India was already on a digital-first trajectory with one of the highest volumes of digital transactions in the world when the pandemic struck, and further propelled the use of contactless digital technology. The digital reset of the Indian economy has seeped into almost every aspect of life ranging from FMCG and eCommerce to edtech and health care.
It is said that a rising tide raises all boats. To begin with, the transformation journey would be led by some sectors and the effects would then trickle down to other wheels of the economy. The situation also raises the question – which industries are most likely to be disrupted? Which sectors must brace themselves to face steep competition from agile startups with innovative business models? Here is our list of 6 industries most vulnerable to digital disruption:
- Retail: The face of Retail has changed as digitalization is reshaping the Retail industry in terms of power, consumer behaviour and the marketplace as a whole. Unlike previously, the sole power is shifted to the customer who drives key decisions such as what to buy, when to buy, where to buy, how to buy. Thus to understand consumer preferences better and improve business performance, retailers are adhering to technologies such as Big Data, Artificial Intelligence, the Internet of Things and Augmented or Virtual Reality. Futuristic retailers are using analytics, sensors, location services to provide context-aware experiences that meet customers’ specific needs at any given moment. As per Forrester Research, in 2020, India’s retail sector size was estimated to be US$ 883 billion.
- Education: Digitalization has enabled educational institutes to restructure the learning processes, making it more accessible, affordable and enjoyable to learners. The rapid growth of Massively Open Online Courses (MOOCs) is already making it easier for students from all walks of life to continue with their studies. The use of audiovisual assets along with collaborative and teamwork solutions help learners to proactively participate in projects and be more future-ready.
- Financial services: Digital is becoming mainstream for the financial services industry. Tasks once executed manually via human interaction are now being completed entirely on digital interfaces. Almost every type of financial activity – from wealth management to payments to banking and others – is being re-structured by startups with technology playing the role of a transforming agent. Financial Service companies are looking at Blockchain and Fintech to transform their existing business models, advancements in artificial intelligence and robotics are being adhered to to create new opportunities for growth and Machine Learning for advancements in automation.
- Healthcare To say that technology has empowered medical professionals to deliver improved healthcare would be a massive understatement. It has enabled the IT teams in hospitals to store and analyze patient records, and derive key insights based on their medical history with enhanced accuracy. The integration of robotic implements has resulted in the increased precision and success rates of various medical procedures including surgeries, disease detection, diagnostics, pre-emptive healthcare delivery, etc. Various healthcare startups like the Bangalore-based mFine are using Artificial Intelligence and Machine Learning to take machine led diagnosis one step deeper than patient interactions. The company claims to handle approximately 15,000 cases in a month, which is approximately the size of Manipal Hospital, one of the largest physical hospitals in Bangalore.
- E-commerce: The booming e-commerce sector has the technology to thank for its outstanding growth. As various e-commerce platforms have now entered the picture, each company is leveraging technology to differentiate itself while focusing on engaging more consumers and maximizing user satisfaction. Some of the innovations driving this sector’s growth are SEO and data analytics, among others. Robotics and blockchain are also driving many innovations in the e-commerce space.
The digitalization during the pandemic is throwing up opportunities for new digital businesses, prompting more entrepreneurs to enter the fray. Deal flow and the number of startup ideas registered a 50 percent-plus uptick from the previous quarter. Private equity (PE) and venture capital (VC) investment in the country rose to its 10-year peak primarily due to the increasing number of large deals greater than $100 million as well as an increase in their average deal size.
With technology evolving faster than we can imagine, the need for professionals who possess excellent technical skills has also skyrocketed. The growth of these sectors, therefore, also means that various technology-related job opportunities will be up for grabs in the future.
Categories: Knowledge Series