Digital Transformation is a revolutionary change in any industry or business which transforms it or creates a new type of industry completely. Digital disruption refers to the impact of new digital technologies and business models on existing goods, services, systems, and structures.
What is Digital Disruption?
Changing technologies have driven the complete transformation of consumer expectations and behaviour. Here are some examples:
- Airbnb has totally disrupted the hospitality industry. Traditional holiday booking agents are now clinging on to stay afloat.
- Netflix has helped to eradicate video rental stores from the market. Netflix is enabling more and more customers to cut their cable subscriptions disrupting the entire entertainment industry.
- Wikipedia is an example of knowledge-at-your-fingertips disruption. Gone are the days when we need to buy a newer encyclopaedia to learn something new!
- Digital cameras have disrupted filming and photo processing.
How businesses can disrupt by changing their path
In another context “Digital Disruption” can be taken to mean when a traditional player enters into a new business or industry. For example software-as-a-service, mobile banking, retail and healthcare etc.
Some examples of businesses changing path:
- Amazon started off as an online book seller but now they are the world’s largest cloud service provider.
- Google is now entering into the banking sector.
- Starbucks now offers a debit cards, disrupting the personal banking sector.
There is a third type of Digital Disruption too: big data.
Disruption due to big data is completely destroying conventional business models which have existed for decades. The amount of data available from different sources is growing steadily year-on-year, and is becoming accessible nearly everywhere. The potential for changes to business models and the way we live our lives is almost endless.
One such example is driverless cars. The existence of driverless cars is only possible due to the nearly unlimited data available from various sensory devices in cars, strong processing power, and fast reliable internet connectivity available on each and every corner. Collecting such data and processing it the right way has created driverless cars, which is slowly but surely disrupting the conventional automobile industry.
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