new business structures. When one shifts without the other, transformation is much less sweeping.

To make sure these high-level strategies actually work on the ground, we spoke with Procter & Gamble Canada about dramatic shifts under way at the multinational marketing giant. Although P&G was slow to adopt new models compared to some, it has now taken aggressive steps into Enterprise 2.0. In fact, IT is co-leading corporate efforts to build stronger customer relationships using social media, e-commerce and community collaboration.

Not only was the recent idea of a branded P&G Web site a big departure, but it originated in conjunction with IT. The collaboration “points to a very important type of skill set that IT people need to have,” explains Susan Doniz, CIO and Associate Director of P&G, Canada, who runs the technology operations. “The new role of the CIO and other IT leaders is about transforming the business” and evangelizing the new possibilities, she says. Doniz offers her lessons learned and Smart Practices for others to follow as well.

P&G’s new agility and was also noted at our recent New York City Live Exchange. Speaker Peter Hinssen pointed to P&G as a prime example of a company where the IT community has helped to transform the business.

It has been a long time coming, but disruptive innovation no longer seems very radical. For CIOs, now may finally be the time that business-IT alignment moves from academic theory to action—and they can lead the way.

How well are you managing disruption at your business? Let me and your peers know...

Paula Klein
Editor and Community Manager
Smart Enterprise Exchange