DevOps – Business Solutions for the Digital Innovation Era
The Pace of Disruption
Commencing the millennium’s advent, a staggering fifty-two percent of Fortune 500 entities have vanished into the ether. Fifty-two percent! Nearly half of the Fortune 500 conglomerates extant in the year 2000 have succumbed to obsolescence. What adversities did they confront? One word encapsulates it – disruption. It’s not a matter of if one undergoes disruption; it’s a matter of when.
Disruption Can Happen to Anyone
Established entities, such as financial institutions, may ponder, “Who possesses the capacity to disrupt us?” One might expound on the necessity for swift deployment and continuous delivery to banks, yet their responsiveness might waver. Meanwhile, a neighboring bank unveils an application facilitating check deposit via photo capture. If your bank, in the span of six months, struggles to update its application for similar functionality, a substantial clientele loss is inevitable. It’s not an inquiry into the likelihood of disruption but rather an acknowledgment of its inevitability.
It’s the Business Model, Not Just Technology
Conversations with clientele about potential disruption often yield responses like, “Technology disrupted me; I’ve succumbed to technological disruption.” However, on reflection…The technology accessible to disruptors mirrors that available to established entities since a significant portion originates from open-source channels. Disruptors, however, adopt a novel business paradigm.
Uber – A Model of Disruptive Innovation
Uber serves as a prime exemplar. Contemplate the revolutionary technology facilitating Uber’s upheaval of the taxi sector. GPS was part of the equation, but it’s not groundbreaking; dashboard GPS units have adorned vehicles for years. Electronic payments predate GPS, existing for decades. The ubiquitous presence of smartphones is another commonplace element. Uber’s innovation lay in synthesizing these elements within a distinct business framework.
Adapt or Go Extinct
In my domicile, New York State, the taxi industry ardently lobbies Albany for legislative restraints against Uber. Legislative intervention won’t salvage the taxi industry; what’s required is adept programming and an app! The proverbial genie has vacated the bottle. Ride-sharing preferences align with smartphone summoning. Adaptation or extinction is the binary choice!
Disruption Everywhere
Disruption pervades every industry landscape. When did you last engage a travel agent? Such transactions transpire online now. Reflect on the erstwhile prevalence of point-and-shoot cameras; a bustling market now dwindled as smartphones house adept cameras. Inquiries concerning ideal candid shot cameras received a straightforward response: “The camera within arm’s reach, the pocketed one.” Point-and-shoot cameras are obsolete; smartphones induced the disruption.
Pivoting to Survive
Contemplate Blockbuster Video’s trajectory. The 80s witnessed tape rentals, with VCRs enjoying prominence. Physical visits to Blockbuster were routine, akin to library book check-ins if tardy. Then came Netflix, discerning the compact nature of DVDs. Their initial model involved mailing DVDs; subsequent DVDs awaited dispatch upon the return of the current one. Netflix overlooked extended retention; late fees weren’t levied for a half-year tenure. Eventually, Netflix abandoned DVDs, leveraging the ubiquity of broadband internet to stream content directly to homes. Blockbuster erroneously perceived itself in the video rental sphere, while Netflix recognized its place in the broader entertainment domain. Blockbuster crumbled.
Garmin, in contrast, adapted judiciously. Acknowledging the prevalence of GPS-enabled smartphones, Garmin pivoted, acknowledging their role in the tracking realm. Wrist trackers emerged, catering to fitness enthusiasts.
Key Lessons
Survivability varies among businesses, underscoring the essence that technology functions as an enabler rather than a sole driver of innovation. A robust business model and innovation leverage technology; the latter merely facilitates without propelling. The crux conveyed here: technology empowers innovation, not dictates it. This discourse imparts the essence that successful innovation demands a potent business model alongside technological leverage.
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