Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services. The rapid increase in the use of mobile devices for personal use and work, a shift sometimes referred to as the consumerization of IT, has increased the potential for digital disruption across many industries.
Generally, digital disruption happens after a digital innovation, such as big data, machine learning, internet of things or the BYOD movement. Digital innovation then affects how customer expectations and behaviors evolve, causing organizations to shift how they create products and services, produce marketing material and evaluate feedback. This shift in digital strategy can occur on an individual, organizational, industry or societal level.
The term digital disruption has become something of a cliche in recent years and is often misused to describe any product involving digital technology or the use of digitization to better compete against marketplace peers. It is often confused with disruptive technology, a term coined by Harvard Business School professor Clayton M. Christensen to describe a new technology that displaces an established technology.
A few examples of digital disruption include the following:
It is important for organizations to embrace digital disruption in order to gain a competitive advantage. When an industry experiences digital disruption, it typically signals that consumer needs are shifting. Therefore, understanding the disruption enables companies to keep existing customers happy as well as create opportunities for new customers.
It also gives companies a better idea of human behavior and how trends may occur over time. The following are a few best practices to follow that ensure digital disruptions are more of an opportunity than a threat:
08 Feb 2023