Some years ago, the only way to buy your favorite product was going to the store. However, with Amazon, people discovered a much easier way to buy their products. Online stores revolutionized something as simple as shopping. According to a recent Marist College survey, 76 percent of American adults are regularly shopping online.
Amazon disrupted the retail industry. Now, most people prefer to buy products online. However, that isn’t the only industry that was disrupted by technology. Artificial intelligence, machine learning, and robotics are taking over, so we better be prepared. Here are some things to help you identify early signs of tech disruption in your industry.
Consumers Don’t Trust the Current System
One of the early signs of tech disruption is that your consumers don’t trust systems in your industry. They’ll try to find a different company that provides secure methods that meet their standards. A great example of this is how social media manages user data. Many users are not happy with Facebook selling their data to companies for advertising and digital marketing purposes.
Several companies are trying to find a solution to this problem. Good examples of this are Ello and 23snaps, which refuse to sell user information to third parties. It’s only a matter of time for these two companies to grow.
Another example is that people no longer trust banking systems with old security methods like passwords. Biometric security is making a massive impact on the banking industry. Physical traits like fingertips, facial recognition, iris recognition, and vein patterns are the best way to authenticate users.
More Venture Investment in Your Industry
Capital venture or venture investment is money investors put into projects that can potentially disrupt industries. If you ever see a high volume of venture investment in your industry, something might be going on; better you prepare for the arrival of new technologies in your sector.
Some people believe that startups have the potential to replace incumbent industries. If you want your company to stay afloat, it’s essential to keep an eye on innovative solutions designed by startups. You could even partner with some of them.
New Business Models
A clear sign of disruption is that business models in your industry are changing. A business model is how a company makes a profit. It involves how it communicates with customers, how it invests its money, and what strategies it deploys.
Tech disruption changes consumers’ preferences and habits. Therefore, companies need to change their business model. One of the best examples of this situation is the one we previously mentioned, online shopping disrupting the retail industry.
When Amazon became more popular, retail companies had to invest in Web Development to become more accessible to their customers; they had to design a new business model to stay afloat. The Products or Services Aren’t Affordable for the General Population
When you’re running a business, you always need to be accessible to your consumers, no matter the industry. It’s not that your product isn’t valuable, but you need to find creative ways to lower prices. Most companies that are about to be disrupted don’t notice that there will always be other companies that want to offer less expensive products than you.
Just think about how Web Development used to be so expensive a couple of years ago, but platforms like WordPress are making it easy for all users to create a website. It leads us to the next topic: convenience.
When there’s too much inconvenience in your industry, users will start migrating to where they feel more comfortable. For example, if a bank does not offer a simple platform for online operations, users will find another one with a better interface. Steve Jobs once said something on the topic:
“You have to start with the customer experience and work backward to technology.”