For the past 30 years, business has changed dramatically because of digital innovation — but only up to a point. Although many practices, products, and services have evolved, and a few sectors (such as media) have been fundamentally changed, very few enterprises have had their core businesses disrupted. But that is about to change, in a way that will — or should — affect the strategy of your company.
All disruption (digital or otherwise) takes place on an industry-wide scale, forcing a significant shift in profitability from one prevailing business model to another. The new model typically provides customers with the same or better value at a much lower cost. Companies wedded to the old business model lose ground, and some are even pushed out of business. A group of challengers that embrace the new business model gain advantage and take a dominant position in the market.
