Technology and Business Disruption
This third millennium era is synonymous with information and communication technology. According to world stats, internet users in 1995 amounted to 16 million, or 0.4 percent of the population at the time, the trend continued to increase so that in 2017, internet users had reached 4.1 billion or 54.4 percent of the world’s population.
This communication technology is a communication channel replacing or at least reducing the previous communication channel, namely the mass media. This can be seen, for example the printed edition of Bernas Jogjakarta Daily which had experienced its heyday was closed on February 28, 2018. Bernas management chose to migrate from the print edition to online media under the name Bernas.id
Widespread use of the internet is one of the important factors in business disruption. Shifting the way media is not only stopped at how to obtain information, but changes the way of doing business. Rhenald Kasali mentioned five important things in disruption.
First, disruption results in savings in many costs due to simplification and savings in business processes. With the existence of smart phones, the cost of communication between teams and also with suppliers and customers decreases. More communication that is intensive also reduces the costs of errors and stock. For the motorcycle taxi business, smart phones reduce the energy and time to wait for passengers, and offer flexibility to work. As a result, enthusiasts to become motorcycle taxi drivers increase and are able to offer motorcycle taxi fees that are much cheaper to consumers.
Second, disruption makes any quality that is produced better than the previous one. Communication technology allows businesses to adjust customer preferences, so that it can help businesses compile quality and satisfying products and services.
Third, disruption reaches new markets, or makes them – market segments – that were previously unreachable to be affordable. Online retail business through online marketplaces / markets, such as tokopedia, bukalapak, shopee, is able to offer products to all cities in Indonesia, which were previously not affordable. The marketplace can do that because of the support of package couriers such as JNE and JNT who can send packages to various cities at affordable costs.
Fourth, the products / services produced by the disruption are more easily accessed or reached by its users. As well as ojek services (eg Gojek and Grab) or online taxis (for example Gocar), or banking services and including financial technology, everything is now available in the hand, on our smartphones.
Fifth, disruption makes everything now smart. Smarter, saving time, stock costs and more accurate. With internet technology, entrepreneurs are competing to understand the interests of market segments, then preparing products that suit their needs.