Digital disruption within today's companies
Posted: Wed Dec 04, 2024 9:39 am
Nov 4, 2019 Marketing Trends Written by Ana Kelyna Siliceo 3 min read
In the face of rapid digital evolution and its adoption by consumers, who are constantly acquiring new behaviors, companies must be able to activate new list of belarus consumer email channels to communicate with their customers.
On the adoption of new technologies The survival of a company depends on it, however, this is not limited to a simple investment in ICT infrastructure, but requires a profound change in business culture, which even modifies the business model, which is known as digital transformation .
But there is another type of recently created company that does not see the need to modify its entire business culture and internal processes, because from the beginning they are born to satisfy some new need of digital consumers . These break into the market, putting established companies at risk.
What is digital disruption?
Digital disruption is the change that occurs in the value proposition of existing goods and services in the face of new technologies and business models.
Large companies with years of experience, accustomed to working in a certain way, lose profitability when new companies are created that are driven by technology and that satisfy the needs of customers in a novel way, adapting to their newly acquired behaviors, for example, in the use of mobile devices.
Two iconic companies in digital disruption are Uber and Netflix, which I will briefly discuss below:
Uber
This company revolutionized the transportation industry and gave a new value proposition to the traditional taxi service. It creates a network of drivers and clients who communicate through a mobile application that incorporates technology and functionalities that allow it to deliver a great experience to its clients.
Netflix
When Netflix emerged as a home movie rental service, the then-giant Blockbuster did not consider it a threat. The latter was not able to adapt its business model to the new needs of the digital consumer, unlike Netflix, which created a streaming platform with on-demand videos that today dominates the market .
In the face of digital-native companies, companies with a traditional model must embrace change. For example, the TV entertainment industry today seeks new ways to integrate where audiences are: on social networks, streaming channels, even in video games and eSports.
Keys to facing digital disruption
The key is to develop a strategy that fits what the company does best. S+B suggests some principles for this , including:
1. Embrace the new logic
Don't make the Blockbuster mistake, it's important to see every new company, no matter how small, as one from which you can learn.
Disruption is a sign that the business models that worked until then in a certain industry are becoming obsolete.
2. Move deliberately
A company must strike a balance between moving strategically and reactively when the first signs of disruption appear in its sector, even when customers have not yet changed their habits.
It is important not to panic and take the time to develop a new, distinctive and digitally enabled value proposition.
3. Build a brand personality
Rather than relying on products or services to distinguish yourself, or completely changing your business model, you should develop a recognizable identity based on your company's strengths .
Digital disruption may seem like a threat to established companies, but the truth is that in many industries, old and new models continue to coexist. It is an opportunity for companies that have been in the market for years to rethink their value proposition and create a unique identity based on their current strengths.
In the face of rapid digital evolution and its adoption by consumers, who are constantly acquiring new behaviors, companies must be able to activate new list of belarus consumer email channels to communicate with their customers.
On the adoption of new technologies The survival of a company depends on it, however, this is not limited to a simple investment in ICT infrastructure, but requires a profound change in business culture, which even modifies the business model, which is known as digital transformation .
But there is another type of recently created company that does not see the need to modify its entire business culture and internal processes, because from the beginning they are born to satisfy some new need of digital consumers . These break into the market, putting established companies at risk.
What is digital disruption?
Digital disruption is the change that occurs in the value proposition of existing goods and services in the face of new technologies and business models.
Large companies with years of experience, accustomed to working in a certain way, lose profitability when new companies are created that are driven by technology and that satisfy the needs of customers in a novel way, adapting to their newly acquired behaviors, for example, in the use of mobile devices.
Two iconic companies in digital disruption are Uber and Netflix, which I will briefly discuss below:
Uber
This company revolutionized the transportation industry and gave a new value proposition to the traditional taxi service. It creates a network of drivers and clients who communicate through a mobile application that incorporates technology and functionalities that allow it to deliver a great experience to its clients.
Netflix
When Netflix emerged as a home movie rental service, the then-giant Blockbuster did not consider it a threat. The latter was not able to adapt its business model to the new needs of the digital consumer, unlike Netflix, which created a streaming platform with on-demand videos that today dominates the market .
In the face of digital-native companies, companies with a traditional model must embrace change. For example, the TV entertainment industry today seeks new ways to integrate where audiences are: on social networks, streaming channels, even in video games and eSports.
Keys to facing digital disruption
The key is to develop a strategy that fits what the company does best. S+B suggests some principles for this , including:
1. Embrace the new logic
Don't make the Blockbuster mistake, it's important to see every new company, no matter how small, as one from which you can learn.
Disruption is a sign that the business models that worked until then in a certain industry are becoming obsolete.
2. Move deliberately
A company must strike a balance between moving strategically and reactively when the first signs of disruption appear in its sector, even when customers have not yet changed their habits.
It is important not to panic and take the time to develop a new, distinctive and digitally enabled value proposition.
3. Build a brand personality
Rather than relying on products or services to distinguish yourself, or completely changing your business model, you should develop a recognizable identity based on your company's strengths .
Digital disruption may seem like a threat to established companies, but the truth is that in many industries, old and new models continue to coexist. It is an opportunity for companies that have been in the market for years to rethink their value proposition and create a unique identity based on their current strengths.