Digital disruption is reshaping markets faster than ever before. Digital disruptors innovate rapidly and use their innovations to gain market share and scale faster than incumbents. Recent research by the Global Center for Digital Business Transformation concluded that executives across 12 industries predict the average time to disruption is 3.1 years. This is a fast rate of competitive change but it presents an opportunity for business transformation.
But which industries are under the most threat of disruption?
Media and Entertainment
The fast change from physical to digital entertainment is not the end of the disruption in media and entertainment. The confluence of mobility, video and the cloud has made a huge impact on traditional media, with no sign of slowing. The industry is filled with disruptors who are delivering exceptional, and in some cases original, content in innovative ways which are transforming societal norms for viewing media and entertainment.
New agile, mobile-only banking services are disrupting financial services. They offer efficient, customer aligned services that cut through the industry in a lean and focussed manner. Legacy banks have been slow to change and adopt new innovations, leaving a large gap to be filled by new disruptors.
Slick online disruptors have perfected their strategies, and have challenged the traditional retail strategies. Large retailers need to think and behave like agile startups as they react to the disruption. They need to blend their physical and digital assets with an aim to provide better customer service. A recent Cisco study found that the retail industry as a whole only realised 15% of its digital value.
In each of these industries disruption is occurring and it’s growing. But this doesn’t mean it’s the end of the road for legacy businesses. Companies need to work on their strategies to turn the threat of disruption to their own advantage and create opportunities, by transforming their businesses with digital innovations. With such transformation, market incumbents can become as agile and innovative as startups.