Your and success of the organisation. Keywords: digital

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Marks allocation:

Title:
                                        2
marks

Abstract:
                                 10 marks

Keywords:                               1 mark

Introduction:                             30 marks

Analysis
and discussion:          30 marks

Conclusion:                              10 marks

Referencing:                            7 marks

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Digital Disruption -A new era of
transformation

 

 

 

 

 

Submitted by:                     Yadwinder
Singh Devgan

Student ID:                          10910946

 

Submitted to:                     Daud
Ahmed

                                             Lecturer
for Management of ICT

 

Submission date:              

 

 

 

Contents
 
Abstract 4
Keywords: 5
Introduction. 6
Case study (Kodak) 6
Advantages of digital
disruption. 8
Negative impact of
digital disruption. 9
How to effectively
transit to digital disruption world?. 10
Conclusion. 12
References. 13
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abstract

 

 

Let’s start with understanding what is “digital
disruption”. If we break these two words “digital” means representation of data
in 0 and 1. The word disruption means disturbance or interference. Most of us
think that word disruption in “digital disruption” means causing obstruction to
business which will have a negative impact to customers, employees and services
which is not true. It is basically causing disturbance how we do things in our
daily lives. For example, in early 1990s, we were using floppy disk to store
data but later we had affordable solutions such as compact disk, flash drive
and now days we portable hard disk and cloud storage. For business those study
customer’s shopping behaviour and make advance solutions for customer those
business will survive others will be demolished or lost their market share. So,
in short, digital disruption will have only negative impact on businesses who
are not willing to change or adapt new market change. For those who embrace
digital disruption, they will have number of ways to improve their overall
business and success of the organisation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keywords: digital transformation, customer feedback,
innovative, customized service, digital technology, business model/process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

 

 

Digital
disruption idea is still relatively new. It was initially introduced by Clayton
Christensen in 1997. Digital disruption is basically innovation of great
product or high-end product for public to use. The best example of this is
smartphones, tablets and hybrid laptops we are using present day. Prior to 1980s,
computer was bulky, requires massive space and only few limited consumers had
access to it. Over a period, more people had access to computers and there was
continuous improvement in design and size. The purpose of using computers
changed too. Because it was more affordable, people behavior changed too.
Digital disruption had big impact as it created opportunities for businesses
based on customer’s latest trends and demands to develop products and service
which are more customized for their customers. This also bought some customers
on board too. Today we are in era that most of daily tasks can accomplished
using smartphones or tablets. We only PCs or laptops for application that
requires more power (RAM) and memory to perform actions

 

 

Case study (Kodak)

 

We
can have better understanding by analyzing the case study. Kodak is one of the
perfect example of digital disruption, often characterized as a business whose
leaders ignored or failed to recognize the impending developments in (and
implications of) digital technology.  Kodak was one the first company to invest and
manufacture digital cameras in 1975 by an engineer called Steven Sasson. Being
first developers of camera Kodak believe they are leaders of technology, but
they did not realize that when something new developed that product does need
continuous improvement. Kodak did not study market trends either as smartphones
with good quality was emerging very fast. Smartphones were becoming more
accessible to public and there is numerous development for most of the
smartphone companies such as Nokia, apple, Motorola etc. at that time.
Smartphones were doing more rather then just taking photos such as sending
messages, calling and they were very convenient to carry as well.

 

Kodak’s
management were, it seems, initially skeptical about the early prototype. But
when the technology began to develop further and gain scale, Kodak management
were ‘acutely aware of the approaching storm’, and continuously tracked the
rate at which digital was replacing film. The disruption however, brought
challenges on multiple fronts which, rather than catalyzing change, contributed
to inertia. Most notably:

·       
Making film was an extremely complex manufacturing
process meaning that barriers to entry were high, competition limited.

