Digital disruption is drastically changing the course of business. New developments in technology have allowed businesses to improve their products and services, reduce costs and remain competitive. Despite the negative connotation, digital disruption is a positive factor that all businesses should capitalize on. The reality is that no operation, including yours can ignore it, but it does require business leaders to adapt to new technology, be open-minded and adjust their business models accordingly or risk being left behind.
What exactly is digital disruption?
Digital disruption is essentially the latest wave of technological advances that alter or change the existing business models for how products and services are delivered. It encompasses advances in artificial intelligence, data analytics, block chain, robotics, the Internet of Things and software platforms that incorporate some or all of these things. Disruptive technology can improve relationships with your customers, improve business models and help improve operational efficiencies just to name a few.
Why digital disruption matters?
Many technology decision makers admit they are excited about embracing new and emerging technologies, but they lack the organizational capacity, understanding and strategic evaluations to determine how it will be beneficial to their business. If focusing on digital disruption is not top of mind for you, then make it so. You might not have needed a digital plan up until now, but if you ignore it or put it off, you will not be able to produce results that will allow you to be competitive. The consequences of not making this a priority is that competitors who embrace technology will seemingly appear out of nowhere leaving you scrambling to catch up.
In many examples, new sectors that can create greater growth and market share, have more satisfied customers and improved workplaces. Digital disruption is everywhere. It has affected the media and entertainment industry. Remember the days of Blockbuster and renting videos? Netflix and other online streaming platforms extensively changed the process of how we view content. Advanced logistics systems made Amazon into the goliath it is today. Amazon is not an online retailer, it is a logistics company, Uber is not a taxi service, it’s an app and Tesla is not a car manufacturer, but an electric technology innovator. It’s not always the main business focus, but sometimes a side element of a business that can propel it to higher levels.
Tesla did not set out to be a company that would make a slightly better, or cheaper car. It was not interested in being another alternative – it was focussed on being superior. Bob Lutz, of GM had once remarked that Tesla is not really a car company. He was right about that. Today, Tesla is leading the electric vehicle race not because it is another car-maker but because it has more high-powered battery tech. For more than a decade, Tesla has been designing battery-powered vehicles from the ground up and using software to make the batteries more efficient. It has scrapped many weighty, traditional luxury features in favour of aerodynamics, taken measures such as ditching multi-gear transmissions in favour of dual motors programmed to send varying power ratios to the front and rear wheels. These coupled with superior battery range has helped Tesla maintain its ‘rockstar’ like status in the electric vehicle market once traditionally dominated by incumbents like GM, Ford and Toyota.
In the case of Uber, by developing its own app, it offers the consumer a taxi service at a lower cost than traditional operators with its facilitated network business model. By taking advantage of drivers who own their own cars and have extra down time, it allowed Uber to eliminate the fixed cost of buying vehicles and employing dispatch services. Traditional taxi services have struggled to compete with Uber by modifying their business model. By utilizing technology to streamline their service, it has created a new standard for taxi operations.
Amazon has succeeded because it delivers what customers need and they put the customer first. In fact, they put them on a pedestal. Amazon provides products at a low cost with a hassle-free experience. To say that Amazon is a retailer is wrong – they are an online customer experience provider. The focus on logistics efficiencies through metrics and analytics has allowed Amazon to create the ultimate consumer confidence. Confidence that translates to top of mind decision making almost every time. A logistics focused business that uses metrics to measure cost cutting and efficiencies is a dream business model.
Here are 5 guiding principles for how to embrace digital disruption
1. Recognize the change your company faces
Look at what your competitors are offering and how your business can offer better value. Evaluate what you can do differently and create your own disruption. Do you need to improve logistics, integrate both online and instore experiences or create a new price point for your products? Consider these elements from all angles.
2. Implement a plan
Start rethinking old business models and consider new options for enhancing growth. Announce your growth measures to shareholders. Investors now consider digital technology innovations as top of the agenda when evaluating a corporation. Be proactive instead of reactive in your planning as it will give you a sizable advantage over your competitors who will be left reacting to your new endeavors. In most cases you won’t have to abandon your old business model entirely, just build on existing strengths and utilize them as best you can.
3. Gauge customer needs
What are your customers going to want in 2, 3, 5 years? Will you interact with them in the same way? Will you have to make things easier or reduce your pricing structure? Digital disruption essentially allows executives and management leaders to make intelligent decisions that are based on solid, reliable data which paves the way for better decision makes which in turn helps the organization grow and evolve and meet customers’ ever evolving needs. Take Amazon as an example yet again, despite having no physical store, it has seen immense success that’s been made possible by advanced analytics and data that allows it to understand its customers and how to improve the customer experience.
4. Rethink your business operations
Most companies that dapple in new technologies, rarely do so in a way that becomes a catalyst for the way they operate. Assemble corporate teams with combined skills in business strategy, finance, HR, marketing, customer relations and software and web developers to make technological and operational decisions that are in sync with the larger business strategy. When technology is combined with strategic purpose, it allows companies to think of products and services that wouldn’t have otherwise been considered.
5. Outsource to specialists
In many cases, business strategy and innovation is the domain of top executives who may not understand what digital options are available to them and how to fully utilize them. It then makes sense to enlist the service of a company that specializes in the area you are interested in undertaking. That’s why managed IT service providers are crucial to streamlining success since business and technology are intricately intertwined for success and failure. At Interface Technologies, we are at the forefront of technology – it’s what we do. Whether you need cloud services, remote connectivity options, IT consulting and or support, fibre internet, cybersecurity assistance, we can provide you with the most cutting-edge solutions best suited for your business at a reasonable cost.
Digital disruption can be a game changer for many businesses if embraced properly and with enthusiasm. It delivers an opportunity to rethink your business model, value proposition, improve customer relations and increase the chance for long term success.
Interface Technologies is a leading Managed IT Services Company located in Toronto, Ontario.
For over 30 years, Interface Technologies has been providing managed IT services to hundreds of successful businesses in the Toronto and surrounding areas. We have your IT service needs covered from top-to-bottom with services including fibre internet, IT support and consulting, cybersecurity, business VoIP and private cloud servers. We make it so that you only have one number to call for all your technology needs.
Best of all…we know your business. With our extensive client list across multiple industries including finance, law, mining, accounting, restaurants and healthcare. We offer a one-hour rescue guarantee, no hidden fees and 100% satisfaction. Ready to get started? Call us at 416-363-9880 or visit us at interface.ca
Lloyd Ainey, Founder of Interface Technologies
Lloyd has been in the IT business for over 30 years. When he founded Interface, they specialized in manufacturing computer processors. Recognizing an opportunity to support other businesses’ IT needs, he evolved the company into a Telecom and Managed IT Service Provider. Today Lloyd works to continue Interface’s forward movement into the future of tech.