kiroi.org

AIROI - Artificial Intelligence Return on Invest
The AI strategy for decision-makers and managers

Business excellence for decision-makers & managers by and with Sanjay Sauldie

AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

12 November 2025

Digital disruption: How to future-proof your company now

4.8
(1471)






Digital disruption: making your company future-proof


The business world is changing rapidly. New digital technologies and innovative business models are having a fundamental impact on traditional industries. We call this process of radical change digital disruption. Companies such as Netflix, Uber and Airbnb have turned entire industries upside down. They show: Those who do not adapt will be pushed out. Digital disruption is no longer a distant scenario - it is happening now. But the good news is that you can be proactive and future-proof your company[1].

What exactly is digital disruption?

Digital disruption describes the fundamental transformation of markets through digital innovation[1], with new technologies and business models replacing established solutions. This change goes beyond simple digitalisation. Completely new value chains are being created. Traditional processes are being scrutinised or dissolving[9].

There is a crucial difference between digital transformation and digital disruption. Digital transformation tends to describe continuous improvements to existing processes. Digital disruption, on the other hand, means radical change and sometimes even the dissolution of traditional business models.[7] Disruption creates completely new markets. It often offers customers greater advantages than traditional products[5].

Digital disruption is characterised by three types in particular:[3]

Disruptive technologies radically change products or services. Artificial intelligence and the Internet of Things are such technologies. Disruptive business models affect the way companies create value. The subscription model for software is one example. Disruptive innovation describes the introduction of new ideas. These create completely new markets or revolutionise existing ones[3].

Why digital disruption is crucial for your company

Companies are under pressure like never before. Digital disruption is forcing established players to act. Those who fail to recognise the signs of the times will lose market share. New competitors are emerging faster and more flexibly. They use digital technologies more effectively[1].

However, the opportunities are greater than the risks. Companies that understand and utilise digital disruption gain competitive advantages. They remain relevant and profitable. However, adapting to digital disruption requires conscious action. Structural changes are necessary. Openness to innovation is essential. Space must be created for in-house innovations[5].

Successful examples from various industries

Retail: How Amazon revolutionised the shopping world

Amazon is a prime example of successful digital disruption in the retail sector.[10] The company has developed a digital platform. It enables customers to shop online and order products quickly. Amazon continuously optimised business processes. The supply chain was automated using robotics and artificial intelligence[4].

Other retail chains initially reacted hesitantly. Then they realised: Action is necessary. Rewe, for example, is focussing on its online ordering service[6], allowing customers to shop digitally and save time. Lidl and Aldi Nord are following suit. Target, the second largest retailer in the USA, introduced a mobile app[8]. The company collects valuable customer data and uses it for personalised offers. Over 27 million shoppers use the app. The success was clear: over 5 billion dollars in sales per year[8].

Entertainment and media: Netflix and the streaming revolution

Netflix demonstrates how digital disruption is transforming entire industries.[6] The company started out as an online video store in 1997. It sent DVDs and BluRays to customers. In 2007, more than one billion DVDs were shipped. But Netflix recognised the opportunity. The company launched its streaming service in the same year. This innovation replaced the previous business model[6].

The music industry experienced something similar with Spotify. The platform revolutionised how people consume music.[9] Traditional sales models became less important. Subscription models became the new norm. These examples show: Disruptive companies are rethinking customer experiences.

Mobility and transport: Drive Now and the urban transformation

Drive Now from BMW is a prime example of digital disruption in the mobility sector.[6] The car sharing service is based entirely on a mobile application. Customers find vehicles on their smartphone. They book cars and pay directly via the app. Until September 2014, Drive Now used analogue membership cards. Digitalisation eliminated administration fees. It became easier and more convenient for consumers to use[6].

Uber fundamentally challenged the taxi business.[9] The platform connects drivers and passengers digitally. Traditional taxi services had to react. Many disappeared completely from the market or adapted.

Financial services: How digital disruption is changing banks

The banking industry is undergoing profound changes due to digital disruption.[1] Fintech companies such as Revolut are challenging traditional banks. They offer mobile applications and digital services. Traditional banking practices are being reconsidered[1].

Deutsche Bank responded to this challenge. It digitised its processes and developed a comprehensive platform. Customers have digital access to all banking services. The bank uses artificial intelligence to better understand customer needs. Personalised offers are being developed.[4] SURA, a multinational financial services company, coordinated several high-impact initiatives in parallel.[2] Digital innovation, office restructuring and regulatory changes required cultural adaptation. Cross-border employee engagement was critical[2].