·       
Digital imaging on the other hand, based on
general-purpose semiconductor technology which had its own scale and learning
curves but also broad applicability, had far fewer barriers to entry

·       
The technology was well outside Kodak’s core
capability, making it difficult to compete and to offer something distinctive

·       
The modularity of digital cameras (any engineer could
put one together with component parts) meant that you no longer needed highly
specialized skills and experience (modularization commodities)

·       
A large incumbent business-like Kodak had invested
over time in manufacturing and distribution efficiencies and benefited from
economies of scale – when sales and production decline, those benefits matter
less, and many of the gains that you could once capitalize on work against you
as volumes decline

·       
The problem of declining scale and securing sufficient
shelf space through its retail distribution network was exacerbated since in
Kodak’s case, the cause wasn’t new competitors – the entire category was
disappearing

·       
Management didn’t talk about the issues publicly for
fear of making it a self-fulfilling prophecy, but Kodak were caught – they
couldn’t abandon billions of dollars of profits when they didn’t have any new
products to capture demand

·       
Kodak’s entire ecosystem that had been built over
decades, was one that only supported film-based photography (retail partners
made large profits from photo finishing for example, which brought customers
in-store multiple times). As these advantages reduced, management under
appreciated the rapidity of the decline in photo printing, and retailers became
less loyal to the Kodak brand

·       
Kodak did have a separate division (unconstrained by
legacy approaches) which was established to explore and develop the digital
opportunity. This did see some success, achieving a good share position in
digital cameras, only then to be consumed in the tsunami of smartphones with
built-in cameras.

·       
Kodak experienced great difficulty in managing the
complex (and emotionally-charged) people issues surrounding a business in
decline – thousands of staff who knew that they were managing decline but
struggling with transferable skills, managers fighting for control of
diminishing resources, or feeling entitled to be reassigned, which fuelled
internal politics and strife.

·      
Kodak faced huge challenges on multiple fronts –
competitive, category, operational and ecosystem – but it is too simplistic to
say that their downturn to eventual bankruptcy protection was solely down to
their inability to recognize that digital was coming. Yes, they failed to look
ahead and anticipate the level and type of impact that the next wave of
technology (and its application) would have. But along the way, there was a
litany of compounding factors that made change difficult, and which are instructive
for any legacy business.

 

 

All
the facts above had huge impact on the business. Kodak started as monopoly for
digital cameras but due to lack of continuous improvement and hesitation to put
funds in development, they lost their market share. Over a period, smartphones
caused disruption as well. This was good lesson for any company to learn. I am
ending this section with a famous quote from Amazon CEO Jeff “A big piece of
the story we tell ourselves about who we are, is that we are willing to invent.
We are willing to think long-term. We start with the customer and work
backwards. And, very importantly, we are willing to be misunderstood for very
long periods of time. I believe if you don’t have that set of things in your
corporate culture, then you can’t do large-scale invention.”

 

 

 

 

Advantages of digital disruption

 

Every
technology brings some improvements how we do things in our daily lives.  Let’s talk about some of the advantages of
digital disruption as mentioned by Nick Sprau, (MetaViewer Paperless ERP for
Microsoft Dynamics)

 

Creating and demonstrating value: In cases
such as digital disruption, it pays to jump on the movement and not ignore the
transformation that is taking place in their industry. Companies those still
following old business model and haven’t done much improvements to existing
system are often impacted the most. On the other side companies who are still young
but implementing digital technology often gets higher return on investments as
they are tech savvy and agile. These companies are no longer conducive to the
changing technological landscape and the evolving needs of today’s consumers
who are turning to the latest and greatest, like Amazon.

 

Reduced costs in the long-run: Whenever
a technology upgrade is required, we often need highly skilled workforce but
thanks to advanced technology and consultants, upgrade or improvements can be
done very smoothly these days. While the upfront cost of new technology may
seem high, the cost benefits often outweigh the initial price tag. Moreover, a
company that is continuing to advance also can take the initiative to keep
costs lower for consumers, as strategically implemented technology allows
companies to reduce operational costs and manage business processes and
procedures more efficiently.

 

Better utilize data and information: Finally,
the adoption of new digital technologies brings some new tools that allows
companies to do more with the information that wasn’t being utilized with
legacy systems. Whether it’s structured or unstructured data, automated
systems, such as a document management solution, helps companies take advantage
with the data streaming into their organization to make more data-driven
business decisions.

