5 Sectors Ripe for Disruption in 2016

In the lead up to the silly season, TechExec. has put together a list of the 5 industries ripe for disruption in 2016.

SHARE

In the lead up to the silly season, OmniChannel Media has put together a list of the 5 industries ripe for disruption in 2016.

Government

In the innovation space Australia is a slow-starter. All recent reports indicate that our companies are sluggish in turning research into significant commercial opportunities. Our Prime Minister famously wants to change this.

On the day Malcolm Turnbull became Australia’s PM he told the world, and the nation:  “We have to recognise that the disruption that we see is driven by technology,” he said. “The volatility in change is our friend if we are agile and smart enough to take advantage of it.”

As a Christmas gift, the Prime Minister has just handed down a new innovation policy. Expect the Cloud, new initiatives for startups, and major changes to government services driven by the engagement of digital.

Retail

Australia’s retail sector – worth $265 billion– is facing a multitude of disruptive challenges, including increased pressure to take advantage of the growing ecommerce space, social media, and Big Data. But perhaps its greatest test will be in dealing with the demands of the biggest cohort of young people since the Baby Boomers – the Millenial’s. Born between 1980 and 2000, this generation relies on technology and exerts their discretionary power when selecting a purchase like they were wielding a lethal weapon.

Energy

The USA, Europe, and the Middle East are rapidly moving away from traditional energy solutions and turning to renewable in an effort to get off the coal-fired grid. All available evidence suggests that Australian consumers will follow – with or without – the support of government or vendors who control the sector.

New innovative products – solar systems, batteries, hydro-pumps – are at the forefront of the disruptive technologies that make it possible for users to generate, store, and control their energy needs. Big industries – farming, mining – are already engaged in the possibilities of green energy. In the face of all this, if traditional energy suppliers stick to all old business models they will end up the ‘new Kodak’.

Finance

The buzz on finance is that the space is actively embracing disruptive innovative technology. The big banks are investing in startups, exploring biotech, robo-banking, Big Data, artificial intelligence, and new apps to enhance customer experience. But is all this too late? Last week former

Barclay’s CEO Antony Jenkins gave a speech in London that said that traditional banks and banking will be forced to change their way of doing business in a new world of Fintech startups. He predicts that the traditional form of banking will face massive reductions in staff, branches, and profit. Jenkins suggested that only the courageous and the decisive would survive.

Education

In the tertiary sector, the idea of a teacher standing in a room before a group of undergraduates could become a quaint nod to the past. Analysts argue that the traditional business model for education is busted: it is expensive, wasteful in terms of resources, and in many countries, so expensive that candidates are failing to take up the opportunity.

Current curriculum models are not adequately equipping students with skill sets appropriate for specific workplace roles. All of which may explain the impressive rise of online education providers like Udacity, valued at US$1 billion last month while the sector can boast US$107 million before the year is out. In Australia, estimates say that 2015 will bring online education revenues north of $6 billion.