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The world of work is changing rapidly. New technologies are emerging every day and established business models are being shaken. For managers, this means Digital disruption is no longer just an abstract threat, but an immediate challenge. Anyone who understands how Digital disruption can actively shape it and turn it into opportunities [1]. In this article, we show how managers can utilise the transformative powers of this movement and guide their teams safely through change.
Why digital disruption is key for managers
Digital disruption describes the process by which digital technologies and innovative business models completely change established markets [2]. Managers must understand that this change is not optional. Customers expect digital solutions. Competitors are setting new standards. And legal frameworks such as the Digital Healthcare Act are creating binding requirements [1].
Reality shows that companies that react quickly win. Others lose market share or disappear completely. Kodak, for example, developed the first digital camera in 1975, but underestimated the potential of this innovation. The company later filed for bankruptcy [3]. Managers must therefore act proactively and not just react.
Specific examples of digital disruption in various industries
Mobility and transport: Uber revolutionises the market
Uber connects drivers and passengers directly via a digital platform. This fundamentally disrupted the traditional taxi business [2]. Managers in the transport industry quickly realised that If you're not digital, you lose customers. Taxi companies began to develop their own apps and rethink their services.
Entertainment: Netflix changes consumption and expectations
Netflix didn't just offer films. The company revolutionised, like people consume entertainment [2]. Instead of linear television, there is now on-demand streaming. Video stores disappeared. Traditional companies such as public broadcasters had to rethink their business models. Managers recognised this: Technology alone is not decisive. The new way of serving customers is.
Retail: Amazon sets new standards
Amazon started out as an online bookshop and became a global platform. The company not only sold online, but also delivered directly to your home [2]. Brick-and-mortar retail came under pressure. Managers of traditional retail chains had to ask themselves: How can we compete? Many began to set up their own online channels.
Leadership skills for the era of digital disruption
Not every manager is automatically well equipped for disruptive times. Some important competences have proven themselves [1]:
Flexibility and strategic thinking
Managers must react quickly to changes. At the same time, they need a clear long-term vision. This balance is difficult, but necessary. If you only optimise in the short term, you lose your strategic focus. Those who only plan for the long term overlook current opportunities.
Clear communication and empathy
Teams need clarity about why changes are necessary. Managers need to explain what opportunities the Digital disruption but also what risks arise. At the same time, empathy is important. Not all employees are looking forward to change. Managers must take their concerns seriously.
Digital expertise and innovative ability
Managers need to understand digital technologies. They don't have to be able to programme, but they should know what opportunities technology offers. This enables them to make better decisions and inspire their team.
Change management in times of digital disruption
Technology alone does not lead to successful change. The most important thing is to involve people properly. Managers often report resistance to the introduction of new systems. This is normal [1].
Identification of change champions
Not all employees have to be fans of innovation. Managers should identify so-called change champions [1]. These are respected individuals who support change and convince others. They should not only be tech-savvy, but also enjoy the trust of their colleagues.
Structured needs analysis and pilot projects
Successful digitalisation requires planning. Managers should first analyse which problems need to be solved [1]. This is followed by a pilot project: a smaller team tests the new solution. This allows errors to be recognised and rectified at an early stage.
Continuous feedback and optimisation
The work is not over after the pilot phase. Managers should regularly obtain feedback and adapt the solution [1]. This continuous improvement process is crucial for long-term success. Teams learn what works and what doesn't.
Transparent communication as the key to success
If the conditions change due to Digital disruption change, communication plays a decisive role [3]. Managers must explain transparently why changes are necessary. They should set clear goals and report regularly on progress.
An insecure team produces poor results. A team that understands why change is necessary actively supports it. Managers should therefore create space for questions. They should openly admit when they themselves have uncertainties. This creates trust [3].
How companies promote creative thinking
Managers should create an environment in which new ideas are welcome [3]. This does not mean that every idea is implemented. But it does mean that people have the confidence to make suggestions.
A few practical measures can help:
Firstly: mistakes must be allowed. If you are afraid of making mistakes, you won't dare to try anything new. Managers should make it clear that mistakes are part of the learning process.
Secondly, give time for experimentation. Not all innovations are created in planned meetings. Sometimes it takes time to try things out.
Thirdly, make ideas visible. When good suggestions are implemented, everyone should see it. This encourages others to contribute ideas as well.
Industry-related opportunities of digital disruption
Financial sector: FinTechs challenge banks
FinTech start-ups are establishing new payment solutions in the banking and financial sector [1]. Companies such as Square, Stripe and Robinhood simplify credit card processing or make share trading free of charge [2]. Traditional banks are losing customers directly to these disruptors. Managers at financial institutions are responding with their own mobile apps, partnerships and virtual assistants. Disruption is leading to more competition and better financial accessibility for customers.
Automotive industry: Tesla sets new standards
Tesla is driving disruption in the automotive industry [1]. Electric drives and autonomous technologies are fundamentally changing the market. Traditional manufacturers such as Volkswagen and BMW are responding with their own innovations. They are investing heavily in electromobility and digital services in order to remain competitive. Managers in this industry need to understand that the future is no longer characterised by combustion engines alone.
Healthcare: Digitisation is mandatory
Patients are increasingly demanding digital solutions in the healthcare sector [1]. Telemedicine, digital patient files and online appointments are becoming an expectation. Managers in clinics and medical practices must fulfil these expectations. At the same time, they must guarantee data protection and quality. This is complex, but not impossible.
BEST PRACTICE at the customer (name hidden due to NDA contract)A leading company in the consumer goods industry utilised the opportunities presented by digital disruption to completely realign its product development and sales processes. The introduction of a digital platform made it possible to record customer wishes in real time. This resulted in customised offers in the shortest possible time. The system is agile and reacts faster than the competition. The result: better customer loyalty and significant speed advantages.
Strategic approaches for managers
Developing and communicating a vision
Managers must not only have a vision for the future. They must also communicate this vision clearly [3]. Where should the company be in five years' time? What role will digital technologies play? How will customer expectations change? Those who can answer these questions provide their team with orientation.
Utilising partnerships and external expertise
Not everything has to be developed internally. Managers should be open to partnerships. Start-ups often have faster innovation processes. Traditional companies have experience and resources. Together they can achieve impressive things. This is a strategic approach that banks, car manufacturers and other industries are already using.
Investing in employee skills
The best technology won't help if the team can't use it. Managers should invest in training and further education. This not only supports the digital transformation, but also increases employee satisfaction. People who can learn stay longer in the company.
Common challenges and how to overcome them
The reality is that many managers take Digital disruption as an existential threat. But only around half of them act consistently [4]. There are several reasons for this:
On the one hand, there is sometimes a lack of courage. Change is risky. What if the new strategy doesn't work? Managers must learn to deal with this uncertainty. However, not acting is often the greater risk.
Secondly, there is a lack of expertise. Not all managers understand digital technologies well enough. The solution: inform yourself, consult external experts and utilise networks.
Thirdly, resistance in the team is normal. People are afraid of losing their job or losing control. Managers should take these fears seriously and talk about them openly.
Practical first steps for managers
What can managers do tomorrow? Here are some concrete first steps:
Firstly, carry out an analysis. What is the company's current level of digital maturity? Which processes are outdated? Where do customer pain points arise?
Secondly, start a small pilot project. This can also be low-threshold. The important thing is to
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