 

Whether
your document management processes and procedures have changed dramatically or
only slightly from the manual ways of the past, digital disruption offers an
opportunity for companies to look at the ways that they manage this information
differently. The most import question is “How is your company being disruptive
and making a dramatic difference in the ways that it manages data and meets the
needs of consumers?”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Negative impact of digital disruption

 

During research, there
is no adverse impact on business by digital disruption. It brings an
opportunity for a business to develop and adapt new technology. There is always
cost involved when upgrading or improving existing legacy systems, but cost is
reimbursed over a time as it brings new customers and automate the process. If
business is not working current market trends and ignoring customer feedback it
may demolish or lost their market share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How to effectively transit to digital disruption world?

 

 

In
Accenture’s latest technology vision entitled “From Digitally Disrupted to
Digital Disrupter,” Accenture analysts state that cognitive computing will
provide the “ultimate long-term solution” for many business challenges. The
McKinsey analysts offer six steps that can help companies transform into
digital enterprises.

 

Strategy and innovation — Digital
strategy is essential to business strategy today. Company must analyses current
trends and information to innovate products and services that will keep them in
competition for next two to five years. Effective digital strategies prioritize
a handful of interventions where the business can exploit significant
opportunities then craft a digitally enabled business model around them.

 

Customer decision journey — Customer
feedback is also very important as it will help business to offer more
customized products for customer which will result in more satisfied customers
and more revenue for business as well. Cognitive computing systems are
particularly adept at helping companies understand the digital path to purchase
and how to improve targeted marketing.

  

Process automation —
Business-process automation can result in massive competitive advantage because
initial investments, when well implemented, can scale quickly without
substantial additional costs. Digitizing processes has less to do with
technology and more with how companies approach development. Becoming digital
often requires reinventing the entire business process to cut out steps
altogether or reduce the number of documents required. This is another area in
which cognitive computing systems shine.

  

Organization —
“Companies know that rigid, slow-moving models no longer cut it. The challenge
is to move toward a structure that is agile, flexible, and increasingly
collaborative while keeping the rest of the business running smoothly.
Successful incumbents become agile by simplifying. They let structure follow
strategy and align the organization around their customer objectives with a
focus on fast, project-based structures owned by working groups comprising
different sets of expertise, from research to marketing to finance. While
companies often obsess about the ‘boxes and lines’ of organizational structure,
it’s more important — and significantly more difficult — to focus on processes
and capabilities.”

   

Technology — For any
business in stay competitive in market needs to implement technology that can
drive innovation, automation, and personalization much more quickly. So, the
best is moving to a two-speed IT model that enables rapid development of
customer-facing programs while evolving core systems designed for stability and
high-quality data management more slowly.

   

Data and analytics —
Companies that make extensive use of customer analytics see a 126 percent
profit improvement over competitors. Companies that see that kind of return are
adept at deciding which data to use (both inside and outside the organization),
focusing the analytics on delivering on goals with clear and useful insights,
and having the right capabilities and processes in place act on them. That
requires people with the right kinds of skills — particularly ‘translators’ who
can articulate business goals and use cases with respect to analytics
requirements and turn data output into business insights. With the Internet of
Things and new technology developments, analytics are opening new doors for
growth.

 

 

Cognitive
computing systems can help a company improve performance during each of those
steps. They can achieve better focus and make a company more collaborative.
And, importantly, cognitive computing solutions need not replace legacy
systems. In fact, often, cognitive computing systems build upon and improve
legacy systems. Another of the benefits of using a cognitive computing system
is that both corporate objectives and tribal knowledge can be built in. That
often means that human “translators” aren’t necessary in order to achieve
desired results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion

 

In last two decades
since digital disruption has evolved we can feel its impact. It is transforming
how we are doing things in our lives. For businesses, with help data analysis,
customer feedback and market trends, they can provide more customized products
for their customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

 

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