Digital disruption: threat or opportunity?

Digital disruption: threat or opportunity?

The banking sector

Due to the increasing digital possibilities, rapid changes are taking place in the financial sector. Just as with other sectors, new digital technologies are available within the banking sector, putting traditional banks under pressure. The banks are involved in many 'life steps' of consumers. For many, the time that we as consumers actually visit a local branch of our bank is almost over. Nowadays you can also perform financial transactions via mobile apps. The financial sector is progressive in itself with the use of these new technologies, but as a result, some banks are falling behind. ING is currently in the spotlight due to the rumor of possible mass layoffs due to, among other things, technological innovation. Thousands of jobs have been threatened by the possible closure of many ING bank branches. These conceivable closures can be attributed to various factors, but the increasing digitization plays a very important role here. As ING CEO Ralph Hamers described: "You have to repair the roof when the sun shines." He means here that you have to be one step ahead in terms of digitization. As mentioned earlier, customers are increasingly going digital to perform financial transactions. Apart from the 'human aspect', the restructuring should pay off for ING in the long term. 

The taxi sector

We have all heard about the internet company Uber. Uber is trendy and cheap, and therefore extremely popular. This already led to much discussion. According to other taxi services, Uber circumvents the 'taxi rules', but if they use taxi drivers who have a taxi license, in theory, there is nothing wrong with that. However, some private drivers under the name UberPop (a part of Uber) do not have the required documents, but they are nevertheless admitted as taxi drivers. That causes a fuss. UberPop is not allowed in all cities. The drivers under the name UberTaxi are licensed. Consumers want everything to be as cheap as possible and thanks to Uber 's innovation, that wish can be realized. The company uses an application and shows you which Ubertaxi is in your area. In addition, you will also see a review of the taxi, which inspires confidence. As a consumer, you determine which taxi you want and you can then call one. You can also enter your final destination yourself in the app, where Uber will immediately give you a price indication. But how is it possible that Uber is cheaper than the other taxi services? That is because there is no longer an intermediary. There is no longer a taxi center involved and also a tip is already included in the price. Consumers do not have to have cash in their pocket and a smartphone has almost everyone with them. Although many taxi drivers raged against Uber, we might also see it as a lost fight. In the long term, Uber will be confronted with disruption. It is still in its infancy, but within a few years self-driving cars will take us from place A to B. This not only eliminates the taxi center, but the jobs of drivers are also jeopardized because then they are actually no longer needed.

The travel sector

How did you book your trip this year? There is a good chance that you have booked your holiday online. Indeed, fewer and fewer journeys are booked through traditional travel agencies. Compared to ten years ago, there are now half fewer travel agencies. That number is still falling. Many people search the internet for their ideal vacation. Nowadays, many people prefer to put their vacation together. Smartphones, tablets or computers are increasingly used to book online. Also, a travel guide is usually superfluous for that generation, because the internet already gives a lot of information about your holiday destination. It is therefore of great importance to go along with that innovation and to respond to the needs of your target group. Booking.com and Airbnb are examples of newcomers to the travel industry who have turned the entire industry upside down.

These sectors also had to do with disruption

Music industry: CD sales have fallen enormously due to download and streaming services such as Spotify or Apple Music.

Retail sector: the growth of webshops has led to major changes in the retail sector. In fact, it has ensured that consumers can buy directly from the producer or wholesaler without the intervention of a retailer. Just think of Nike. The brand is sold in many shoe stores, but via Nike.com consumers can buy directly online, so that the retailer sometimes becomes superfluous. It is important for retailers to respond to this.

TV and film industry : here too DVDs were replaced by video streaming services such as Netflix.

There are many sectors that have already had to deal with digital disruption. In any case, it is important that you are always alert and review your business model. Technology is constantly evolving and sooner or later everyone will have to deal with it.

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