What is Business actually? | Give Solution, Otherwise Face Disruption

Do you know what the main purpose of doing business? Of course the answer is "providing solutions". Is your business already provide solutions to your consumers? Or have you not even understand their problems and just selling stuff which is they actually don’t need?

Currently being discussed by people (especially businessmen) about an era that would crush those who do not want to change: Disruption Era.

What is Business actually? | Give Solution, Otherwise Face Disruption
What is Business actually?

Disruption

The advancement of technology and telecommunications world will ravage the existing business model. For examples, Disc Tarra (a music store that sells CD or cassette) which is closed because the digital music players, PT Media Nusantara Citra (a local TV stations company) which is anxious because of the presence of Netflix (a global provider of streaming movies and TV series), many conventional distribution channels are truncated by the online, even off-air seminars slowly turn to webinar (online / web seminar).

Actually, how a business can be run over? Then, what kind of business can grind? I will explain.

Around the 1990s, several officers from a telecommunication company came to my house. They put a small device in the corner of my family room. They told me that it was a "phone". Since it mounted, I began to use it, and did give me benefits, I used the phone to call my father (he worked as a field officer and rarely stay at home). The device was really helpful indeed. After passing almost 20 years, gratefully it's still installed and used in my house.

But in fact, it is now a useless tool, no one uses it, it was lying without anyone even holding it. Why? Because we are already connected via smart phones.

You also experience the same thing, right?

Newer Kills Older

Business experts said that this is referred as "disruption": the new business model kills the old one.

Previously, Telkom (a telecommunication company in Indonesia) was utilizing a cable network to stream sound waves through the fixed line. Then the era of GSM came. And Telkom has set up a business unit which grinds itself, named “Telkomsel”.

But this has not happened with PT POS (the state-owned company in Indonesia, being responsible for providing postal services). Business models that started from conventional mail delivery must be crushed by electronic mail (e-mail). Their money transfer services are also beaten by the banks. PT POS now vigorously replaces their business model into a payment gateway and focuses on the expedition services (shipping of goods between cities or islands). I hope the strategy works.

Disc Tarra was closed because MP3 files and digital movie piracy are already available as open source. There are hundreds of travel companies which are crushed because of being hit by Traveloka (an online travel company). There are hundreds of cellphone stalls which are willing to compete on a very cheap price with Lazada (an online stall). What to be done. They were grinded by the grinders.

But I do not agree that our main issue is a matter of crushing and crushed, grinding and grinded. Actually, all that happened was a very natural market movement. Markets will switch on the products or services that are able to provide better solutions for them. Better quality, cheaper, faster and more fun. That's the market.

Email grinds PT POS because it is faster and cheaper. It can even be more fun because there are facilities such as "image attachment", "forward", "reply", "emoticons", fast and the mails can be stored properly only in a URL, without buried in your house / room.

GSM / mobile phone grinds fixed-line / conventional phone. Because it is easy to carry, quick and fast. Moreover the modern version: smart phone. Mobile telecommunications companies must be prepared to experience declining revenue because they lose revenue from short message service (SMS). Remember, smart phone apps are already able to give them chat and online calling services, which are pretty cheap. Amazing? Or Terrible?

Again, they who provide more solutions, crushes whom does not provide better. Get along.

This is important for us to understand what exactly the business is, what disruption era is. The key is not the case on how to use the products. But the more substantive thing is questions below:
- Think. Does your product already provide the real solutions to people?
- Are there any other companies that can provide a better solution?
- Is the solution you offer through your products have a competitive price?

Read this to know the substance of business.

Let’s give the solution, otherwise we face the disruption.
-Rendy Saputra, CEO of KeKe Group

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