Blurring the lines between traditional and digital medium
As the world is moving towards the Information Age, also known as the era Computer Age or the Digital Age whereby every piece of information is easily accessible online. The existence of information technology has paved the way for the digital economy to rise, replacing traditional media and commerce systems.
The rapid digitalization of e-businesses which consist of, e-commerce, digital marketing and social media marketing which will be integrated into their marketing mix whereas it creates a ‘digital market’ a presence for companies to conduct business exchange, advertising, commerce, promotions and so on.
Digital era have also revolutionized the way how marketing communications operate as well, the adoption of digital technology of the internet is utilized as a medium whereby agencies use to reach, engage, and interact with customers. Following the digitization race of industries which are investing heavily on digital services to tailor to the rising digital economy, such as online transaction, E-commerce, E-support.
Corporate companies emphasized on how important it is for the digitalization of their businesses, with the increased internet users on digital devices such as laptops, mobile phones on the rise has contributed to the ‘digital boom’ which also paved the way for globalization to take place as consumers will be connected to each other from all over the world.
The digital business model strategy refers to merging digital technology of any means to improve businesses, be it making the process more streamlined and efficient as possible. Today the merging of technology made it possible to explore new business opportunities and provide services that were previously not possible.
Digital innovation refers to utilizing digital technology to further improve the quality of services, products and online delivery. Through marketing segmentation, it is also important to understand user’s needs and working with agencies to find new creative solutions as well.
Digital innovation has made it possible for retailers and consumers to engage in online businesses as it takes advantage of ‘Fourth Industrial Revolution’.
Characteristics of Digital Innovation provides an overview of the characteristics of digital innovation and the following sections provide further explanations. The outcomes of digital innovation are characterized by convergence and generativity.
One of the few companies to take advantage of this digital innovation are Uber (or Grab), fully utilizing all digital means of medium.
They came into the market scene creating convenience for some users hoping to find ease of transportation.
However, causing many others to stop using taxis, creating backlash and thus local taxis start merging with Grab to share their services all together.
Not only the transportation industry is affected, mobile services application focused industries began venturing into E-Wallets, RFID, groceries, food deliveries, and online shopping. According to Forbes, “we are now at the cusp of a similar revolutionary transition in the trucking industry with Uber for truck-type apps entering the market. But this time the competition will be high and the solutions a lot more fragmented.”
Every advancement in technology made causes technological disruption which in business theory refers to displacing the current innovation of doing business and eventually creating a completely new one in its place.
Old school corporations such as Kodak, Nokia, GM (General Motors) had failed to realize the importance of digitization and failed to adapt to change and customer’ wants.
Technological disruption encourages innovation and competition in the market, if business owners to embrace the digitized world, they could well be surpassed by younger tech start ups. Change is inevitable, innovation is no different.