Industries That Are Vulnerable To Digital Disruption
Whether you already have CRM, automation or machine-learning technology in place or are looking for ways to upgrade your business model and customer servicing functionality going forward, digital disruption is an important point of contempt to keep in mind going forward.
According to Forbes, 59% of companies on the global level already integrated some form of disruption in their servicing as an added value, while 57% actively pursue innovation by seeking outsourced digital transformation assistance from B2B networking and dedicated startups. No matter the scale at which you currently operate, digital disruption can indeed have a transformative effect on the way you operate as a business.
However, some industries are more prone to digital disruption than others for obvious reasons. While the IT industry lives and breathes digital technologies, other, more analogue and traditional industries might have a harder time adjusting to the changes on the horizon. With that said, let’s dive into what makes digital disruption such an interesting concept, its benefits, as well as some of the most vulnerable and lucrative industries to keep an eye on with that in mind.
The Indications and Benefits of Digital Disruption
Let’s discuss the implications of digital disruption and what it can represent for an industry which relies on analogue and non-networked tools to operate. Digital disruption is a process in which digital technologies (such as AI, specialized software, centralized management platforms, etc.) effectively “disrupt” or transform the industry-standard business model of any given company.
For example, a groundbreaking new AI might make cashiers obsolete in retail stores, effectively causing a cascade of connected elements in the industry to transform overnight. Some of the most prevalent indications of looming digital disruption for an industry include:
- Decades of slow and marginal business model development
- Loss of customer and client interest in the customer’s journey process
- The price of products and/or services is too affordable/unaffordable for general audiences
- Inconvenient engagement and conversion processes for B2C and B2B stakeholder
When it comes to the benefits of digital disruption, it’s worth pointing out that while the process is poised to cause slowdowns and confusion at first, it will ultimately prove beneficial to an industry’s future. Coupled with personalized writing through platforms such as PickWriters via their global language translation of chatbot AI, website content and customer support, digital transformation can become a net positive. With that said, some of the most important advantages of digital disruption include:
- Higher relevance and value in the stakeholders’ eyes
- Better utilization and processing of business data
- Streamlined industry innovation and production cycles
- Reduced downtime and increased ROI over time
Industries Undergoing Digital Disruption
The Media Industry
Traditional television and media are susceptible to digital disruption in today’s day and age. With the rising trend of streaming platforms such as Netflix, Amazon Prime, and Disney+, smart television devices have become a rule rather than an excuse. According to eMarketer, US digital ad spending is up by 19.1% since last year, bringing it to $129.34 billion, with mobile-centric digital advertisement making up 70% of the total yearly investment.
Likewise, Adobe reports that a combined 79% of the global population relies on personal assistants such as Cortana and Siri on a daily basis, while it is estimated that 90% of cars will be connected to the internet by 2020. This opens the doors for a plethora of media personalization, targeted sales and native advertisement in a variety of scenarios.
Given the fact that more and more people rely on smart devices such as phones, tablets, and laptops, it’s no wonder that the media industry can indeed take advantage of the newly-formed digital audience. Implementing CRM software, customer support platforms and similar quality of life, disruptive technologies to the industry of media and marketing is a no brainer.
The Retail Industry
The traditional brick-and-mortar retail industry is on the verge of digital transformation due to CRM innovations and dedicated sales technologies present on the global market. According to Small Biz Genius, eCommerce is expected to take over 13.7% of total retail sales by the end of 2019, while 82% of customers stated that they would be more likely to buy items from brands which offer multiple purchase and delivery options.
The rising want and need for flexibility, personalization, and innovation in the retail industry has left business owners and global brands with no choice but to start their digital transformation sooner rather than later. Today, retail chains mainly rely on social media marketing, eCommerce platforms, and an increased online presence to break new market ground and compete with digital-first brands.
According to The Balance, department store sales in the US have dropped by 5.5% since 2018, while online retail has grown by 300% between 2000 and 2018 respectively. From the customers’ side of the counter, this will lead to a more diverse selection of goods while retailers will gain more tangible customer data for further personalization and targeting refinement.
The Financial Industry
Financial institutions such as banks and insurance companies face an uphill battle when it comes to digital transformation. Given their necessity on the global market and the already-disruptive nature they present to other industries, the financial sector is in dire need of digital disruption itself.
According to Business Insider, some of the largest banks in the world already spend 40% of their annual budgets on digital transformation and IT innovations in data management and client servicing, while the top US banks face a risk of losing 11% of their clients due to a lackluster digital servicing infrastructure.
While the necessity for banks, insurance companies, and other financial institutions cannot be exchanged for any other industry, clients have started to migrate to competitive brand names with a higher degree of digital disruption and innovation as a result. This is backed by research done by Fortunly which stated that 46% of people exclusively use digital banking channels forgoing traditional visits to their local bank altogether, while in the next 3-5 years, 77% of financial institutions will focus on internal digital transformations to increase client retention in the wake of financial digital disruption.
The Future is Disruptive (Conclusion)
Look for creative, relevant ways to introduce tools and practices in relation to marketing automation, dedicated CRM, machine-learning, and client servicing into your business. Whether your business operates in the IT, FinTech, media or advertising industries, digital disruption and groundbreaking innovation are looming on the horizon. Digital transformation is an objective upgrade to traditional business models which is capable of improving not only your revenue and productivity but also bolster your brand’s organic growth and industry positioning as a result.
Donald Fomby is a communications professional with more than five years of writing experience. Donald runs blog BestWritersOnline and is proud of an uncanny ability to explain the most complex subject in simple terms.