Thursday, 31 December 2015

Big Bang Disruptions: whose interest

 

The bell of unconventional innovation that is ringing from silicon valley to Singapore is sending even the biggest of companies to change their business model. The year 2015 was officially tagged year of disruptions. The biggest accommodation provider Airbnb doesn't own any home, Facebook became the biggest media owner without spending anything on multimedia- lots of people now feel more comfortable watching video clips on facebook, Ubar became the biggest taxi company.
Thousands of companies are scared of the disruptors. The waves of innovation and business strategy by young entrepreneurs is trending. These entrepreneurs refused to accept nor borrow a leaf from the business models of their competitors. What is the implication to the big capitalist? The capitalist are scared in case some day, someone will discover and launch a business model that will give them little chance of competing.



Imagine for a moment what is happening to mature taxi and limousine business as a result of Ubar Taxi, sidecar and Left in the United State. When Google map was launched, traditional GPS companies couldn't predict the implications. However, exactly two years after the launch of Google map free service, GPS companies had lost 85% of their business. The hospitality sector is complaining of Airbnb in the United State and the telecommunications firms had threatened to stop Skype in Nigeria.

The reality is that, as long as customers prefer cheap and authentic products; better business processes will be unearthed to exceed customers expectations.
The questions is who is the ultimate benefactor of this disruptions? The biggest companies or start-up? 

Big companies already has established business models which they are not ready to part with. Secondly, the cost of changing the entire business process could be unacceptable. In this case, the odds favours start-up because small businesses can easily adapt to change. Big companies that can survive disruption are tech conscious companies  compared to market conscious big capitalist.



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