Five years ago, the taxi industry seemed about as immune to digital disruption as any industry could be. Taxis, after all, were purely analog contraptions, far removed from digital innovation, software, apps, and the like. What’s more, their business model seemed as foolproof as the day it was created in the early 1900s: drivers prowled the streets until they spotted customers hailing a ride, drove them to their destination, and collected the fare.
Right? Well, wrong, actually. Enter Uber, and the taxi industry will never be the same.
Uber is a great example of what our recent Digital Vortex thought leadership called combinatorial disruption. In today’s climate of constant digital disruption, technologies and business models collide, combine, and recombine in startling ways. As the Digital Vortex sweeps everything of value to the center, non-digital processes fall away, to be replaced by more efficient value drivers.
In this model, the creation of new value is everything; the old value chain, meanwhile, is redefined to the point of being unrecognizable or obsolete with unnerving (for an industry incumbent) speed. Continue reading “In the Digital Vortex, It’s All About the Value, Not the Value Chain”





Guest blog by Leonard Luna, Marketing Manager, Cisco
