Digital Transformation & Disruptors

A lot has been said and written about Digital Transformation & Disruptors yet it’s always important to think about change with examples. Let’s first look at the definitions.

• Digital transformation is the profound and accelerating transformation of business activities, processes, competencies and models to fully leverage the changes and opportunities of digital technologies and their impact across society, in a strategic and prioritized way.
• Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.

A disruptive technology is one that displaces an established technology and shakes up the industry or a ground-breaking product that creates a completely new industry. 

Here are a few examples of disruptive technologies from the past: 

• The personal computer (PC) displaced the typewriter and forever changed the way we work and communicate.
• The Windows operating system's combination of affordability and a user-friendly interface was instrumental in the rapid development of the personal computing industry in the 1990s. Personal computing disrupted the television industry, as well as a great number of other activities. 
• Email transformed the way we communicate, largely displacing letter-writing and disrupting the postal and greeting card industries. 
• Cell phones made it possible for people to call us anywhere and disrupted the telecom industry.
• The laptop computer and mobile computing made a mobile workforce possible and made it possible for people to connect to corporate networks and collaborate from anywhere. In many organizations, laptops replaced desktops. 
• Smartphones largely replaced cell phones and PDAs and, because of the available apps, also disrupted: pocket cameras, MP3 players, calculators and GPS devices, among many other possibilities. For some mobile users, smartphones often replace laptops. Others prefer a tablet.
• Cloud computing has been a hugely disruptive technology in the business world, displacing many resources that would conventionally have been located in-house or provided as a traditionally hosted service. 
• Social networking has had a major impact on the way we communicate and -- especially for personal use -- has disrupted telephone, email, instant messaging and event planning.

Most future Disruptive Technology relate directly to Digital Business Transformation and Digitization:

• Mobile Internet is becoming increasingly inexpensive and capable of supporting internet connectivity of mobile computing devices. Expect more mobile workforces.
• Automation of Knowledge Work is when Intelligent software systems can perform knowledge work tasks and invoke unstructured commands and subtle judgements. Expect middle managerial level tasks be more strategic.
• Internet of Things will increase as networks of low cost sensors and actuators for data collection, monitor, aid decision making and process optimization.
• Advanced Robotics are becoming increasingly capable with enhanced senses, dexterity and intelligence and will be increasing used to automate tasks and augment humans.
• Autonomous Vehicles that can navigate and operate with reduced or no human interventions.
• Next Generation Genomics with fast, low cost gene sequencing and synthetic biology (‘Writing DNA’). Human medication and treatment becoming more personal.
• 3D printing will be used for additive manufacturing techniques to create objects by printing layers of material based on digital Models reducing the need to transport part and objects.
• Advanced Materials designed to have superior characteristics (e.g. Strength, Weight, conductivity, flexibility) or functionality.
• Advanced Oil and Gas Exploration and Recovery techniques that will make extraction of unconventional oil and gas economical.
• Renewable Energy generation of electricity from renewable sources with reduced harmful climate impact.
• Energy Storage devices or systems that store energy for later use.
• Increase Virtual Reality stimulating all senses.

Let’s look at some Digital Disruptors that have changed the value proposition of existing goods and services providers.

• Uber is the world’s largest taxi company yet its owns no Taxis’
• AirBnB is the world’s largest Accommodation provider yet own’s no real estate.
• Skype and WeChat are the world’s largest phone companies yet they own no telecommunications infrastructure.
• Alibaba is the world most valuable retailer yet owns no Inventory
• Facebook and YouTube are the most popular media providers yet own no content.
• SocietyOne is the world fastest growing bank yet holds no Money
• Netflix is the world’s largest movie house yet owns no Cinemas.
• Apple and Google are the world largest software vendors yet own very few applications.

Considering the past, examples of current digital disruptors and future Disruptive technologies, what do you expect your workplace and company to look like in years to come?

Digital Transformation is changing the way the world operates and will continue as future Disruptive Technology matures. If you’re not thinking digital, your competitors are…

In my next article, I will be sharing my thoughts around 'Internet of Things'

Reference (Clayton M. Christensen ,"The Innovator's Dilemma" )