[Academic Services] Digital Disruption: Are we really being destroyed by technology? What causes Digital Disruption? and Surviving the Digital Transformation

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Digital Disruption: Are We Really Being Destroyed by Technology? And What Causes Digital Disruption?
Assistant Professor Dr. Thanupong Srikalasin
Professor Dr. Atthasit PhatthanasiriProfessor
Dr. Anchana Klinthian
Surviving Digital Disruption
Professor Patcharaporn Worachotikamjorn
Professor Sittichai Worachotikamjorn
Digital Disruption: Are we really being destroyed by technology? What causes Digital Disruption?
For the answer to this question, there should be two perspectives. The first perspective would be our perspective as consumers. We have to admit that today’s world is truly a consumer world because consumers are very comfortable doing various activities, whether buying products or services, with various technologies helping behind the scenes. For example, in the past, booking a hotel in the provinces was very difficult. We might have to call the hotel directly to ask for many questions, such as the price or the date of our stay. But today, we can easily book a hotel by opening an application on our smartphones. Or if we don’t want to stay in a hotel, there are other options, such as staying in a condominium, apartment, or even a private house that the owner allows others to rent out for a short period of time. But if we answer the same question from the perspective of a business owner, it turns out that we are in the opposite world of consumers because today’s business owners have to greatly adapt to respond to consumer behavior that is addicted to various conveniences, new business models that are constantly emerging, and they also have to keep up with the changes in technology. From this situation, we can clearly see that many businesses have to disappear due to the inability to adapt their businesses to these things. From both perspectives, it is clear that from the perspective of business owners, it is a very worrying perspective. The next question that business owners should think about to find the answer urgently is, "How can we survive this phenomenon that the world calls Digital Disruption?" To find the answer to this question, first of all, we have to ask business owners, "What is Digital Disruption? And how much do we understand this phenomenon?" From the perspective of business owners, Digital Disruption means "the value of products and services from the perspective of consumers changes due to the impact of new technologies or business models." For example, expanding sales channels to online channels through various e-commerce services (e-Commerce) makes consumers value products that can be ordered through these sales channels more than products sold through traditional sales channels because they can order products more conveniently and receive home delivery services, etc. All in all, it cannot be denied that technology is a major stimulus for Digital Disruption. So what causes Digital Disruption? In the past, what caused Digital Disruption was the technology itself, which was developed due to human invention. However, in the past, it was difficult and took a long time for technology to be accepted as a new innovation and be able to destroy the original technology. For example, the development of digital photography technology was successful until companies in the photography industry used this technology to destroy the original photography technology. However, today, the fastest cause of Digital Disruption is the changing behavior of consumers, which is the accelerator for companies to urgently develop various technologies to support these changing behaviors. For example, consumers are increasingly addicted to convenience, causing business owners to try to invent or apply various current technologies to create as much convenience for consumers as possible, such as shopping through applications on smartphones. Or what we call Mobile Commerce, etc. And another important catalyst for the Digital Disruption that humanity is currently facing with difficulty and is also a major catalyst for Digital Disruption is sudden important social phenomena such as the outbreak of the COVID-19 virus. If you observe carefully, you will find that most business owners, whether small or large, have been forced by the situation to apply various technologies to their businesses and adjust their business models to be consistent with the use of technology. The most obvious example is the restaurant business that originally relied mainly on selling through their own stores. They have had to turn to a business model of delivering to customers, relying on the technology of various social networks such as Facebook or Line to help receive customer orders and provide delivery services. Or some have partnerships with various food delivery applications, etc. In the next episode, we will continue to discuss what methods we will have to survive in this Digital Disruption phenomenon if we are business owners.
Surviving from Digital Disruption
Responding to the digital disruption is not just about businesses adapting to technology.
Businesses must also think of new ways to apply technology or innovations to make their business operations more efficient and create the highest value for customers. Digital disruption affects not only the business model, which must change according to the changing needs of customers.
But also the adoption of technology in the organization and the creation of a new culture. The strategies that businesses can apply to survive the digital disruption so that the business can survive are as follows:
1.Creating and increasing customer satisfaction
The key to surviving the digital disruption is the “customer”. The world's leading technology provider (NTT LTD.) revealed the results of the survey from the annual report titled “The Connected Customer: Delivering an effortless experience.” It was found that 64% of the survey results considered the delivery of the customer experience (Customer Experience: CX) as a differentiation for the organization. New-age customers have higher expectations than ever before. Therefore, businesses must create a good experience for customers. Listen to customer feedback Gathering data from various systems and implementing new technologies such as AI (Artificial Intelligent) and RPA (Robotic Process Automation) will enable organizations to enhance their customer experience to create a competitive advantage. A successful CX strategy will improve and enhance customer and brand engagement, as well as promote good marketing operations. Creating a CX strategy is the use of intelligent data to support customer experience decision-making using data analytics and data management, etc.
