On the 24th of October 2017, Sherri Liebo, the Senior Vice President for Digital Realty, tweeted “This new era of digital disruption has made digital transformation (DX) a hot topic—again.” This article will explore the meaning behind Digital Disruption; how this is currently operating in organisations and why it ties into digital transformation for business.
Digital disruption arises when a change occurs in a business, this change usually is a new technology or business model which rethinks the value proposition of a product or service. Here are some industry examples below:
Netflix is the market leading video streaming service today; with over 90 million worldwide subscribers, this company has forced television broadcasting systems into rethinking their strategy and even forced physical rental services, like Blockbuster, out of business. How have they done this? They’ve tapped into the consumer’s attitude to ‘wanting it now’, whilst building an extensive library that doesn’t need to appeal to the masses.
AirBnB is a global room rental service, that has created a direct threat to the hotel industry. The company value, as of May 2017, is over 31 billion USD. Why has this become so popular? It offers a selection of accommodation at a wide range of prices. Potential customers aren’t limited to location either, so you aren’t stuck in a room right next to the airport but is not near any public transport and is over an hour away from the city.
This isn’t disruptive yet, but the Google car poses a direct threat to taxi, bus and truck drivers. Cost and manufacturing are halting this disruption as, unlike the above examples, a physical product needs to be created. Why will this change the industry? Improved safety; reduced crashes, injuries and mortalities. Enhanced mental health; less stress, reduced traffic and an increase in leisure time.
What do each of the examples above have in common with each other?
Businesses need to understand that the consumer now has more power than ever; to stand out from your competitors, a personalised, varied service should be offered – from any device, at any time.