Industry and logistics: transformation through technology

Industry and logistics are also subject to digital disruption. Mateco, a leading provider of rental equipment, modernised systems and processes in five countries[2] and rapid growth had created regional complexity. Success depended on employees in different markets adopting new ways of working[2].

BEST PRACTICE at the customer (name hidden due to NDA contract): A global food company started a multi-year changeover. Six old platforms were replaced by a standardised SAP solution. The transformation encompassed finance, procurement and supply chain management. Over 500 users were affected. In the middle of the implementation, the company had to integrate a newly acquired company. The complexity increased significantly. Despite this, digital disruption remained consistent as a strategy. The result was a modernised and more efficient company structure.

PTS Logistics carried out the world's first test with Microsoft HoloLens in project logistics.[14] With this step forward, the company secured important competences. The company positions itself as innovative to customers. ArcelorMittal, a steel giant, utilises a strategy with small units. This approach also works well for medium-sized companies[14].

Strategies for securing the future through digital disruption

1. identify and analyse trends at an early stage

Recognising trends is fundamental. Companies should constantly analyse how digital technologies are changing existing industries[5], which requires systematic market observation. Competitors and new market participants must be monitored.

Disruptive technologies often emerge in niche markets. They are initially underestimated. Established players often ignore them. Large organisations should establish a system. This system continuously monitors market changes. This allows you to react faster than your competitors. Digital disruption thus becomes an advantage rather than a threat.

2. develop cultural openness to innovation

Digital disruption requires a different corporate culture. Employees must welcome change, not fear it. Innovation must be rewarded. Willingness to take risks should be encouraged. Mistakes are seen as learning opportunities[5].

Managers play a key role. They have to exemplify change. Communication about change is essential. Employees need to understand the why. Training and support are necessary. Without cultural adaptation, technical projects often fail[2].

3. strategically utilise digital technologies

Digital disruption thrives on technology. But not every technology is suitable for every company. Cloud technology enables scalability and flexibility. Artificial intelligence optimises business processes. It develops new products and personalised services[1].

Adobe shows the potential. The company switched to a SaaS business model. Cloud technology was introduced. The HR strategy was innovated. The result was a significant competitive advantage.[12] Technology should be linked to business strategy. It's not about technology for its own sake. It's about solving real business problems.

4. rethink business models

Digital disruption often means fundamentally rethinking business models. Netflix switched from DVD delivery to streaming. The subscription model became the new norm. Revenue streams changed fundamentally. But the benefits for customers grew enormously[6].

Your company should ask: How can we create value differently? What new revenue streams are possible? How can we serve customers better? These questions lead to innovative business models. Digital disruption offers great opportunities here.

5. implement change management professionally

Large-scale digital transformations require professional change management. UKG, a global HR solutions provider, standardised corporate systems for 12,000 employees following a major merger[2] Redundant platforms and fragmented processes were slowing performance. A comprehensive ERP transformation became a strategic priority[2].

People-centred approaches are crucial. Employee communication must be clear and continuous. Resistance to change should be taken seriously. Training and support are required. Without good change management, technical projects often fail, even though the technology is good.

Practical steps for your company

Step 1: Check digital readiness

The status quo should be clarified before major changes are made. A digital readiness check determines the level of digital maturity[7]: Where does your company stand today? What skills are available? Where are the gaps? This analysis forms the basis for a strategy.

Step 2: Create small units for innovation

Not all companies need huge budgets for digital disruption. ArcelorMittal shows that small units can bring great success.[14] Innovation labs or agile teams can test new ideas. Rapid failure and learning become possible. The knowledge gained can then be transferred to the entire organisation.

Step 3: Put customer focus at the centre

Digital disruption arises because new solutions serve customers better. Target understood this.[8] The mobile app collects customer data. This data shows preferences, shopping habits and favourite products. These insights enable better offers. Customer satisfaction increased, sales grew.

Your company should think similarly. Which

How useful was this post?

Click on a star to rate it!

Average rating 4.8 / 5. Vote count: 1471

No votes so far! Be the first to rate this post.

Share on the web now:

Other content worth reading:

Digital disruption: How to future-proof your company now

written by:

Keywords:

#ChangeManagement #DigitalDisruption #DigitalTransformation #InnovativeBusinessModels #TechnologyTrends

Follow me on my channels:

Questions on the topic? Contact us now without obligation

Contact us
=
Please enter the result as a number.

More articles worth reading

Leave a comment