DC Velocity - Digital 2018

Special Delivery

a. increase the level of competition from existing competitors (in terms of price, quality, features, and service);

b. bring new competitors into your market, either from startups or companies that currently compete in related industries?

More potential competition drives prices down. In response, supply chain managers should increase attention and priority to potential disruptions.

Question 3. What is the expected velocity of change?

For each of the disruptive technologies, what is the time frame for potential disruption, and how likely is each new technology to be adopted? The faster the velocity of change is expected to be, and the more likely it is that the innovation will be adopted, the greater your attention and priority should be.

It’s important to consider those questions in the context of your competitive positioning. In each of your markets, what is your current competitive position—leader, mid-

Disruptive
Technology
Business-model
Havoc
Competitive
Landscape
Velocity Potential for
Competitive
Advantage

Will this innovation impact:

; Customer value proposition?

; Revenue model?

; Cost model?

Will this innovation:

; Increase competition from existing rivals?

; Bring new competitors into your market?

What is the time frame of potential disruption?

Also, consider your current competitive position and the probability that the innovation will be adopted by rivals.

Will the successful adoption of disruptive technology give you an edge over your rivals? Will it be difficult for rivals to imitate? Will it be valuable for customers?

Green: 0–5% shift
Yellow: 5–10% shift
Red: >10% shift
Green: No
Yellow: Competition
from 1–2 other firms
Red: Competition from
more than 2 other firms
Green: 3+ years
Yellow: 1–3 years
Red: Less than 1 year
Green: No advantage
Yellow: 1–2 year
advantage
Red: > 2 year
advantage
Big Data/
Data
Analytics
Artificial
Intelligence