Digital Disruption: How Technology Is Impacting Every Business (P1) |Stellant

Today’s evolving digital landscape impacts businesses across every industry. According to Deloitte, companies with higher digital maturity were three times more likely to see revenue increases. That said, every organization needs to understand how these changes impact its business and develop a strategy to adapt and adopt new technologies and practices to improve revenue. Many are turning to outsourcing to implement the necessary technical changes. Here’s how development outsourcing helps companies adapt and remain competitive. 

What Is Digital Disruption?

Gartner’s definition of digital disruption is “An effect that changes the fundamental expectations and behaviors in a culture, market, industry, or process and is brought on by or expressed through digital capabilities, channels, or assets.” Disruptive disruption occurs when a company introduces a product or server into a market that outperforms competitors, often at a lower cost. The impact is that companies are forced to alter products and business models quickly to keep up. 

For example, consider Stripe’s payment process services. The company has planted itself as a standout in the online payment industry against competitors such as PayPal. Stripe is different in that they have a culture of innovation. Instead of focusing on the financial aspect of the product, the company focuses on the user experience. The company focuses on enhanced code that makes transactions faster and more secure.

Drivers of Digital Disruption

Companies are starting to see how tech-driven innovation is changing the business landscape. There are two main drivers driving this change. 

1 - Shift in Customer Expectations

Digital technology has caused a shift in customer expectations, resulting in a new kind of modern buyer. Today’s consumers are constantly connected, app-native, and aware of what they can do with technology. Customers often rate organizations on their digital customer experience first. Being digital first requires you to rethink your strategy to prioritize the digital experiences that customers expect. 

2 - Competitors Using Advanced Technology As a Differentiator

Companies today collect, store, and process huge amounts of data. Artificial Intelligence (AI) and Machine Learning (ML) empower businesses with the information needed to:

• Predict how a customer will respond to a product or service.
• Identify fraud or security issues that might arise.
• Suggest future products based on customer data.
• Identify opportunities to serve customers better.

The most successful innovators rely on information and intelligence for predictive decision-making. This has greatly impacted the speed and accuracy of decision-making. Companies leverage this information to create more engaging experiences tailored to each customer.

Benefits of Embracing New Technology

Today’s competitive environment requires a better understanding of your customers. Better customer insight lets you anticipate their needs. When you understand customers’ needs, you’ll deliver products meeting their expectations. 

Improves Customer Loyalty

Customers today are more demanding than ever before. They want to be heard, they want to be seen, and they want to be served. Newer technology empowers businesses to provide the experiences customers want. For example, a company offering a mobile app can let customers schedule their service visits, pay their bills, and leave reviews from their phones. Customers appreciate this level of convenience and are more likely to continue to use the product.

Fuels Growth

Embracing new technology helps companies grow because it allows them to reach customers in new ways and create products and services that better meet their needs. As a result, these companies see better sales, improved profits, and increased market share.

What You Should Do To Keep Up

To succeed, you’ll need to change how you think and“ create” value. The market is full of tools to analyze data with unprecedented accuracy and speed. You must use these insights to drive a sustainable competitive advantage. There are several strategies you can use to remain competitive.

Focus on more on the Customer Experience 

Disruptive technologies bring new ways of serving customers and exciting new results. Your only chance at remaining relevant is by providing a superior experience.

Connect with your Customers on Social Media

Customers rely on social media platforms such as Facebook and Twitter to interact with brands. They do this because they feel like they know the people behind these companies through their posts on these sites. You build loyalty by connecting with customers on social media platforms, leading to better business results down the road.

Increase Agility and Speed To Achieve Faster-Time-To-Market

To compete in the age of digital disruption, companies must adapt quickly to changing customer needs and expectations. They need to be able to deliver a positive customer experience. And, they need to do all this faster than ever before to get products in front of customers quicker than the competition. 

Challenges Companies Face Amid Digital Disruption 

Your ability to innovate lies in agility and speed. With speed and agility, you are better equipped to react to shifting market demands, respond to other disruptors, and create your first-mover advantage. Unfortunately, many companies struggle with reaching this level of speed and agility. Here’s why.

Reliance on Legacy Systems

According to Accenture, 72%of C-suite executives state that legacy systems hamper their ability to respond quickly to market changes. Legacy systems often contain outdated information. As a result, companies with legacy systems don’t have the insight that helps identify customer needs. This ultimately impacts the company’s ability to deliver products and services that meet customer expectations.

Inability to Keep Up With Rapidly Evolving Technology

The pace of technology change is accelerating. In the past ten years, we have seen the emergence of social media, mobile technology, cloud computing, and big data. The number of technologies available and their importance is growing rapidly. Companies must find ways to stay aware of these new technologies. Without this information, companies won’t have the agility needed to meet market demands quicker than the competition. 

Talent Shortages

A Gartner study indicates that talent shortages are the most significant barrier to the adoption of emerging technologies. Statistics have shown that in the U.S., there are five jobs for every one software developer. Plus, there is increased competition as more companies continue their digital transformations. Spending for digital transformation is projected to top $1.8 trillion in 2022 and grow to $2.8 trillion by 2025. This has only increased pressure on the job market as more companies need to hire developers.

Software Development Outsourcing: The Key to the Speed and Agility You Need To Be Successful

Outsourcing your company’s software engineering ensures you have enough resources to meet project objectives. The strategy also means you can scale and add new resources without project delays. Below are a few additional benefits.

Provides Expertise in Developing Software Solutions

When you use outsourcing for building custom software solutions, you gain access to a team with the expertise to help you succeed. For example, some partners specialize in specific industries and specific technologies or have delivered projects similar to yours. When you rely on experts with prior experience, your project has a better chance of success. 

Accelerates Time-To-Market

An experienced partner helps ensure efficient project delivery. They understand the risks and how to mitigate those risks. They are also better at handling issues that may arise. All of this minimizes delays and helps get your product to the market faster.

Takeaways

Digital disruption is here, and it’s significantly impacting businesses of all types, sizes, and industries. Innovation through new technology alters products and business models quickly. The key to thriving in the era of tech-driven innovation is agility, the ability to make quick, smart decisions that keep you ahead of the game. Contact us for a 30-minute consultation on how we can help meet your needs.

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