How Drivers of Disruption Are Impacting Business

By Dennis McCafferty  |  Posted 05-18-2015 Email

CIOs today are frequently under pressure to come up with new, disruptive technologies. But how many have a map to pursue such efforts? A recent paper from The Boston Consulting Group (BCG) promises to deliver such a resource by pinpointing four critical drivers of disruption: the rise of big data; the deconstruction of value chains; the polarization of economies of mass (which refers to the pushing of business advantage simultaneously to the very big and the very small); and the rise of holistic, stacked architectures. The paper, titled "Borges' Map: Navigating a World of Digital Disruption," depicts a universe in which the walls between technology strategy and business strategy have crumbled, with the two becoming nearly identical concepts. (The title references a fictional map depicted in writer Jorge Luis Borges' "On Exactitude in Science.") The authors contend that there have already been two significant, historical waves of digital disruption–the Dot-Com era and Web 2.0–and we are now entering a third: hyperscaling. "Digital disruption is not a new phenomenon," according to the report. "But the opportunities and risks it presents shift over time. Competitive advantage flows to the businesses that see and act on those shifts first. We are entering the third, and most consequential, wave of digital disruption. It has profound implications not only for strategy but also for the structures of companies and industries." The following summaries of the four drivers–along with selected recommended strategic actions for each–are adapted from the paper.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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