Disruption and Change in Business Today
Is your job, business or industry being disrupted by technology?
When the student is ready the teacher will appear ~ Buddha
Our journey began learning about disruption and change in business about 2 years ago when we listened to Salim Ismail a “technology optimist” and keynote speaker at a business conference. There was hunger to learn as well as fear surrounding what technology was doing to our world and the world around us. We had no idea the message Salim Ismail shared would change the course of our lives.
Today’s Digital World Impacts Many Industries
1) Office Space and Commercial Real Estate
We worked at DeskHub in San Diego California, a coworking office space which is a home for online businesses and various traditional business leveraging the internet without the cost of expensive bricks and mortar.
This is a community of likeminded professionals, entrepreneurs, not for profit businesses who are choosing to work in non-traditional spaces with reduced overhead and increased collaboration, innovation and creativity. Imagine how this trend will impact the commercial real estate industry. Check out this link to learn about the future of these coworking spaces.
2) Taxi Industry
The “UBER Story” is similar where Uber adds to the fleet with minimal coat by leveraging the use of an individual’s car at a fraction of the cost of traditional taxis service. Here are some shocking Uber statistics. As of September 2018 Uber has 75 million riders, 3 million drivers who have provided 10 billion rides!
3) Hotel Industry
The new supply and demand "rules" or should we say today "makes the rules!"
On the supply side Airbnb and VRBO are adding new properties at virtually no cost and large hotel chains have to build a whole new property. According to Forbes Airbnb is valued at over $38 billion USD and growing with very little cost to expansion.
Should hotel chains want to increase their properties in the traditional bricks and mortar world they have to build a brand new property at substantial costs like construction, property values, taxes, permits, human resources to mention a few.
Airbnb/VRBO leverages the internet and similar to the supply side are able to market and promote their brand very economically. The bricks and mortar hotel chains are now in catchup mode.
Good-Bye Turtle - Hello Hare
The cost of traditional bricks and mortar business is being challenged in dramatic fashion by technology. Slow to change industries like the hotel and commercial real estate industry have been blind-sided, the internet has leveraged assets and the new normal is agile, nimble and cost effective.
What's Old is New Again
Disruption is not new. The automobile replaced the horse and buggy along with a domino of related industries. Car manufacturing required better roads, bridges and contributed to the growth of the oil and gas industry.
The difference between previous disruption, many of the jobs, business and industries today will not be replaced with related employment because IT is driving new business. Many future jobs don’t yet exist today.
Technology Up - Cost of Goods and Services Down
As technology continues to grow the cost of goods and services continues to decrease.
An example would be the cost of the Google Autonomous cars technology as presented by Salim Ismail.
- 10 years ago the technology cost was $200,000/car
- After 2 years the cost was approximately $100,000/car
- Next 2 years the cost was approximately $ 50,000/car
- Now the technology cost is $1,000/car .
Executive Recruiters to Digital Entrepreneurs
As Executive Recruiters we found our business being disrupted by technology like LinkedIn and Indeed and this was just the beginning. As a result of technology there was a growing trend towards businesses believing they could effectively recruit internally and no longer required our services. Technology contributed and continues to contribute to the perspective that recruitment is easy. From the outside looking in, we could see how this perception is possible.
The Solution for Us
As we mentioned we walked out of that conference knowing we needed to make a change and we had no idea what that change would look like. One day we decided to do some research and found Six Figure Mentors (SFM), an educational training program and community of like minded digital marketers and entrepreneurs located all over the world.
This program appealed to us. Being Executive Recruiters, we had observed people be displaced by technology and we believed we needed to find a solution for us as well as for others. This has been a journey and not always an easy one.
Learning about disruption can be like learning the game of bridge - you can be a beginner, be intrigued with the game, it’s strategies and intricacy and not be a Master Player. Technology has caused us to change and we have had the privilege with Six Figure Mentors to learn as we earn.
As I mentioned above, we were ready to hear the message and the teacher appeared. Six Figure Mentors has taught us things we never dreamed possible and working at Desk Hub the other day was a dream come true.
Adrienne & Bob
We are digital entrepreneurs who took a courageous leap to start our online business. We have owned an Executive Recruitment company for over twenty years. The industry is being rapidly disrupted by technology. Our business isn’t scaleable and we constantly trade time for money. Our digital business allows us flexibility to work when and where we want and do the things we enjoy. We are passionate about helping others achieve the same.