Digital Disruption

Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.

The rapid increase in the use of of mobile devices for personal use and work, a shift sometimes referred to as the consumerization of IT, has increased the potential for digital disruption across many industries. A powerful example is the way Amazon, Netflix and Hulu Plus have disrupted the media and entertainment industries by changing how content is accessed by customers and monetized by advertisers. For example the CBS, NBC and ABC networks in the United States still receive income from broadcasting television shows, but they can't charge as much for advertising as they could when there were only three networks and all viewers used television sets to consume content. Since 2000, 52 percent of the companies in the Fortune 500 have gone bankrupt, have been acquired, or have ceased to exist, due in large part to the disruption of traditional industry models by digital models.