What is 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 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.

What is Digital Disruption?

Generally, digital disruption happens after a digital innovation, such as big data, machine
learning, internet of things or the BYOD movement. Digital innovation then affects how
customer expectations and behaviors evolve, causing organizations to shift how they create
products and services, produce marketing material and evaluate feedback. This shift in digital
strategy can occur on an individual, organizational, industry or societal level.

Digital disruption vs. disruptive technology

The term digital disruption has become something of a cliche in recent years and is often
misused to describe any product involving digital technology or the use of digitization to
better compete against marketplace peers. It is often confused with disruptive technology, a
term coined by Harvard Business School professor Clayton M. Christensen to describe a new
technology that displaces an established technology.

Examples of digital disruption

A few examples of digital disruption include the following:

 The digital camera business disrupted the industry of film photography and photo
processing.

 The subscription economy business model -- as used by companies such as Amazon,

Hulu and Netflix -- caused a disruption within the media and entertainment industries by
changing how content is accessed by customers and monetized by advertisers.

 freemium products, such as Spotify, LinkedIn or DropBox, which allow users to sample a
basic product with the option to pay for the full offer, put more emphasis on developing a
well-known brand behind a product or service.
 On-demand services, such as Uber, have disrupted more traditional services like taxis.

 The rise of electronic reading has redefined the print and publication industry.

Importance of digital disruption

It is important for organizations to embrace digital disruption in order to gain a competitive

advantage. When an industry experiences digital disruption, it typically signals that consumer
needs are shifting. Therefore, understanding the disruption enables companies to keep
existing customers happy as well as create opportunities for new customers.

It also gives companies a better idea of human behavior and how trends may occur over time.
The following are a few best practices to follow that ensure digital disruptions are more of an
opportunity than a threat:

 Pursue initiatives that might cause a disruption and do not be afraid to be the disruptor.

 Consolidate data assets and use them to make decisions.

 Brainstorm ideas for entirely unique products, services or channels.

 Employ customer data in new, innovative ways.

Digital disruption in Indian business

Digital disruption refers to how new technologies transform traditional industries, forcing
businesses to innovate and adapt. In the Indian marketing context, several brands and sectors
have undergone significant disruption, enhancing customer engagement and transforming
business models. Here are some key examples:

1. E-commerce Platforms and Retail

Example: Amazon India, Flipkart, and Myntra

Impact: These platforms disrupted the traditional retail industry by bringing online
shopping to the masses with convenience, cash-on-delivery options, and periodic sales like
the Big Billion Days and Great Indian Festival.

Key Marketing Strategy: AI-powered personalized product recommendations, discounts,

and loyalty programs engage customers and increase retention.

2. Digital Payments Revolution

Example: Paytm, Google Pay, and PhonePe

Impact: The shift from cash to digital wallets was accelerated post-demonetization (2016).
Paytm’s marketing revolved around QR-code based transactions, making it accessible to
small vendors. PhonePe and Google Pay leveraged cashback offers and gamified UPI
transactions (like Google Pay's scratch cards) to engage users.

Key Marketing Strategy: Integration of rewards, instant cashback offers, and contextual
advertising during festivals or IPL seasons.

3. OTT Platforms Disrupting Entertainment Marketing

Example: Netflix, Amazon Prime, Disney+ Hotstar

Impact: Traditional television advertising lost viewership to OTT platforms. Hotstar

revolutionized IPL marketing by offering ad slots targeting digital viewers. Netflix and
Amazon Prime capitalized on influencer marketing and personalized content
recommendations.

Key Marketing Strategy: Hyper-targeted ads based on user preferences and partnerships
with influencers and celebrities to promote web series.
4. Influencer Marketing and Social Commerce

Example: Instagram and YouTube Influencers (e.g., Komal Pandey, Bhuvan Bam)

Impact: Digital platforms enabled micro and macro influencers to promote brands. This
disrupted conventional advertising by making influencer partnerships a core part of digital
campaigns. Social commerce (shopping through social media) has also grown, with platforms
like Instagram allowing businesses to sell directly.

Key Marketing Strategy: Collaborations with influencers for product launches and native
advertising through YouTube vlogs and Instagram Reels.

5. EdTech Platforms Disrupting Education and Learning

Example: Byju’s, Unacademy, and Vedantu

Impact: These platforms disrupted traditional education by shifting to online learning and
massive ad campaigns. Byju’s signed Shah Rukh Khan and leveraged TV and digital
platforms to market its courses. The pandemic further accelerated their dominance.

Key Marketing Strategy: Cross-platform ads across YouTube, TV, and social media,
referral discounts, and performance-based gamification in learning apps.

6. Online Food Delivery Platforms

Example: Swiggy and Zomato

Impact: These platforms disrupted the restaurant industry by enabling home delivery with
real-time tracking. Their marketing revolves around personalized offers, festival campaigns
(e.g., Diwali discounts), and witty social media engagement.

Key Marketing Strategy: Flash sales, push notifications with discounts, and humorous
social media campaigns targeting millennials.

7. Ride-hailing Services Replacing Conventional Transport

Example: Ola and Uber

Impact: These companies disrupted traditional taxis with app-based convenience and
attractive discounts. Their aggressive pricing and referral programs helped them build a
strong customer base.

Key Marketing Strategy: Festival promotions, referral incentives, and targeted promotions
for airport or outstation rides.
8. Programmatic Advertising and AI-driven Campaigns

Example: Tata Cliq, JioMart

Impact: Brands leverage AI to deliver real-time, data-driven ads. Programmatic advertising

on platforms like Google Ads and Meta Ads offers precise targeting, ensuring companies can
reach niche audiences based on behavior, location, and interests.

Key Marketing Strategy: Automated personalized email campaigns, dynamic ad

placements, and predictive analytics to optimize ad budgets.

9. Healthcare and Online Pharmacies

Example: 1mg, Netmeds, and Practo

Impact: Online healthcare platforms disrupted the traditional pharmacy model by offering
home delivery of medicines and teleconsultation services. Their marketing emphasizes
convenience, discounts, and subscription models for recurring medications.

Key Marketing Strategy: Social media ads promoting health awareness, discounts on first
orders, and loyalty points for frequent customers.

10. Hyperlocal Delivery Services

Example: Dunzo and Zepto

Impact: Dunzo's entry disrupted the logistics space by providing instant delivery services
for groceries, medicines, and other essentials. Zepto focused on ultra-fast grocery delivery in
under 10 minutes, setting new standards in the market.

Key Marketing Strategy: Geo-targeted ads, referral bonuses, and festival-based campaigns
offering express delivery.