First of all, what is digital disruption? According to Google, digital disruption is an effect that changes the fundamental expectations and behaviors in a culture, market, industry, or process that is caused by or expressed through digital capabilities, channels or assets. In simple terms, digital disruption refers to the change that occurs when new digital technology and business models affect the value proposition of existing goods and services.
As the popular saying goes, “Life is full of uncertainty”, this means no one can predict what is likely to occur in the future. This is the reason why businesses/ organizations need to rewrite their business operations and plans to accommodate the unpredictability of the current world. Lately, there has been a high number of technological changes that have transformed companies and industries. Old methods are no longer sustainable anymore because it has been proven to retard growth and progress.
This is the reason why businesses should be prepared with a well-mapped-out strategy to handle digital disruption, to fuel their growth. Employers who remain reluctant to move from their legacy of technology and operations often experience a decrease in value in their business. They must understand that digital disruption can occur at any time and its impact on a business can be adverse.
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Employers must take careful note of the technological disruption happening around them, they need to see advanced technology and change management as a continuous interplay that facilitates the delivery of optimal products and services. They need to deploy best practices on how to deal with digital disruption ahead so that it can work for them and not against them. During my research on this topic, I came up with three main causes of digital disruptions which are; Automation, Value Proposition, and Dematerialization.
Automation: What does this mean? It is the creation and application of technologies to produce and deliver goods and services where human input is minimized. It improves task efficiency which positively increases employees’ productivity. With automation, digital tools help businesses and organizations to automate repetitive tasks which enhances the efficiency of company resources. Most organizations that make use of automation, notice that it helps them save time and money and also allows them to focus on priority tasks. There are different types of automation systems such as; Fixed automation, Programmable automation, Flexible automation, Integrated Automation, etc.
Value Proposition: A company’s value proposition discloses to a customer the major reason why a product or service is best suited for them. The area of value proposition has evolved, with companies adopting new innovative ways of doing business. The main purpose of a value proposition is to convince customers, stakeholders, or investors that the company’s product and services are worthwhile. A value proposition can be communicated to investors and customers either via the company’s website, marketing, or advertising materials. Today’s modern companies have the data of their consumers and employees on their system which helps them to understand what they need. This data can be leveraged, tweaked, or revamped to change the business model to satisfy the demand.
Dematerialization: This has to do with the substitution of physical products with digital ones which simplify business processes. This process has reduced the marginal cost of production drastically and has opened new methods or channels of communication. One of the reasons why organizations adopt dematerialization is to smoothen the process of buying and selling. It is the process of using less material to create value. Examples of dematerialization are; Car Clubs, Bike Hire Schemes, laundry services.
Final Thoughts
In this 21st century, the world has become more digitally connected than ever before. Technology is gradually taking the center stage and it is already having a positive influence on business. Therefore, employers must see the need to prepare their company for digital disruption because it enables growth, enhances customer retention and satisfaction which makes the workforce faster and better.