The Five Stages of Digital Disruption

Disruptionhub.com offers the five stages of digital disruption:

The Kodak Moment
When your entire business model collapses as experienced by the camera pioneer, Kodak.

Internet infrastructure
The money that went into building the Internet created a bubble that burst when the structure, in effect, commoditized itself.

Technology meets disruptive business models
Uber is the example. It is user technology that marries drivers with passengers. In itself, that’s not particularly innovative, until you bring in the ‘zero marginal cost’ benefit. This allows Uber to use drivers in a ‘delivery for everything’ model with no noticeable incremental costs to itself. It costs the same to deliver anything, from customers and fast food, to parcels and even flu jabs. It’s horizontal integration with no marginal cost, and technology + zero marginal cost = scalable disruption.

Internet of Things and Artificial Intelligence
Coming is a world where everything is connected. That’s raw materials to transport, to manufacturing, distribution, retail and the consumer, then beyond that to consumer engagement.
The Internet of Things will enable all of that, providing an end-to-end view of the whole process in real time. At the very least, that’ll make savings at every step of the way.

The adoption curve
Adoption curves are actually becoming steeper. Take virtual reality, which ten years ago had virtually no users. Then along comes Oculus Rift, which excites users enough to briefly think about spending $300 but not enough for many to actually do so. Google, spotting the opportunity, brings out Google Cardboard – a $5 box with a view to getting early adopters (and evangelists – I’m one of them) to market. Just add a smartphone to the box and you have a VR headset that content makers are happy to design for. Thus the adoption curve steepens because, of course, Google has a more upmarket (and pro table) product down the line.

“These same five principles can be seen happening across numerous business sectors,” John Straw, author of iDisrupted writes. “Value and profit become entrenched in the data sets held by the industry leaders, moving revenue away from where it’s traditionally been made. Such a profound shift can and does create social change as AI has and will continue to create unemployment in previously ‘safe’ sectors.”

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