Digital Disruption: In search of market leadership
Understand what is digital disruption and, why invest in this practice, and how to implement this mindset in your business to reap results.
Digital Disruption has had a major effect on the agendas of CEOs around the world because of domestic digital generations and because of the GAFA (Google, Amazon, Facebook and Apple), companies that have revolutionized the entire market using 100% digital solutions.
The Internet of Things, Blockchain, Data Science and Artificial Intelligence are just a few examples of innovations that have come off the drawing board and are already completely changing the way companies do business.
The time has come for us to talk about it! Want to know more about Digital Disruption as a market practice? Check out today’s post!
What is Digital Disruption?
Digital Disruption is a market practice that seeks to generate value on top of the obsolescence of the industrial business model. We’re talking about using digital solutions — which have exponential growth potential — to bury linear business strategies.
In this context, the companies that take the lead stand out for disruptive pioneering. There is no shortage of examples to visualize this movement:
- Nubank has already shown us that it is possible to work in the financial market with a 100% digital and user-focused strategy;
- Netflix has already been underestimated by major studios and media outlets. Today, we can’t imagine our lives without them.
- Amazon uses data to anticipate customer needs and offer solutions at the moment the customer needs them most.
Notice that these companies have one thing in common: they all presented innovative solutions to the market. They have strategies focused on the end-user, besides adopting models of exponential growth — hence the feeling that the novelties brought by them seem to have emerged overnight.
Why invest in this practice?
As we have seen, Digital Disruption is able to completely transform entire markets. The company that promotes innovation, takes the lead in the market, while rivals need to adapt… or shut down.
Besides that, we should consider a number of other social and market factors that have influenced this change of posture in organizations. Delve-deeper:
Digital Disruption is a very effective strategy for your company to take the lead in its market, after all, the practice requires you to leave your competition behind. Besides that, digital solutions have exponential growth potential.
Disruptive business models are scalable, after all, we are replacing the bureaucracy and “weight” of the analog model, which is truncated, with the fluidity of the digital model. This way, we perceive the optimization of resources in the company, which begins to allocate efforts and capital into what really matters.
Consumers are already fully accustomed to connected solutions. In reality, this is a new market demand: online, digital and personalized products and services. That is precisely why the company needs to abandon the analog culture right away and pay attention to the needs of the Digital Transformation.
We’re in the data age. Many say that data is the new currency and, in fact, already represents a new branch of digital business for a number of companies. To stay competitive, the company needs to enter the age of data, using this raw material to make decisions and stay one step ahead of the competition.
Another big reason to dive into the era of Digital Disruption is exponential growth. Traditional companies, still linked to the industrial business model, often show only incremental growth year after year.
Digital, on the other hand, has exponential growth — after all, it does not suffer the common limitations of analog solutions. That’s how companies like Netflix, Uber, and Nubank have surprised the market.
How to implement this practice in your company?
Any company can replace the analog model with the exponentiality of the digital model. Yes, there are sectors that still have truncated and bureaucratic routines, but even in these segments, we can blaze a path towards Digital Disruption. We will show you how below:
Digitization is nothing more than the structural and strategic transformation of the company. It involves defining a business plan for rethinking practices, processes, and even the company’s business model —after all, you need to rethink analog from a digital perspective.
Besides the business plan, digitization also involves the process for Change Management, because we must lay the groundwork and get the collaborators ready for the new digital solutions that will be implemented by the company.
Digitalization is the realization of these transformations in the company. It occurs when we completely digitize a process, product, or service. Notice that digitizing especially involves IT staff, after all, we are talking about development.
In this sense, agile development is indispensable for reaping good results, especially when integrated with the DevOps approach — which seeks to bring the development and operations team closer together. Besides that, the training of the professionals involved in the projects also makes all the difference in the world.
To achieve Digital Disruption, the company already needs to have matured the Process of Digital Transformation. We are talking about a company prepared to generate technologies and solutions capable of completely technologies and solutions capable of completely transforming the market and consequently, assuming the lead.
In this era of intense transformations, the business needs to be prepared for Open Innovation, because partnerships with startups can create a highly innovative environment. Besides that, it is essential to create an appropriate culture for innovation and developing a solid strategy for Data Science, which is highly relevant in this digital age.
In closing, we can say that digital disruption is much more than a trend. We are talking about a practice that will guide organizations for many years. Just think of the accelerated way in which we perceive market transformations. New technologies and practices are appearing all the time and are rocking the markets.
Therefore, your company needs to prepare for this new moment! You want a tip? A good start is to read our report on the main market trends for 2019.