With each passing day the digital disruption only increases in volume. Businesses are now linked to technology from payments to supply chain to sales. How small business executives handled all of this disruptive power will either have them with the flow or behind the flow.
So what is digital disruption? One site (Whatis) defines digital disruption as the “change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.”
Gartner suggests digital disruption “is an effect that changes the fundamental expectations and behaviors in a culture, market, industry or process that is caused by, or expressed through, digital capabilities, channels or assets.”
This second definition I believe is more meaningful in that it acknowledges these key words “fundamental expectations and behaviors.” Customers who experience successful digital disruption will now have expectations toward other businesses. Their buying behavior will also change.
Research from Harvard Business Review reveals the majority of U.S. businesses especially B2C will experience a moderate to massive impact from digital disruption. The media leads with a 75 percent change followed by consumer financial services (banks) at 61 percent. Retail will see a 57 percent impact while insurance will is at 53 percent. If your small business offers business and professional services, it too will experience a 51 percent change with health care at 47 percent and asset wealth management at 43 percent.
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We can see these changes already. Retail stores in this most recent 2017 Christmas season saw 18 percent increase in online ordering (e-commerce) where many of the items were picked up in the stores thus saving shipping charges.
With the skills gap already quite prevalent, digital disruption will only further widen that gap. Additionally the culture of organizations will be caught up in this wave of disruption. Attitudes of “this is the way we have always done it” will be the barriers to integrating all these changes into the culture.
Customers who are engaged in the digital marketplace from their smart phones to artificial intelligence will become even more demanding. For example, personalized offers such as price matching to loyalty points will no longer just be nice to have, but will become an customer service expectation.
Yes, the small business marketplace is changing and changing rapidly. This will be difficult for small business owners and sales professionals because they lack the workforce numbers to meet many of these technology changes. Possibly now is the time to take strategic planning seriously and determine how your small business can stay with this digital disruption flow.
P.S. In 2018, each weekly column will explore a topic that may impact the small business marketplace. Thank you for being loyal readers and may 2018 be filled with incredible peace and abundance for you and your small business.
Leanne Hoagland-Smith is an author, speaker and executive coach. Her weekly column explores issues that impact the bottom line of firms with fewer than 100 employees. She can be reached at 219-508-2859.