Where's Yours?
Digital Disruption Is Coming to Visit . . . Or is it Already Here?
Digital Disruption Is Coming to Visit . . . Or is it Already Here?

Digital Disruption Is Coming to Visit . . . Or is it Already Here?

September 15, 2017 12:42pm | Updated: December 16, 2017 12:51pm
D

igital disruption is totally transforming the way we do business at a break neck pace and will soon permeate into every organization and every facet of our economy. You are not alone, businesses and organizations large and small across the country are struggling to understand this new normal.

This article will explore the threats and opportunities of digital disruption in addition to providing guidance on how you can create a digital strategy to mitigate and overcome the impact of disrupters headed your way so you can not only survive but thrive in the digital age.

Half of Fortune 500 Has Been Replaced Since 2000
We have our heads down focused on our business so disruption can be hard to detect at first. Capgemini research found that since 2000, 52% of companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist, due in part to being unable to keep up with the pace of digital transformation.

There is a Graveyard of Disrupted Businesses
Digital disruption has left a graveyard of failed or significantly smaller less profitable businesses. Kodak once ruled the photography market and is now a shadow of its former self due to digital photography. The printed word has given way to ebooks and the internet. Broadcast TV is even being disrupted by streaming video services like Netflix.

Your Next New Customer has Been Empowered
Steve Jobs was afraid the cell phone manufacturers of the day were going to disrupt their very popular MP3 player business so he invented the smartphone. The smartphone is being used by your Next New Customer as the swiss army knife of digital procurement. They are now empowered 24/7 where ever they are to use search engines in the palm of their hand to find you or your competitors. Your Next New Customer is also getting opinions and feedback from their social sphere in real time (read standing in your store) on social media channels.


87% of Consumers Trust Online Reviews From People They Don’t Even Know
Entrepreneur Magazine reported in a YouGov survey, 78 percent of consumers in the United States read reviews before making a purchase decision. YouGov's report reinforces findings in a previous study that found that 87 percent of consumers trust online reviews from people they don’t even know as much as they trust friends and family


A Brave New World and Your Customer is in the Drivers Seat
After a bad experience with a provider in the analog age they had limited choices of where to go or what to do. Digital disruption has provided almost unlimited choices and worse they can tell the internet all about a bad experience at the push of a button.

Disruption Comes from Places You Least Expect It
Changing tactics is no longer enough. Organizations must develop the agility to execute multiple strategies at the same time testing small and scaling big. Well financed organization out of tech hubs like Silicon Valley and others have disrupted businesses around the world. These disruptors don’t try to beat you they totally change the game making established businesses look tired, old and antiquated.

The Sooner You React the Sooner You Can Protect Yourself
The Capgemini Consulting group tells us 74% of incumbent businesses react to disruption two years after it happens.

Where We Are Today and What to Do Next
The traditional Strengths, Weaknesses, Opportunity and Threats analysis is a good place to start. Although SWOT makes a better acronym we are in a disruption and suggest you focus on  the threats first to help you identify disruptions sooner so you can bring your offense to bear.

Digital Threats
Competition coming from unconventional places that are difficult to detect.
Your N2C has embraced digital in their pocket, if you are not there you are invisible
If they have a less than satisfying experience they can and do tell the internet at the push of a button.

Weaknesses of Established Businesses
Entrenched business models that are difficult to change
Legacy cultures resistant to change (we have always done it this way)
Lack of Digital Expertise to create let alone deploy a digital strategy

Strengths of an Established Business
Successful ongoing concern with a current customer list
Brand awareness and brand equity in the markets you serve
Proven core competencies in your industry

A David and Goliath Opportunity of Biblical Proportions
Competing on the same digital channels levels the playing field
Test new solutions and features with sub-set of current loyal customers
Utilize digital channels to expand your reach and grow your business

What to do Next
Every organization is different but every organization can follow these first two crucial steps to begin protecting themselves from digital disruptions. Get in the game, create an online digital presence that can attract an ever-increasing audience. Use online tools and techniques to engage your audience to develop new business, help maintain repeat business and generate referrals.

Keep those emails coming, I look forward to hearing from you. Thank You!

Share this post

President
Your next new customer has changed the way they buy . . . Have you changed the way you sell?