If you think that digitalisation and digital disruption are not affecting your business, you’re probably mistaken. Take, for example, a company like Uber, which has totally upended the taxi industry by digitalising a how people order a ride. Or consider how Airbnb is challenging the hotel industry by seamlessly connecting travellers with ordinary people looking to rent out their property.
These examples perfectly illustrate how someone with a new idea can pop up and totally turn your business on its head. The success of the likes of Uber and Airbnb demonstrate what can happen with start-ups introduce digital innovation to industries that are typically “non-digital”. And challenge big, established players in the process. As Travis Kalanick, Uber CEO once explained that it’s hard to be a disruptor, without making a few enemies along the way.
Defining digital disruption
In the short amount of time it takes to build a website or develop an app, digital disruptors can force well-established businesses to totally change how they do business.
“Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services,” according to Tech Target. As such, digital transformation should be on every business’ agenda.
So, how is digital disruption affecting your business?
One of the primary ways digitalisation and digital disruption are impacting enterprises has to do with the relationship between a business and its customers. These new technologies offer businesses a myriad of opportunities to provide their customers with a more personalised experience and to better meet their needs. With strategic and effective use of digital tools and platforms, companies can leverage customer data to foster customer loyalty.
Some of challenges modern businesses face as a result of digital disruption include:
A lack of focus – With so many new technologies to choose from, businesses need to start out by carefully evaluating which technologies and solutions enable their vision and which do not. Companies should not simply go along with the latest trend if these innovations don’t add real value to their business.
Failing to follow through – If you offer your customers a fantastic online shop but your purchasing and delivery functionality fails to impress, your customers are not going to be happy. When embracing digital innovation, both front-end functionality and supporting back-end technologies must be set up properly.
Collecting data but not using it properly – With so much talk about big data and analytics, most businesses would be forgiven for jumping on the bandwagon. But collecting and storing data from IoT devices and social media doesn’t actually add that much value. It is only when this information is used to derive real insights about your customers and their needs and preferences that data really becomes an asset.
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