The constant advancement of technology has given rise to tools that optimize the potential of companies and allow services or products to be much more aligned to the needs of the consumer. This new, previously unfeasible array is known as digital disruption.
Basically, the term is used to classify business operation models that satisfy customers more efficiently by using technology. Taking into account the number of tools available and the effects they have on a company’s performance, it is no exaggeration to say that businesses that neglect technology are bound to be left behind.
Keep reading this article to further understand the concept of digital disruption and its impacts!
Technology creating possibilities
When we think of digital disruption, it is possible that large companies such as Google and Microsoft soon come to our minds. But the concept is much broader and can involve a greater number of businesses.
The term “disruption” is directly related to breaking down or parting with old practices and barriers by using technology. Even a small business, capable of using technology to create more efficient means of serving its customers, can be considered as disruptive.
Therefore, digital disruption is not about the size of a business, but the way it uses technological innovations in its favor. This means that even smaller companies need to start enjoying the benefits of innovation – otherwise, they will be left behind.
The main engines of innovation
New technological tools are made available every day. Therefore, being able to consider something new (or even an older application not so well used) and think about new functions can be seen as a competitive advantage.
But there are some innovations that draw more attention and have presented good prospects for the future. Among them, we can mention the following.
Internet of Things
People live surrounded by a series of objects that make everyday life more comfortable. Some of those, like the refrigerator and stove, have been part of our daily life for quite some time. The purpose of the Internet of Things is to connect these items by sensors and the Internet, giving them a host of new functions.
By using technology, a refrigerator can evaluate when a product is about to expire and send an email to its owners, requesting that the good in question be thrown away. It would also be able to contact the market and order a new product of the same type.
Basically, technology allows objects around us to learn about our preferences and adapt to them.
Anyone with a minimum level of knowledge understands the way software makes our lives easier. Through algorithms, they can perform various functions that a human would not be able to (or would take a long time to perform).
Despite this potential, software is limited to its programming, and for it to perform different functions, they must be included in its code. The concept of Artificial intelligence goes beyond and aims to develop systems that learn by interacting with humans or by analyzing data collected by other means, such as sensors.
Among the features of this new technology, we can mention the automation of companies and even the smart cars, capable of moving around on their own.
Augmented reality and virtual reality
Although the terms “augmented reality” and “virtual reality” are alike, their practical meanings are different.
Augmented reality gets its name because its purpose is to expand the number of information we have access to in our current reality. By using a device, it would be possible to look at a certain tourist spot and get lots of information about it, or even observe a product and see a report on its origin, for example.
As for virtual reality, the intention is to immerse its user completely into a new, digitally created reality. Both technologies have the potential to change the way we view products, services and the world around us.
Disruptive business models
However useful and promising a technology is, it loses its meaning if it is not used properly. For that reason, several business models were designed to make a more effective use of such tools. Learn about some of them below!
Attracting customers and selling a product, especially when it is not yet known in the market, is a difficult task. With that in mind, some companies decided to make items available for free and charge for more complete versions or benefits.
This operation model, known as freemium, increases the reach of services and profits by selling exclusive or more advanced features. Usually, it is used by software and game developers.
On demand is an operation model that allows the customer to make deeper choices about the service or product to be used. Much adopted in streaming, this modality allows the consumer to decide the content and the time in which they want to watch it. As examples we can mention Netflix and Crunchyroll.
As the concept becomes better known, new applications tend to emerge. That way, on demand should become common in areas that go beyond consumption and content production.
In a simple way, marketplace can be defined as a kind of virtual mall or digital platform that groups a large number of online stores. Through it, the consumer has access to several products and searches for the best prices more efficiently.
Typically, this business model profits by charging small commissions from sales made on the platform or some kind of monthly fee. It is also possible to sell premium services, following the freemium model.
More than simply creating a new technology, digital disruption has to do with how the technological tools at our disposal are used. Companies that are able to make a more efficient use of technology tend to achieve better results.
Therefore, it is no exaggeration to say that the success of a company is directly related to its ability to update itself.
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