Then along came the internet, and the pace of disruption just increased rapidly! Nowadays the threat of digital disruption is a very real one facing many businesses, and if you don’t believe me then just consider the demise of some previously very well entrenched industries such as the camera film manufacturers and the traditional stockbrokers.
Put simply, digital disruption can explode the status quo, scramble supply chains and blur category boundaries. At the same time, it can lead companies to push into new dimensions while also questioning their very survival.
As both large and small organisations across the world respond to the big bang of digital disruption, how they grapple with the reality of disruption within short timeframes is increasingly the new measure of success, or failure, for investors, customers and employees.
We know from history that some industries will be impacted by digital disruption in the nearer term while others have a longer fuse. At the same time, the impact on some industries will be small but others will experience a much bigger bang!
Either way, the key is how firms come to terms with disruption, especially the bigger and more complex the businesses. A recent Deloitte report “Harnessing the Bang: stories from the digital frontline” carries case studies of how four of Australia’s big businesses, which have already been impacted, have responded.
Telstra, Westfield, NAB and AustralianSuper candidly share their key learnings and successes, with each organisation focussing on four key themes including:
• Customer experience – customers are leading the data and digital revolution. Those that listen and value their customer base are the ones that are responding successfully to digital disruption.
• All companies commented that the ‘people piece is big’ and put significant effort into developing a culture that ensures their organisation’s people are informed and engaged in the digital transformation journey.
• The third successful theme these organisations share is the need to invest in digital technology infrastructure. This requires putting the customer at the centre of the experience and then balancing competing interests and elements - whether people, platforms or planning.
• Finally all four organisations agreed that digital transformation is a journey of continuous improvement.
In addition the report carries a disruptor case study, a start-up, The Search Party. This digital disruptor demonstrates how it is leveraging big data to link millions of recruitment candidates with the industry and potential employers via a clever digital platform that is cutting both the cost to serve and the time it takes to secure an employee.
So what can you do in your business? Well the first thing is to break down the problem into three key categories:
• Cost: how can you use new technologies to reduce your cost structure? Can you simplify your supply chain? Can you reduce your payroll by automation of processes? Can you put your administration in the cloud?
• Revenue: using digital technology, can you target new sectors which were not previously accessible? Can you understand your customers in a more granular way using data? Are there radical new business models you can adopt to get ahead of the competition?
• Corporate strategy: are you investing in the right assets? Are some declining in value and should be divested, while others will generate better returns in the future? Are you considering the impact of digital disruption on your business, and can you afford NOT to act? Does your business have the capacity to act, decisively and fast?
In summary – digital disruption will impact all facets of Australian business and society – the question is, are you ready?
See our report here http://www.deloitte.com/au/digitaldisruption Register at http://goo.gl/NFFjzO for your copy of Harnessing the bang Stories from the digital frontline.
