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Digital Disruption
The document discusses digital disruption and its impact on business models across industries, highlighting technological advancements in mobile, cloud, social, and big data that transform consumer needs and market dynamics. It outlines various disruptive business models such as subscription, freemium, and marketplace models that reshape traditional practices, emphasizing the importance of data as a critical asset. Additionally, the document presents strategic responses businesses can adopt to navigate or counteract disruptions effectively.
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Digital Disruption
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- 2. DISCUSSIONPOINTS What is digitaldisruption? Disruptive business models The ages of industry How have we responded to digital disruption?
- 3. AGESOF INDUSTRY Manufucturing Mass manufucturing makes industrial powerhouses successfule.g. Ford, GE, Boeing, P&G, Sony MARKETING PLAN 2020 Distribution Global connections and transport systems make distribution key e.g. Walmart, Toyota, UPS Information Connected PCs and supply chains mean those who control information flow dominate e.g. Comcast, Amazon, Google Customer Power comes from engaging with empowered customers e.g. Facebook, IBM, Apple, BestBuy
- 4. WHATIS DIGITAL DISRUPTION? The past decadehas seen new and transformative platforms, tools and relationships taking place across industries, business systems and emerging technologies such as mobile, cloud, social and big data.
- 5. EVERYTHINGDIGITAL Accessing pictures Calling acab Reading the news Responding to an email Can you guess what is happening in this image? From just one device, we can gain access to a myriad of information, services and communicaton. DIGITAL DISRUPTION
- 6. EVERYTHINGDIGITAL Emerging digital technologies haveseen a change in consumer needs and resulting business models. Value propositions of existing goods and services have changed competition, leading to new markets and the importance of the power of information to provide new solutions. Technical innovation is happening faster than ever leading to bigger sizes, power, accessibility and connectivity. The biggest takeaway from this is that data is the newest asset class, and the best way to generate and access it is by digitizing everything from the consumer end to internal business processes. DIGITAL DISRUPTION
- 7. DISRUPTIVE BUSINESSMODELS A disruptive businessmodel employs a strategy for creating new business markets by improving upon or making a change to an existing business model. Disruptive companies often combine elements of various existing business models or build upon proven business strategies by introducing bdisruptive innovation in their models.
- 8. SUBSCRIPTION MODEL Netflix Amazon Internet service providers Dollarshave club Apple music Disrupts business by locking in repeat customers by charging a subsription fee for continued access to the products or services. DISRUPTIVE BUSINESS MODELS
- 9. FREEMIUM MODEL Spotify Linkedin Canva Mailchimp Disrupts through digitalsampling where users pay for a basic service or product with their own data or eyeballs rather than money, and then charging to upgrade to the full offer. DISRUPTIVE BUSINESS MODELS
- 10. FREE MODEL Google Facebook Twitter TikTok Instagram Disrupts with an"if-you're-not- paying-for-the-product, you-are- the-product" that involves selling personal data and advertising. DISRUPTIVE BUSINESS MODELS
- 11. MARKETPLACE MODEL eBay iTunes Amazon Airbnb Uber Disrupts with theprovision of a digital marketplace that brings together buyers and sellers directly in return for a transaction / placement fee or commission DISRUPTIVE BUSINESS MODELS
- 12. ACCESS-OVER- OWNERSHIP MODEL Airbnb Zipcar Lyft Mobilify Includes "sharing economy" disruptionwhich takesa commission from people monetising their assets such as homes, cars, capital, etc, by lending them to "borrowers" DISRUPTIVE BUSINESS MODELS
- 13. ECOSYSTEM/ HYPERMARKET MODEL Apple Android Disrupts by bindingcustomers to their hardware and software that are only compatible with each other. Airbnb DISRUPTIVE BUSINESS MODELS
- 14. EXPERIENCE MODEL Apple Tesla Disrupts by providinga superior experience for which people are prepared to pay DISRUPTIVE BUSINESS MODELS
- 15. PYRAMID MODEL Amazon Affiliates Microsoft Dropbox Disrupts byrecruiting an ary of re-sellers and affiliates who are often paid on a commission-only model DISRUPTIVE BUSINESS MODELS
- 16. RESPONSES Using all meansavailable to inhibit the disruptor. These means can include claiming patent or copyright infringement. BLOCKINGSTRATEGY DIGITAL DISRUPTION RESPONSES Extracting the most value possibe from vulnerable businesses while preparing for the inevitable disruption. MILKINGSTRATEGY Actively investing in the disruptive threat including disrupting technologies, human capabilities or digitised processes. INVESTMENTSTRATEGY
- 17. RESPONSES Launching a newproduct or service that completes directly with the disruptor. DISRUPTINGCURRENTBUSINESS DIGITAL DISRUPTION RESPONSES Focusing on a profitable niche segment of the core market where disruption is less likely to occur such as having agents focusing on corporate travel. RETREATINGSTRATEGY Building an entirely new business model, often in an adjacent industry where it is possible to leverage existing knowledge and capabilities. REDEFININGTHECORESTRATEGY
- 18. THEWAY FORWARD The social fabricand a number of industries are now at a crossroads on how to move forward: accept or reject the future of disruptive technology.
- 19. TheWayForward Google Meetup vsZoom Meetings ACCELERATEDIGITAL TRANSFORMATION Tiktok BECOMEADISRUPTOR uber, Uber Eats, Uber Deliveries REVISEBUDGETFORNEW TRENDS Snapchat vs Instagram Stories CHALLENGETHE CHALLENGER
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