Buzzwords are annoying. They are most annoying to us who actually have to use them daily. I always feel a bit ashamed to use “digital transformation” and “disruption”. But these terms are actually very important. You should not underestimate them because they can save your company.
Digital transformation defined
Companies that were started before the year 2000 make and sell products in the old way. Making and selling has changed drastically since then. These companies need to change to the new way, which is dominantly digital and automated. These changes are motivated by two forces: customers and competitors who change already.
There is always someone out there thinking how your market has a lot of money but all the companies in it have not changed. They can enter your market using digital sales, become visible to the customers, and finally make their own products pushing your company out. Disruption is use of digital customer experience and sales to take over the market share from entrenched and old companies.
“Digital transformation” and “disruption” can be overused but they are still company saving terms which every manager should understand and use. The golden rule of business is that for every Euro you make there is someone out there who wants to take it from you. Disruption is the best way for them to take it from you, digital transformation is the best way to protect yourself. Good luck.
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