Nov 12, 2014
A clear warning was issued by a speaker at the Australian Technology Showcase for Accountants (ATSA) Conference in Melbourne, held on 20-21 October 2014, that the ‘digital disruption’ is starting to affect many industry groups.
Two years ago, Deloitte Chartered Accountants produced a report, ‘Digital disruption – short-fuse, big bang?’ This report predicted that six different industry groups would encounter 24% to 43% of revenue becoming ‘disrupted’ over time.
Jason Bender of Deloitte indicated that ‘disruption’ doesn’t mean revenue is gone. However, there would be a need for the affected industries to develop strategies on how to respond to changing market conditions.
Mr Bender referred to the changes that have occurred, over recent years, to businesses such as video stores and the flow-on effects that were then felt by property investors and shopping centres where other tenants missed the customer drawing power that the video stores used to generate. Mr Bender indicated that there’s a flow-on effect from one business closing down to others in the location.
The ‘digital disruption’ forecast highlighted significant changes that will occur.