38 JULY / AUGUST 2017 Last year was the year “disruption” shifted from a business buzzword to the new norm. If the word disruption brings to mind Netflix killing Blockbuster’s business model, or Facebook surpassing traditional news media as an information source, think again. It’s not just technology companies. Consider the many traditional industries being affected by new ways of doing business. In 2005 Proctor & Gamble purchased Gillette for $56 billion. The high-margin disposable razor industry was an attractive market for the multinational consumer goods company. After all, its business is about shelf positions and facings. How else can a company compete without those prized display locations? You do what Unilever did in 2016 … you buy Dollar Shave Club for $55 billion less than what P&G paid for Gillette, and avoid the middle man altogether. Today, mail order razors account for 8 percent of the market. Not bad for an industry that didn’t exist five years ago. Disruptive? Airbnb/Hotels, Uber/ Taxis – Community Banks, You’re Next Airbnb’s year-overyear growth was 113 percent, compared to Marriott’s 8 percent and Wyndham’s 6 percent from 2014 to 2015. Airbnb started in 2008 and by 2016 had 500,000 guests per day. Today, one of every 30 lodging units in the entire U.S. market is an Airbnb listing. Not bad, considering Silicon Valley investors denied to fund the start-up when it sought $150,000 for seed money in 2008. Would you consider An Era of Disruption MARKETING / SALES NetGain Technologies is an associate member of the Indiana Bankers Association. Article author Bret Anderson VP of Marketing and Development NetGain Technologies banderson@netgainit.com
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