Digital disruption is a phenomenon where new digital technologies trigger changes at a pace and magnitude that affect the existing ways we operate. This new disruptive technology either replaces a dominant market leader or creates an entirely new one.
The idea of Digital disruption was introduced by Clayton Christensen, a Harvard Business School professor, 20 years ago. Over the past decade, digital disruption has affected many industries like retail, music, media, advertisement, hospitality, taxi services etc. to an extent that it has changed the face of these industries. When a disruptive innovation emerges in the market, it takes the toy/threat/obvious approach. Initially, the innovation is looked at as immature but with improvisation and adaptability, it becomes a threat to the existing technologies. Eventually, the innovation creates a niche for itself in the industry.
The pace at which disruption occurs is different for different industries and it depends on the sector. There are various factors which act as a driving force behind digital disruption. The availability of internet, connectivity of gadgets to the internet, cloud technology, emergence of reliable digital payment systems to name a few. According to the Global Center for Digital Business Transformation, digital disruptions can potentially reshape markets in a very short time. One reason for this is the ability of digital disruptors to create a huge user base in a relatively short time span and provide user experience faster and in a more economical way.
This forces traditional businesses to adapt and deploy digital measures in the face of growing competition. Companies which continue to use outdated methods of operation end up losing business therefore forcing companies to keep pace with this disruption and stay ahead in this fiercely competitive digital era.
Digital marketing will also be impacted by these disruptions and marketers will have to come up with new strategies to stay in tune. Usage of big data analytics becomes important as data – driven marketing becomes more of a norm. It will help in optimizing and hyper-targeting the audience and providing accurate ROI. Actively engaging customers by using real-time interaction ensures that brands are connecting with its consumers at a personal level. Integrated marketing has become a new trend where multiple marketing channels are used to target existing as well as new customers. Integration also helps in better understanding of data patterns and customer interactions with the brands. So multi – channel campaigns will prove to be more effective as digital disruption takes its roots.
Digital disruption is a reality we have to live with. Therefore it is in our best interest to nurture it rather than fight it.
