“Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000” commented Pierre Nanterme, CEO, Accenture, who commented on the Digital Revolution at the World Economic Forum in 2016.
We are in the midst of a Digital Revolution; but what is it and what does it mean for businesses?
The Digital Revolution, also known as the Third Industrial Revolution, is the development and advancement of digital technologies. It all started in the late 1940’s with the digital computer, which then led to the development of the World Wide Web in the 1960’s. From there digital gone from strength to strength, and now in 2016 we are witnessing a defining force in how businesses are operating. That force is ‘Digital Disruption’.
What is Digital Disruption?
Digital Disruption is typically defined as the transformation caused by emerging digital technologies and business models. The innovation behind said emergence are having a major effect on the current market, and as a result is causing disruption.
When the term digital disruption first came to light, the ideology was centred around new ‘digital first’ entrants upending incumbents to re-write the competitive rules. We are now witnessing the incumbents tackling their own digital transformation, using digital to drive and gain back their business advantage. For most organisations, the shift to digital has provided them with the opportunity to reach new customers immediately and at very little cost, as well as the ability to compete in new sectors through the collaboration with peers and competitors and improve quality and productivity by converging technologies and sources of data.
Meeting and exceeding customer needs expectations have never been more paramount in the mission to survive, digital disruption became a ‘thing’ due to the digital capabilities in new technologies that have the ability to better fulfil customers’ needs and expectations, enabling organisations to keep existing customers happy. With everything that we do, customers should always be at the heart of the decision, and digital disruption has helped pathed the way for that to occur.
Where does disruption stem from?
With the advancements in technology it was apparent that a shift was going to happen, and that shift stems from the surge in interest and adoption of powerful ‘disruptive’ technologies, such as cloud, mobile, analytics, internet of things IoT and artificial intelligence (AI).But the question is why are they so disruptive?
Mobile: At the heart of most of the disruption, ripping up the rulebook in many industries, is mobile. Having enabled radically improved customer experiences across multiple channels, supply-chain transformation and much more, we are likely to see a much more mobile-focused approach from organisations as they attempt to transform.
Cloud: One of the most recent disruptions has come in the form of Cloud. Many companies have been using it on a small scale over the past half decade or so, but only recently has it been adopted on a much larger scale. It conveniently and inexpensively packages incredible processing power and digital storage, combined with its inexpensive bandwidth and versatility with smartphones, cloud has helped to weave digital into a part of everyday, modern life.
Analytics: What was once indiscernible data can now be easily understood. Analytics has provided organisations with the ability to monetise their existing data through the creation of new business insights, improved decision-making and established new business opportunities, minimising the risk of both human incompetence and error.
IoT: In a world where every business decision is centred on making customers lives easier, it has enabled IoT to become one of the biggest disruptors of today, and tomorrow. From connected objects in homes, businesses and our surroundings, customers expect their journey to be seamless. IoT has created the ability communicate over a multimodal network without human-to-human or human-to-computer involvement to enable organisations to make their customers journeys as pain-free as humanly possible.
AI: As organisations look for ways to expand their digital boundaries, Artificial Intelligence appears to be the way forward. Having this year replaced big data as the most talked about new technology, Artificial Intelligence has rapidly evolved, and as a result is now seeing widespread adoption.Organisations are utilising AI to organise data and language into highly malleable and helpful blocks of information to help organisations extract meaning, determine better outcomes and enable faster decisions from massive big data sources.
Be a predator not a dinosaur.
For many organisations, it is always a challenge when it comes to adopting change, especially change that is on the scale that digital disruption is causing in multiple industries. Forbes has identified two types of organisations the digital predator, and the digital dinosaur.
The digital predators are the companies who are putting the customer at the centre of their processes, policies and practices, fully harnessing digital to create new sources of customer value. Essentially, companies who are fully embracing their digital transformation. The digital dinosaurs are the companies that are typically slower to adopt and are struggling to evolve digitally, as a result, they are very much in danger of becoming extinct.
The message is simple, we are in a digital revolution, technologies are transforming the social and physical landscape in which we live in. If you don’t evolve, you face becoming extinct. Be a predator, not a dinosaur.
For more information on how QA Consulting can help you embrace the disruption, contact us.