With rapid technological change and the evolving preferences presents a challenge to plenty of businesses. This applies to both small and new businesses as well as established companies, which will need to integrate innovative and transformative content into large existing platforms profitability.
There are some sectors like retail that have made advances with these changes like the growth of Amazon.
Sectors like finance are in the early stages of this transition.
New entrants are fighting to a large foothold, but established platforms struggle to integrate new transformative content like financial personal insights, peer-to-peer lending and holistic solutions that use an advanced client interaction technology and behavioral science.
Between these two extremes is urban accommodations that has undergone a back and forth. The experience that this area has had could signal what could happen elsewhere particularly in financial services.
The lodging sector was once dominated by large chains like Hilton, but this sector was disrupted by the entry of Airbnb.
They are based on technological innovation, behavior driven understanding of evolving consumer preferences, mobility and offer customers greater self-empowerment, which has created Airbnb as a major provider of rooms.
This has in turn left legacy accommodation reacting and is forcing Airbnb to adapt and use some of the older practices that established companies have used.
Expedia has spent close to $4 billion to be more like Airbnb.
Airbnb now needs to think differently as they face stiff competition. They announced that would now adopt variable pricing that adjusts prices to changing demand and supply.
In finance disruptive and traditional platforms will not be able to grow rapidly and profitably without more interactions.