The transformations brought about by digital technology, and the speed at which they happen, cannot be overstated. Before we even knew we needed them, we had Airbnb, Netflix, Uber and other life-changing services. More are on the way. I am certain that you have all seen the effects of digital disruption in many businesses, regardless of industry or size.
Finance is a prime example. Just two weeks ago, I read that Bank of America had shrunk from 6,131 branches in 2008 to 4,411 as of June 2018. US banks have closed 9,000 branches over the past decade, including 1,700 in the 12 months to June, according to the Wall Street Journal.
In Thailand, the number of branches nationwide was 6,734 at the end of June, against 7,016 at the end of 2016. Thousands of local bank jobs are being eliminated, mostly through attrition, over the next few years as digital services gain ground.
You might be wondering: are banks slowly declining as a business? The answer is no. In fact, banks have embraced digital technology through mobile apps and other offerings. Their business model has definitely been affected by the speed of technological advances, but most are finding new ways to stay relevant to their customers.
As digital disruption affects business models, the customer experience and journey are changing. If you're a bank customer, instead of going to a branch to do many of your transactions, you now do them online or through an application on your smartphone.
At some ATMs, you don't even need a card anymore, your smartphone will do. Of course, some people don't even visit ATMs because they rarely use cash. All their money is stored in their phone, too.
As digital disruption changes the way your customers interact with your business, it also changes how the people in your organisation work.
The internal impact of technological change can take many forms, but for many employees it will involve a new work flow and changes in daily tasks. There might be a reduced amount of face-to-face customer interactions, while there will be more maintenance and development on the tech side.
Just as we are seeing in finance and banking, any industry can be affected. So, how can you and your organisation grab the opportunities of digital disruption?
Disruption brings both challenges and opportunities. But it's not like a lottery where certain companies get to win and some don't. So for starters, keep in mind that digital disruption can bring business opportunities for you if you choose to see it in a positive light.
Everything begins with mindset. If you choose to see change as an opportunity, act as if you were grabbing that opportunity, you will be able to turn something that many fear into a foundation for new success.
Mindset is the core of your behaviour and decisions. Routinely practising a positive mindset not only allows you to see business opportunities in disruption, it will also shape your everyday interactions with your people and even those in your personal life.
Shifting to a positive mindset doesn't necessarily mean you are trying to become optimistic. It is about changing how you view everything around you, and seeing people as people rather than nuisances or obstacles. This concept is what the Arbinger Institute calls the outward mindset.
Second, as you reshape your mindset to view disruption differently, you will also need to encourage your people through that shift.
It is easy to believe the hype and get excited about the idea of opportunity. However, if you or your people don't motivate, support and encourage each other, chances are this will last only a couple of months.
Third, nurture a learning environment in your organisation. This is something I can't stress enough, because without learning, there is no progress in our world. Businesses cannot venture into new areas if they remain the same as they've always been. Even in innovation, constant learning is required.
Whether you're pushing innovation or not, in order to find the opportunities in disruption, you also need to be learning constantly.
In sum, digitisation is clearly threatening many businesses. But this kind of disruption, among many other types, can also be seen as an opportunity. It is up to you as business leaders to decide how you choose to shift the mindset, lead and nurture the learning of your people.
Arinya Talerngsri is chief capability officer and managing director at SEAC (formerly APMGroup), Southeast Asia's executive, leadership and innovation capability development centre. She can be reached by email at arinya_t@seasiacenter.com or visit www.seasiacenter.com/ for more information.