Many moons ago, people were not capturing images for the “gram” (Instagram). Instead, they kept a handy camera around with rolls of film to snap that special moment — and it was not just a moment, but a “Kodak moment”.
It was with great excitement that families would pile into the car and set off to the mall in search of the Kodak store. The children in the back would surreptitiously poke at the film hoping to see something interesting. It would catch the eye of a parent in the front, who would caution against getting fingerprints on the roll.
At the Kodak store, the film would be handed over and, in about three days or so, the family would have pictures (some of them a real waste) to print for the album or frame.
Companies that become too comfortable with their methods, products or services may find themselves overtaken by competitors that embrace change
But in 2011, Kodak went from being a global icon to the sad poster child for the dangers of ignoring digital disruption. The firm that had transformed personal experience by enabling people worldwide to capture, own and share images filed for chapter 11 bankruptcy in the US.
Julia Ahlfeldt, a certified customer experience professional, says that even today many CEOs take action only once their company’s bottom line has been affected, despite warning signs across sectors that change has arrived.
“When it happened to Kodak, it was clear that the company had never expected people not to want film. By the time it tried to catch the digital wave, it was too late,” Ahlfeldt says.
Disruption is taking place in sectors such as retail, finance, real estate and media. And, while SA is not exempt, “the local market is perhaps a couple of years behind some other global markets”, she says.
Uber has been a key international disrupter in the local space. But not enough disruption has come from home players.
Buhle Goslar, a customer intelligence professional with a fintech firm — speaking in her personal capacity as a techie — says disruption is desperately needed, but largely lacking in SA. Sectors that are ripe for it include financial services, education, health care and transport.
“The way I see it, at its core, disruption is about giving quality and affordable access to people who previously were unserved or underserved,” says Goslar. “What I notice happening in SA in those industries is what I call a high-level of ‘business model stuckness’.”
Many companies believe they can just digitise or place big data on top of their current business models and then call themselves disrupters, she says, but this comes down to doing “the same old [thing]”.
Goslar believes the key for real disruption is the need for both product innovation and distribution.
“However, there are companies that are innovating, such as Yoco, which gives small and medium-sized firms access to points of sale at affordable rates. It is helping small businesses thrive and is opening new markets.”
Partnerships may be the key to disruption, says Goslar. Established firms in financial services, education and other industries can link up with start-ups to create new value networks.
“In the education space, for instance, you see varsities such as the University of Cape Town partnering with Moocs [massive open online courses], and providers such as online firm GetSmarter increasing their reach and making themselves a part of the disruption instead of a victim of it,” she says.
“I think there is huge opportunity for the same to happen in financial services, with a very positive downstream effect on economic growth.”
Ahlfeldt says Telkom is an established business that has shown promising signs of innovation. The company has put a lot of energy into figuring out what consumers want, and building its products accordingly. However, “as a legacy organisation, it has a lot of baggage — existing infrastructure and an existing culture, two components of a business that can be difficult to change”, she says.
“Start-ups, on the other hand, have the advantage of getting innovation into their corporate DNA from day one.”
Ahlfeldt says customer requirements are at the heart of disruption. “Consumer needs are ever changing. Companies should be agile about those needs and figure out how to keep meeting them.
“Discovery’s move into the financial services sector is partly about the company listening to its customers and foreseeing their needs.
“It might be a serious disrupter in that sector,” says Ahlfeldt.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.