The digital disruption phenomenon is a strong undercurrent in many business enterprises and ventures nowadays. It has been defined by James McQuivey, of Forrester Research, as a means to change the entire way products are conceived, created and distributed in every industry.
Creation and usage of free or cheap digital tools is one necessity of digital disruption. Customer experience and satisfaction is acknowledged as the ultimate goal – think of Amazon in this case. It is no secret that they put the customer first and foremost. Finally there is an increased premium on partnerships, as they allow for more benefits and lesser costs.
While this is just a glimpse of the myriad opportunities provided by digital disruption, it has already made its way in the boardrooms – influencing acquisitions. Corporations have started looking and acquiring disruptive industries – which are potentially able to reposition the assimilating company into a position to capture the maximum profits in the future value chain. Think of Yahoo’s acquisition of Tumblr, the popular microblogging platform.
Finally, the digital disruption is not merely affecting the workflow of the companies. It is also ushering structural changes, which can be reflected in the demand for skilled and experienced people in IT, ICT and digitally focused sectors. One such publishing example can be seen in HarperCollins’ hiring of Charlie Redmayne, who was the CEO of Pottermore.
So far, the impact has been felt in the downstream strata of industries, hitting and effecting changes in distribution, operations, etc. However as the obvious agenda is transforming the upstream, where the margins are more, it remains to be seen what changes may occur in the future of companies and their handling of the digital disruptors.
An infographic about digital disruption, based on the research of Deloitte, can be found here.