There has been an exponential rise in digital innovations in recent years, with companies such as Spotify, Airbnb and Uber challenging the existence of dominant firms and revolutionising whole industries and markets.
This radical advancement of digital technologies, combined with its wider effects, is known as ‘digital disruption’. Induced by technological innovation, it has the power to shake every industry to its core, inducing ‘short fuse, big bang’ advancements capable of threatening entire industrial sectors.
The risks and rewards of digital disruption can be significant. Experts suggest that the ability to instigate digital disruption to induce systematic change is crucial to corporate success in this digitalised age. As FDH Bank founder Dr Thomson Mpinganjira will be well aware, the advent of digital technologies has had significant repercussions across numerous industries, particularly the financial sector. Find out why Dr Thomson Mpinganjira and FDH Bank have invested heavily in developing and implementing digital services and products by viewing the attached PDF.
Digital disruption has triggered a paradigm shift in the way we do business today. It has had a considerable impact on society, making our lives easier and more convenient. New technological advancements have created entire business sectors, as well as enabling existing organisations to remain relevant, expand their footprint, and capture new market shares.
New start-ups have also benefited from digital disruption, quickly making their presence felt through digital innovation rather than simply being swallowed up by the competition. With constantly evolving customer demands and consumer trends, analysts predict that this pattern is likely to continue.
Digital disruption makes things happen, particularly for agile organisations. Digitisation of business processes makes companies more efficient, productive, cost-effective and customer centric. Discover more about the benefits of digitisation in banking by viewing the attached infographic.
Digital Disruption is Inevitable
Despite the numerous advantages associated with digital disruption, many organisations continue to stubbornly cling to old, outdated, and obsolete ways of doing things. According to a study published by Forbes, just one third of executives accepted that leveraging digital and data technologies has a tangible impact on market competitiveness. In addition, just under 50% of professionals polled failed to recognise the high level of risk in terms of revenue and market share posed by rival companies that embraced digital disruption.
Digital disruptors reap the rewards of effective corporate strategy. Companies that fail to move with the times are inevitably left behind. Take for example photography market pioneer Kodak, a company that enjoyed market dominance for many years. The organisation failed to discern and meet changing consumer needs, neglecting to follow and meet market demand. Kodak quickly lost relevance, culminating in the company filing for bankruptcy in 2012.
Embracing Technological Advancement and Innovation is Vital
In the current market, it is crucial for companies to stay ahead of the curve in terms of digital and data-savvy competitors. Organisations such as Fitbit, a major fitness tracking app provider, know exactly how to leverage 360-degree data to boost customer loyalty.
Recognising and meeting demand is key to the success of any business venture. Take FDH Bank for example. This leading Malawian financial services provider has invested heavily in digital services over the past few years, developing innovative, intuitive banking platforms to meet the diverse needs of its corporate and private banking clients.
Rather than succumbing to market disruption, it is vital to be the disrupter, developing services and products driven by data. A recent study by Forbes revealed that 83% of executives who viewed their organisation as a market disruptor reported increased revenue over the last three financial years.
Learn more about the benefits of taking a proactive approach to digital disruption by watching the attached video.