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Sigmoid Connect

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The Global Center for Digital Business Transformation (the DBT Center), an IMD and Cisco initiative, have identified two competitive realities emerging from the upheaval of digital disruption: the “value vampire” and the “value vacancy.”

The value vampire is a dangerous form of digital disruptor that leaves all other players in the market in turmoil. A value vampire’s defining characteristic is that its competitive advantage serves to shrink the overall revenues or profits (or both) of a market. Value vampires are essentially an extreme form of digital disruption, and their ability to create three fundamental forms of value for customers—cost value, experience value, and platform value—is exceptional. They are hazardous to incumbents’ health because they provide a blueprint for how disruption occurs—one followed, to varying degrees, by a mass of digital disruptors bent on unseating market leaders.

The value vacancy is the “good news” of digital disruption, especially from the vantage of incumbent firms. This is simply a market opportunity (an adjacent market, an entirely new market, or an enhancement to an existing market) that can be profitably exploited through digital technologies and business models. This opportunity is open to both smaller disruptive players and large market incumbents—it all comes down to who outcompetes whom. The dynamics of what we refer to as the “Digital Vortex”—the competitive landscape dominated by digital disruption— show that such opportunities are short-lived and hard won.

This report aims to answer the three most common questions: 1) “How are digital disruptors attacking, or going to attack, my company?”; 2) “What steps should I take when I am attacked by digital disruptors?”; and 3) “What capabilities do I need, not only to respond to digital disruptors, but to go on the offensive and disrupt others?”

Source: DBT Center Twitter Feed