A few words on… Digital Disruption

Posted: 27 September, 2013 in Uncategorized

The gates of entry to your market has vanished. With a well built strategy a company of few can accomplish what in the old world took decades to build and piles of cash to complete. On one hand any market is a target, on the other hand any business has the opportunity to participate. The question is will You?

What used to call for enormous investments in brick and mortar stores, warehouse space, heavy machinery and similar capital intensive investments has been replaced by a new breed of entrepreneurs, making use of what is at hand, i.e. finely tuned instruments in the shape and form of digital channels and instruments.

If you are looking for a concrete example and also one of the early ones we can only look at the media industry where specifically physical book, CD and DVD stores simply have vanished from the face of the earth, the few ones left are very close to fall of the cliff as well.
Only look at disruptions in the music industry, ranging from the cassette to Napster to Spotify, not to forget iTunes.

Other branches of the same tree are consumer items such as newspapers and magazines. As a clear example that also serve dual purposes in this story is the one of Washington Post. The newspaper was sold in 2013 for $250 million, a fraction of the valuation only 5 years ago. This colossal institution built and perfected for about a century was bought in a cash transaction by Jeff Bezos, the man who founded a business that was one of the first digital disruptors, Amazon.com. Still a key player that not too long ago took all the known values and comforting traditions of a highly traditional industry and threw them up in the air. Down came something completely new, a game changer that took everyone, including all the CEO:s of every major book and record dealer in the world, by complete surprise. The travel industry is another sector with a very similar development.

The world has not really seen anything similar since the great industrialization begun in Great Britain in the 18th century.  The difference today from when companies like Amazon started some15 years ago, let alone 150 years ago is that everything moves at the speed of light, with more power at significant less cost. Scale is no longer significant.

The take away is that you, regardless if you are running a multi billion dollar industry or a small family business can become a digital disruptor and that your business from this day and on is to understand what the consumers really want and deliver it.


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