The general meaning of the word disruption is change. However, it is normally viewed in a negative sense that causes hardships on a large-scale. A more descriptive meaning would be ‘a catastrophic action which prevents any system, process or event from performing under normal circumstances’. The event is unexpected and replaces the heritage ways of executing activities that pave the way for the future.
Disruption can extend to multiple industries or even countries, and goes through a series of stages before it is embraced by the audience. With the number of technological advancements increasing every day, businesses are impacted frequently. This impacts the job market and customers. One has to accept these disruptions and implement them in their system to thrive in the markets.
In this article, we shall highlight a few vital industries that have been subject to disruption owing to the latest technologies or innovative ideas.
The Taxi Industry
Uber is a classic example of how a technology-friendly application has innovated a comfortable and hassle-free transport system for the common man. A one-click, digital calling and geo-awareness auto-dispatch has created an on-demand market whereby consumer demands for a product/service is met immediately. These markets are growing exponentially and consumers are provided with superior customer service as demands are met at a faster pace.
Some of the disruptive changes introduced are:
- Service available at any point in time and for any distance
- A user-friendly application
- Prices are fixed before the start of the journey and adhered to as well
- Continuous tracking of rides which can also be shared
- A flexible source of payments, such as cash or electronic payment mode
- Stringent regulations for the safety of the passenger, such as strong background checks of drivers, controlling surge pricing, help-line numbers for female riders etc.
Uber has understood the problems of hailing a taxi and attempted to resolve all of them. With the advancement of technology, they foresee a vision and regularly adopt themselves with the aim of regular innovation and customer satisfaction.
The Telecom Industry
One of the fiercest battles of disruption and survival is taking place in the telecom industry in India.
The introduction of Jio and its 4G technology at cheap rates has caused a price war amongst the few existing players like Vodafone, Idea and Bharti Airtel. This has also led to a large number of weaker players such as Infocomm and Tata Tele-services, to exit the market.
The aim of Reliance has been to offer superior services at affordable rates to the mass population of India. Jio has the foresight to keep pace with technology and make customers the ultimate winners.
The Financial Industry
Bitcoin is a classic example of how one currency can disrupt the entire financial market in 5-10 years. The concept completely adopted the latest technology with an expectation that it will be further adopted within the society in the next few years.
The key areas where Bitcoin disrupted are:
- Transactions are authenticated cryptographically and are irreversible
- No restriction of access to the network
- Accepting of payments from strangers after successful vetting
- Curbing of money laundering and terrorist activities
- Permits merchants to avoid administrative overheads like chargebacks
Despite the benefits cryptocurrencies provide, there are regulatory hurdles and a reluctance of customers to adopt this mode of trade. Consumers generally prefer the conventional banking system with strong consumer protections. Dealing with Bitcoin may prove to be an intimidating task for a tiny minority of tech-savvy enthusiasts.
The industry is definitely on the verge of complete disruption. All it needs is a few innovative methods and ideas that use the Blockchain technology to accomplish this goal.
With a large youth population understanding and accepting technological disruptions, large-scale benefits of it are realized and ways to make it functional are developed. When an organization embraces the latest technologies, they not only ensure that the audience is benefitted but also lead the industry to a phase of disruption.
Industry disruption is a long-term phenomenon whose success is dependent on the ideas and technologies developed, and how it improves the lives of society.
Which industry do you think will lead to disruption next? Share your ideas in the comments section below.
Financial Analyst for JP Morgan Chase | Content Writer for eduCBA | Mentor