It is a matter of perspective really, how do you interpret the term ‘Disruption’, in context to this blog, the term ‘Digital Disruption’. Some people’s first response on hearing the term disruption would be, inferring it as a ‘Negative’ intervention to their daily functioning of lives, specifically digital disruption, could have a connotation of a negative impact to their current form of business. But a flip side to this could be coined as a ‘Digital Opportunity’, which is only possible if you embrace the disruption or the new change in technology, which will be available in the near future and will impact your current business in one way or another. Through this blog, we have tried to explain the true inference of digital disruption and its reign in the coming years.
What is Digital Disruption?
It is nothing but a shift or a transformation that is the result of some emerging technologies and business models, with the power of impacting the value of existing technology, products or services currently offered. Hence the terminology of ‘Disruption’, as the development of new products, or services or businesses, which are digital in nature, disrupt the current market, nudging companies to re-evaluate their position.
Most IT heads and leaders find themselves facing the intimidating term of digital disruption, there initial response to it is to ‘wait and watch’ It is this very attitude that needs to change, as, with this thought, organisations face the risk of being left behind in competition.
And the reason most IT leaders are intimidated is that of past examples of disruption, the case study of Kodak, how they failed to capture the future markets and could not identify the correct threat to their business, as they failed to change with the evolving identities of their customer’s needs. Kodak could not keep up with the fact that cameras could not only be a device for taking pictures, but a friendlier and fun gadget for their clients too. Sony and Cannon took advantage of the Gadget culture and became favourites of their consumers, by introducing new technologies and approaches, while a mobile company like Nokia also entered the competition, which was unheard of at the times. Finally, as a result of holding their ground and not embracing the digital disruption, Kodak could not sustain and eventually declared Bankruptcy in 2012.
Uber, Airbnb and similar other services, are recent disruptions to the local taxi and hotel industry. The lesson that can be learned by Kodak, is that to begin with Digital Disruption is an unstoppable occurrence, and instead of fighting and waiting for its impact or denying the possibility, businesses should embrace it. And going a step ahead should also consider asking themselves, ‘how can my business become a digital disruption to others?’.
The Reign of Digital Disruption
There is a wave of change anticipated, which has the potential to redefine the very core of how businesses function. In the future one will see users changing their likings from mobile apps to virtual assistance, shopping in augmented reality will become a reality, the conjectures are big, dynamic and colossally exciting.
A study by Gartner suggests that by 2020, 100 million customers will shop in augmented reality.
30% of all browsing activity will be done in without a screen, almost 20% of the brands will abandon their mobile apps, and algorithms will alter the behavior of more than one billion global workers. And in the years after, the top seven digital giants will own 20% of all activities that an individual engages in, while Blockchain based businesses will be approximately worth $10 million. Astonishing, isn’t it?