Digital Disruption has already happened…

Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.

If you believe that this is a future thing, you are wrong as it has already happened:

  • Most popular media owner creates no content (Facebook)
  • Worlds largest taxi company owns no taxis (Uber)
  • Largest accommodation provider owns no real estate (airbnb)
  • Largest phone companies own no telco infrastructure (Skype, WeChat)
  • Worlds most valuable retailer has no inventory (Alibaba)
  • Fastest growing banks have no actual money (SocietyOne)
  • Worlds largest movie house owns no cinemas (NetFlix)
  • Largest software vendors don’t write the apps (Apple & Google)

 

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Digital Disruption’s Objective

Digitization of products, services, and business processes allows disruptive players to deliver the same value a traditional competitor provides —and even augment it— without having to reproduce the conventional value chain.

In fact, that is the objective of digital disruption: to provide superior value to the end customer — either a consumer or another business — while avoiding the capital investments, regulatory requirements, and other impediments of “encumbered incumbents.”

excerpt from: Digital Vortex How Digital Disruption Is Redefining Industries http://www.imd.org/uupload/IMD.WebSite/DBT/Digital_Vortex_06182015.pdf