2.Technology
It is the use of technology to improve work processes in the form of Digital Transformation by identifying the technologies used in the organization and looking at the purpose of use, whether it is using AI to help with repetitive tasks to reduce costs, using Blockchain for more secure transactions, and using cloud technology to use data resources efficiently. MGI (McKinsey Global Institute), part of McKinsey & Company, a leading global management consultancy, has published a report on the topic of “Disruptive technologies: Advances that will transform life, business, and the global economy”, explaining the understanding of the impact of technology. (Understanding the impact of technologies) There are 12 areas as follows:
1. Mobile internet is related to small storage and processing technology, low power consumption, modern screen technology, high capacity but cheap battery technology, mobile communication technology including wireless communication both 5G and Wi-Fi 6 (Wireless Technology).
2. Automation of knowledge work is related to artificial intelligence (AI) and the use of technology to teach computer systems to learn by themselves by using 'data' to train the system (Machine Learning) to develop AI, including BIG DATA technology, which describes the large amount of data that is complex, especially from new sources. With such a huge amount, it is impossible to assess and analyze it using traditional software and hardware methods. However, this huge amount of data can be used in businesses that were previously unavailable. All of them are related to technologies such as Amazon AWS, Microsoft Azure, Google Cloud and IBM Watson.
3. The Internet of Things (IOT) is the ability for electronic devices to connect or send data to each other via the Internet without having to enter data. This connection allows us to control the use of electronic devices via the Internet. Devices that can transmit data to each other in real time. Devices in this field are related to small, cheap, low-power sensor devices. and RFID technology, including Bluetooth Low Energy technology
4. Cloud technology is a concept that users can access computer resources such as Server, Storage, various applications as needed via Network or Internet, including other services that can be prepared to provide services quickly and reduce the administrative burden of the administrator to a minimum, with popular service providers including Amazon AWS, Microsoft Azure, Google Cloud
5. Advanced robotics Robots that can analyze in depth, not just giving the same commands, but can think of their own developments, which are related to advanced technologies such as Face Recognition technology, technology to find defect patterns in products from the production line, technology to consider the results of patient X-ray images (MRI / CT SCAN) to detect all abnormalities in the Computer Vision category, etc.
6. Autonomous and near-autonomous vehicles are related to self-driving car technology, such as TESLA.
7. Next-generation genomics, technology to improve and develop genes including the development of animal and plant breeds
8. Energy storage, a new form of electrical energy storage technology
9. 3D printing, 3D printing technology
10. Advanced materials, a new type of material production technology, such as materials that can be restored to their original state
11. Advanced oil and gas exploration and recovery, oil and gas exploration technology
12. Renewable Energy, electrical energy technology from clean energy sources or renewable energy, such as sunlight, wind, waves, hot springs, etc.
References : Are we really being disrupted by technology? And what causes digital disruption?
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- Ramos T. (n.d.). สืบค้นเมื่อ 25 พฤษภาคม 2020. จาก https://blog.runrun.it/en/digital-disruption/
- สุพัตรา อัมรานนท์. (2019, 24 กันยายน). LAZY MARKETING การตลาดแนวใหม่ เอาใจมนุษย์ขี้เกียจที่กำลังมากขึ้นทุกวัน. สืบค้นเมื่อ 25 พฤษภาคม 2020. จาก https://digitalmarketingwow.com/2019/09/24/lazy-marketing-%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B8%95%E0%B8%A5%E0%B8%B2%E0B8%94%E0%B9%81
%E0%B8%99%E0%B8%A7%E0%B9%83%E0%B8%AB%E0%B8%A1%E0%B9%88%E0%B9%80%E0%B8%
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References : Surviving from Digital Disruption
- https://techsauce.co/tech-and-biz/lessons-lessons-in-leading-digital-disruption-from-tech-s-most-innovative-companies
- https://marketeeronline.co/archives/148758
- https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McKinsey%20Digital/Our%20Insights/
Disruptive%20technologies/MGI_Disruptive_technologies_Full_report_May2013.ashx - https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/disruptive-technologies