We are all familiar with the way new Silicon Valley’s data-centric businesses, such as Uber and Airbnb, have used data to disrupt traditional markets. Advanced data and intelligence are becoming included in many products (as e.g. in Self Organizing Networks), redefining the core nature of traditional products and services. This combination of Data Insights and Internet of Things is reshaping the landscape of entire industries, disrupting value chains, and it will soon force you to rethink everything you do in your business.
Embedded sensors and processing power (see more on IoT here) coupled with data insights are redefining all businesses, moving competitors across traditional industry boundaries. This is altering industry structure and the profound nature of market competition, exposing businesses to new threats coming from other industries or even from competitors which do not exist today yet (see for instance this post for the way Digital is impacting the Telecom Sector, killing or maybe saving it).
With entry barriers which are likely going to decrease for most industries, new smart products may invalidate your current strengths. This opens the door to new competitors, including “productless” competitors, which bases their value proposition on the aggregation of data from various industries. In addition, new competitors may disrupt your market by introducing product-as-a-service and/or shared-usage models, as the case of car and bike sharing. And new competitors may include technology giants as Apple, Google, Microsoft, and the like, to make the scenario even more challenging.
All of this poses an unprecedented threat to the survival of your organization. In this increasingly connected world of people and things, it is likely that your toughest competitor is arriving from new data-empowered entrants. Still, this revolution is a double-edged sword! If you act faster and clever than the market, there is an opportunity for you to be THE NEW COMPETITOR in the market! To achieve this, however, you must lead the data & IoT revolution, learning to make sense of data explosion, gaining real-time powerful data insights, and delivering these insights to the right points of actions. Moving beyond historical analysis to predictive analytics and actions is essential to staying competitive in this very near future.
You can use data insights to drive productivity, to enhance existing revenue, and most important to create new business models based data. If you can obtain all relevant data, analyze it quickly, surface actionable insights, and drive them back into operational systems, then you can affect events as they’re still unfolding. The ability to catch people or things “in the act” and adapt your actions using data insights is key!
Are you already using data insights to deliver a competitive advantage to your company? To win the battle for survival, remember your toughest competitor is arriving… and you have no idea about it! Therefore, be ready to exploit the data insights revolution to redefine your own market and business!
For more insights on the rise of data-driven businesses please refer to our Media & Analysts area at Capgemini.com