8 of the Hottest Industries Ready for Disruption According to Experts
Disruption is everywhere, but this picture might be kind of misleading. Despite that many sectors are experiencing disruption, there are still big and profitable industries that are ripe with potential for disruption, and not there yet.
We all know that most industries are facing the risk of disruption. But what are the leading indicators increasing the chances that disruption will occur?
According to Annet Aris from INSEAD, there are three factors to monitor carefully:
- the amount of waste in the industry,
- how much money the industry makes by being opaque, and
- the lack of customization and flexibility.
Annet Aris explains that if the answer to one or more of these questions is yes, then it is certain that disruptive digital innovation will arrive sooner or later.
Here is a short list with some of them.
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#1- Banking
Waste : High – Opaque : High – Rigid : High
We see two fundamental forces driving change worldwide: first, increased choice, and second, decreased switching costs. When you have rapid worldwide increased choice and decreased switching cost, it inevitably necessitates an advocacy-based approach to business. If a business doesn’t take really good care of its customers, these players will end up getting pushed out due to the decreased costs to switch. Banking will ultimately do the same thing. It’s just a matter of time whether banks will choose to be advocates on their own, or whether Fintech innovations will take their customers away.
#2 – Transportation and Logistics
Waste : High – Opaque : High – Rigid : High
Logistics operations require a high degree of human intervention and are, therefore, prone to errors and inefficiencies. Excessive dependence on human efforts for a smooth movement of goods from one place to another not only increases the risk of delays but also adds up to the costs; and operational inefficiencies.
Driving endlessly for days, lack of coordination among the concerned stakeholders and dealing with road congestions only adds to the stress. As the world is embracing automation and innovation, the logistics sector is highly ripe and ready for disruption. How can the Industry benefit from new technologies? It can, in so many ways! Driverless trucks or drones can facilitate last-mile e-commerce deliveries, or an app similar to Uber can optimize the efficiency of operations in the sector.
#3 – Insurance
Waste: High – Opaque: High – Rigid: High
Everyone needs insurance. People now have started researching and comparing options online for buying health insurance directly from the companies rather than contacting agents, and they are loving it. The online-instant-direct-cheap policies can surely bring a revolution in Insurance, especially among the millennials.
#4 – Finance
Waste: High – Opaque: High – Rigid: High
Many aspects of this industry need to change so that investing becomes a more inclusive, transparent and straightforward process for all of us. Both being able to understand how to access capital, and invest it for multiple -bottom line returns will be important as we move toward a more inclusive and sustainable economy. The financial industry itself, and all the people and institutions it serves will do better once it becomes more diverse and inclusive.
#5 – Healthcare
Waste: High – Opaque: Medium to High depending on countries – Rigid: High
There is a wave of technology that is already shaping the way providers offer care to patients. With the further proliferation of smartphones and video communication, the ability to connect patients and doctors has become much easier. No longer needing to set an appointment with your primary care provider when you have to wait weeks because they are booked up. Now, you can have a video chat with doctors, nurses, or other healthcare professionals from the comfort of your own home or while traveling. This also has a positive impact on healthcare facilities as it allows better screen patients, provides directional care, and even offers prescriptions over the web. This way shortening waiting room times and limiting unnecessary patient visits.
#6 – Long Supply Chain Industries
Waste: High – Opaque: High – Rigid: High
The greatest potential for disruption in the years to come is in any industry based on a long supply chain. The more intermediaries between manufacturer/producer/source and end-user, the greater the potential for new technologies like robotic process automation (RPA), blockchain and machine learning to shorten that supply chain. Industries like real estate, fashion, food, and even government and public services fit that description.
#7 – Retail and Fashion
Waste: High – Opaque: High – Rigid: Medium
Retail and fashion will always be a disruptive industry. There is always an opportunity for new businesses and startups to create and bring in disruptive solutions that minimize customer effort. Disruption can be done by offering an omnichannel solution, using automation, or developing a chatbot – the possibilities are almost endless.
#8 – Automotive
Waste: High – Opaque: Medium – Rigid: High
Self-driving cars will be ultra-safe, and quicker too. How about this idea – “Uber” type of app where your self-drive car makes you money while you work at the office! Self-driving cars will be EV, Electric Vehicles which means easier to maintain and, according to experts, be cheaper after 2022. No more expensive maintenance or repairs! Self-driving cars are a certain disruption that will arrive sooner than we anticipated.
A few months ago emerged a lively debate about whether companies like Uber qualified as disruptive innovation. In the pure theoretical arena, the discussion can continue for ages. As stated in a famous quote with unclear paternity “the reason the infighting in academia is so fierce is that the stakes are so small.” What matters is the impact that will occur in your industry. Indeed, sometimes you don’t anticipate how innovation can significantly impact your business and transform your industry.
What are your thoughts on the disruption of the industry you are in?
Do you see new innovative solutions challenging the current status?
Share your opinion, and if you need our perspective, we love to debate.
Hélène Laffitte is the CEO of Consulting Quest, a Global Performance-Driven Consulting Platform and author of “Smart Consulting Sourcing”, a step by step guide to getting the best ROI from your consulting. With a blend of experience in Procurement and Consulting, Hélène is passionate about helping Companies create more value through Consulting.
