Many people misunderstand ‘disruption’ as negative as it’s something that which might be considered as a hurdle in achieving goals or completing tasks. However, in the digital world it might be a blessing in disguise. Don’t be bamboozled by the term Digital Disruption as in reality, it’s only a negative change for those who try to ignore it or try to fight it and those who choose to embrace it often find it to be benefiting their business in various ways, which ultimately lead to success.
Digital disruption is a revolution that is caused by evolving digital technologies. These innovative technologies can affect the value of existing products and services that are offered in the industry. This is why the term ‘disruption’ is being used as the emergence of these new digital products which disrupts the current market and creates the need for re-evaluation.
For a situation to be considered a digital disruption, it has to meet a few ground rules:
• It needs to be a disruption – that is, a threat to your personal or business goals in the short term or long term.
• It has to somewhat relate to digitalization – for example, something related to the Internet of Things (IOT), a new technology, some mobile application, or anything related to the evergreen digital evolution.
A digital revolution that arises in due course of daily life and threatens to delay, obstruct or destroy personal or business goals is called a Digital Disruption.
Examples of Digital Disruptions
• Netflix Disruption
An example of digital disruption is the way Netflix is gobbling up the profits of television companies around the world. Until a few years ago, people would watch shows only on televisions. These shows were broadcasted to their TV sets by television broadcasting companies. Since there were only a few players, they could charge higher advertisement rates and higher subscription rates. With the entry of Netflix, the mode of delivery of videos has changed.
• Uber Disruption
One of the simplest examples is the disruption created by cab companies like Uber to private fleets of taxis. The regular taxis banked upon hand signals while plying empty on roads, or simply waiting at a taxi stand for passengers to turn up. With Uber coming up with a mobile app to book cabs/taxis, there has been a substantial digital disruption to regular taxis.
What is the digital disruption in this case? Well, a digital app that has come up to eat into the customer base of regular taxis that still rely on taxi stands or roam on roads to pick up passengers. On the other hand, the customers instead of waiting for a taxi at the roadside or flashing to the nearest taxi stand, now use the Uber’s mobile app to book a cab that picks them up right from where they are.
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