“Your customers can’t get what they want where and when they want it.
• “Your customers get a user experience that doesn’t match global best practice.
• “Redundant value-chain activities, such as a high number of handovers or repetitive manual work”
• You have “well-entrenched physical distribution or retail networks”
• You are in an industry with “margins that are higher than those of other industries”
• “You offer a physical product, such as thermostats, that’s not yet ‘connected.’”
• “There’s significant lag time between the point when customers purchase your product or service and when they receive it.”
All these early-warning signs point to opportunities for some startup ready to take a bite of the market. These are all conditions that can be addressed before things get Ubered or Amazoned. “The digitization of processes and interfaces is itself a source of worry,” the authors state. “But the feeling of not knowing when, or from which direction, an effective attack on a business might come creates a whole different level of concern.” They even equate the sudden chomping off of market share by digital players to that of shark bites suffered by surfers. That is, you simply don’t know what’s about to eat you until you suddenly feel teeth sinking into your leg. “Thanks to outsourced cloud infrastructure, mix-and-match technology components, and a steady flood of venture money, start-ups and established attackers can bite before their victims even see the fin,” the authors state.