More and more companies seem to get taken by surprise by drastic changes in consumer behavior, often inspired by on the one hand technological innovation and on the other, the speed of adoption of those new products and services.
Things that spring to mind for instance are the fact that the amount of time we spend on mobile phone calls has drastically diminished, we are more and more using internet applications to achieve the same, and it’s giving telecom companies the scare of their life as they are now scrambling to recover the massive revenue losses this is incurring.
The same is happening with companies providing access to TV broadcasts. More and more content isn’t coming from them, but is either directly streamed, or (illegally) downloaded via the internet. When 10 years ago people said they had quit their subscription to Telenet, or Belgacom or whatever, they were still a fringe minority, quickly given the label of (fake) intellectuals or even that of some kind of anti-technology hippy. Nowadays the amount of people in my direct environment who have quit their subscriptions has seriously risen. Their decision is always based on the simple equation that their money doesn’t buy the media they want to see, so why not just quit paying the TV providers and just buy or download the media they want directly.
Turns out that the internet is still the biggest source of disruptive innovation, able to hamstring traditional businesses almost overnight. Lots of those large corporations with their armies of marketers & brand managers aren’t able to move ahead or at least along with these developments. You have to wonder why, because they all have access to exactly the same knowledge and technologies as the rest of the world. So what is it then that creates this drag on their evolution? Just mindset? Bureaucracy? Fear of decision making? The fact that the same Internet has more than levelled the playing field, making scarce resources cheap and abundant? All of it?
To end on a lighter note, I had a discussion this weekend about the fact that while all physical media we used to consume, be it books, DVDs & CDs are slowly being converted into purely digital formats which exist only on our hard disks and in our cloud storage, what is going to happen to big furniture producers like Ikea, because isn’t demand for shelf space going to drop drastically as well…?
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