Don’t be fooled by the term ‘disruption’. Many people misinterpret this as meaning the process of digital disruption is a negative one; that it is an attack on their business. In reality, it is only a negative force for those who chose to ignore it or try to fight it. Those who embrace it often find that it can benefit their business in various ways, contributing to their success.
What Is Digital Disruption?
Digital disruption is a transformation that is caused by emerging digital technologies and business models. These innovative new technologies and models can impact the value of existing products and services offered in the industry. This is why the term ‘disruption’ is used, as the emergence of these new digital products/services/businesses disrupts the current market and causes the need for re-evaluation.
Examples of Digital Disruption
Kodak Cameras Fail To Capture Future Markets
Kodak were one of the first to introduce cameras to the mainstream market. They monopolised the markets for the majority of the 20th century, but unfortunately failed to keep up with the changing identities of their customers and the changing needs and expectations that came along with them.
Digital cameras made the move from being a just piece of photographic equipment to being a much more life-friendly, fun gadget. And where as Kodak originally had their target consumer pegged as female, the male digital camera market opened up thanks to the ‘gadget’ culture. Some clever marketing from other digital technology brands led to changes in consumer perceptions and created a new ‘need’ for photographic gadgets.
This allowed brands such as Sony and Canon to swoop in and steal the hearts of the consumers with their new technologies and approaches, while Kodak stuck to their guns and fought the change for as long as they could. Despite rapidly losing market share, they refused to succumb to the inevitable force of digital disruption and in 2012 they eventually declared bankruptcy.
The rise of streaming platforms
A further example of digital disruption is the impact of streaming services on the music industry. Before the advent of streaming services like Spotify and Apple Music consumers typically purchased music through physical formats such as CDs or digital downloads from platforms like iTunes. The music industry was dominated by major record labels that controlled the distribution of music.
With the advent of streaming services, the music distribution model changed dramatically. Consumers could now access a vast library of songs for a monthly subscription fee or for free with ads, shifting away from the traditional model of purchasing individual songs or albums. This change forced record labels and artists to adapt to a new revenue model based on streaming royalties rather than physical or digital sales.
How Does Digital Disruption Impact Businesses?
The lesson we can learn from Kodak is that digital disruption is an unstoppable force and to try and fight it is futile.
But what businesses can do is embrace digital disruption, even plan for it. Keeping an eye on the ball and knowing the signs of digital disruption emerging in your industry means you can get ahead of the game and work with the flow rather than against it. Not only does this prevent the wave of digital disruption from washing away any success, it can also lead to further growth and new opportunities for the business.
Digital disruption typically marks changes in consumer needs and therefore working with the tide allows you to fulfil these emerging needs, keeping existing customers happy and opening up opportunities for new customers to find what they need from your brand.
How does Digital Disruption impact Marketing?
Digital disruption has fundamentally transformed the marketing landscape, presenting both challenges and opportunities for marketers. The proliferation of digital technologies has empowered consumers, giving them access to information anytime, anywhere, and on any device. As a result, traditional marketing channels have lost their effectiveness, and marketers need to adapt to these new consumer behaviors to remain relevant.
One of the significant impacts of digital disruption is the shift from traditional advertising to content-driven, personalised marketing. Consumers are no longer interested in generic, one-size-fits-all advertisements. They want content that is relevant to them and adds value to their lives. Marketers need to leverage data analytics and customer insights to create targeted, personalised marketing campaigns that resonate with their audience.
Digital disruption has led to the rise of new marketing channels, such as social media, influencer marketing, and native advertising. Marketers need to explore these new channels and find innovative ways to engage with their audience. The pace of change is rapid, and marketers must be agile and willing to adapt to stay ahead of the competition.
In conclusion, digital disruption has also revolutionised marketing, and it is crucial for marketers to embrace these changes and leverage new technologies and channels to connect with their audience effectively.
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