In the last few years, we've seen a lot of changes in how people interact with digital media. With the introduction of tablets and smartphones, as well as increased access to video streaming services like Netflix and Hulu+, it's becoming increasingly apparent that digital disruption is coming - and your company may be affected by it.
While these advances have made our lives easier in some ways, they've also created new opportunities for companies to steal revenue from one another. This means that organizations need to stay on their toes if they want to remain competitive. If you're wondering what this might look like or how your business can prepare, then read on!
Digital Disruption Is Coming
As far back as 2004, companies could see that digital disruption was coming their way. Much like how the steam engine gave rise to railroads in the 19th century and how automobiles were responsible for the appearance of fast food chains like McDonald's in the 1940s McDonald's in the 1940s, it was clear that changes in consumer habits would bring about significant alterations in business.
It didn't take long for companies to start experimenting with digital transformation strategies either - especially since disruptive technologies have been on a steep trajectory throughout most of 2010. For example, it wasn't until 2009 when Netflix Netflix started streaming movies on demand, which prompted many businesses to begin offering similar services on their own websites.
In 2016, Walmart and Best Buy had their own mobile payment systems launched so they could better compete with the likes of EBay and Amazon. Just a year later, both Microsoft and Google were rumored to be testing digital wallet technologies that would allow consumers to pay for goods without ever needing to pull out their credit cards or cash again.
The bottom line is that companies have been making moves toward digital transformation since as far back as 2004. Some using disruptive technology as an opportunity while others simply continued along the path they've known forever. Regardless of how your business has embraced digital disruption thus far, there's no telling what the future will hold. It's only a matter of time until digital disruption takes its full effect.
Digital Disruption Is Now Here
While digital transformation has been occurring for the last decade, we're now seeing this trend entering its next stage: where it's no longer just about replacing business models and strengthening customer relationships - but rather changing how people interact with your organization altogether.
As an example, let's take a look at what happened to Borders Books after Amazon started offering eBooks back in 2007. While companies like Netflix and Hulu+ may not have had as direct of an impact on the retail bookstore industry, they certainly contributed to Borders' eventual bankruptcy. Even though digital disruption was still minor back then (in comparison to the present day), it was enough to make consumers think differently about how they purchased books.
Today, we're seeing even more examples of digital disruption affecting the ways in which businesses interact with their customers. On-demand taxi companies like Uber and Lyft are giving consumers an alternative to taxis - one that's faster, cheaper, and easier to use. Meanwhile, food delivery services like Seamless, Doordash, and Grubhub allow patrons to order meals directly from restaurants rather than calling them up on the phone when they want to place an order.
And speaking of eating out, websites like Yelp have made it easier for consumers to find local dining options by eliminating the need for phonebook listings or word-of-mouth recommendations between friends and family members.
As these examples illustrate, your business may be heading toward digital disruption whether you're ready or not. If you want to ensure you don't suffer the same fate as Borders and make your customers think of digital transformation in a different way, here's what you can do:
How Businesses Can Prevent Digital Disruption From Impacting Themselves
For starters, all companies should be looking to become more agile. Whether they're established market leaders or relative newcomers trying to get their feet off the ground, any organization that desires to stay around for the long term will need to rapidly change and learn new things over time. This means there's no room for bureaucratic red tape when it comes to decision making, even if it takes longer than expected for certain changes to take effect.
Encouraging innovation is another integral part of disrupting yourself before someone else does. In some cases, this will mean offering an employee rewards program to those who come up with the best new ideas. In other instances, you may need to seek out outside expertise from a third party company that specializes in helping businesses innovate. Either way, innovation is one of the easiest ways for companies to stay ahead of their competition and prevent digital disruption from occurring.
Lastly, all businesses should be doing whatever they can to enhance customer experience. You'll never know how many customers decide not to do business with your organization because they've experienced a poor interaction even if it's something as simple as difficultly finding your contact information online after Googling it or receiving an unattractive product catalog in the mail. The more effort you make to improve your customers' shopping and other experiences, the more likely they'll be to continue doing business with you.
Digital Disruption Can Be a Bad Thing
The great thing about digital disruption is that it has the potential to help various companies find new ways of doing business but it can also have a negative impact on the economy as well. In fact, since 2019, there have been concerns within certain circles that digital disruption may lead to widespread unemployment. This perhaps isn't surprising given the pace at which technology is evolving these days whether it's self-driving cars or artificial intelligence software capable of performing basic office tasks without any supervision.
What this means for both consumers and businesses alike is that we're going to need to start thinking differently about how we do things in the future. For starters, people will need to adapt by getting accustomed to doing more online rather than visiting the local shopping mall or post office for goods and services. That way, if you find yourself out of work due to digital disruption, chances are you'll be able to find at least some form of employment online instead.
While the speed at which digital disruption has occurred certainly poses its own set of problems, there's no denying that it has provided us with a number of benefits as well including making your business more competitive, giving consumers more choices when shopping, and opening up new avenues for companies to generate revenue. The only question now is whether you're prepared to avoid being disrupted itself by making necessary changes before it's too late.
This article was first published on Read.cash