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 websites have dramatically reduced the needs for human travel agents.
Online media has outnumbered the print industry including newspapers – but also local news.
For many applications language translation is no longer tied to human translators, but uses a special proofreading, dictating and even grammar technology.
Enterprise software automation threatens to replace secretaries, phone operators and executive assistants.
Amazon.com as a giant has already dominated the marketplace and is forcing many brick-and-mortar booksellers to close their doors.
Print classified ads have been replaced by sites like Craigslist. As a result newspaper revenue models have taken a very serious hit.
Traditional taxi companies are experiencing their worst time – being replaced by online solutions including Uber.
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
- Technology Products/Services
- Hospitality & Travel
- Media & Entertainment
- Oil & Gas
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.
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
My feelings are mixed on this. I hear all the time that these developments are bad things, but I disagree. True, these established industries are threatened, but as CEOs we’ve always known about the need to be flexible. I think most of these are entrenched industries that have enjoyed a lot of perks – booksellers, for instance, have a sweet deal with publishers when it comes to returning unsold merchandise. These perks are what’s brought down the old guard and I think it’s mostly good news for us consumers and people working in tech.