Disruption and Transformation

For the last 5 years, we heard a lot of disruptions. The word 'disruption' is quite confused nowadays. Literally, it means a process that disrupts something, no matter this 'something' is great or not worth for a glimpse. 

However, what caused the disruption is an interesting topic. In the past years, disruptions, especially in business world, are something related to evolution. You heard about business disruptions or technology disruptions. Are they destroying something? Not exactly.

Business transformation and digital transformation is a heat nowadays. Enterprises are seeking ways to help keeping their businesses on the right track. In other words, keep gaining profits. But why is this important? Are businesses not doing well due to the week global economy? It maybe one of the factors, but it is complicated.

The fast emerging new technologies, especially with the assist of internet technologies. All these impact traditional ways on doing business. I am not saying the fundamental core on how to run business, but the processes that configuring the path to run business.

Take an example, the traditional supply chain, which relies on lots of people communications with diversified information. Including emails, fax, letters, invoices, product specifications, etc. And because there are lots of communications among different parties, different industries arise.

Between product suppliers and customers, there are sourcing agencies, traders, out sourced factories, product polishing factories, wholesalers, retailers, etc. There are massive amount of information flow in the whole supply chain. With the fast developing internet technologies, for example, they speed up all information flow and streamlined some unnecessary channels. Suppliers can communicate with different factories and materials suppliers directly. No more agencies are needed.

On the other hand, customers can shop directly from product suppliers' web stores rather than visiting retailers. This reduces the amount of mark-up prices, literally (of course, that depends on marketing strategy).

All these are disrupting the way of traditional information flow among different parties in the whole supply chain. The world is demanding faster responses with the new internet technologies emerge. This kind of disruption is happening daily with new technologies emerge daily. To an enterprise, it tweaks the approach and ways to deal with their daily operations, maybe with new technologies. Or, finding new ways, even establishing new business models to keep them survive. To keep in pace with new era, change seems inevitable. This is a kind of transformation.

But, still, it is hard to say traditional industries will fall. The key is how could you seize opportunities with new technologies emerge, and how could technologies help your business. I would say, disruption will happen, transformation is up to you.