This happens in our life every day. In the business world, the PAC MAN’s are the Disrupters.
Disrupters in our economy are happening yet you may not notice them at first. Then all at once you realize how they have completely changed the industry and your personal habits.
Walmart was the disrupter that changed the retail industry. The low-cost provider in large and then larger stores. In 1987 company’s satellite network, a $24 million investment linking all operating units with the Bentonville office via two-way voice and data transmission and one-way video communication was completed. At the time, it was the largest private satellite network, allowing the corporate office to track inventory and sales and to instantly communicate to stores. This advanced technology and inventory management was the key to managing low cost.
June 29, 2007, was the day that Apple changed the cell phone industry with the introduction of the IPhone. This followed the IPod with Itunes and preceded the IPad. All disrupters and changers to the music and personal computing industry. With these Apple’s destroyed, damaged and created new companies and industries.
Today, Amazon has completely changed the way Americans shop. No longer do we spend our time walking through the mall looking for a product. We utilize the internet to search for, research and make purchases. My shopping habits have been permanently changed.
Last Sunday, I researched online and then purchased via Amazon a new scale for our house. The old scale was technologically outdated. I ordered the scale and with Amazon Prime, it arrived Tuesday via UPS.
Tuesday night, I spent nearly 2 hours trying to get the technology to work. It was then that I realized my research was faulty and had I read the comments under the review I used to make my selection, I would have never ordered the scale. I get minus points for not being thorough in my research.
It is this next step that I believe has completely changed the way American’s shop. Amazon’s return policy and service is top-notch.
On Wednesday morning, I logged into my Amazon account, clicked orders and with four clicks, I had initiated the return.
It was simple, easy and gives me confidence that if it is not right Amazon will take care of me.
I put the scale back into the box that it was shipped to us and on Thursday, the UPS driver brought the return label and picked the package up at my office.
Thursday night, I received an email from Amazon that my return was complete and my refund was processed.
Friday morning, I see the refund in my Chase Sapphire account.
Amazon has changed the shopping experience.
What are you doing in your business to evolve or stay ahead of the disrupters?
If you are not paying attention, then you could become the next Blackberry. You do remember the “Crackberry, don’t you?
Have a great weekend
PS Remember how Walmart changed retail? Recently Walmart purchased Jet.com to try and catch up with Amazon. The disrupter becomes disrupted.
Michael Tannery CPA CDFA® AIF® ● CEO
Be A Financial Olympian