A growing number of companies are finding their service businesses under threat. The culprits are members of a new wave of digital upstarts that capitalise on changes in technology, customer behaviour, and the availability of data to create innovative, customer-friendly alternatives to the services incumbents offer, says a report on McKinsey Quarterly.
The sorts of digital disruptions that began in retailing with the likes of Amazon, two decades ago, are fast happening elsewhere too. Examples include Uber and Zipcar in transportation, Airbnb in hotels and hospitality, AngelList in venture capital, and Castlight Health and Healthgrades in healthcare. Attackers such as these may be small now, but they represent a growing challenge to traditional companies.
The attackers also highlight an uncomfortable truth: large companies rarely put as much sustained effort and management attention into transforming services as they do with products, says the report. To read the whole report, click here