Article by Roy Halstead, Business Consultant at Osudio.
Big tech players are closing in on new business opportunities that have traditionally been in the hands of established players. The “Amazon effect” is starting to permeate different business sectors with platforms bringing an end to pipeline business. Is Platformization an opportunity or a threat? What lessons can be learnt from countries such as China that have been already experimenting for some time? This and more on this week’s episode of #Innovationtalks with Frans Stijnman and Roy Halstead.
When British Airways first launched “Go Airlines” back in ‘98 it was responding to a clear threat. It foresaw that the market was shifting towards a leaner and often meaner way of flying, hence it needed to act or relegate to irrelevance. It delivered what became known as the “no-frill” experience, simplicity and frugality at the core of things but with a unique user experience. You could book flights rapidly through the web, run almost everything online at a fraction of a regular flight. It changed the flying industry forever. The effects of “Democratizing” flying is felt large and wide to this day.
There’s nothing digital about BA’s story but there are resemblances to what is occurring in today’s market. BA made the right choice, at the right time. Innovate and respond to a new sort of clientele or play safe and lose market share.
This year, Amazon is officially entering business segments traditionally owned by players that have had skin in the game for quite some time, decades even, which in today’s market is equivalent to centuries of control. As a matter of fact, banks have been banks since 1472 and remained unchallenged to this day. Yet Amazon is not the only one, Uber has requested an E-money license and Ant Financial, Alibaba’s affiliate is running a funding round that could lead it to a mind boggling 150 billion valuation (http://money.cnn.com/2018/04/11/technology/ant-financial-services-group-alibaba/index.html) making it one of the most valued companies in the tech scene.
What makes these companies so successful and so bold to openly challenge established businesses? Much like the BA case, it comes down to the customer centric focus. Delivering unique user experiences throughout the customer journey, putting the client really at the centre of it all. Tech giants such as Google, Uber and Amazon have had years to consolidate market share, knowledge and understanding truly what the customer is after. Shopping and checking out in 30 seconds is all possible, hence it comes down to a simple question. What makes market leaders think they can retain their lead in the market if such a lead was often dictated by lack of alternatives?
With alternatives springing from every direction, established players are aware they need to change, this is how Osudio can truly deliver a value add to the customer in need to engage or be disrupted.
Can you use some help with your digital transformation and its impact on your organisation? Contact one of Osudio’s experts for an informal conversation.
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