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What Established Industries Will Be Threatened by Startups?

Creative destruction by startups

We have been witnessing tech disruption at its very best – saturating the marketplace with new inventions, technology and problem solving ways that better our lives – creative destruction by startups – one startup at a time.  If you have been wondering why startups are the actual force that dominates with the tech disruption, the best way to describe this is the term ‘creative destruction’ – which was formed in the 1940 by the legendary Joseph Schumpeter.  The term by itself means that technology improves the lives of many, but only at the expense of a smaller few. And that is exactly how startups work nowadays – changing the traditional methods as we know them and bringing new and creative technologies to life.

Sectors Threatened by startups

Speaking of technologies, are you wondering about which of the industries present at the marketplace will be threatened by startups during the next 5 years?  Here is the list of threatened verticals, in some cases we can show types of startups delivering the threat.  Some of the threats are substantive:

Travel Agents

Travel websites have dramatically reduced the needs for human travel agents.

News

Online media has outnumbered the print industry including newspapers – but also local news.

Language translation

For many applications language translation is no longer tied to human translators, but uses a special proofreading, dictating and even grammar technology.

Secretaries

Enterprise software automation threatens to replace secretaries, phone operators and executive assistants.

Booksellers

Amazon.com as a giant has already dominated the marketplace and is forcing many brick-and-mortar booksellers to close their doors.

Newspapers

Print classified ads have been replaced by sites like Craigslist.  As a result newspaper revenue models have taken a very serious hit.

Taxi

Traditional taxi companies are experiencing their worst time – being replaced by online solutions including Uber.

Delivery Services

Drones are threatening to change the way products are delivered

In addition the report Digital Vortex How Digital Disruption Is Redefining Industries lists the following sectors as having serious threats:

  • CPG (Consumer Packaged Goods) & Manufacturing
  • Financial Services
  • Retail
  • Technology Products/Services
  • Healthcare
  • Telecommunications
  • Education
  • Hospitality & Travel
  • Media & Entertainment
  • Oil & Gas
  • Utilities

Conclusion

This is only a portion of what the tech disruption is all about. With Uber, Airbnb, Amazon, Craigslist and many others as its pioneers, we are starting to see the world in a new and different way, consuming information and curating it in a new way.

References

20 Industries Threatened by Tech Disruption

Digital Vortex How Digital Disruption Is Redefining Industries published by the Global Center For Digital Business Transformation, An IMD and Cisco Initiative, June 2015

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