Digital Disruption

The world is changing so rapidly and internet and online business are driving companies beyond the boundaries of local and traditional way of doing business. The leading technology trends in IT including peer-to-peer based social networks, mobile and cloud are transforming the structure of many companies. Social networks grow power of connected consumers and put endless amounts of information is at their fingertips while cost effective bandwidth and versatile smartphones make digital a ubiquitous part of life. The cloud now suitably packs incredible processing power and digital storage.
Disruption is becoming one of the most popular terms in management today and digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.
Digital technologies are now invading the business environment and our personal life, provoking major changes in the way we buy, sell, consume, communicate and even work.
We can observe that more and more industries and processes are transformed by the proliferation of digital technologies where fundamental business functions, such as R&D and product development and even value chain, nature and patterns of demand and competitive pressures are being digitized.
In many cases these trends profoundly disrupt industries and change the way companies do business and partially or entirely digitize the products and services of different companies across wide range of fields.Online education sites such as coursera , crowd sourcing sites such as fiverr which provide wide range of consulting and services, online transportation such as Uber, online book seller such as Amazon are all disrupting industries and provide dramatic opportunities but sizable threats at the same time. It is estimated that WhatsApp and Skype have shaved of nearly $386 billion of revenue from global telecom companies like China Telecom and Vodafone during recent years.
Marc Andreessen quipped a couple of years ago that software is eating up the world. Jeffrey Immelt CEO of General Electric emphasized similar thing in 2013 by saying that every industrial company will become a software company. It is clear that to compete and even survive businesses must harness the digital change and place information technology at the center of their strategy and operations. With this approach, business can deal with technology-led products, services, and new business models that are disrupting industries and fundamentally altering business functions.