Why Technology Disruption Shouldn’t Mean the Death of Your Business
Technology disruption does not necessarily have to be negative. It is not an attack on business but rather a force that causes affected enterprises to rethink their operating strategies to remain in business. Those who choose to ignore the inevitable are swept into the abyss of irrelevance and end up folding up and shutting down.
Those quick to notice the disruption early enough embrace it and make it work for them, realizing benefits and advantages hitherto hidden. The disturbance may even cause their businesses to grow more significantly than they were before.
The emergence of rapidly evolving digital technologies has a profound effect on business models, and many businesses are cashing in on this transformation. A shift in the way of doing business, propelled by innovative technology and revolutionary business practices, is spawning new products and services.
Digital products are appearing in the market in quick succession, disrupting existing markets and forcing entrepreneurs to re-evaluate their business models.
How Uber revolutionized the taxi industry
A good example is how Uber revolutionized the taxi industry in a relatively short time. Uber accomplished this by integrating technology with convenience, offering customers more comfortable payment modes and strategic pricing that enhanced business for the taxi driver. Uber’s global market share is a staggering 62 million trips per month as of July 2016. It operates in over 450 cities in the world.
Trying to fight the technology disruption force is futile, and many taxi drivers in many countries, who wanted to fight it, were rapidly swept out of the market. In contrast, those who embraced the new technology thrived. The taxi industry has seen the rise of numerous other cab-hailing services using the Uber-style business model.
How to overcome technology disruption
Keenly studying market trends and keeping in touch with emerging technological advances can help your business remain relevant as you will be able to notice the signs of impending technology disruption. This knowledge will allow you to insulate yourself against any damage it may do to your business. You may change your marketing strategy, cut costs or review your operating systems to suit the new reality when it strikes.
By embracing change and flowing with it instead of against it may open up new opportunities that can lead to greater success and growth of your business.
Consumer needs are changing with the times, realizing new opportunities for you. Brands are updated and relaunched now and then to suit customer needs, and to keep yourself a step ahead of your customers ensures your brand remains relevant, locking down your existing customers and roping in new customers along the way.
Here are a few steps your business can take to survive technology disruption:
1. Overhaul your business model
Once you notice the signs of technology disruption, do not act rashly or impulsively to try and mitigate it. Spare some time to plan your company’s future in the market by evaluating your priorities. As you reshape your business model, dump what may be bogging down your company and seek new opportunities.
2. Embrace new technology
By employing modern technology in the way you do business may be a bit expensive initially, but your savings in terms of operating costs may be astronomical. You may consider automating a product assembly line to increase output and bring down personnel costs.
3. Develop closer customer contact
Meeting customers on a personal level will boost customer confidence and inspire loyalty to your business or brand. Some businesses are investing in closer customer contact and reaping big. Sending company representatives to customer’s homes to see how they live or find out how they use the company’s products makes the customer feel valued and appreciated.
4. Offer incentives to customers
Your business should consider offering incentives to existing and new customers. Such incentives could include slashed prices, discounts and product coupons to endear you to customers looking for fair deals. This tactic drives demand, and with careful planning can keep you a step ahead of the competition.
5. Plan for the next disruption
You may have recognized and survived a technology disruption without much loss, but this should not lull you into resting on your laurels. Digital innovation marches stolidly on, with new products and services cropping up every day. Staying in tune with technological developments will ensure that you notice an impending disruption before it hits, adequately preparing you to deal with it effectively.
6. Seek expert advice
Businesses should not fear to acquire the services of experts due to cost. Companies looking to cash in on digital advances are more and more looking to update their business systems with the help of consultants or experts in the digital field. A consultation with the professionals at Wavestone US would be a worthwhile investment.
Look out for the tell-tale signs
All in all, businesses should always be vigilant to recognize signs of coming technology disruptions by closely following and analyzing business trends.