Business Disruption Will Increase Next 10 Years

By Gary Kim August 23, 2011

If you think the pace of business change is rapid now, rates of change might be even faster in 10 years, argues Forrester Research analyst Phil Murphy. In part, that is because potential revenue model velocity will increase. When distributed sensors of all types are in place, real-time information will shorten any supplier’s ability to react to changes in demand. Applications will drive revenue velocity

Where traditional supply chain models that build products, then warehouse them for distribution and sale give way to systems that sense and build on-demand. Payment, procurement and logistics processes all will change to match the new model as well.

That means one facet of business in the Internet era, namely the ability of competitors to enter new markets more easily, will get easier. “Upstarts will appear in markets thought to be untouchable in 2011,” said Murphy.

One typical result of a market being deregulated, and one result of Web-based competition, is a greater variety of segmentation of business models, where competitors “slice up” a formerly monolithic market and try to carve out customer niches. Deregulation causes differentiation

Also, since most monopoly markets (one is tended to say “all”) tend to feature generous profit margins, one immediate result of deregulation or more-liquid e-commerce capabilities is retail pricing pressure. Deregulation creates pricing pressure

in fact, that is one hallmark of “deregulating” markets. In one sense, cloud computing, open source and Internet-driven e-commerce perform the same market function as “deregulation,” namely enabling new competitors to enter markets they had not been in before.

The ultimate fate of virtually every market, under competitive conditions, is leadership by no more than three firms, though. Markets tend to feature just 3 leadersThe good or bad news, depending on whether a firm is an incumbent or a challenger, is that cloud-based application access, among other changes in the software distribution and creation ecosystems, will enable contestants to challenge incumbents in a greater range of markets in 10 years.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Gary Kim is a contributing editor for TechZone360. To read more of Gary’s articles, please visit his columnist page.

Edited by Rich Steeves

Contributing Editor

SHARE THIS ARTICLE
Related Articles

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More

Putting the Flow into Workflow, Paessler and Briefery Help Businesses Operate Better

By: Cynthia S. Artin    9/14/2018

The digital transformation of business is generating a lot of value, through more automation, more intelligence, and ultimately more efficiency.

Read More

From Mainframe to Open Frameworks, Linux Foundation Fuels Up with Rocket Software

By: Special Guest    9/6/2018

Last week, at the Open Source Summit, hosted by The Linux Foundation, the Open Mainframe Project gave birth to Zowe, introduced a new open source soft…

Read More

Unified Office Takes a Trip to the Dentist Office

By: Cynthia S. Artin    9/6/2018

Not many of us love going to see the dentist, and one company working across unified voice, productivity and even IoT systems is out to make the exper…

Read More

AIOps Outfit Moogsoft Launches Observe

By: Paula Bernier    8/30/2018

Moogsoft Observe advances the capabilities of AIOps to help IT teams better manage their services and applications in the face of a massive proliferat…

Read More