Disruptive technology is an innovation in technology which causes disruption in a market or industry. Disruptive technology adoption also causes existing companies to reconsider their processes or to change their business models to cope with new entrants. This phenomenon is called technical perturbation.
New and digital entrants are changing the conventional freight and logistics relationships. Based on big data, cloud and connected app technologies, their offers give customers the seamless experience they already enjoy as consumers:
• Price transparency
• Ease of access
• Swift, near real time integrated service
Still mired in predominantly manual and heterogeneous methods, backed up by a number of different resources, most incumbents in the industry simply cannot compete.
However, software goes beyond customer-facing business models, impacting every aspect of the manufacturing cycle-supply chain, operation management, payment processing, human resources, marketing and more.
Staying competitive means companies need to keep innovating around their core software-driven systems, requiring quicker launches of products, and ever shorter development cycles.
With their available internal capital, most organizations are striving to meet all of these growth targets and are constantly searching for new ways to help source the capabilities.
Smartphones have become important to people as they simplify their lives. iPhone apps allow customers to do a great deal with only one device. The Mobile Developers are now operating day and night to fulfil the expectations of new customers.
The use of mobile devices impacts both the transport industry and other critical industries. Mobile apps such as Uber and Lyft have changed the way people search for a taxi and traditional taxi drivers are losing jobs.
Taxi drivers need at least the tech skills needed to adapt. Mobile taxi applications provide consumers with improved experiences, as they waste less time waiting for a ride. Customers may now use their credit cards to pay; the payment process would no longer be a hassle for this reason.
Similarly, applications such as Instagram, Twitter and Facebook play a major role in e-commerce. Social networking apps enable organizations to improve brand awareness and increase sales. Managers of social media can draw more consumers so they can connect with them through messages, comments or likes.
Artificial Intelligence (AI) and algorithms for machine learning have allowed businesses to make major strides. As a result, they were able to improve their efficiency and provide the customers with customized services. For example, AI has impacted the manufacturing sector, as more automated processes are taking place these days.
Robots are displacing manufacturing sector workers. It's because they help businesses cut down on injuries and expenses at work. Employers are also seeking applicants with specialized expertise that can help companies remain competitive in that situation. The AI-chatbots are another clear example of implementing AI. Web Developers used AI-chatbots to provide better support to customers around the world. In those conditions, members of the customer service are replaced as chatbots are able to fulfil their duties.
Chatbots are active day and night. They can give rapid responses at any time, for that reason. Customers should not wait before a representative respond as there are no schedules. At the same time, chatbots have permitted hotels to give customers exclusive pre-stay experiences. More customers are drawn, and make their reservations.
It is about to end the days of conventional television services. For online video streaming services consumers drop their daily TV service. Companies such as Netflix, Hulu and Disney+ have outstanding television services where consumers can watch anything they want.
Internet streaming impacts the music industry too. iOS apps such as Spotify and iTunes change the way people listen to the music. Spotify lets customers create public playlists, follow playlists of other users, or search for songs.
Applications like Spotify and Netflix usually innovate. Customers choose to download or stream material to digital providers or to purchase records instead.
• Facebook is the world's biggest internet organization
• Amazon, the world's biggest bookseller, is a tech firm
• Pure-play online Google is the world's largest advertisement company
• Worldwide newspaper classifieds have been largely replaced by Internet disruptors, such as Australian real estate giants REA; Search Limited (jobs); and carsales.com.au (vehicle sales).
• Online networking network LinkedIn is the leading global recruitment enterprise
• Software provider is the biggest streaming service by number of subscribers: Netflix
For incumbents the future doesn't have to be grim. In many industries where digital transformation threatens them, such as financial services, telecommunications, retail and technology, incumbents lead from a position of power.
They are generally well capitalized, well run, and profitable. At the moment, many of them are struggling to capture the benefits typically reserved for entrepreneurs, such as being agile and creative. That need not be the case, however. If they can develop their sensing capacity for digital threats and opportunities, their product, services and process digitization, and their speed of execution, then they should be well positioned to compete with startups.